Arizona’s small business landscape is booming — from e-commerce shops scaling fast to tradespeople needing storage and operational space. As a result, more business owners are asking a familiar question: “Is now the right time to buy a warehouse in Arizona?”
If you’re a local entrepreneur (or expanding from out-of-state), this guide breaks down the real considerations, pitfalls, and advantages of owning your own warehouse in 2025.
Why More Entrepreneurs Want to Buy a Warehouse in Arizona
The demand for small-to-mid-size industrial space is at an all-time high. Three big drivers:
1. Explosive Small Business Growth
Arizona continues to rank among the top states for new business creation — especially in logistics, trades, and light manufacturing.
2. Low Inventory → Higher Rents
Industrial rent growth has outpaced retail and office for the last four years. Many business owners are tired of rising lease costs and want long-term stability.
3. Control Over Your Operations
Owning your warehouse means no landlord restrictions, no surprise rent hikes, and the ability to customize the space as your business evolves.
What to Look for When Buying a Warehouse in Arizona
Choosing the right warehouse can dramatically impact operational costs and efficiency.
✔ Zoning & Permitted Use
Industrial zoning varies by city and even by parcel. Before falling in love with a facility, confirm whether your business type is permitted.
✔ Power Requirements
Not all warehouses are equal. Some have upgraded 3-phase power — others don’t. Upgrading power can be extremely costly.
✔ Loading Capabilities
Depending on your operations, you may need:
- Drive-in bays
- Dock-high doors
- 16–24 ft. clear height
- Large truck access routes
✔ HVAC vs. Swamp Cooling
Many older industrial buildings use evaporative coolers. In Arizona heat, that may not cut it depending on your business type.
Financial Considerations for Buying a Warehouse
Buying a warehouse can be a smart long-term play — but only if the numbers make sense.
1. Down Payment Requirements
Industrial is not financed like residential. Standard expectations:
- SBA 504 loans: as low as 10% down
- Conventional: typically 20–30% down
2. Operating Cash Flow
Factor in:
- Taxes
- Insurance
- Repairs
- Utility costs (can be significantly higher than office/retail)
3. Appreciation Potential
Industrial land in Phoenix, Gilbert, Chandler, and Mesa continues to see strong long-term appreciation due to scarcity.
The Hidden Pitfalls (and How to Avoid Them)
When you buy a warehouse in Arizona, you must be aware of common “gotchas” that new buyers often overlook.
Environmental Concerns
Phase I environmental assessments are recommended for nearly every warehouse purchase — especially if there was prior auto, paint, or chemical use.
Deferred Maintenance
Warehouse roofs are expensive to replace. So are industrial roll-up doors. Never skip professional inspections.
Inadequate Parking or Truck Space
Cities enforce minimum requirements. Some older designs do not meet modern needs.
When It Makes Sense to Buy (and When It Doesn’t)
Good reasons to buy a warehouse:
- Your rent is climbing every year
- You need to customize your space
- You want to build long-term equity
- You have stable or growing operations
Reasons to hold off:
- Your business may move within 2–3 years
- You don’t have enough capital for necessary improvements
- You are unsure about long-term operational needs
How DTD Realty Helps Small Business Owners
Buying industrial property is more complex than residential or even retail. My approach includes:
✔ Zoning and Use Case Review
I help ensure the building fits your actual operations — not just the listing description.
✔ Power, HVAC, and Infrastructure Evaluation
Small oversights can cost tens of thousands later.
✔ Cash Flow Modeling for Owner-Occupants
I help compare leasing vs. owning side-by-side so you can make a confident business decision.
✔ Access to Lender Introductions
I don’t provide financial advice, but I can connect you with lenders familiar with warehouse purchases for small businesses.
DTD Realty — Do The Deal.
Driven. Trusted. Dependable.
602.702.3601
https://www.dtdrealty.com
[email protected]
