Lincoln Property Eyes Office-to-Industrial Conversion Project

Construction on the suburban Phoenix development is scheduled to begin next year.

Construction on Sky Harbor Logistics is expected to begin in the second quarter of 2025
Construction on Sky Harbor Logistics is expected to begin in the second quarter of 2025. Image courtesy of Lincoln Property Co.

Lincoln Property Co. plans to redevelop an infill office project in Tempe, Ariz., to create Sky Harbor Logistics. Construction is expected to begin in the second quarter of 2025.

Lincoln paid $18.3 million for the 16.3 acres at 1515 W. 14th St. The existing infill space was built in 1977 as industrial space and renovated in 2016 into office product.

Will Strong and Molly Hunt with Cushman & Wakefield represented the sellers, Wentworth Property Co. and Northwood Investors. Jeff Wentworth, Mike Beall and Chris Walker, also of Cushman & Wakefield, provided property leasing support.

Office-to-industrial conversion plans

Today, the 218,268-square-foot, single-story office building is home, in part, to CarMax and is under a near-term lease expiration. It has a 1,044-space parking garage.

Lincoln will demolish the existing structures to make room for a pair of identical, 127,000-square-foot Class A buildings with a shared truck court. The project was designed for flexible single- or multi-tenant use and speed-to-market.


READ ALSO: Designing Buildings With Conversion in Mind


When complete, Sky Harbor Logistics will have a 32-foot clear height, 46 dock-high and 28 drive-in doors, as well as 3,600 amps of power per building. An HVAC system and LED lighting will be included and Early Suppression Fast Response sprinklers will be installed. In addition, clerestory windows are to surround each building to maximize natural interior lighting. Furthermore, Lincoln plans to reduce the parking area to 535 spaces.

The Class A industrial campus will be close to Sky Harbor International Airport and Interstate 10, providing connectivity to the entire Valley. The site is also proximate to the main campus of Arizona State University and the extensive shopping and dining amenities of downtown Tempe.

Butler Design Group is the architect for Sky Harbor Logistics. The firm has also designed EastGroup Properties’ two-phase industrial project in Phoenix’s Southeast Valley. Gateway Interchange is a seven-building, 655,400-square-foot complex on 50 acres in Mesa, Ariz.

Lincoln Property Co. broke ground last month on I-10 International, a 1 million-square-foot industrial campus in Tucson, Ariz. The $75 million first phase comprises three facilities totaling 562,245 square feet across 79 acres.