The Phoenix Brief - 2/11/2026

Executive Summary

Three key takeaways from this week's Phoenix commercial real estate activity:

1. West Valley Dominates Large-Scale Activity: Buckeye and Surprise captured over $400M in announced investments this week, including Sunbelt's $62.5M land acquisition (272 acres), Ward Real Estate's $270M Coyote Crest development (901 units), and ICE's $70M industrial warehouse acquisition (600K+ SF) - cementing the West Valley's position as the metro's primary growth engine.

2. Industrial Market Shows Resilience Despite Rising Vacancy: While Phoenix industrial vacancy reached 13.5%, asking rents climbed 6% year-over-year to $1.19 PSF NNN, and major acquisitions demonstrate continued investor confidence in stabilized, well-located assets.

3. Office Market Stabilization Signals Value Opportunities: The $32.25M sale of the 458,047 SF Thirty 03 tower at 81% occupancy, combined with the $12M fully-leased Tempe office transaction, indicates buyers are returning to quality office assets in core submarkets at reset valuations.

If you want to understand how these developments translate to your property specifically, let’s connect.

Land

Sunbelt Investment Holdings Wins 272-Acre State Land Auction - AZBEX (February 10, 2026)

Sunbelt Investment Holdings Inc. (SIHI) successfully bid $62.5 million for 272 acres of Arizona State Land near Verrado Way and I-10 in Buckeye. The land is positioned in a high-growth corridor where SIHI already holds significant contiguous acreage. The acquisition is expected to fuel future mixed-use or industrial master-planning in one of the metro's fastest-growing submarkets.

• Purchase price: $62.5M

• Acreage: 272 acres

• Location: Near Verrado Way and I-10, Buckeye

Source

$270M "Coyote Crest" Development Announced - Connect CRE (February 9, 2026)

Ward Real Estate & Development unveiled plans for Coyote Crest, a $270 million rental community in Buckeye. The project will deliver 901 units, including garden apartments, townhomes, and build-to-rent cottages, marking one of the largest single-phase residential announcements in Buckeye's history and underscoring the West Valley's explosive growth trajectory.

• Total investment: $270M

• Total units: 901 (mix of apartments, townhomes, and cottages)

Source

Dominium Acquires Site for Goodyear Affordable Community - AZBEX (February 6, 2026)

Affordable housing developer Dominium closed on a site in Goodyear for a planned residential community. This acquisition aligns with regional efforts to increase attainable housing stock in the West Valley and supports the city's broader affordability initiatives as population growth accelerates.

• Developer: Dominium (affordable housing specialist)

Source

Residential

Biltmore at Camelback Trades for $97.3M - Connect CRE (February 4, 2026)

Principal Financial acquired the 270-unit Biltmore at Camelback luxury community at 2625 E. Camelback Rd for $97.3 million. The sale price reflects the enduring value of Class A assets in the prestigious Biltmore/Camelback corridor despite fluctuating interest rates, demonstrating continued institutional appetite for well-located core assets.

• Purchase price: $97.3M

• Unit count: 270 units

• Price per unit: ~$360,370

Source

Abel Ranch Grand Opening - InBusiness PHX (February 4, 2026)

Tri Pointe Homes announced the grand opening and start of sales for Abel Ranch in Goodyear. The 78.5-acre community is slated for 174 homes within a larger master-planned area, adding to the growing inventory of for-sale housing options in the West Valley's rapidly expanding residential market.

• Site size: 78.5 acres

• Planned homes: 174

• Developer: Tri Pointe Homes

Source

Industrial

ICE Acquires $70M Warehouse in Surprise - Bisnow Phoenix (February 9, 2026)

In a major West Valley industrial play, U.S. Immigration and Customs Enforcement (ICE) acquired a massive 600,000+ square foot warehouse in Surprise for $70 million. The facility is fully leased, providing stabilized cash flow in a critical logistics hub and demonstrating continued investor confidence in quality industrial assets despite broader market softening.

