Phoenix has experience unprecedented growth in the last several years, and the pandemic has only helped to accelerate the market's expansion. While job growth and population growth have been credited as the drivers of the market growth, location has also played a major role. Phoenix is within an eight-hour drive of Southern California, and logistics companies looking for high quality space can access the local Phoenix population as well as major population centers in Southern California.
"In addition to land affordability, availability and shovel-ready sites, Phoenix is strategically located within an eight-hour drive to the ports of Southern California and the dense markets there, and Phoenix is also close to Mexico for an additional logistical advantage," Mark Seale, principal and director of brokerage services at
Avison Young, tells GlobeSt.com.
Recommended For You
This has made Phoenix a top geographic market for logistics users, particularly those relocating from California. Those users see Phoenix as a more affordable market with better supply availability. "Phoenix has been the new darling price-wise for distribution and manufacturing centers and it has less regulations and restrictions than California," says Seale.
This has been a trend over the last several years, but last year, several major users ramped up activity in the market. "We have seen a number of national and international supply chain providers locate to Phoenix over the last several years. Amazon alone did 12 deals here in 2020," says Seale.
The pandemic has massively disrupted all asset classes, and industrial could see some competition from retail brick-and-mortar locations moonlighting as distribution centers. "Like in all parts of the country, retail businesses have had to modify pre-COVID capabilities to provide for curbside pickup, contactless delivery, and other pandemic related changes required to survive," says Seale. "The ability to localize supply and use stores as shipping and pickup points for goods purchased will continue to evolve rapidly and most likely remain a key component of retail business as the consumer has adjusted their patterns and practices to accommodate their safety concerns related to the virus."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Kelsi Maree Borland
