PHOENIX, AZ — March 1, 2026 — The Sheehan | Schumacher Industrial Team at Rein & Grossoehme Commercial Real Estate (RGCRE) has completed a new industrial lease at 1325 E Elwood Street in Phoenix, Arizona — a 7,500-square-foot Industrial with Outdoor Storage / Yard (ISF) property situated on 1.14 acres. The transaction underscores continued tenant demand for industrial assets with functional yard space across infill Phoenix submarkets.
Max Schumacher, SIOR, and Patrick Sheehan represented the landlord in the transaction, reinforcing the team's position as leading specialists in industrial landlord representation throughout the Phoenix metropolitan area.
Key Highlights
- Property Address: 1325 E Elwood Street, Phoenix, AZ
- Property Type: ISF — Industrial with Outdoor Storage / Yard
- Building Size: 7,500 square feet
- Total Land Area: 1.14 acres (approximately 49,658 square feet)
- Representation: Landlord representation by the Sheehan | Schumacher Industrial Team at RGCRE
- Transaction Type: Lease
Property Overview
The property at 1325 E Elwood Street exemplifies the type of functional industrial outdoor storage asset that has become increasingly difficult to source in established Phoenix corridors. The 7,500-square-foot building sits on 1.14 acres of land, providing a substantial land-to-building ratio of approximately 6.6:1 — a critical metric for tenants whose operations require significant outdoor staging, equipment parking, or material storage capacity.
"Properties with this kind of land-to-building ratio in infill Phoenix locations are exactly what a large segment of the industrial tenant market is actively pursuing," said Max Schumacher, SIOR, of Rein & Grossoehme Commercial Real Estate. "The combination of a functional building with meaningful outdoor yard space creates operational flexibility that standard industrial product simply cannot offer."
Property Metrics
| Metric | Detail |
|---|---|
| Address | 1325 E Elwood Street, Phoenix, AZ |
| Property Type | ISF (Industrial with Outdoor Storage / Yard) |
| Building SF | 7,500 SF |
| Land Area | 1.14 Acres (~49,658 SF) |
| Land-to-Building Ratio | ~6.6:1 |
| Landlord Representation | Sheehan | Schumacher Industrial Team, RGCRE |
Why IOS Assets Continue to Outperform
Industrial Outdoor Storage (IOS) properties have emerged as one of the most sought-after and supply-constrained product types in commercial real estate nationally, and the Phoenix market is no exception. Several structural factors continue to drive demand for assets like 1325 E Elwood:
Supply Constraints
Zoning restrictions and municipal land-use policies make it increasingly challenging to develop new IOS-capable sites within established urban cores. Properties with existing entitlements for outdoor storage operations carry a significant competitive advantage.
Diverse Tenant Demand
IOS assets attract a broad range of tenant types — including construction, landscaping, logistics, fleet maintenance, utilities, and environmental services — many of which require yard space that conventional industrial buildings do not provide.
Infill Location Premium
According to Patrick Sheehan of Rein & Grossoehme Commercial Real Estate, "Central Phoenix IOS properties benefit from proximity to job sites, transportation infrastructure, and population centers. Tenants in yard-intensive industries are willing to compete aggressively for well-located sites that minimize drive times and improve operational efficiency."
Market Context
The Phoenix industrial market remains one of the most active in the western United States, with the metro area continuing to attract both national and regional tenants across a range of industrial sectors. Within this broader market, the IOS and yard-intensive industrial segment has demonstrated particularly strong fundamentals, driven by limited new supply, resilient tenant demand from essential-services industries, and growing institutional investor recognition of the asset class.
The Sheehan | Schumacher Industrial Team's completion of this lease at 1325 E Elwood adds another data point to the team's extensive track record in the Phoenix industrial market, where they have completed over $546 million in total transaction volume.
Related: Phoenix industrial outdoor storage · View this transaction →
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 $546 million in closed transaction volume across Greater Phoenix, the team focuses on industrial landlord representation, sales, and leasing.