PHOENIX, AZ — August 13, 2025 — An industrial outdoor storage (IOS) property at 2724 W Buckeye Road in Phoenix has sold for $1,400,000, reflecting a price of $429.58 per building square foot and underscoring the sustained investor appetite for yard-intensive industrial assets across the Phoenix metropolitan area.
The 3,259-square-foot industrial building sits on 2.27 acres of land in the Southwest submarket north of Buckeye Road — a corridor that has attracted growing attention from buyers seeking IOS-capable sites with proximity to major freight and logistics routes.
Key Highlights
- Sale Price: $1,400,000
- Price Per Building SF: $429.58
- Building Size: 3,259 SF on 2.27 acres (98,881 SF of land)
- Effective Land Price: ~$14.16 per land square foot / ~$616,740 per acre
- Property Type: Industrial with Outdoor Storage / Yard (ISF)
- Submarket: Southwest Phoenix, north of Buckeye Road
- Sale Date: August 13, 2025
The transaction was brokered by the Sheehan | Schumacher Industrial Team at Rein & Grossoehme Commercial Real Estate, with Patrick Sheehan and Max Schumacher, SIOR, providing landlord representation throughout the disposition process.
Deal Metrics at a Glance
| Metric | Value |
|---|---|
| Sale Price | $1,400,000 |
| Building SF | 3,259 |
| Land Area | 2.27 acres (~98,881 SF) |
| Price / Building SF | $429.58 |
| Price / Land SF | ~$14.16 |
| Price / Acre | ~$616,740 |
| Property Type | Industrial Outdoor Storage (IOS) |
| Submarket | SW Phoenix — N of Buckeye Rd |
Why the Price Per Square Foot Tells Only Part of the Story
At $429.58 per building square foot, the headline metric might appear elevated compared to conventional industrial transactions. However, this sale is fundamentally a land-value play — a hallmark of the IOS asset class.
"When you have a 3,259-square-foot building sitting on nearly two and a half acres of land, buyers are underwriting the dirt and the operational capacity of the yard, not just the enclosed square footage," said Max Schumacher, SIOR, of Rein & Grossoehme Commercial Real Estate. "At roughly $14 per land square foot, this pricing is competitive for a fenced, usable IOS site in a submarket with strong infrastructure access."
The land-to-building ratio of approximately 30:1 positions this asset squarely within the IOS category, where outdoor yard space — used for equipment staging, fleet parking, materials storage, and contractor operations — drives the majority of functional and economic value.
Southwest Phoenix and the Buckeye Road Corridor
The stretch of Buckeye Road through southwest Phoenix has emerged as one of the more active IOS corridors in the metro area. Its appeal stems from several converging factors: proximity to Interstate 17 and Interstate 10, relatively lower land basis compared to infill submarkets, and a zoning environment that accommodates heavy industrial and outdoor storage uses.
Patrick Sheehan of Rein & Grossoehme Commercial Real Estate noted that demand from owner-users and small investors continues to compress pricing in pockets of the southwest submarket. "IOS sites in this corridor attract contractors, logistics operators, and construction services companies who need functional yard space at a price point that still pencils," Sheehan said. "Supply of entitled, yard-ready parcels with existing improvements is not keeping pace with demand."
Market Context
Industrial outdoor storage has become one of the most sought-after asset classes in commercial real estate nationally, and the Phoenix market has been no exception. Institutional and private capital alike have gravitated toward IOS properties due to their low capital expenditure requirements, strong cash yields, and limited new supply — particularly in infill locations where zoning for outdoor storage is increasingly difficult to obtain.
The sale of 2724 W Buckeye Road adds another data point to an IOS pricing environment in Phoenix that continues to tighten, particularly for sub-five-acre sites with existing improvements and immediate operational utility.
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.