Last-Mile Logistics Demand ‘Skyrocketing’ In Phoenix

Last-mile logistics demand is booming in Phoenix. According to construction company Greycor, requests for last-mile logistics facilities are among the top requests from developers. It isn’t surprising. Phoenix is leading in the nation in population growth and it is only an additional four-hour drive from Southern California’s Inland Empire, one of the hottest industrial markets in the country.

“In Phoenix’s industrial market, demand for last-mile distribution is skyrocketing,” Stephanie Handley, business development manager at Greycor, tells GlobeSt.com. “That process relies on efficiency, so anything a project can do to improve a company’s efficiency is highly valued. Increased clear heights for racking and stacking product, the number and configuration of dock doors and trailer bays, a property’s physical location along transportation routes and the availability of skilled labor are all important. These are the same advantages that industrial properties have always looked for, but are being evaluated on an infinitely more sophisticated scale today.”

Building last-mile logistics can be challenging, especially considering the specific needs of distributors. “This all requires builders and developers to be at the top of their game, paying attention to the small details and how they fit together with the big picture,” says Handley. “Graycor has a great reputation for performing consistently and that is important right now. With so many nuances involved in a project and speed to market so important, clients need to have confidence that their builder can perform.”

One of the biggest challenges for developers is balancing rising construction costs, which have continued to rise over the last few years. This is true not only for industrial last-mile logistics but for all projects in Greycor’s pipeline. “Developers will always want the highest quality product for the lowest price, and our challenge still comes down to creating the balance that delivers on that expectation,” says Handley. “For years, the biggest roadblocks in the construction industry has been high material costs and high labor costs due to a shortage of skilled workers.”

While pricing can be a challenge, Handley, who recently joined the firm, says that Greycor is well-equipped to handle developer’s needs. “These factors are trying but they also are what make our job such fun,” she says. “They push us to work creatively, to maximize value and to maintain first class teams so that our clients can rest assured that they have experts on their project site.”