Short answer
Companies choose Arizona for distribution because Phoenix reaches Southern California, Las Vegas and the rest of the Southwest within a day by truck, warehouse costs are lower than coastal markets, Arizona does not tax business inventory, and the metro has a large logistics workforce and a growing supply of modern buildings.
One-day reach of the Southwest
Phoenix sits on Interstate 10 between Los Angeles and Texas, with Interstate 17 north to Flagstaff and Interstate 8 toward San Diego. Southern California, Las Vegas, Tucson and New Mexico are all within a day’s drive, so one Arizona warehouse can serve the region.
An alternative to coastal congestion
Importers move containers inland from the Ports of Los Angeles and Long Beach to transload and store in Phoenix, where warehouse space costs less and moves faster than in the Inland Empire.
No tax on business inventory
Arizona exempts business inventory from property tax, which lowers the cost of holding stock compared to states that tax it. Confirm how this applies to your business with your tax advisor.
Workforce and new buildings
The Phoenix metro has more than five million people and one of the largest new industrial building pipelines in the country, especially in the West Valley.
Find your Arizona space
Whether you need a few pallets of overflow or a dedicated distribution footprint, we can match you with providers across Phoenix, the West Valley, the East Valley and Tucson.