Oxford Properties Group Acquires 460,000-Square-Foot Sycamore Industrial Portfolio in Phoenix

Oxford Properties Group ("Oxford") has acquired Sycamore, a six-property, 460,000-square-foot light industrial portfolio located in the Tempe and Airport submarkets of Phoenix, the firm announced Nov. 9. The acquisition raises Oxford's Phoenix footprint to 15 assets totaling approximately 1.2 million square feet.

The portfolio is nearly 95% leased to more than 18 businesses across a range of industrial uses. All six assets sit less than five miles from Phoenix Sky Harbor International Airport and offer access to major transit routes.

Sycamore Portfolio Details

The six properties range from approximately 40,000 square feet at West Fairmont to approximately 335,000 square feet at Colony Commerce Park. Oxford described the assets as infill industrial properties in supply-constrained markets, with limited land availability and historically strong occupancy fundamentals.

Oxford said the acquisition deepens its presence in Phoenix, reflecting what the firm called its conviction in the region's long-term supply and demand fundamentals.

Oxford Properties Group's Capital Rotation Strategy

Oxford said the Sycamore purchase is the next phase of its capital rotation strategy in the U.S. industrial sector. The firm has been redeploying capital from stabilized dispositions into income-oriented assets that enhance current yield and increase exposure to logistics markets where it has the highest conviction.

In 2026, Oxford has deployed approximately US$400 million into the sector through acquisitions and development, while selling approximately US$400 million of stabilized assets where it had completed its business plan. Those sales include the recent disposition of the Gateway portfolio, a five-asset industrial portfolio of about 800,000 square feet in Atlanta and Dallas.

"Industrial remains a critical part of Oxford's US platform and a high-conviction theme for us as we continue to strengthen our vertically integrated operating capabilities in light industrial," said Ankit Bhatt, Head of US Investments at Oxford Properties. "Our ability to actively recycle capital in this sector allows us to remain responsive to changing market conditions, transact at scale through cycles, and point investment dollars toward highly functional, income-generating assets where we see the strongest relative value. Sycamore adds durable income to our portfolio in regional submarkets where we already have a meaningful presence. It also gives our boots-on-the-ground teams an opportunity to leverage their operational expertise to further enhance the performance of these assets over time."

Phoenix Industrial Market Context

Phoenix industrial fundamentals improved in the third quarter of 2026, although reported vacancy varied by research provider and methodology. Cushman & Wakefield reported overall vacancy of 10.3%, down 300 basis points year over year, while Colliers reported 8.4%, down 143 basis points. CBRE reported 9.7%, a 150-basis-point decline, and Savills reported 13.3%, down 180 basis points.

New supply has slowed. Deliveries over the prior 12 months totaled 9.0 million square feet, down 68% from the 2022–2025 annual average of 28.0 million square feet, while net absorption reached 20.5 million square feet over the same period. Year-to-date deliveries stood at 6.3 million square feet, 7.2 million square feet fewer than in the comparable prior-year period.

Asking rents were stable to rising. The overall average NNN asking rent was $1.13 per square foot, with increases for three consecutive quarters. Colliers reported $1.14 per square foot, up 0.7% year over year, and KBC Advisors reported $13.34 per square foot annually, up 3.6%.

Tempe and Airport Submarkets

Airport-area overall asking rents rose 3.2% quarter over quarter to $1.18 per square foot, the strongest gain among Phoenix's major industrial submarkets. Airport-area vacancy, however, stood at 6.1%, up from 3.7% a year earlier, as speculative buildings were delivered without tenants in place.

The two areas continue to receive new supply. Approximately 1.1 million square feet of third-quarter deliveries arrived in the Southeast cluster, including the 689,000-square-foot NextWave project at 1500 N. McClintock Drive in Tempe, along with approximately 945,000 square feet of Airport-area deliveries. Oxford's purchase of an existing, largely leased portfolio places it in income-producing assets rather than recently completed speculative buildings that are still leasing up.

Outlook

With the Sycamore acquisition, Oxford Properties Group continues to concentrate capital in Phoenix rather than entering a new market. The firm said its operating teams have an opportunity to improve the performance of the assets over time, consistent with its stated focus on income-oriented light industrial properties in infill locations.

Sources

Oxford Properties Group, "Oxford acquires high-quality Phoenix industrial portfolio," Nov. 9, 2026: https://www.oxfordproperties.com/news/oxford-acquires-sycamore-industrial-portfolio-phoenix