SkyREM Bets Big on Casa Grande's Booming Industrial Corridor

CASA GRANDE, AZ – January 20, 2026 – In a significant move signaling strong confidence in Arizona’s industrial future, New York-based real estate investment firm SkyREM has announced its expansion into the Southwest with the acquisition of The Confluence, a major industrial complex in Casa Grande. The property consists of two newly built, Class A industrial facilities totaling 325,334 square feet, marking the firm's first major foray into the rapidly growing Phoenix submarket.

The acquisition underscores a broader trend of institutional investment flowing into strategically located, secondary industrial markets that are rapidly becoming primary hubs for manufacturing and logistics. Positioned in the heart of the Sun Corridor, Casa Grande is quickly shedding its identity as a quiet town between Phoenix and Tucson and emerging as a critical nexus for high-tech manufacturing and regional distribution.

An Emerging Hub in the Sun Corridor

Casa Grande's transformation into an industrial powerhouse is no accident. The city's strategic location, offering access to a combined population of 5.5 million people and a workforce of over 3 million, is amplified by its robust infrastructure. It sits directly on the I-10 and I-8 interstate highways and is served by the main line of the Union Pacific Railroad, creating a multimodal logistics dream for companies looking to serve the Southwest and beyond.

This locational advantage has attracted a wave of high-profile developments, particularly in the semiconductor and electric vehicle (EV) sectors. Lucid Motors operates its flagship AMP-1 manufacturing plant in the city, with a planned Phase 2 expansion set to add another 3 million square feet. The area is also becoming a crucial part of the U.S. semiconductor supply chain, with companies like KPPC Advanced Chemicals and Sunlit Arizona establishing major manufacturing campuses to support regional giants like Intel and TSMC.

This influx of advanced manufacturing has created a ripple effect, driving intense demand for modern industrial space. While the broader Phoenix industrial market saw vacancy rates fluctuate over the past year, eventually settling around 12.4% at the end of 2025, the underlying demand remains robust. Average asking rents in the metro have climbed, reflecting the high value placed on well-located, modern facilities. In response to this demand, Casa Grande's city leadership has proactively zoned over 2,600 acres for future industrial parks, signaling a long-term commitment to sustaining this growth.

"Casa Grande is one of the most exciting emerging industrial submarkets in the country," said Jacob Dembitzer, Vice President of Business Development at SkyREM, in a statement accompanying the announcement. "The Confluence is a highly functional, mission-critical facility in a location with tremendous growth tailwinds."

SkyREM's National Strategy Cements Southwest Foothold

The acquisition of The Confluence is a deliberate chess move in SkyREM's larger national strategy. The firm specializes in identifying and acquiring core-plus and value-add industrial properties in markets characterized by strong tenant demand, high barriers to entry, and significant potential for long-term appreciation. The Casa Grande purchase fits this profile perfectly.

This transaction is part of an aggressive growth phase for the company, which has recently acquired approximately 1.7 million square feet of similar industrial assets across the United States. This expansion is fueled by a sophisticated capital strategy involving newly secured acquisition lines of credit and the active recycling of capital from the disposition of legacy assets. This approach allows the firm to remain agile and deploy capital decisively.

James Pancetti, Vice President of Acquisitions at SkyREM, noted the firm's competitive edge, stating, "This acquisition speaks to our ability to uncover unique opportunities in competitive markets and move decisively when the right asset and tenant profile emerge."

The successful entry into the competitive Phoenix market was also aided by the firm's established national presence. "SkyREM's national scope and our platform's ability to connect across markets played a key role in supporting their first acquisition in Phoenix," added John Huguenard, Senior Managing Director and Industrial Group Co-Lead who was involved in the deal. "We are confident that this best-in-class facility will continue to thrive under SkyREM's experienced ownership and strategic vision."

More Than a Warehouse: A Mission-Critical Asset

The strategic value of The Confluence extends far beyond its square footage. The two buildings are fully leased to Engineered Foam Packaging LLC (EFP), a leading manufacturer of molded protective foam packaging and critical cold-chain solutions. For a tenant like EFP, whose business is intrinsically tied to the manufacturing and distribution sectors it serves, a modern facility in a prime logistics location is not a luxury—it is a mission-critical necessity.

The property's position along the I-8 and I-10 corridor provides EFP with unparalleled access to its client base. It enables seamless distribution to manufacturing clients throughout Arizona, Southern California, and into Mexico via ports of entry at Nogales and San Luis, both just a few hours' drive away. This connectivity is vital for supply chain resilience, especially for EFP's cold-chain products, which are essential for the pharmaceutical and food industries.

The facility itself, originally developed by The Opus Group on a speculative basis, was designed specifically to meet the needs of suppliers for the region's burgeoning EV and consumer goods industries. Its Class A specifications ensure operational efficiency for complex manufacturing and packaging processes. This synergy between a modern, purpose-built facility and a high-demand tenant illustrates the evolution of industrial real estate, where properties are no longer just storage spaces but integral components of a sophisticated, high-velocity supply chain.

The investment wave into Casa Grande is part of a larger pattern of high-value transactions across the Phoenix metro area. In recent months, the region has seen record-breaking sales, including Walmart's $152 million purchase of a distribution center and JLL Income Property Trust's $113.55 million acquisition of a Glendale industrial property. SkyREM’s acquisition of The Confluence solidifies its place among the major players betting on the region's continued ascent as a dominant force in North American industry and logistics.