PHOENIX, AZ — October 8, 2025 — An industrial outdoor storage (IOS) property at 1600 South Central Avenue in Phoenix has sold for $4,650,000, reflecting a price of $266.45 per square foot on 17,452 square feet of building improvements situated on 2.11 acres of land. The transaction closed on October 8, 2025, and adds to a growing body of evidence that investor appetite for yard-intensive industrial assets in Phoenix's urban core remains exceptionally strong.
The Sheehan | Schumacher Industrial Team at Rein & Grossoehme Commercial Real Estate — led by Patrick Sheehan and Max Schumacher, SIOR — provided landlord representation in the transaction.
Key Highlights
- Sale Price: $4,650,000
- Building Size: 17,452 SF on 2.11 acres (91,911 SF of total land)
- Price Per Building SF: $266.45
- Implied Land Value: ~$50.59 per land square foot
- Property Type: Industrial with Outdoor Storage / Yard (ISF/IOS)
- Location: 1600 S Central Ave, Phoenix, AZ — Central Phoenix infill corridor
- Representation: Sheehan | Schumacher Industrial Team, Rein & Grossoehme Commercial Real Estate (landlord representation)
Deal Metrics at a Glance
| Metric | Value |
|---|---|
| Sale Price | $4,650,000 |
| Building SF | 17,452 |
| Land Area | 2.11 acres (±91,911 SF) |
| Price / Building SF | $266.45 |
| Price / Land SF | ~$50.59 |
| Building-to-Land Ratio | ~19.0% |
| Sale Date | October 8, 2025 |
| Property Type | Industrial Outdoor Storage (IOS) |
Why This Transaction Matters
Infill IOS Assets Command Premium Pricing
The $266.45 per-building-square-foot sale price underscores the premium that buyers are assigning to industrial outdoor storage properties located within Phoenix's established urban fabric. Unlike speculative big-box developments on the metropolitan periphery, infill IOS parcels along corridors like South Central Avenue offer a combination of attributes that cannot be replicated: proximity to downtown Phoenix, immediate freeway access, and — critically — the excess land area required for outdoor storage, staging, and fleet operations.
"Industrial outdoor storage remains one of the most supply-constrained asset classes in the Phoenix market," said Max Schumacher, SIOR, of Rein & Grossoehme Commercial Real Estate. "Properties like 1600 South Central Avenue offer a rare combination of functional building improvements and substantial yard area on over two acres. That kind of land basis in a central Phoenix location is extraordinarily difficult to assemble today."
The Building-to-Land Ratio Tells the Real Story
With a building-to-land ratio of approximately 19%, the 1600 South Central Avenue property exemplifies the IOS value proposition. The 2.11-acre site provides roughly four times more land area than the building footprint — a configuration prized by contractors, logistics operators, equipment rental companies, and last-mile distribution users who need secured outdoor space for vehicles, materials, and inventory.
When analyzed on a per-land-square-foot basis, the transaction reflects an implied land value of approximately $50.59 per square foot — a data point that speaks to the growing recognition among investors that IOS land in infill Phoenix locations is a finite, appreciating resource.
Central Phoenix Corridor Dynamics
The South Central Avenue corridor sits at the geographic heart of the Phoenix metropolitan area, providing efficient access to Interstate 17 and the regional freeway network. As urban density increases and zoning for heavy industrial uses becomes more restrictive, existing IOS-zoned parcels in these corridors are becoming increasingly scarce. According to Patrick Sheehan of Rein & Grossoehme Commercial Real Estate, this scarcity is a structural driver of pricing.
"Every time an infill industrial property with yard converts to residential or mixed-use, the remaining inventory becomes more valuable," Sheehan noted. "Buyers recognize that these assets are irreplaceable."
Market Context
The Phoenix industrial market continues to demonstrate resilience across asset classes, with IOS and yard-intensive properties emerging as a distinct submarket commanding differentiated pricing. Nationally, institutional capital has increasingly targeted IOS as a high-conviction industrial sector, driven by limited supply, strong tenant demand from construction and logistics users, and rent growth that has outpaced conventional industrial in many Sun Belt metros. The 1600 South Central Avenue transaction represents another benchmark data point in Phoenix's evolving IOS pricing landscape.
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.