These Phoenix industrial submarkets are among the nation’s leaders in sales volume in 2025

Article originally posted on CoStar on November 25, 2025

About $4.3 billion worth of industrial properties traded hands in Phoenix so far in 2025.

That amount trails only Los Angeles in year-to-date sales volume, despite Phoenix having nearly a 50% smaller existing industrial inventory. Additionally, the Valley was home to three of the top 15 submarkets, including the nation’s lone $1 billion submarket.

The surge of new supply over the past few years brought a fresh offering of institutional-quality assets to Phoenix, drawing significant buyer attention. Additionally, the Valley boasts strong tailwinds related to advanced manufacturing and logistics, supporting a positive long-term outlook.

Big-ticket transactions have become commonplace as investors remain eager to place capital here. There have been eight single-building industrial sales of $50 million or more so far in 2025. In the five years from 2015 to 2019, just seven such deals occurred.

The year’s largest such transaction was Dollar Tree’s $147.1 million purchase of Park303 Phase 2 Building C in September 2025 as an owner/user. The seller and developer was Lincoln Property Company, which built the 1.25 million-square-foot distribution center in the Glendale Submarket in 2023.

The sprawling Glendale submarket encompasses a broad geographic footprint, including West Glendale, Litchfield Park and most of the Loop 303 Corridor. The area has emerged as a critical link in national supply chains and is a popular target for third-party logistics firms and other distribution-oriented tenants.

The nearby Tolleson submarket fits a similar profile, benefiting from access to the Interstate 10 and Loop 101 freeways. The largest sale in the area this year was SENTRE’s $57.75-million acquisition of 7000 W. Buckeye Road from AEW Capital Management and Condor Cold Storage in October. The 286,500-square-foot cold storage facility was fully leased by Café Valley.

On the other side of the Valley, the Chandler area is more known for infill small- and mid-bay product as well as manufacturing. Lincoln Property Company’s $130 million purchase of a partially occupied data center in October was the largest transaction in the submarket this year.