PHOENIX, AZ — October 1, 2025 — The Sheehan | Schumacher Industrial Team at Rein & Grossoehme Commercial Real Estate (RGCRE) has completed the lease of an Industrial Outdoor Storage (IOS) property at 1701 E Elwood Street in Phoenix, Arizona. The transaction reflects sustained tenant demand for yard-intensive industrial assets in one of the metro area's most supply-constrained infill corridors.
Max Schumacher, SIOR, and Patrick Sheehan represented the landlord in the transaction, continuing the team's focused landlord representation strategy across the Phoenix industrial market.
Key Highlights
- Property Address: 1701 E Elwood Street, Phoenix, AZ
- Property Type: Industrial with Outdoor Storage / Yard (ISF/IOS)
- Building Size: 3,600 square feet
- Total Land Area: 1.23 acres (53,579 SF)
- Submarket: South Airport, North of Roeser
- Transaction Type: Lease
- Landlord Representation: Max Schumacher, SIOR & Patrick Sheehan — Rein & Grossoehme Commercial Real Estate
Property Profile: High Land-to-Building Ratio Drives IOS Appeal
The 1701 E Elwood Street property exemplifies the IOS asset profile that continues to generate outsized tenant demand across metro Phoenix. With 3,600 square feet of enclosed building area situated on 1.23 acres of land, the property delivers a land-to-building ratio of approximately 14.9:1 — a configuration that prioritizes outdoor yard capacity, secured storage, and operational flexibility over traditional warehouse square footage.
| Property Metric | Detail |
|---|---|
| Address | 1701 E Elwood St, Phoenix, AZ |
| Property Type | Industrial Outdoor Storage (IOS) |
| Building SF | 3,600 SF |
| Total Land Area | 1.23 Acres (~53,579 SF) |
| Land-to-Building Ratio | ~14.9:1 |
| Submarket | S Airport / N of Roeser |
| Representation | Landlord (RGCRE) |
"Industrial Outdoor Storage properties with this kind of land-to-building ratio are among the most sought-after assets in the Phoenix industrial market right now," said Max Schumacher, SIOR. "Tenants operating in construction, logistics, fleet services, and specialty trades need secured yard space, and infill locations like this one are extraordinarily difficult to replicate."
Submarket Context: South Airport Corridor Remains a Critical Infill Node
The South Airport submarket, specifically the corridor north of Roeser Road, occupies a strategic position adjacent to Phoenix Sky Harbor International Airport and the broader I-10/I-17 interchange infrastructure. This area has long served as a hub for industrial users requiring proximity to air cargo, downtown Phoenix, and regional freeway access.
What makes this submarket particularly relevant for IOS users is its combination of heavy industrial zoning, established yard-use precedent, and diminishing land supply. As Phoenix continues to grow and redevelopment pressures mount in central corridors, the availability of fenced, yard-capable parcels in this location has contracted significantly.
"The South Airport corridor north of Roeser is one of the few remaining infill pockets in Phoenix where IOS operations can function without encroachment issues or zoning friction," added Patrick Sheehan. "Every time one of these properties leases, it further tightens an already limited supply pool."
Market Context: IOS Emerges as a Distinct and Underserved Asset Class
Nationally and locally, Industrial Outdoor Storage has gained recognition as a distinct commercial real estate asset class. Unlike traditional warehouse or distribution properties, IOS assets derive their value primarily from land utility — the ability to store equipment, materials, vehicles, and inventory in secured outdoor environments.
In metro Phoenix, IOS demand has been fueled by the region's robust construction pipeline, population-driven infrastructure investment, and the expansion of logistics and last-mile delivery operations. The market's arid climate further enhances the viability of outdoor storage, as weather-related deterioration concerns are minimal compared to other U.S. markets.
According to industry data, IOS vacancy rates across major Sun Belt metros remain well below traditional industrial benchmarks, and Phoenix is no exception. The structural undersupply of yard-capable parcels — particularly in infill locations — continues to create favorable conditions for landlords with well-positioned assets.
About Rein & Grossoehme Commercial Real Estate
Rein & Grossoehme Commercial Real Estate (RGCRE) is a full-service commercial real estate brokerage based in Scottsdale, Arizona. The Sheehan | Schumacher Industrial Team, led by Patrick Sheehan and Max Schumacher, SIOR, specializes in industrial landlord representation across the Phoenix metropolitan area, with deep expertise in Industrial Outdoor Storage (IOS), single-tenant industrial, and multi-tenant flex properties. With over $525 million in total transaction volume, the team ranks among the top industrial brokerage teams in the Phoenix market.