The Phoenix Brief - 2/19/2026

A brief summary of commercial real estate activity in the Phoenix Metro

AuthorAuthor

Ramey Peru & John Finnegan
February 19, 2026

Executive Summary

  1. Industrial transitions from volume to quality. The week's industrial deal flow — spanning six transactions totaling well over $350 million — reflects a decisive shift from speculative development toward high-performance, sustainability-certified, and mission-critical logistics assets. The Luke Field campus achieving LEED Gold v4 and the $43M+ Zenith IOS portfolio acquisition signal that institutional capital is now demanding both operational excellence and environmental resilience.

  2. Office reaches a structural inflection point. Colliers' Q4 2025 Phoenix office report — published February 17 — declared the market back at pre-pandemic performance levels, with net absorption at its strongest since Q4 2019 and sublease availability at its lowest since 2021. High-quality, amenity-rich assets in transit-oriented corridors are attracting significant capital, as evidenced by the $61.5M Tempe office park trade and the repositioning of Rio Yards into "Horizon Bay" in the ASU Innovation Corridor.

  3. Retail pivots from entertainment to infrastructure. The $85M sale of Gilbert Gateway Towne Center and approval of the 500,000 SF Laveen Towne Center confirm that necessity-anchored, service-oriented retail has become one of Phoenix's most resilient institutional investment categories — even as legacy anchor tenants like Saks Fifth Avenue retrench.

🏗 Land

638-Acre Data Center and Solar Campus Receives Rezoning Approval — Maricopa County — AZBEX | February 18, 2026

The Maricopa County Board of Supervisors approved a rezoning request for a 638-acre site designated for a combined data center and solar generation project. The approval reflects the growing scrutiny of data center proposals in the Phoenix Metro, where power accessibility and water security have become central to planning decisions. Projects integrating dedicated solar arrays are increasingly favored by local planning committees to reduce pressure on the municipal grid.

  • 638 acres rezoned for data center and solar combined use

  • Approval signals continued data center expansion in the Phoenix Metro driven by semiconductor sector growth

🏢 Multifamily

Phoenix Multifamily Market Report: Navigating the Supply Crest — GetMultifamily.com | February 2026

The Phoenix Metro multifamily market is working through a severe supply-demand imbalance, with vacancy at 12.5% in early 2026. While net absorption over the past 12 months totaled a healthy 21,000 units, it has been consistently outpaced by new deliveries. Economists at the International Builders' Show (February 17) cited Phoenix as a primary example of a "supply-rich" metro where rent growth is expected to remain negative through most of 2026. Relief is projected as completion rates drop an estimated 24% in 2026 as developers pull back on new starts.

  • Vacancy rate: 12.5% (elevated due to new deliveries)

  • Rent growth: -3.0% year-over-year across all property classes

  • Units under construction: ~19,000 (4.4% of total inventory)

  • Net absorption (past 12 months): 21,000 units

  • Construction pipeline: Completions projected to fall 24% in 2026

Crescent Communities Breaks Ground on NOVEL Heritage Park — Gilbert — Multi-Housing News | February 13, 2026

Crescent Communities broke ground on NOVEL Heritage Park, a 288-unit luxury apartment community within a 10-acre mixed-use district in Gilbert. The development is integrated into a larger block that includes 47,000 SF of retail and dining space and a landscaped public square — a deliberate strategy to insulate the project from the "commodity apartment" segment most vulnerable to the current vacancy surge. The project reflects Gilbert's status as one of the metro's fastest-growing submarkets for educated, tech-sector workers.

  • 288 luxury units; part of a 10-acre mixed-use district

  • Adjacent retail component: 47,000 SF of retail and dining

  • Designed to compete above the commodity tier amid rising metro vacancy

Proposed Multifamily/Affordable & Retail Project Recommended in South Phoenix — AZBEX | February 2026

The Phoenix Planning Commission recommended approval for a rezoning to allow a 162-unit multifamily community with ground-floor retail at the northeast corner of Central Avenue and Roeser Road in South Phoenix. The project includes both market-rate and affordable units across three buildings.

  • 162 units across three buildings (four and three stories)

  • Mixed affordable and market-rate units; ground-floor retail included

Machine Investment Group Acquires 227-Unit Apartment Complex — REBusinessOnline | February 13, 2026

Machine Investment Group completed the acquisition of a 227-unit apartment complex within the Phoenix Metro. Specific address and pricing were not disclosed in initial reporting.

  • 227 units acquired; submarket undisclosed

  • Transaction closed February 13, 2026

TruAmerica Multifamily Acquires Two Phoenix Metro Apartment Communities — REBusinessOnline | February 13, 2026

TruAmerica Multifamily closed on two apartment communities in the Phoenix Metro as part of a broader Western U.S. portfolio expansion. Specific addresses and pricing were not disclosed.

  • Two communities acquired simultaneously as part of a multi-market Western U.S. strategy

  • Transaction closed February 13, 2026

🏭 Industrial

BKM Capital Partners Acquires Eight-Property Light Industrial Portfolio — Phoenix Metro — REBusinessOnline | February 13, 2026

BKM Capital Partners acquired a portfolio of eight light industrial parks across the Phoenix Metro in one of the largest industrial portfolio transactions of early 2026, reflecting sustained institutional appetite for multi-tenant light industrial in the region.

