Developers target new kind of industrial tenant as Arizona’s tech sector grows

Article originally posted on CoStar on August 25, 2026

A new industrial park in Avondale is the latest bet that Phoenix’s Southwest Valley can evolve beyond its roots as a simple storage and shipping hub into a logistics powerhouse.

Phoenix-based Creation Equity recently began construction on Avondale Tech Center, a nearly 700,000-square-foot development aimed at advanced manufacturing, research and development, and assembly users. The project reflects a growing push by developers to attract higher-tech tenants to west Phoenix cities that have historically been dominated by warehouses and e-commerce operations.

Avondale Tech Center is being built to target industries like pharmaceutical development, aerospace, semiconductor manufacturing and defense contracting.

“The Southwest Valley has demonstrated consistent demand from distribution and manufacturing users, and Avondale Tech Center was designed to meet the needs of the most operationally demanding among them,” said Grant Kingdon, principal of the Mountain West region for Creation Equity, in a written statement.

Creation is developing the park in partnership with a real estate fund advised by Crow Holdings Capital. The development team aims to open the project in the third quarter of 2027.

Kingdon said the building specifications and amenities go “well beyond” what the submarket has historically seen. Specifically, the buildings will be able to store and power heavy equipment.

The project also has access to a skilled workforce, which will help it “draw the kind of users who have made this corridor one of the most resilient in the Phoenix metro,” Kingdon said.

The park will also have dedicated gathering areas for each building, shared pickleball courts and a walking path around the campus.

Avondale Tech Center spans 38 acres along Interstate 10 on the northwest corner of 117th Avenue and Corporate Drive, which is part of the Goodyear industrial area.

Over the past five years, the Goodyear area has nearly doubled its industrial inventory with 21.6 million square feet of new space minus any buildings taken out of use. The rapid growth in the area during that time was tied to sustained interest from logistics tenants.