• Purchase price: $70M

• Building size: 600,000+ SF

• Occupancy: 100% leased

Source

ERMCO to Open 566K-SF Manufacturing Plant - InBusiness PHX (February 4, 2026)

Electric Research and Manufacturing Cooperative, Inc. (ERMCO) announced it will open a new 566,000-square-foot production plant for distribution transformers in Maricopa County. The facility is expected to bring hundreds of skilled manufacturing jobs to the region and reinforces Phoenix's growing position as a domestic manufacturing hub.

• Building size: 566,000 SF

• Use: Distribution transformer manufacturing

• Impact: Hundreds of skilled manufacturing jobs

Source

Retail

The Mission Opens Third Location at Agritopia - InBusiness PHX (February 9, 2026)

Chef Matt Carter's acclaimed restaurant The Mission officially opened its third Valley location at the Epicenter at Agritopia in Gilbert. The restaurant anchors the retail component of the high-density Epicenter mixed-use project, reinforcing Gilbert's emergence as a dining and entertainment destination.

• Tenant: The Mission (Chef Matt Carter)

• Location: Epicenter at Agritopia, Gilbert

Source

Office

Thirty 03 Tower Sells for $32.25M - Industry Source (February 4, 2026)

A private Canada-based buyer purchased the 26-story Thirty 03 office tower at 3003 N. Central Ave in Midtown Phoenix for $32.25 million. The 458,047-square-foot Class A building was approximately 81% leased at the time of sale. The transaction highlights the continued revitalization of the Central Avenue corridor and provides a key valuation benchmark for Midtown office assets.

• Purchase price: $32.25M

• Building size: 458,047 SF

• Occupancy: 81%

• Building type: 26-story Class A tower

Source

Tempe Office Building Trades for $12M - Bisnow Phoenix (February 4, 2026)

A fully leased office building in the Tempe submarket sold for nearly $12 million. The asset's stability and location near Arizona State University were cited as primary drivers for the investment, reflecting continued buyer interest in stabilized, cash-flowing office properties in established submarkets.

• Purchase price: ~$12M

• Occupancy: 100% leased

Source

Mixed-Use

The Gilmore Construction Update - YourValley.net (February 10, 2026)

Progress continues on The Gilmore, a $225 million vertical mixed-use project at Val Vista Dr & Germann Rd in Gilbert. The development includes 300 residential units and a significant retail/grocery component. Construction is on track for a late 2026/early 2027 delivery, representing one of the Southeast Valley's most ambitious mixed-use projects.

• Total investment: $225M

• Residential units: 300

• Additional uses: Retail/grocery component

• Expected delivery: Late 2026/early 2027

Source

Hotels

Hyatt Studios North Phoenix Update - Connect CRE (February 10, 2026)

Caliber Companies and Hyatt provided an update on the planned Hyatt Studios hotel at 29th Ave & Sonoran Desert Dr in North Phoenix. The 114-room project is strategically located to serve the growing semiconductor and technology workforce in North Phoenix, aligning with the region's expanding advanced manufacturing sector.

• Rooms: 114

• Brand: Hyatt Studios

• Target market: Semiconductor and technology workforce

Source

Investment & Market Data

JDM Partners Closes $568M Opportunity Fund - AZ Big Media (February 11, 2026)

Local investment firm JDM Partners announced the successful close-out of its $568 million Opportunity Fund, which focused heavily on Arizona-based assets. This signals a healthy exit environment for established local funds and validates the long-term investment thesis for Phoenix commercial real estate across multiple asset classes.

• Fund size: $568M

• Geographic focus: Arizona-based assets

Source

2026 Phoenix Industrial Market Outlook (Q4 Review) - Kidder Mathews (February 10, 2026)

Market data released this week shows Phoenix industrial vacancy holding near 13.5%. Despite the slight rise in vacancy due to new deliveries, asking rents have climbed 6% year-over-year to an average of $1.19 PSF NNN. The data suggests the market is absorbing new supply while maintaining rent growth, indicating underlying demand remains strong.

• Vacancy rate: 13.5%

• Average asking rent: $1.19 PSF NNN

• Year-over-year rent growth: +6%

Source

This digest is compiled for informational purposes and reflects publicly reported commercial real estate activity in the Phoenix metropolitan area.