Bulking up supply chain, Dollar Tree buys Arizona distribution center

Article originally posted on CoStar on October 6, 2025

Discount juggernaut Dollar Tree is bolstering its supply chain, acquiring a distribution center in the Phoenix area for $147.1 million to better serve the Southwest.

The Chesapeake, Virginia-based retailer on Friday said it had purchased a 1.25 million-square-foot industrial facility at 7200 N. Sarival Ave. in Litchfield Park, Arizona. Dollar Tree will be the first company to operate the turnkey facility, which is slated to open next spring.

Lincoln Property Co. sold the Class A industrial building that’s within its Park303 logistics hub to Dollar Tree. Another discount giant, Walmart, is a tenant within that industrial park.

“Our new distribution center will strengthen our supply chain in the Southwest, enabling us to serve stores with greater speed and efficiency … and supporting our company’s future growth,” Roxanne Weng, Dollar Tree’s chief supply chain officer, said in a statement.

As one of Dollar Tree’s largest distribution centers, the climate-controlled facility will service stores in Arizona, Colorado, Nevada, New Mexico and Utah, according to the retailer. It is also expected to create 400 jobs.

The Litchfield Park acquisition follows Dollar Tree’s recent groundbreaking for a 1 million-square-foot distribution center in Marietta, Oklahoma, to replace a facility destroyed last year by a tornado. The enhanced Marietta distribution center, which is expected to be operational by spring 2027, will serve about 700 Dollar Tree stores across the West and Southwest United States.

Dollar Tree purchased the Arizona building to “establish a regional distribution center at the site, marking the company’s first regional distribution facility in the metro Phoenix market,” according to a statement from Lincoln Property.

The discounter operates over 9,000 stores and 18 distribution centers, and it has about 150,000 employees across the United States and Canada.

“Dollar Tree’s site selection process prioritized a modern workplace and a facility that was both operationally efficient and able to remain flexible in a fast-changing market,” David Krumwiede, Lincoln Property senior executive vice president, said in a statement. “Park303 gives them all of this … including Dollar Tree’s plans to further expand the site’s trailer-parking capacity to meet the company’s unique logistical needs.”