Real estate giant to demolish Tempe office, double land use with industrial campus

PHOENIX — Private real estate developer Lincoln Property Co. acquired 16.25-acre Tempe industrial property that sits minutes away from the Sky Harbor International Airport, according to a press release.

The global real estate giant plans to demolish the current single-story building located at 1515 W. 14th Street. Lincoln will then transform the $18.3 million property into a high-end industrial campus called Sky Harbor Logistics.

Developers plan to start construction on the new project during the second quarter of 2025.

The property was built in 1977 as industrial space and was remodeled in 2016 into office suites. The current space occupies 218,268 square feet and has a 1,044-space parking garage.

CarMax is leasing part of the building, but the current lease is coming to an end.

What will the real estate developer build in Tempe?

Lincoln plans to clear out the old building to make way for a 254,000 square-foot industrial campus. It will build two identical 127,000 square foot buildings with a shared truck court, according to a company press release.

“Phoenix is known for its ability to successfully adapt, often in tandem with the nation’s top growth rates,” Lincoln Senior Executive Vice President David Krumwiede said in a release. “Sky Harbor Logistics is a prime example of that adaptability, transforming an underutilized office asset into brand new infill logistics space that does not exist in this area.

“We are proud of the broad Lincoln expertise that we’ll bring to this project and very excited to usher in the next exceptional chapter for this site.”

The building will feature a 32-foot clearance height for product storage, 46-foot-high dock with 28 drive-in doors, upgraded sprinklers and clerestory windows for better natural lighting.

Sky Harbor Logistics will also sit on the outskirts of Arizona State University’s main campus, the shopping and dining life of downtown Tempe being significant draws for Lincoln. 

“This is a true infill location,” Lincoln Senior Vice President John Orsak said. “By embracing this type of redevelopment at Sky Harbor Logistics, we’re creating a path for new businesses, new jobs and all types of new collaboration.”