Executive Summary
Industrial land entitlements are moving, but data centers face uneven approvals. Pinal County rezoned 4,695 acres of State Trust land along SR 79 to I-3 Heavy Industrial while prohibiting standalone data centers, and Casa Grande approved a conditional-use permit for the 954-acre Grande Valley Data Center campus (6-1 vote). In the same week, Pinal County supervisors denied the La Osa Energy Center even after it was cut from 59 data centers to 11. For landowners and developers, entitlement certainty and jurisdiction-specific policy now shape value as much as location.
Capital is targeting stabilized income and large portfolio debt. Equus Capital Partners lined up a $527.1 million CMBS refinancing on 3.7 million SF of Phoenix industrial ($142.46 per SF loan basis), and Blue Owl Capital paid $85.3 million for the Albertsons distribution center in Tolleson ($96.74 per SF). On the residential side, The Ventura in Chandler traded for $71 million ($261,029 per unit), The Astor at Osborn sold for $47.8 million ($250,262 per unit), and Lennar paid $60.1 million for 132 acres in Sun City ($454,777 per acre; $10.44 per land SF).
Hospitality capital and repositioning are redefining legacy assets. San Manuel Investment Authority acquired the Fairmont Scottsdale Princess for a reported $241.3 million ($321,733 per room), and the Arizona Biltmore ownership group bought Wrigley Mansion for $17 million. With office vacancy at 23.7% and Class A vacancy at 28.3%, obsolete commercial space is being repurposed: One Camelback opened 163 apartments in a former office tower, The Lakefront at Scottsdale broke ground on a 100,000 SF redevelopment, and a church bought a former Macy's in Mesa ($32.21 per SF).
Land
Lennar Buys 132 Acres at Harish Estates for $60.1 Million - AZ Big Media (October 6, 2026)
Lennar Homes acquired 132.24 acres of vacant land at the northeast corner of 117th Avenue and West Williams Drive in Sun City from Rohit K. Tripathi. The purchase is one of the largest residential land trades in the Northwest Valley this year. Pricing above $450,000 per acre shows homebuilders are still paying up for well-located, development-ready acreage.
Sale price: $60,139,765 for 132.24 acres
Price per acre: approximately $454,777
Price per land SF: approximately $10.44
Source: AZ Big Media
Logistics Property Company Closes on Land for Sonoran Logistics Park - Logistics Property Company (October 6, 2026)
Logistics Property Co. closed on 76 acres near I-10 and Perryville Road in Buckeye for a two-building industrial campus with direct Loop 303 access. The site was originally planned as Phase II of the Paloma Vista Logistics Center, whose Phase I includes a 1 million SF Amazon facility. Heavy power capacity positions the campus for automation, EV fleet charging and advanced manufacturing users. Cushman & Wakefield is arranging the project.
Site: 76 acres; purchase price not disclosed
Program: 1,226,832 SF across two buildings (831,576 SF and 395,256 SF)
Specifications: 36 to 40 foot clear heights; more than 15,000 amps of power per building
Timing: construction start Q4 2026; delivery early 2028
Market context: roughly 31 million SF under construction Valley-wide as of August (about 6.8% of existing stock)
Source: Logistics Property Company
Pinal County Rezones 4,695 Acres of State Land for Industrial Development - Phoenix Business Journal (October 5, 2026)
The Pinal County Board of Supervisors approved a Comprehensive Plan amendment and rezoning from General Rural to I-3 with a PAD overlay for State Trust land along SR 79 north of Florence. The Arizona State Land Department intends to auction the land for manufacturing, heavy trucking and power-generation uses. Conditions bar standalone third-party data centers and offsite-serving utility-scale solar, reserving the tract for employment-intensive users.
Size: approximately 4,695 acres
Zoning: General Rural to I-3 Industrial with PAD overlay
Next step: future State Land Department auction
Source: Phoenix Business Journal
Grande Valley Data Center Campus Gets Permit Approval - AZBEX (October 7, 2026)
The Casa Grande Planning and Zoning Commission approved a conditional-use permit for a two-phase data center campus owned by LKY Development Company on the city’s northwest side. The site already carries I-2 zoning, so no rezoning was required, and the approval goes to City Council only if appealed. Plans include onsite natural-gas generation, battery storage and closed-loop cooling.
Size: 954 acres within the 2,250-acre Grande Valley Industrial master plan
Vote: 6-1
Source: AZBEX
La Osa Energy Center Denied by Pinal County Board of Supervisors - AZBEX (October 2, 2026)
Pinal County supervisors denied Vermaland’s La Osa Energy Center despite a Planning and Zoning Commission recommendation for approval and a sharply reduced plan. The project drew heavy public opposition. The outcome signals that large data center proposals in unincorporated Pinal County face meaningful entitlement risk.
