I have had the opportunity to discuss the Phoenix commercial real estate market activity consistently since 2022 for Arizona School of Real Estate and Business. This article always ties into the market update that I typically host, which, by the way, is coming up on August 22, 2025, Commercial Growth, make sure you sign up! Trends start to emerge each time I look at the data from year to year and this year is no different! Let’s start off by the recap of
The city of Phoenix is searching for developers to transform the Regency Garage in downtown Phoenix into a mixed-use project including a hotel to boost activity near the Phoenix Convention Center and surrounding area. The city issued a request for proposals for the site, located on just shy of an acre between 2nd and Adams Streets, which is adjacent to the convention center. While there is no set number of hotel rooms required for the project, the
The U.S. inflation rate hit a 40-year high after the pandemic but has since cooled significantly due to factors like the Federal Reserve rate hikes. The year-over-year inflation rate sits at 2.7% as of June 2025, which is the highest since February. Various factors, such as the war in Ukraine, labor shortages and recent tariffs, drive this higher than average inflation. Despite the country not meeting its target yet, the Federal Reserve will keep interest rates at
A private developer is preparing a 3,300-acre site in Pinal County for what could become Arizona’s largest data centre complex, as surging demand for AI and cloud infrastructure drives record investment in US capacity. One of Arizona’s largest private landowners, Vermaland, is planning a data centre project near Eloy that would be the state’s largest to date, with an estimated development cost of US$33 billion. The facility is expected to support up to three
The Planning Commission gave the final entitlement approval for The Ranch, a $1 billion mixed-use development in the heart of Gilbert, on Wednesday. Now, planning and construction work on The Ranch can begin. The 295-acre development will be situated along Power Road between Warner and Elliot roads. Once completed, The Ranch will be Gilbert’s largest mixed-use development. “This entitlement approval marks a turning point not just for
Apple Inc. plans to invest billions of dollars into Amkor Technology Inc.’s advanced packaging facility to be built in Peoria as part of a larger $100 billion commitment announced by the California-based tech giant Wednesday to boost its manufacturing in the United States. Apple’s $100 billion investment will support a new American Manufacturing Program intended to strengthen the company’s supply chain and advanced manufacturing operations in the U.S
Applied Materials announced it will bolster the semiconductor manufacturing supply chain in the U.S. with plans to invest more than $200 million in Arizona to create a new advanced manufacturing facility in Chandler, which will produce semiconductor equipment components and parts. The facility could support the creation of potentially 200 additional manufacturing, R&D and services jobs in the semiconductor field over a five-year period. “For nearly 60 years
Sometimes the general public is scarcely aware of the biggest stories breaking in their own backyard. That is happening this week, as Arizona plants a stake in the future, declaring to the world that we will be a player in the modern economy. If you are going to seriously compete in tomorrow’s economy, you are going to need energy and lots of it. The world is on the cusp of what many say is the next industrial revolution, and the electricity needed to power breakthroughs
Commercial and multifamily mortgage loan originations were 66% higher year-over-year in the second quarter of 2025 and up 48% from Q1, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. A rise in originations for office, healthcare and industrial properties led to an overall increase in lending volume. MBA reported a 140% Y-O-Y increase in dollar volume of office property loans, a 77% increase for healthcare properties, a
As we pass the midpoint of 2025, both the office and retail real estate sectors are showing signs of stabilization, albeit with distinct paths and pressures. While investor caution remains, strategic acquisitions and resilient demand are helping both asset classes find their footing in a recalibrated market. Office: Uneven Recovery, Opportunistic Buying: The office sector continues to navigate a slow and uneven recovery. With tech demand remaining muted outside of AI-related requirements in select gateway
Home Depot found a tenant to take over its massive 1.3 million square-foot warehouse in Goodyear that it put up for sublease last year, according to data from CoStar/Homes.com. The sublessor is a third-party logistics firm, CEVA Logistics, according to permitting documents filed with the city of Goodyear. The facility – Elwood Logistics Center – located at 16155 West Elwood Street – has 3,866 square feet of office space, 233 dock doors, 691 trailer parking stalls and 40-foot clear height. In 2021, Home Depot
A Minnesota-based affordable housing developer is doubling down on projects on the outskirts of the Valley, with three projects in the works that will bring more than 750 new units of affordable housing. Dominium, a developer with several large projects around the Phoenix area, acquired sites in Surprise, Casa Grande and Buckeye for new rental developments. The development in Surprise, called Allasso Ranch, will be located at Happy Valley Road and 147th Avenue. The project kicked off construction in June and the
