Dermody Starts 1.21 Million-Square-Foot Industrial Development at LogistiCenter at Copperwing in El Mirage, Arizona

Dermody will begin construction on Buildings 3 and 4 at LogistiCenter® at Copperwing in El Mirage, Arizona, the firm announced Oct. 13, with delivery estimated for the third quarter of 2027. The two buildings total 1,213,930 square feet and are designed to be combined into a single building of 1,319,962 square feet.

Buildings 3 and 4 at LogistiCenter at Copperwing

Building 3 totals 693,760 square feet and Building 4 totals 520,170 square feet. The buildings are located approximately 27 minutes from TSMC’s Phoenix-area campus and within an approved Foreign Trade Zone. The project sits at Northern Parkway and Dysart Road in El Mirage.

Both buildings will have 42-foot clear heights, which Dermody described as the first 42-foot clear height speculative buildings in the Phoenix market. The added height accommodates an additional full pallet level and approximately 17% more cubic racking volume than a comparable 40-foot clear building. Each building will be served by 6,000 amps of power, for a total of 12,000 amps if the two are combined.

Building 3 will include 124 dock doors and 274 trailer parking spaces, while Building 4 will include 86 dock doors and 207 trailer parking spaces. Both buildings will have ESFR fire protection, LED warehouse lighting, 58-by-60-foot column spacing and 190-foot truck courts.

“LogistiCenter® at Copperwing reflects our confidence in the long-term strength of the Phoenix area and the continued demand for state-of-the-art logistics facilities,” said Tim Walsh, Chief Investment Officer at Dermody. “The flexibility to accommodate a range of users, combined with continued investment in infrastructure, positions LogistiCenter® at Copperwing to meet our customers’ needs for years to come.”

Building 6 Fully Leased, Stabilizing First Phase

The announcement follows Dermody’s full lease-up of Building 6, a 284,421-square-foot Class A logistics facility that stabilizes the development’s first phase. Building 6 was developed using sustainable design and construction principles and features 36-foot clear heights, 60-foot loading bays, 60 dock-high doors, 292 auto parking spaces and full HVAC throughout.

“We’re pleased to expand our relationship with an existing Dermody customer by leasing Building 6 at LogistiCenter® at Copperwing,” said Patrick Gallagher, Southwest Region Partner at Dermody. “This lease reinforces our confidence that the project will continue to attract the most innovative companies as the Phoenix area grows as a hub for semiconductor chip fabrication and advanced manufacturing.”

With Building 6 fully leased, Buildings 3 and 4 will represent the second phase of LogistiCenter® at Copperwing, a 961-acre master-planned industrial park with capacity for more than 7 million square feet of distribution space. The park serves warehousing, distribution, advanced manufacturing and data storage users. Dermody was represented by Pat Feeney, Dan Calihan and Tyler Vowels of CBRE.

Phoenix Industrial Market Context

The second phase comes as the Phoenix industrial market shows improving annual fundamentals alongside a sizable construction pipeline. In the third quarter of 2026, CBRE reported industrial vacancy of 9.7%, up 10 basis points quarter over quarter but down 150 basis points year over year. Net absorption reached 1.59 million square feet, and average asking rents rose 9% year over year.

A separate Kidder Mathews report put Phoenix industrial vacancy at 11.5% in the third quarter of 2026, down from 13.3% a year earlier. Direct asking rents for spaces of at least 10,000 square feet reached $1.18 per square foot per month on a triple-net basis, up 5% year over year. The difference between the two vacancy figures reflects varying methodologies and market coverage.

Supply is also arriving. Phoenix had approximately 14.03 million square feet under construction in the third quarter of 2026, while 3.4 million square feet delivered during the quarter. Buildings 3 and 4 are scheduled to deliver in the third quarter of 2027 amid continued competition from newly completed speculative space.

Dermody’s Broader Development Activity

The Copperwing start fits within Dermody’s 2026 pipeline of large logistics projects. Recent company activity includes a planned 180,705-square-foot Class A logistics redevelopment at 18455 Figueroa St. in Los Angeles and a distribution project of more than 1 million square feet in Port Wentworth, Georgia.

Dermody’s Southwest Region page and LogistiCenterAtCopperwing.com provide additional information on the project.

Sources

• Dermody: Dermody Will Begin Construction on Buildings 3 and 4 at LogistiCenter® at Copperwing