LaSalle Acquires Phoenix Industrial Asset

LaSalle Investment Management has acquired Buckeye85, an industrial building in Phoenix, on behalf of LaSalle Property Fund, its U.S. core open-ended investment vehicle. The previous owner was Lincoln Property Co. in conjunction with Goldman Sachs, according to CommercialEdge information.

Completed in 2023, the 321,892-square-foot warehouse is fully leased to Tempur-Pedic. The pillow and mattress manufacturer preleased the property last year and uses it as a distribution center. The cross-dock industrial building features a 36-foot clear height, 91 dock-high doors and concrete truck courts. 

The warehouse rises on 20 acres at 10333 W. Buckeye Road, at the southwest corner of 103rd Avenue and Buckeye Road/MC-85 Highway in the Interstate 10 Corridor. The location is 2 miles from a full-diamond interchange at I-10 and 107th Avenue. Amazon, McKesson, PepsiCo, Kroger and Home Depot, among others, operate nearby.

Leading the nation for industrial development

For many years now, Phoenix has been the country’s leading market for industrial development. The metro’s growth is propelled by high-tech sectors, including semiconductor manufacturing and data centers, infusing the area with advanced technology and innovation.

This development surge boosts the local economy and enhances Phoenix’s appeal as a hub for cutting-edge industries. DAUM Executive Vice President Chris Rogers, who specializes in Phoenix industrial assets, told Commercial Property Executive that the Valley’s industrial market remains a flagship destination for developers, owner-users and tenants.

For instance, Amazon and Logistics Plus have signed new leases totaling more than 4 million square feet in the metro since the start of 2024, Rogers said. In one of the more recent deals, Amazon leased 1.2 million square feet at a Prologis-owned business park.

“Meanwhile, nearly 40 million square feet of new industrial space has been delivered in 2024,” Rogers added. “Despite this significant growth, small-bay properties of 50,000 square feet or less have a vacancy rate of around 4 percent.”