Scope reduction: 59 data centers cut to 11
Opposition: 123 letters and nearly five hours of public comment
Source: AZBEX
Mesa Landfill Seeks Rezoning for Four Digital Billboards and Outdoor Storage - Phoenix Business Journal (October 6, 2026)
Johnson Stewart Materials is pursuing a heavy-industrial land-use designation for property on both sides of Loop 202 in Mesa. The request could open additional outdoor storage and industrial capacity in a supply-constrained East Valley corridor.
Location: both sides of Loop 202, Mesa
Source: Phoenix Business Journal
Multifamily
The Ventura Apartments Trades for $71 Million - AZ Big Media (October 6, 2026)
Prime Group acquired The Ventura at 3600 W. Ray Road in Chandler from Starlight Investments. The deal adds another institutional-scale benchmark for established East Valley apartments.
Sale price: $71,000,000 for 272 units
Price per unit: approximately $261,029
Source: AZ Big Media
The Astor at Osborn Sells for $47.8 Million - Multifamily Affordable Housing (October 7, 2026)
The 2019-built, 191-unit mid-rise at 3300 N. 7th Avenue in Central Phoenix traded between undisclosed parties, with Institutional Property Advisors arranging the sale. The buyer financed the purchase with Fannie Mae debt. Proximity to Midtown and Downtown employment keeps recent-vintage Central Corridor product liquid.
Sale price: $47,800,000 for 191 units
Price per unit: approximately $250,262
Acquisition financing: $29.04 million Fannie Mae loan
Source: Multifamily Affordable Housing
One Camelback Is Officially Open for Business - Axios Phoenix (October 2, 2026)
Kinella Capital opened its office-to-residential conversion of the former BMO tower at Central Avenue and Camelback Road, with first residents moving in. Kinella bought the stalled project for $36 million in December 2025, so that figure reflects an unfinished asset rather than a stabilized sale. The conversion removes obsolete office inventory while adding Uptown density.
Units: 163; nearly 20% leased at opening
Total investment: approximately $80 million (approximately $490,798 per unit)
Rents: $1,625 for a studio to $10,000 for a three-bedroom penthouse
Retail: approximately 11,000 SF ground floor, including EverSpan Health
Source: Axios Phoenix
192-Unit Phoenix Affordable Housing Project Starts Construction - The Arizona Republic (October 7, 2026)
UMOM New Day Centers received final approval to begin Salamanca Square at 4439 N. 39th Avenue on underused Alhambra School District land. The project serves households earning no more than 60% of area median income and shows school-district land emerging as an affordable-housing supply source.
Development cost: $64,000,000 (approximately $333,333 per unit)
Units: 192
Opening: targeted May 2028
Source: The Arizona Republic
Industrial
Equus on Track for $527M Phoenix Portfolio Refi - Commercial Property Executive (October 6, 2026)
Morgan Stanley and Bank of America are co-originating a CMBS refinancing on 36 Equus properties across Phoenix, Peoria, Chandler, Gilbert, Tempe, Mesa, Glendale and Goodyear. Proceeds retire existing debt and return equity to the sponsor, showing deep lender appetite for diversified, multi-tenant Phoenix industrial.
Loan amount: $527,100,000 on 3.7 million SF (approximately $142.46 per SF)
Debt retired: approximately $449.7 million; equity returned: approximately $68.9 million
Occupancy: 91.2% leased to 797 tenants; roughly 90% warehouse/distribution
Source: Commercial Property Executive
Blue Owl Capital Acquires Tolleson Albertsons Distribution Center for $85.3 Million - AZ Big Media (October 6, 2026)
Blue Owl Capital bought the Albertsons distribution warehouse at 400 S. 99th Avenue in Tolleson from BrightSpire Capital. Wilmington Trust, KeyBank Real Estate Capital and Deutsche Bank were identified as lenders. The sub-$100 per SF basis on a credit-tenant distribution facility is a key West Valley big-box benchmark.
Sale price: $85,273,973 for 881,513 SF
Price per SF: approximately $96.74
Source: AZ Big Media
$18.5M Mesa Industrial Sale Highlights Demand for Smaller Business Spaces - In Business Magazine (October 7, 2026)
Falcon Commerce Park LLC acquired a three-building, 23-suite complex at 1610, 1660 and 1750 N. Rosemont in Mesa from Hyatt Investments USA LLP. Commercial Properties Inc. represented both sides through separate teams and will handle leasing as the buyer adds capital improvements. Pricing well above bulk distribution comps reflects scarce small-bay product with secured yards.
Sale price: $18,500,000 for 72,256 SF
Price per SF: approximately $256.03
Suite sizes: 2,744 to 3,855 SF
Source: In Business Magazine
Financing Closes and Construction Starts on River West Commerce Center in Avondale - F Street (October 2, 2026)
F Street and Hopewell Development closed construction financing for a Class A industrial building with a secured outdoor yard on Indian School Road. Pairing modern space with a dedicated yard targets users priced out of infill outdoor storage sites.
