Phoenix continues to prove it’s a top-tier logistics and industrial hub:
- 15.1M square feet of industrial space is under construction as of March 2025 — second only to Dallas.
- Data centers now account for nearly 40% (5.8M SF) of this new development, signaling a shift beyond traditional warehousing.
- Despite a slowdown from the pandemic-era boom, $449M in industrial sales YTD ranks Phoenix fourth nationally.
- Amazon remains a key player:
- 1M SF lease in Buckeye’s Paloma Vista Logistics Center
- 1.2M SF leases in both Glendale and Goodyear
- West Valley hiring could top 6,000 new jobs
📦 Market Drivers & Risks
- E-commerce is the dominant force — online retail grew 8% YoY compared to 3.4% for core retail sales.
- Tariff uncertainty could cause large operators like Amazon to pause expansion.
- Retailers like Walmart & Target are also expanding logistics networks to compete with Amazon.
🏭 Broader Trends
- Demand is diversifying: Industrial space is now used for manufacturing and data centers, not just warehouses.
- Developers report more mixed-use facilities — combining logistics, office, and tech in single buildings.
💡 Investor Takeaway
Phoenix’s industrial boom isn’t over — it’s evolving. The growth in data centers, coupled with continued e-commerce momentum, makes the Valley a prime location for logistics and tech-forward industrial assets.