22280-22330 S Scotland Ct
Queen Creek, AZ 85142

Industrial demand remains steady in the Chandler N/
Gilbert Submarket as a host of distribution, advanced
manufacturing, and data center tenants fill properties.
The submarket has key infrastructure advantages that attract
industrial users, such as the Phoenix-Mesa Gateway
Airport, ample freeway access, and the Union Pacific
Railway. Additionally, the area’s status as an opportunity
zone as well as other public policy initiatives like the Pecos
Advanced Manufacturing Zone and Elliot Road Technology
Corridor provide favorable regulatory treatment
to operators and builders. These factors helped drive a
record 3.8 million SF of net absorption over the last 12
months, well above the five-year annual average of 1.5
million SF.
Developers have responded to this heightened demand
with the most aggressive construction pipeline the submarket
has ever seen. Roughly 10.2 million SF of industrial
space is currently underway, which will expand the submarket’s
inventory by 35.5% once delivered. Much of the
space is being built without a tenant in place as developers
bet big on the submarket’s growth outlook.
Investment activity is also at record levels. Approximately
$772 million worth of industrial assets has changed hands
here in the last 12 months as both institutional and large
private buyers target the submarket. The area’s strong
property performance and relatively higher yields when
compared to California markets make it an attractive investment
option.