Executive Summary
Infill industrial is trading near $250 per SF as the development pipeline swells. Sierra Ridge Capital paid $31 million for a fully leased Southbank Business Park building (about $252 per SF), and a Taiwanese investor paid $10.6 million for a Deer Valley manufacturing building (about $245 per SF). CBRE counts 21.1 million SF under construction, up 85% year over year. Semiconductor and data center users keep adding demand, with Intel installing tools at Fab 62 and Aligned expanding its Chandler campus.
Land value is being set by entitlement and use, not acreage alone. The roughly 4,753-acre Project Paperclip state trust site heads to a December auction at a $46.5 million starting bid (about $9,783 per acre). Terry Black’s paid about $15.1 million per acre for a full block in Old Town Scottsdale. Between those extremes, Gilbert is still writing data center rules and Phoenix is weighing an annexation that would allow up to 489 units in Laveen, so jurisdiction-specific policy keeps driving pricing.
Retail and office are repricing from opposite directions. Drive-thru and destination retail is commanding premium pricing: a Farmer Boys sold for about $1,074 per SF and a hard-corner Mesa building sold for about $238 per SF. Office supply is shrinking instead, with Phoenix inventory down 3.79% in one quarter as obsolete buildings are demolished, and capital is flowing into community-anchored mixed-use such as the $60 million downtown YMCA and Queen Creek’s $120 million Switchyard.
Land
Project Paperclip Eyes Nearly 5,000-Acre Arizona Site - ABC15 Arizona (October 16, 2026)
State Land Department records show a large defense-related development, Project Paperclip, seeking state trust land east of San Tan Valley in Pinal County. The site is about five times the roughly 1,000 acres the hypersonic missile maker Castelion explored last year before choosing New Mexico. The tract is headed to a State Land Department auction in December.
Size: approximately 4,753 acres
Starting bid: $46,500,000 (approximately $9,783 per acre; approximately $0.22 per land SF, based on the minimum bid)
Source: ABC15 Arizona
Phoenix Considering Annexation of 489-Unit Multifamily Plan Site - AZBEX (October 20, 2026)
Phoenix is considering annexing unincorporated Maricopa County land near Dobbins Road and 32nd Avenue in the Laveen Village so City to City Commercial can pursue apartments, condominiums or townhomes under R-3 zoning. The City Council held a public hearing October 21, with formal action to follow. Annexation is becoming a key path to services and density for unincorporated infill parcels in the South Phoenix and Laveen growth corridor.
Site: 28 acres
Program: up to 489 multifamily units
Source: AZBEX
Gilbert Weighs 650-Foot Data Center Buffer, Pushes Vote to December - Hoodline (October 21, 2026)
After hours of debate, the Gilbert Town Council delayed its vote on new data center zoning standards until December. The proposal would limit data centers to industrial districts and is among the strictest in the region. Gilbert has only one data center and no pending applications, but the outcome will set entitlement risk for power-intensive industrial land in the Southeast Valley.
Residential setback: 650 feet
Water: no use of town drinking water for cooling
Source: Hoodline
Multifamily
Leon Capital Group Kicks Off Major Phoenix Project Near TSMC - Multi-Housing News (October 21, 2026)
Leon Capital Group broke ground on Soltra Ironwood, a 343-unit luxury community at 2425 W. Sonoran Desert Drive in North Phoenix, less than six miles from TSMC and within two miles of Loop 303 and I-17. Santander Bank provided the construction loan, and Estating plans to invest with a three-year hold. Lenders are still financing new Class A product in the TSMC employment corridor even as metro deliveries slow.
