A 39.8k sf manufacturing and distribution industrial building in Tempe, AZ traded hands in a $7.3 mil ($183/sf) deal. The property is located at 1326 West Fairmont Drive.

The asset acquired is centrally located in Tempe, with close proximity to major freeways and Sky Harbor Airport. The building, which features seven dock doors and heavy power to accommodate both manufacturing and distribution uses, was the investor’s first purchase in the Tempe market.

Parker Houston, Chris Rogers, and Trevor McKendry with DAUM Commercial Real Estate Services represented the private investor buyer in the transaction. The new owner plans to implement additional improvements to the property to better attract quality tenants.

“Arizona is one of the country’s fastest-growing states, and the Phoenix Metro in particular, including Tempe, is experiencing tremendous population growth,” said Houston. “This bodes well for investors in the region’s industrial sector, particularly manufacturing and distribution facilities that serve the area.”

According to DAUM research, several Phoenix industrial market fundamentals improved during Q3 2024, with sales volume increasing 30.2%, leasing activity rising 41.4%, and rental rates growing 1% during the quarter. Industrial properties under construction in the metro have experienced a steady decrease over the last five quarters, an indication that supply is in check and elevating the value of existing properties in the market.