The national market is cooling overall, but the pace and severity of the slowdown varies widely across regions, according to the latest Realtor.com July Housing Trends Report. The South and West are shifting decisively in favor of buyers, with rising inventory, deeper price cuts, and longer time on market. In contrast, conditions in the Northeast and Midwest remain much tighter. Nationally, active listings rose for the 21st straight month, homes took seven days longer to sell than last year, and 33 of the 50 largest metros
Arizona land developer Vermaland, LLC unveiled plans for a $33 billion data center industrial park in Pinal County that would become the largest such development in the United States, positioning the Phoenix-Tucson corridor to compete directly with Northern Virginia’s “Data Center Alley” for tech industry investment. The 3,300-acre complex would support up to 3 gigawatts of
A grand opening for the battery-producing wing of LG Energy Solution Ltd.’s battery factory in Queen Creek is on the horizon, with hiring underway ahead of a 2026 production goal. “Their manufacturing facility is about 60% complete, and so they anticipate starting production in summer of 2026,” Doreen Cott, Queen Creek’s economic development director, told the Business Journal
Phoenix-based Banner Health is making its way through the zoning process for a $400 million medical campus in north Scottsdale. The state’s largest health system filed for a conditional use permit to pave the way for a 640,000-square-foot hospital at the southwest corner of Hayden Road and Loop 101, according to a July 14 filing with the city of Scottsdale. The 300-bed hospital
Construction will begin this month on an affordable housing development in southwest Phoenix that eventually will be anchored by a retail center. The first phase of apartments at Broadway Farms at Hurley Station will total 190 units. Colorado-based St. Charles Town Co., the developer, closed on $80 million of financing to build the apartments. They will be rented to residents earning up
The multifamily housing market has set a new benchmark for demand, according to CBRE Research. Net absorption—a measure of new leases signed and occupied—climbed 44% year-over-year to 188,200 units, the highest second quarter figure ever recorded. This level is also 44% higher than the average for the same period before the pandemic. This milestone comes after
U.S. commercial real estate is on the cusp of a “generational reset,” according to Cushman & Wakefield, which argues that 2025 will present investors with “rare windows of opportunity” for those able to act with both selectivity and creativity. This outlook is rooted in the extraordinary shifts that have shaped the sector since the onset of the pandemic. As policymakers unleashed
Prominent retail leases signed by IKEA, Amped Fitness and STG Automotive Group negotiated by top dealmakers from Kidder Mathews, Lynn Morrison Co. and JLL are among the second-quarter retail leases recognized by CoStar. As big-ticket items involving sizable investments, commercial property transactions often have a wider impact within the community. CoStar is pleased
Sunstone Two Tree, a developer and operator of rental housing communities in high-growth markets across the U.S., announced that it has opened an office in Phoenix. Based in The Promenade office park in North Scottsdale, the new space will offer ongoing support to the company’s growing operations in the state, which include a development pipeline of numerous
Private sector employment increased by 104,000 jobs in July 2025 and pay was up 4.4 percent year-over-year according to the July ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab (“Stanford Lab”). The ADP National Employment Report is an independent measure of the labor market based on the anonymized
A $140.2 million West Valley warehouse sale marks the largest single-building industrial transaction in the Valley since 2023, according to data from Costar Group. The building, which encompasses 1,023,610 square feet at 8900 N. Sarival Ave., is where global sportswear brand Puma houses its regional distribution center, along the Loop 303 corridor in Glendale. The sale closed
A $140.2 million West Valley warehouse sale marks the largest single-building industrial transaction in the Valley since 2023, according to data from Costar Group. The building, which encompasses 1,023,610 square feet at 8900 N. Sarival Ave., is where global sportswear brand Puma houses its regional distribution center, along the Loop 303 corridor in Glendale. The sale closed July 29. Global giant LaSalle Investment Management, an independent subsidiary
Phoenix-based Banner Health has opened an outpatient surgery center focusing on heart care in the Arcadia area. Called Banner Cardiovascular Center – Arcadia, the new outpatient surgery centers is Banner’s first version of an outpatient model to partner with academic faculty physicians. The 7,142-square-foot space is on the first floor of Banner Health Center Plus – Arcadia, which originally opened in 2023 at 4200 E. Camelback Road. Integrity Building Co. was