Construction loan: $63,800,000 (approximately $186,006 per unit)
Site: nearly 13 acres (approximately 26 units per acre)
First units: 2027
Source: Multi-Housing News
Origin Investments, Mill Creek Residential Plan 190-Unit Modera Old Town in Scottsdale - Capdex (October 20, 2026)
Origin Investments and Mill Creek Residential announced Modera Old Town, a podium-style Opportunity Zone apartment community at 7120 E. Indian School Road in Old Town Scottsdale. It is the final investment in Origin’s Opportunity Zone Fund III and the partners’ second Arizona venture after the 276-unit Modera Higley Commons in Gilbert, which is 87% leased. Delivery in mid-2029 would follow the current supply wave, in a submarket where vacancy runs below 7% versus about 10.7% metrowide.
Program: 190 units on 2.03 acres (approximately 94 units per acre)
Unit mix: 73 one-bedroom, 101 two-bedroom and 16 three-bedroom units averaging 1,076 SF (approximately 204,440 rentable SF)
Timeline: construction starting October 2026; completion targeted for mid-2029
Source: Capdex
Industrial
Sierra Ridge Capital Buys 123,032 SF Industrial Building in Phoenix for $31M - REBusinessOnline (October 15, 2026)
Los Angeles-based Sierra Ridge Capital acquired 3137 E. Elwood St. in the Southbank Business Park near Sky Harbor in its first Arizona investment. The 1995-built building was renovated in 2026, offers 22-foot clear height, 10 oversized grade-level doors, a secured yard and heavy power, and was fully leased to three tenants. The resale shows airport-area infill with yard and power commanding strong per-SF pricing.
Sale price: $31,000,000 for 123,032 SF (approximately $251.97 per SF)
Site: 9.8 acres
Prior sale: $19,200,000 in July 2024 (approximately $156 per SF), per CoStar
Source: REBusinessOnline
Taiwanese Investor Pays $10.6M for Deer Valley Industrial Building - REBusinessOnline (October 20, 2026)
A private Taiwanese investment company bought the freestanding manufacturing building at 2520 E. Rose Garden Lane from a privately held California company in an off-market deal. The fully air-conditioned building includes about 6,500 SF of office, 18-foot clear height, two dock-high doors and one grade-level door. DAUM Commercial represented the seller and procured the buyer, and the pricing reflects Taiwanese supply-chain buyers paying up for immediate occupancy near TSMC.
Sale price: $10,600,000 for 43,338 SF (approximately $244.59 per SF)
Source: REBusinessOnline
Denver Investor Acquires Seven-Building Shallow-Bay Industrial Portfolio - Phoenix Independent (October 18, 2026)
Baron Properties bought a fully leased portfolio of six shallow-bay buildings in metro Phoenix and one in Henderson, Nevada, from Piercey Realty Ventures. Phoenix-area assets include properties on E. Riverview Drive, E. University Drive, W. Fillmore Street and W. Washington Street in Phoenix, plus E. Elliot Road in Chandler and W. Birchwood Avenue in Mesa. Cushman & Wakefield arranged the sale; the price was not disclosed, so no price per SF is available.
Portfolio: 426,940 SF, fully leased to 11 regional and national occupiers
Source: Phoenix Independent
Phoenix Industrial Leasing Holds Firm as Construction Pipeline Expands to 21.1 Million Square Feet - Real Estate Daily News (October 19, 2026)
CBRE’s Q3 2026 figures show steady leasing but slower absorption, which CBRE attributed partly to a shortage of buildings over 750,000 SF. The construction pipeline grew sharply, led by the Southwest Valley. A new development cycle is underway, which will raise demand for entitled, power-ready industrial land.
Leasing: 9.6 million SF; net absorption: 1.59 million SF (down from 4.62 million SF in Q2)
Under construction: 21.1 million SF (up 12.5% quarter over quarter and 85% year over year)
Southwest Valley pipeline: approximately 10.97 million SF; Southeast Valley: 5.66 million SF
Source: Real Estate Daily News
The Buttes Commerce Center Breaks Ground in Tempe - AZ Big Media (October 20, 2026)
Construction began on a two-building speculative industrial project at 1401 S. 52nd St. near Sky Harbor, replacing a 1981 office park. Ryan Companies is the general contractor for a private institutional owner, and Lee & Associates is handling leasing. The project is another case of obsolete Tempe office land being redeveloped as industrial.
