Amazon landlord puts West Valley facility up for lease amid negotiations

By Hailey Mensik

The landlord for Amazon's 820,384-square-foot industrial facility in Goodyear has begun marketing the building to new tenants as the retail giant works to secure a new lease for the site.

Amazon.com Inc. (Nasdaq: AMZN) has leased a distribution center at Goodyear Crossing II since the space was built in 2008. While the company said negotiations are ongoing and it has no intention of departing the facility, the landlord is looking to lease the space with an availability date of Nov. 1, sources tell the Business Journal.

"Our team is actively working with the landlord of our Goodyear Fulfillment Center to extend our lease," said Steve Kelly, Amazon Global Corporate Issues and Media Relations, in a statement. "We're proud members of the greater Phoenix community and look forward to continuing our operations there."

JLL’s Anthony Lydon, Riley Gilbert, and Nicole Marshall are representing the landlord in the lease negotiations.

“The space would be desirable to anyone seeking warehouse distribution space or even advanced manufacturing space given its location, access to abundant labor and existing dedicated power to the facility,” said Gilbert, managing director at JLL. “This building also enjoys an additional +/-12 acres of land contiguous to it for expansion or additional trailer/car parking or outside storage."

The Goodyear Crossing II building at 16920 West Commerce Lane traded hands alongside adjacent land from Hines to Logistics Properties Trust for $72 million in February 2020. The property is also within a foreign trade zone.

The landlord declined to comment for this story.

Amazon has quickly grown Valley footprint

Amazon's facility would rank as the second-largest industrial space available in the greater Phoenix area, excluding newly delivered properties yet to land tenants, according to data from CoStar. Home Depot’s 1.3 million square-foot sublease at Elwood Logistics Center, also in Goodyear, is the largest industrial space currently on the market.

The facility at Goodyear Crossing II is one of Amazon’s “legacy” facilities and does not have the same robotics set-up as some of Amazon’s newer facilities, according to a spokesperson. The legacy facilities handle traditional non-sort items, which include large items such as shoes or household items that are too large to be managed by robotics facilities.

Amazon currently has 20 fulfillment and sortation centers and 12 delivery stations in Arizona, according to the spokesperson.

Underlying demand for industrial space in the Goodyear area, along with nearby Buckeye, remains strong. The submarket registered about 2 million square feet of net absorption in the trailing 12-month period through the first quarter of this year.

Since the start of December 2024, the submarket has also seen at least six non-renewal lease signings for 100,000 square feet or more. One of those is Kenco’s 641,906 square-foot lease to fully occupy the entire I-10 Gateway building at 440 N. 215th Ave.

Proximity to major freeways connected to West Coast ports of entry and the rest of the country, along with robust population growth and a growing labor pool, are key factors making the area attractive to industrial tenants.

Amazon has recently grown its footprint greatly in the West Valley, including in Goodyear.

Last year, the company signed a 10-year lease for 1 million square feet at the Paloma Vista Logistics Center in Buckeye. It also signed a lease for 1.2-million square-feet at The Cubes at Glendale Industrial Park. And in Goodyear, it signed a lease for 1.2 million square-feet at the Prologis 303 Business Park. The tech giant aims to eventually employ up to 6,000 in the West Valley.

“So it’s not like Amazon is shying away from Phoenix,” said Connor Devereux, director of market analytics at Costar.

Final Thoughts

While Amazon works to extend its lease at Goodyear Crossing II, the landlord’s decision to market the facility signals shifting dynamics in West Valley’s industrial real estate scene. With strong tenant demand, expansion potential, and Amazon’s growing regional presence, all eyes are on what happens next for this high-demand property.