Transwestern Acquires 663,000-SF Industrial Property in Phoenix's Southwest Valley

Transwestern Investment Group has acquired a two-building, 662,804-square-foot Class A industrial property at 9400 Latham Street in Tolleson, Arizona, betting on metro Phoenix's Southwest Valley as a premier logistics submarket.

The fully leased complex, delivered in 2022, consists of a 402,015-square-foot cross-dock building with 36-foot clear heights and 190-foot truck courts, alongside a 260,789-square-foot rear-load building with 32-foot clear heights. Both buildings feature ESFR sprinkler systems and abundant trailer parking. The purchase price was not disclosed.

Tenants include Solutions 2 Go, a global video game and digital content distributor, and HD Supply Holdings, a major industrial distribution company.

Strategic I-10 Corridor Location

The property sits adjacent to both Interstate 10 and Loop 101, providing direct access to Phoenix's consumer base and key West Coast distribution corridors. TIG's director of acquisitions described the deal as targeting "high-quality logistics assets in markets supported by durable demand drivers and constrained infill supply."

The Southwest Valley submarket, which includes Tolleson, Goodyear, and surrounding communities, ended 2025 with an 8.0% vacancy rate — well below the metro-wide average.

Phoenix Industrial Market Strengthening

Metro Phoenix's industrial market posted its third-highest annual net absorption on record in 2025, with 15.9 million square feet absorbed across the year. Q4 alone added 3.3 million square feet of positive absorption.

Perhaps more importantly for investors, the construction pipeline is contracting sharply. Q4 2025 deliveries totaled 3.5 million square feet — a 54% decline from the prior year — signaling reduced future supply pressure that could push rents higher.

Investment activity remained robust, with $5.6 billion in industrial transactions recorded over the trailing year. Notable recent deals include Walmart's $152 million acquisition of a 1.27 million-square-foot facility in Glendale.

Analysts expect a rent growth rebound by late 2026 as the declining construction pipeline combines with Phoenix's continued role as a logistics relief valve for congested California ports. Steady in-migration, strong employment growth, and a diversifying industrial tenant base continue to support long-term demand.