Program: 233,479 SF on 13 acres
Completion: September 2027
Source: AZ Big Media
Chandler Data Center Campus Enters Next Growth Phase with Large Users in Tow - ABC15 Arizona (October 20, 2026)
Aligned Data Centers continues to expand its campus along Chandler’s Price Road Corridor between Germann and Queen Creek roads. Maricopa County documents describe Google as a tenant and Oracle as a customer. The campus anchors East Valley data center absorption and the contractor and supplier demand that follows it.
Planned capacity: approximately 400 MW across two mega-facilities, per Hoodline
Source: ABC15 Arizona
Intel Begins Equipment Installation at Arizona Fab 62, Targeting 2028 Operations - TrendForce (October 22, 2026)
Intel confirmed that construction and tool installation are fully underway at Fab 62, its sixth high-volume manufacturing facility at the Ocotillo campus in Chandler. Equipment installation is typically the most capital-intensive phase of a fab build. That keeps supplier, contractor and industrial space demand building in the Southeast Valley.
Target operations: by the end of 2028
Source: TrendForce
Englund Equipment Leases Goodyear Industrial Outdoor Storage Site - AZBEX (October 20, 2026)
Englund Equipment Company leased an industrial outdoor storage property at 597-599 S. Litchfield Road in Goodyear. The low building coverage shows how much of the value in IOS deals sits in the land itself. Entitled yard sites remain scarce as West Valley cities tighten outdoor storage rules.
Building: 17,040 SF on 6.17 acres (approximately 6.3% site coverage)
Source: AZBEX
Retail
Terry Black’s Buys Old Town Scottsdale Property for $11.2 Million for Barbecue Joint - KTAR News (October 21, 2026)
The Texas barbecue brand bought a full city block at 3925 N. Brown Ave. (Brown Avenue and Main Street) for its first Arizona location. The nine-parcel site has existing buildings totaling about 10,409 SF, and LevRose Commercial Real Estate represented the sellers. The pricing reflects how scarce full-block sites are in walkable Old Town.
Sale price: $11,200,000 (approximately $1,076 per building SF)
Land: approximately 0.74 acres (approximately $15,135,135 per acre; approximately $347.45 per land SF)
Source: KTAR News
Phoenix Farmer Boys Trades in Off-Market Net-Lease Sale - AZBEX (October 20, 2026)
Investment Property Exchange Services bought the 2025-built Farmer Boys restaurant at 4250 W. Thunderbird Road from 43 Thunderbird LLC; the tenant will keep operating. Cushman & Wakefield represented the seller. New drive-thru QSR product continues to draw exchange buyers at premium pricing.
Sale price: $2,900,000 for 2,700 SF (approximately $1,074.07 per SF)
Source: AZBEX
Hard-Corner Mesa Retail Building Sells for $3.1 Million - Press Release (October 21, 2026)
A former CVS at 1151 E. McKellips Road, at the southwest corner of Stapley Drive, sold in a deal brokered by LevRose Commercial Real Estate. The hard-corner site includes a drive-thru, sits across from a Fry’s-anchored center and sees more than 51,000 vehicles per day. Second-generation pharmacy boxes with drive-thrus continue to find buyers.
Sale price: $3,100,000 for 13,050 SF (approximately $237.55 per SF)
Source: Press Release
Former Alamo Drafthouse Site in East Valley Faces Sale to Satisfy $10M Debt - Daily Independent (October 21, 2026)
The former Alamo Drafthouse at 5478 S. Power Road in Gilbert is headed to a sale to satisfy roughly $10 million in debt. Large-format entertainment buildings are hard to refinance or re-tenant once the operator leaves. Distressed experiential boxes may create redevelopment or backfill opportunities in high-growth Southeast Valley corridors.
