Phoenix, AZ

CBRE Investment Management Fund Acquires Three-Building Logistics Portfolio in Phoenix

June 7, 2022

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A fund sponsored by CBRE Investment Management has acquired a three-building logistics portfolio in Phoenix. The buildings, which together total 230,385 square feet, are located at 3545, 3555 and 3575 South 28th Street in the South Airport submarket of Phoenix.

Known as the Freeway Logistics Center, the portfolio includes two fulfillment centers with 30-foot clear heights and one industrial building with a 19-foot clear height. The fully gated property also includes a 200-foot shared truck court, ESFR sprinklers, LED lighting, dock-high doors and a 2.1-acre yard. The portfolio is well-located close to the I-10 freeway, offering convenient access to the business center of Downtown Phoenix and the transportation hub of Phoenix Sky Harbor International Airport. It is also just a day’s drive from the Ports of Los Angeles and Long Beach, California, as well as 35 million consumers.

“Phoenix has remained a top market for logistics users and manufacturers given the area’s relative affordability, proximity to the major ports and distribution hubs of Southern California, and selection of modern logistics building stock,” said Mary Lang, Head of Americas Direct Logistics Strategies, CBRE Investment Management. “We believe that this portfolio is well-positioned to benefit from continued tenant demand and rent growth within the South Airport submarket, which has historically been one of the strongest-performing markets in Phoenix.”

According to CBRE’s research, the Metro Phoenix industrial market has experienced 48 consecutive quarters of positive absorption, as of the fourth quarter 2021. Industrial market rent growth in the area has averaged 5.1% per year and is expected to increase to 5.3% average annual growth over the next five years. The South Airport area is expected to only increase in demand as the submarket has a record low industrial vacancy rate of 4.5%, as of fourth quarter 2021, according to CBRE.

Will Strong, Greer Oliver, and Connor Nebeker-Hay of Cushman and Wakefield represented the seller in the transaction.

About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.8 billion in assets under management* as of March 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.