INDUS Expands Phoenix Industrial Portfolio with 418,000-Square-Foot Acquisition
INDUS Realty Trust, Inc., a U.S.-based logistics real estate company, has expanded its presence in the Phoenix industrial market with the acquisition of a fully leased, 418,000-square-foot Class A warehouse and distribution facility. The transaction adds a modern, strategically located property to the company’s growing portfolio and strengthens its position in one of the country’s major logistics and distribution markets.
The newly acquired facility is located in the Tolleson submarket of Phoenix, Arizona, an established industrial area known for its access to major transportation routes and proximity to the broader Phoenix metropolitan area. The property provides direct connectivity to Interstate 10, a critical freight corridor linking Phoenix with Southern California and other major markets across the Southwest.
The acquisition comes as demand for high-quality industrial and logistics space continues to support investment in major U.S. distribution hubs. INDUS said the property offers a combination of location, building quality and future rental growth potential that aligns with its investment strategy.
Modern Class A Distribution Facility
The 418,000-square-foot building was acquired fully leased, providing INDUS with an occupied industrial asset from the outset. Designed to support modern logistics and distribution operations, the Class A property features a cross-dock configuration, allowing goods to move efficiently through the facility.
The building includes ample loading doors and trailer parking, important features for tenants operating large-scale distribution and supply chain businesses. It also features 180-foot-deep truck courts that are fully secured and gated, providing additional operational flexibility and security for tenants.
The property’s physical characteristics are well suited to the requirements of today’s logistics users, particularly companies that need efficient truck circulation, loading capacity and access to regional transportation networks.
Its location in Tolleson further enhances the facility’s appeal. The submarket provides access to the wider Phoenix metropolitan area while positioning tenants near major freight routes serving the Southwest.
Opportunity for Future Rental Growth
According to INDUS, the acquisition was completed at a price significantly below the estimated cost of replacing the asset. The company also identified an opportunity to increase rental income over time because the existing leases are below current market levels.
Andre Ciani, Director of Acquisitions for the Phoenix region at INDUS Realty Trust, said the combination of the property’s location, quality and below-market rents made the acquisition particularly attractive.
The company expects to benefit from what it describes as strong mark-to-market potential, meaning rents could increase as existing leases expire and the property is repositioned closer to prevailing market rates.
Ciani also pointed to leasing momentum for industrial buildings of this size and larger in the Phoenix market. Continued demand for large-scale distribution facilities could provide additional support for future rental growth at the property.
Phoenix Portfolio Surpasses 1.5 Million Square Feet
The acquisition represents another major step in INDUS’ expansion across the Phoenix market. Following the transaction, the company’s Phoenix portfolio has grown to more than 1.5 million square feet.
INDUS completed its first acquisition in Phoenix less than two years ago, making the pace of its expansion in the market notable. The company has continued to target industrial properties that offer strong locations, modern specifications and long-term demand potential.
The growth reflects the company’s broader strategy of building a diversified logistics real estate portfolio in markets supported by population growth, economic expansion and transportation infrastructure.
Phoenix Remains a Key Logistics Market
INDUS President and CEO Michael Gamzon emphasized the strategic importance of Phoenix to the company’s long-term growth plans.
Phoenix has developed into a major distribution center for the Southwest and is also becoming increasingly important as a hub for advanced manufacturing and data center development. Significant investment from multinational corporations has contributed to the region’s economic growth, while population increases have created additional demand for goods, services and distribution infrastructure.
These trends have helped support long-term demand for industrial real estate throughout the Phoenix metropolitan area.
The newly acquired facility also benefits from its location in the infill Tolleson submarket, which INDUS describes as supply constrained. Limited availability of appropriately located industrial properties can make existing high-quality facilities particularly attractive to investors and tenants.
Gamzon said the acquisition strengthens INDUS’ portfolio by adding a high-quality industrial property in a strategically important submarket.
Focus on High-Quality Industrial Real Estate
The Phoenix transaction fits within INDUS’ broader investment strategy of acquiring and developing industrial properties in high-performing U.S. markets.
The company said it has access to significant capital from its investors, including Centerbridge, GIC and ADIA, allowing it to continue pursuing growth opportunities.
INDUS intends to use that capital to expand its platform through additional acquisitions and development projects involving high-quality industrial properties in markets with strong long-term fundamentals.
The company’s strategy is focused on identifying assets that can benefit from favorable logistics trends, strong tenant demand and attractive market conditions.
Transaction Advisors
The transaction was arranged by Cushman & Wakefield’s National Industrial Advisory Group – Mountain West. The team involved in the transaction included Will Strong, Jack Stamets, Molly Miller, Michael Matchett and Madeline Warren.
Their involvement reflects the continued activity in the Phoenix industrial investment market, where demand for large-scale logistics facilities remains supported by the region’s transportation infrastructure and economic expansion.
With the acquisition now completed, INDUS has further established its presence in Phoenix and increased its exposure to the Tolleson industrial corridor. The combination of a fully leased Class A facility, strategic transportation access, below-market rents and potential future rental growth gives the company a strong platform for long-term value creation.
As Phoenix continues to attract businesses, residents and investment, INDUS is positioning its expanding industrial portfolio to benefit from the market’s evolving logistics, manufacturing and distribution needs.
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