Debt: approximately $10,000,000
Source: Daily Independent
Office
Northwest Phoenix & East Valley Office Inventory, 3Q 2026 - Market Research Report (October 16, 2026)
Kidder Mathews found that Phoenix office inventory fell in a single quarter across all eight submarket clusters, mostly through demolition. Northwest Phoenix posted the largest percentage drop, while the East Valley, led by Tempe, lost the most square footage. Removing obsolete space rebalances the market and frees land for industrial and residential redevelopment.
Metro inventory: down 3.79% from Q2 to Q3 2026
East Valley: down 992,520 SF (3.90%)
Northwest Phoenix, East Valley and East Phoenix: 54.5% of demolished square footage (more than 4 million SF)
Source: Market Research Report
Healthcare
Woodside Health Adds Phoenix-Area Medical Office Building to Its Portfolio - CoStar (October 20, 2026)
Woodside Health bought Grand Professional Plaza, a two-story, HonorHealth-anchored medical office building at 14674 W. Mountain View Blvd. in Surprise, from SMU Development. The 2007-built building sits near Banner Del E. Webb Medical Center, with primary care, orthopedics, urology and oncology tenants. Woodside also acquired the 55,122 SF Surprise Office Center on Bell Road, which deepens its position in the West Valley medical corridor.
Sale price: $13,200,000 for approximately 39,052 SF (approximately $338 per SF)
Source: CoStar
Mixed-Use
Suns, Mercury and YMCA Announce $60M Downtown Phoenix Facility - Arizona Sports (October 19, 2026)
The Phoenix Suns, Phoenix Mercury and Valley of the Sun YMCA will build a new downtown YMCA with three basketball courts and education, health and career programs. VanTrust Real Estate will develop three stories of affordable housing above the athletic center. Groundbreaking is planned during the 2027 NBA All-Star Weekend in Phoenix.
Investment: $60,000,000
Program: three-story, 55,000 SF YMCA plus approximately 60 affordable units
Opening: 2029
Source: Arizona Sports
Two Businesses Opening Soon at The Switchyard in Downtown Queen Creek - Queen Creek Independent (October 19, 2026)
Phase I shell and site work at The Switchyard, at the northeast corner of Ellsworth Loop and Ocotillo roads, is nearly finished, with Postino and VIO Med Spa opening first and eight of 12 signed tenants expected within six months. At the same meeting, the Queen Creek Planning and Zoning Commission recommended rezoning part of the 25-acre Union at Ellsworth for a 250-unit apartment component, which still needs Town Council approval. Downtown Queen Creek is pairing restaurant-led retail with multifamily to support weekday traffic.
The Switchyard: $120,000,000 on 10 acres; commercial space 82% preleased
Union at Ellsworth: 250 apartments within a 25-acre retail, office, multifamily and hotel plan
Source: Queen Creek Independent
What Do This Week’s Phoenix CRE Deals Mean for Your Land or Development Project?
The Colliers Phoenix land team talks with landowners, developers, homebuilders and investors across Maricopa County and Pinal County every day. That gives us a real-time view of how state trust land auctions, data center zoning rules, infill industrial pricing and office-to-industrial redevelopment are changing land values throughout the Phoenix Metro.
Owners and developers are asking us questions like these right now:
What is industrial or data center land worth in Chandler, Gilbert, Tempe or the West Valley today?
How will Pinal County state land auctions affect pricing for my nearby acreage?
Could my older office, retail or entertainment property be worth more as an industrial, multifamily or mixed-use site?
Is now the right time to sell, entitle or hold my land in Greater Phoenix?
If you own land or are planning a development anywhere in the Phoenix area, we are available for a confidential conversation about how this week’s activity affects your property, your timeline and your business. Reply to this email or reach out directly to set up a time, and subscribe to The Phoenix CRE Brief for weekly Phoenix land and commercial real estate 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
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