Building: 110,900 SF plus a 2.3-acre secured yard
Delivery: Q3 2027
Source: F Street
Gudeng Precision Industrial Opens Glendale Manufacturing Facility - AZ Big Media (October 7, 2026)
Taiwan-based Gudeng Precision Industrial opened its first U.S. manufacturing facility in Glendale, producing semiconductor and aerospace components. It adds another TSMC supply-chain occupier to the West Valley base.
Investment: $5 million
Jobs: more than 30
Source: AZ Big Media
Phoenix Industrial Real Estate Market Continues Growth in Q3 of 2026 - Daily Independent (October 6, 2026)
Kidder Mathews data shows vacancy fell year over year even as quarterly deliveries more than tripled. Glendale captured roughly half of Valley absorption, driven by TSMC supplier demand, followed by Chandler North/Gilbert and the Southwest Valley.
Vacancy: 11.5% (down 180 basis points YoY); availability: 14.0%
Leasing: 7.6 million SF; direct net absorption: 2.9 million SF
Deliveries: 3.4 million SF
Asking rent (10,000 SF and larger): $1.18 per SF monthly NNN (up 5% YoY)
Glendale absorption: approximately 1.5 million SF
Source: Daily Independent
Retail
5 New Tenants Are Coming to Queen Creek Marketplace - AZ Big Media (October 7, 2026)
Vestar signed Barnes & Noble, Aubergine Kitchen, JINYA Ramen Bar, LongHorn Steakhouse and LaserAway at Queen Creek Marketplace. The leases show national retailers following rooftops into the Southeast Valley.
New leasing: nearly 30,000 SF combined (Barnes & Noble approximately 15,000 SF)
Occupancy: 96%
Openings: Barnes & Noble November 11; others in early to spring 2027
Source: AZ Big Media
Former Macy’s Property at Superstition Springs Mall Sells for $5 Million - AZ Big Media (September 30, 2026)
Echoes Church acquired the three-level former Macy’s at 6535 E. Southern Avenue in Mesa and has started a multimillion-dollar renovation. CRE8 Advisors represented the buyer. The deal shows non-retail users absorbing vacant department store boxes at deep discounts to replacement cost.
Sale price: $5,000,000 for 155,254 SF on 12.9 acres
Price per SF: approximately $32.21
Parking: 966 spaces; opening targeted late 2028
Source: AZ Big Media
Yard House Plans First Gilbert Restaurant - What Now Phoenix (October 2, 2026)
Yard House plans a 5,700 SF restaurant with 850 SF of covered patio at SanTan Crossing, at the southeast corner of SanTan Village Parkway and Williams Field Road; no timeline has been announced. The location reinforces the SanTan Village area as a regional dining destination. whatnow
Size: 5,700 SF plus 850 SF patio
Source: What Now Phoenix
First Look: Midtown Phoenix’s Newest Restaurant Mixes BBQ and Seafood - Phoenix Business Journal (October 7, 2026)
Common Ground Culinary founder Chris Collins is opening Cowboy Seafood, a ground-up restaurant at Park Central, 3112 N. Central Avenue. It adds to the redeveloped campus’s growing food-and-beverage lineup.
Size: approximately 5,000 SF
Source: Phoenix Business Journal
Office
AXS Fund Picks Up 20-Story Phoenix Office Asset - Connect CRE (October 6, 2026)
AXS Opportunity Fund acquired One North Central, a Class A tower at 1 N. Central Avenue, from Parallel Capital Partners in an all-cash deal. Newmark represented the seller and was retained for leasing. AXS plans lobby and ground-floor upgrades and a new restaurant to compete for flight-to-quality tenants.
Size: 429,120 SF; 20 stories; built 2001
Price: not disclosed (Parallel paid $93 million in 2015)
Source: Connect CRE
Phoenix Industrial Demand Holds Strong as Office Market Edges Toward Stability - In Business Magazine (October 6, 2026)
Kidder Mathews data shows modest positive Q3 absorption, rising rents and no new deliveries. The Central Corridor led the Valley while East Phoenix gave back space, and office-using employment grew 1.3% YoY, the fastest pace since mid-2022.
Vacancy: 23.7% overall; Class A 28.3%; Class B 18.5%; Class C 11.1%
Direct net absorption: approximately 23,600 SF (year-to-date negative 156,525 SF)
Leasing: approximately 1.3 million SF
Asking rent: $31.66 per SF FSG (up 2% YoY); Class A $34.50 per SF
Central Corridor: positive 105,600 SF; East Phoenix: negative 64,600 SF
Source: In Business Magazine
San Diego Planning and Engineering Firm Opens First Arizona Office in Phoenix - Phoenix Business Journal (October 1, 2026)
Latitude 33 Planning, Engineering & Surveying opened its first Arizona office. Its arrival reflects demand for civil and entitlement services tied to Valley land development.
