East Valley Cities, Developers See Strong Interest from Advanced Manufacturers

Article originally posted on Phoenix Business Journal on August 14, 2024

The East Valley has come into its own as a hub for advanced manufacturing for some time. Economic development leaders point to the completion of Loop 202 and State Road 24 as a reason why the region is hitting its stride as of late.

Clusters of big-name companies are forming in key areas of the East Valley, particularly along the Price Road corridor and in and around Phoenix-Mesa Gateway Airport. Experts have pointed to a workforce ready to fill highly skilled jobs that new companies have to offer as a reason why activity remains strong.

With further investment on the table as new transportation corridors gain traction in the southeast part of the Valley, opportunities continue to grow in emerging areas around the airport, into Queen Creek and Pinal County.

“There are some untapped resources that will be coming online over the next couple of years. It’s going to take some time to fill those up, but once you do, it’s going to be pretty impressive to watch,” said Steve Larsen, senior managing director at JLL, one of three panelists who took part Tuesday in the Business Journal’s Growth Corridors real estate event focused on the East Valley, held at Ocotillo Golf Course in Chandler.

Las Vegas-based IndiCap, for example, has been placing big bets in the East Valley since it was founded in 2021. The developer recently completed the first phase of the Eastmark Center of Industry in Mesa and will look to start early construction on The Ranch in Gilbert later this year. Together, when fully complete, those two projects alone will encompass more than 4 million square feet of Class A industrial space.

Todd Ostransky, IndiCap’s vice president of development – another panelist at the Growth Corridors event – said the East Valley is on his company’s radar screen because of the proximity to Phoenix-Mesa Gateway Airport and the quality of the area’s workforce. While no additional projects are currently in the plans, Ostransky and IndiCap are paying attention to future growth along State Route 24 and the area near LG Energy Solution’s emerging Queen Creek campus.

Chandler actively pursuing advanced manufacturers

Micah Miranda, Chandler’s economic development director and a panelist at Tuesday’s event, said his city needs to be strategic in the projects it pursues within its boundaries given that it’s more than 90% built out. The city is working on trying to repurpose some obsolete office inventory that can be used by other sectors. Still, there is a “significant” amount of land on the south of Chandler Municipal Airport, which Miranda calls “the final frontier” for new development in the city.

Miranda added that Chandler remains active in pursuing new manufacturers to join a vibrant ecosystem that’s headlined by Intel Corp., which is building out a second massive semiconductor facility at its Ocotillo campus. He said there have been marketing efforts to target users internationally, particularly in the European markets.

Lori Collins, Phoenix-Mesa Gateway Airport Authority’s director of business and economic development, has multiple major projects that are ongoing within the airport property, which encompasses more than 3,000 acres. Gateway East and SkyBridge Arizona are two master-planned business parks that are in the early stages of development and companies such as Virgin Galactic, Gulfstream and Xnrgy Climate Systems make major capital and workforce investments on airport land.

The airport authority is also making large investments in the airport’s own infrastructure, including a new air traffic control tower, a new terminal and a planned inside runway reconstruction. The airport is currently served by Sun Country Airlines and Allegiant Air.

As more investments are made within the airport and new businesses expand around the area, Collins – who was the other panelist at Tuesday’s Growth Corridors event – said the airport authority has set its sights on attracting a legacy carrier that would offer daily service, though no announcements are imminent as of Aug. 13.

“As the southeast Valley’s business story keeps growing, it helps airlines to make a business case that they can support those regular flights into larger hubs instead of just the point-to-point leisure traveling we have right now,” she said.