Lincoln Breaks Ground on Phoenix Office-to-Industrial Project

Article originally posted on HERE on May 7, 2026

The 256,000-square-foot effort will consist of two nearly identical buildings sharing a truck court.

Lincoln Property Co. has broken ground on Sky Harbor Logistics, a 256,000-square-foot office-to-industrial redevelopment that will bring a two-building, Class A logistics campus to an infill site in Tempe, Ariz. Completion is scheduled for spring 2027.

The redevelopment brings the property full circle, because the site was developed for industrial use in 1977, then converted to office use in 2018, Lincoln Executive Vice President John Orsak explained in a prepared statement.

Lincoln has been at work on the Sky Harbor Logistics site since 2024, demolishing an almost 220,000-square-foot office building and parking garage to make the parcel shovel-ready once again. The site is within a few minutes of Phoenix Sky Harbor International Airport.

“This site has lived a rare full-circle journey, but it reflects a correction happening in markets across the country,” Lincoln Senior Executive Vice President David Krumwiede told Commercial Property Executive. “Infill land near major airports and interstates is too scarce and strategically valuable to sit underutilized. Developers and investors are recognizing that, and Sky Harbor is a prime example of the market finding its highest and best use.”

On completion of the redevelopment, the 16.25-acre site at 1515 W. 14th St. will consist of two nearly identical logistics buildings sharing a 190-foot truck court, with Building A comprising 128,105 square feet at Building A and Building B holding 127,661 square feet.

Each will offer 32-foot clear height, 3,600 amps of power, 44 dock doors, four drive-in doors and 266 parking spaces to support high-throughput distribution, air freight and time-sensitive supply chain operations. Each building will also feature ESFR sprinklers, LED lighting and clerestory windows.

Designed for use by single or multiple tenants, the buildings will be divisible to 32,000 square feet, with multiple architectural entries and two 1,592-square-foot spec office suites per building.

Butler Design Group is the project architect, and Willmeng is the general contractor. Lincoln will handle leasing and property management.

Earlier in May, Lincoln announced it had raised $280 million in capital commitments for its Lincoln Logistics Fund II, representing a cornerstone close for the fund that focuses on last-mile, multi-tenant investments across the U.S. The close totals more than a quarter of the fund’s $1 billion target.

Another office-to-industrial conversion

Industrial space in the Phoenix Airport submarket has a total vacancy of 7.6 percent on an inventory of 49.5 million square feet and saw a modest amount (about 191,000 square feet) of negative net absorption in the first quarter, continuing a situation from 2025, according to a report from Kidder Mathews. About 1.3 million square feet is under construction.

Last November, ViaWest Group and Barings obtained $107 million in construction financing for ReDiscover Logistics Park, a four-building, 808,448-square-foot industrial development in Phoenix. The four buildings will range from 189,280 to 212,000 square feet and feature 32- to 36-foot clear heights.

The funding reportedly was the largest construction loan for a speculative development in Arizona in 2025. The planned project is also an office-to-industrial conversion, as the 43.5-acre site was home to a former call center building, which was to be demolished.