Hiring plan: 10 to 15 engineers over two years
Source: Phoenix Business Journal
Healthcare
Banner Opens Urgent Care and Occupational Health Clinic on Carefree Highway - AZBEX (October 2, 2026)
Banner Health opened a Banner Urgent Care and Banner Occupational Health Clinic at 2525 W. Carefree Highway, Suite 156. The location extends outpatient care along the fast-growing I-17 corridor near TSMC and Halo Vista.
Source: AZBEX
Mixed-Use
The Lakefront at Scottsdale Breaks Ground - AZ Big Media (October 7, 2026)
Diversified Partners began converting a 1978 single-tenant office property at 7501 E. McCormick Parkway into waterfront restaurant, retail and Class A office space. SUSHISAMBA has signed a letter of intent as the food-and-beverage anchor. A.R. Mays Construction is general contractor, with major construction expected in early 2027.
Size: approximately 100,000 SF
Anchors: SUSHISAMBA (approximately 12,000 SF LOI); V Modern Italian (approximately 7,000 SF)
Source: AZ Big Media
Tempe Plans Affordable Housing, Fire Station at Former Big Lots Site - Tempe Independent (October 1, 2026)
Tempe is studying co-locating affordable apartments and a new fire station on the former Big Lots property at 950 E. Baseline Road. The city expects to select a private developer likely to use low-income housing tax credits; two existing tenants have leases through 2028.
City purchase price: approximately $6.6 million for about 3 acres
Price per acre: approximately $2.2 million
Price per land SF: approximately $50.51
Program: at least 50 affordable units plus a fire station
Source: Tempe Independent
Hospitality
San Manuel Nation Buys Scottsdale Fairmont Princess - Phoenix Business Journal (October 1, 2026)
San Manuel Investment Authority acquired the 65-acre resort at 7575 E. Princess Drive from Strategic Hotels & Resorts, adding it to a national portfolio of non-gaming luxury hotels. Property records reported by The Arizona Republic put the price at $241.3 million. Tribal investment authorities are becoming a durable buyer pool for trophy resorts.
Sale price: $241,300,000 for 750 rooms
Price per room: approximately $321,733
Amenities: 44,000 SF spa, six pools, five food-and-beverage outlets
Source: Phoenix Business Journal
Wrigley Mansion Sold to Arizona Biltmore Ownership Group - Phoenix Business Journal (October 2, 2026)
The Henderson Park-led ownership group of the Arizona Biltmore acquired the historic Wrigley Mansion, reuniting the two landmarks. Pyramid Global Hospitality will operate both, positioning the mansion as a premium event and dining extension of the resort.
Sale price: $17,000,000
Source: Phoenix Business Journal
$80M Embassy Suites Starts Construction in Avondale - West Valley Post (October 2, 2026)
Whitten Development broke ground on a six-story Embassy Suites by Hilton at Roosevelt Street and 114th Avenue, anchoring the north end of The BLVD’s Park Avenue District. The meeting space targets West Valley corporate and group demand.
Development cost: $80,000,000 for 180 suites (approximately $444,444 per suite; development cost, not a sale price)
Meeting space: more than 10,000 SF
Completion: spring 2028
Source: West Valley Post
Dual-Brand Hilton Opens at Gallery Park in Mesa - AZBEX (October 2, 2026)
VIVO Development Partners opened the four-story Tempo by Hilton Gallery Park and Homewood Suites Phoenix/Mesa Airport at 5057 S. Power Road. The hotel anchors Gallery Park, a planned mixed-use district near Loop 202 and Phoenix-Mesa Gateway Airport.
Rooms: 174 (97 Tempo; 77 Homewood Suites extended-stay)
District: more than 1 million SF of planned hospitality, residential, restaurant and retail uses
Source: AZBEX
Let's Talk About What This Means for Your Land
Every day, our team talks with landowners, developers, homebuilders and investors across Maricopa County and Pinal County about industrial land, data center sites, multifamily and build-to-rent development land, and commercial acreage. This week’s rezonings, data center decisions and land sales from Buckeye to Casa Grande are changing what land is worth and how quickly it can be entitled and sold.
If you own land in Greater Phoenix or are planning a development, we are available for a confidential conversation about how these trends affect your property’s value, entitlement path and timing. Reply to this email or reach out directly to set up a time, and subscribe to The Phoenix CRE Brief for weekly Phoenix commercial real estate and land market insights.
Until Next Time,
Ramey Peru & John Finnegan
Senior Vice Presidents | Land
ramey.peru@colliers.com | john.finnegan@colliers.com
(602) 228-3638 | (602) 405-5212
Connect with Ramey on LinkedIn | Connect with John on LinkedIn