A credible market position
The subject property occupies a strategic infill site within the Sky Harbor industrial submarket, an area that has demonstrated unusually durable rent growth since the 2024 logistics realignment. Building A, the subject of this appraisal, comprises 23,400 square feet of multi-tenant flex space with dock-high and grade-level loading, twenty-four foot clear height, and modest office buildout averaging twelve percent across the four units presently in occupancy.
The improvements were completed in 2009 by a regional industrial developer and have been continuously owned and operated by the current ownership entity. The property reflects average condition for its vintage and demonstrates above-average functional utility for its location and tenant profile.
The Sky Harbor submarket compounds two effects rarely seen together: durable airport-proximity demand and limited new supply caused by long permitting timelines.
Andy Gonzalez · IRR Phoenix⁂ ⁂ ⁂
Phoenix industrial: supply discipline meets durable demand
Submarket inventory and absorption
The Sky Harbor submarket contains approximately 38.4 million square feet of industrial inventory, of which 14.2 percent is classified as flex or multi-tenant. Net absorption over the trailing twelve months totaled 1.4 million square feet, representing 3.6 percent of inventory and outpacing the broader Phoenix metropolitan average of 2.1 percent for the same period.
New deliveries during the same window were limited to 480,000 square feet, the majority of which were single-tenant build-to-suit transactions for established occupiers. Speculative multi-tenant flex development remained essentially absent, a continuation of the supply-side discipline that has characterized this submarket since the second half of 2024.