The evolution of industrial real estate in Phoenix has been a fascinating journey shaped by technological advancements and market demands. Using innovative mapping technology, including Uber H3, we recently analyzed the Phoenix logistics market through a unique lens: hexagons covering approximately two square miles. Each hexagon reflects the interplay of age and clear height, offering a comprehensive view of how industrial properties in the region have changed over time.
Clear Heights and Industrial Evolution
1980s and Earlier:
Industrial properties near Phoenix Sky Harbor International Airport dominate the older building stock. These pre-1980s structures typically have clear heights below 15 feet, reflecting the operational needs of an era before modern logistics.
1980s-1990s: The Retail Chain Boom
The rise of national retail giants transformed logistics. Regional hubs and “just-in-time” inventory systems demanded more efficient use of space. Developers found that taller ceilings, rather than wider buildings, optimized cubic square footage. This trend marked the beginning of a shift toward properties with increased clear heights.
2010s: E-commerce Takes the Lead
The explosion of e-commerce in the 2010s brought sweeping changes to industrial design. High throughput and rapid delivery requirements drove demand for modern warehouses with higher ceilings to accommodate automation, robotics, and vertical storage systems.
2020s: Meeting Regional Demand
The latest boom has been centered around Phoenix’s role as a key logistics hub for the Southern California market. Newer industrial properties, primarily in areas like Citrus Park and Goodyear, now feature clear heights nearly 50% greater than those built in the 2000s. This shift reflects the region’s growing importance in regional and national supply chains.
Mapping the Future of Phoenix Logistics
Phoenix’s industrial real estate market illustrates the broader trends in logistics and technology. Modern facilities are not only about floor space—they’re about height, adaptability, and technological integration. As demand for efficient, high-capacity spaces continues to rise, Phoenix is setting a new standard for the industry, adapting to serve both local and regional markets.
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