Ship Daddy, LLC Leases 79,420 SF at Level Crossing 3 in Surprise, with Chris Reese of Colliers Representing Tenant

SURPRISE, Ariz. — Ship Daddy, LLC, an omnichannel fulfillment provider serving direct-to-consumer e-commerce brands, has signed a lease for 79,420 square feet at Level Crossing 3, a 150,615-square-foot industrial building located within the Surprise Railplex in Surprise, Arizona. The building is owned by Silver Creek Development Development and Hardy World.

Chris Reese, vice president at Colliers, represented Ship Daddy in the transaction. Melissa Marks, Brian Gleason, Sam Jones, and Rob Martensen of Colliers represented ownership.

Deal Details and Property Specifications

Ship Daddy's lease accounts for roughly half of Level Crossing 3's total square footage, indicating a multi-tenant configuration for the building. Located within the Surprise Railplex, the property offers direct access to Loop 303 and the broader Phoenix transportation network.

Level Crossing 3 features 32-foot clear heights, ESFR fire protection, 3,000 amps of power, 100% HVAC, dock-high and drive-in loading, LED warehouse lighting, and potential yard space. The building's full HVAC coverage is a notable specification for omnichannel fulfillment and e-commerce operations, which often require climate-controlled environments for returns processing, light assembly, and value-added services alongside standard warehousing.

"Ship Daddy sought a facility capable of supporting both its current operational requirements and long-term expansion objectives," said Chris Reese of Colliers. "Level Crossing 3 aligned with the company's operational needs through its infrastructure, physical characteristics and strategic location, providing the flexibility needed to support continued growth."

Ownership's Strategic Vision for Level Crossing 3

Silver Creek Development and Hardy World co-own Level Crossing 3, which Colliers marketed to sophisticated industrial occupiers with complex logistics and fulfillment requirements.

"From the outset, Level Crossing 3 was envisioned as a project capable of attracting sophisticated industrial occupiers," said Brian Gleason, senior vice president at Colliers. "Businesses with increasingly complex logistics and fulfillment operations continue to prioritize efficiency, flexibility and connectivity. Ship Daddy's decision to locate here reinforces that vision and reflects the type of tenant the project was intended to attract."

At approximately 150,000 square feet, Level Crossing 3 sits below the scale of large-format distribution centers that typically serve national third-party logistics providers, while exceeding the small-bay category — a size range that has drawn fast-growing mid-market logistics and e-commerce operators seeking scalable space without committing to 300,000 square feet or more.

West Valley Industrial Market Conditions

The lease reflects accelerating demand along the Loop 303 Corridor, which has emerged as a primary industrial spine in Phoenix's West Valley. Phoenix's Northwest submarket cluster recorded the largest year-over-year vacancy decline in the region during the period, dropping 800 basis points from 16.1% to 8.1%.

West Valley dominated leasing activity during the second quarter of 2026, with the five largest deals all occurring near the Loop 303 Corridor. The average lease size across those transactions was 64,000 square feet, making Ship Daddy's 79,420-square-foot commitment above the quarterly average for the corridor.

The sharp compression in vacancy — from double-digit levels into single-digit territory — reflects sustained absorption of newly delivered industrial product across the submarket. The clustering of large transactions along Loop 303 underscores the corridor's role as a preferred location for regional fulfillment and distribution users seeking connectivity to Interstate 10 and broader Western U.S. freight routes via the Surprise Railplex's rail adjacency and freeway access.

Tenant Profile and Omnichannel Fulfillment Demand

Ship Daddy operates as an omnichannel fulfillment provider for direct-to-consumer e-commerce brands, managing storage, order processing, and shipping across multiple sales channels. Colliers described the lease as expanding Ship Daddy's omnichannel fulfillment footprint in the West Valley, positioning the Surprise facility as part of the company's broader operational network.

The West Valley's combination of lower operating costs relative to coastal markets, proximity to major Western metropolitan areas, and availability of modern, high-specification industrial space has made the submarket an increasingly preferred location for direct-to-consumer and omnichannel operators. Level Crossing 3's 100% HVAC coverage and high power capacity align with the infrastructure requirements of fulfillment users that handle returns processing and value-added services alongside palletized storage.

Rob Martensen, vice chair at Colliers, also participated in representing ownership alongside Marks, Gleason, and Jones. Martensen has specialized in the metro Phoenix industrial market for 27 years and has been involved in more than 700 transactions across industrial and land sales, leasing, and build-to-suits.

Sources

Colliers — Ship Daddy Lease at Level Crossing 3 (July 22, 2026)