  • Eight-property portfolio; total consideration: $167,800,000

566,100 SF Industrial Building in Virgin Industrial Park Sells for $90.58 Million — Waddell — AZBEX | February 13, 2026

A partnership between IndiCap and Invesco Ltd. sold a 566,100 SF industrial building at 15784 W. Hatcher Road in Waddell at a robust per-square-foot valuation. The transaction underscores the continued strength of the Loop 303 corridor, where proximity to California supply chains and the growing Phoenix semiconductor cluster make assets attractive long-term holdings for institutional investors.

  • Sale price: $90,580,000 ($160/SF)

  • 566,100 SF; Loop 303 corridor, Waddell

  • Seller: IndiCap/Invesco partnership

Transwestern Investment Group Acquires Fully Leased Class A Industrial Campus — Tolleson — REBusinessOnline | February 18, 2026

Transwestern Investment Group, on behalf of a separately managed account, acquired a two-building, Class A industrial campus at 9400 Latham Street in Tolleson. Delivered in 2022 and fully leased at acquisition, the property sits at the nexus of I-10 and Loop 101 in the Southwest Valley. Modern specifications — including 32- to 36-foot clear heights and ESFR sprinkler systems — position the asset to serve e-commerce and advanced manufacturing tenants requiring high-velocity distribution capability.

  • Two buildings totaling 662,804 SF; 100% leased at acquisition

  • Building A: 402,015 SF cross-dock; 36-ft clear heights, 190-ft truck court, ESFR sprinklers

  • Building B: 260,789 SF rear-load; 32-ft clear, 130-ft truck court, ESFR sprinklers

  • Delivered 2022; I-10 / Loop 101 frontage, Southwest Valley

Zenith IOS Acquires 11-Property Industrial Outdoor Storage Portfolio for $43M+ — Greater Phoenix — PR Newswire | February 18, 2026

Zenith Industrial Outdoor Storage, in partnership with institutional investors, acquired an 11-asset IOS portfolio concentrated within seven miles of Phoenix Sky Harbor International Airport and the I-10/I-17 interchange for over $43 million. The acquisition marks a critical maturation point for the Phoenix logistics ecosystem, where surging construction activity and cross-border trade have pushed demand for equipment, vehicle, and raw materials storage beyond the capacity of traditional warehouse product. IOS assets are increasingly viewed as high-growth, low-capital-expenditure alternatives to vertical industrial development.

  • 11 properties; ~39 acres and 280,000 SF of improvements

  • Acquisition price: $43,000,000+

  • All assets within 7 miles of Sky Harbor Airport and the I-10/I-17 interchange

Luke Field Logistics Campus Achieves LEED Gold v4 Certification — Glendale — YourValley.net | February 17, 2026

Developed through a joint venture between Lincoln Property Company and Goldman Sachs, the 2.4 million SF Luke Field logistics campus at 13543 Northern Ave. in Glendale achieved LEED Gold v4 certification for Core & Shell and Warehouse Distribution Center — becoming the highest-scoring LEED industrial building in Arizona. Notably, the certification was achieved through integrated design rather than the purchase of renewable energy credits, which are typically required in Arizona's extreme climate. Building C (1.27 million SF) was acquired by Walmart in late 2025 for $152 million, underscoring how high-credit tenants are prioritizing ESG-compliant infrastructure.

  • 2.4 million SF total campus; three Class A buildings across 140 acres in Glendale

  • 59% energy savings and 77% water savings achieved through integrated design (no offsets)

  • 61% of construction waste diverted; 20% recycled content utilized

  • Building C (1.27M SF) acquired by Walmart in late 2025 for $152,000,000

North Mountain Corporate Center Acquired for Industrial Redevelopment — Northwest Phoenix — InBusiness Phoenix | February 13, 2026

The Meritex Company acquired the 7.625-acre North Mountain Corporate Center at 10400 N. 25th Avenue for $7.175 million. The site — currently improved with a two-story Class B office building built in 1996 and renovated in 2016 — will be demolished and redeveloped into a new institutional-quality industrial project, capitalizing on existing industrial zoning and strong Northwest Phoenix demand for modern product.

  • Acquisition price: $7,175,000; 7.625 acres / 109,332 SF existing office

  • Planned: demolition and delivery of new institutional-quality industrial product

Farmer Industrial Center Sold — South Tempe — JLL Newsroom | February 17, 2026

Farmer Industrial Center, a two-building industrial park totaling 93,903 SF at 9185 and 9245 South Farmer Avenue in Tempe, traded in a transaction reflecting continued investor demand for strategically located multi-tenant industrial assets in the Southeast Valley.

  • Sale price: $24,500,000 ($261/SF)

  • 93,903 SF; two-building configuration; South Tempe submarket

Comunale Properties Acquires Warehouse at 4137 W. Adams Street — Phoenix — AZBEX | February 17, 2026

Comunale Properties acquired a warehouse property at 4137 W. Adams Street in Phoenix for $12.15 million, adding to the ongoing institutional consolidation of infill industrial product in the core Phoenix market.

  • Acquisition price: $12,150,000

  • Buyer: Comunale Properties; Phoenix infill warehouse

🛍 Retail

Gilbert Gateway Towne Center Sells for $85 Million — CRE News | February 18, 2026

An affiliate of the Irgang Group acquired the Gilbert Gateway Towne Center at 5110 S. Power Road for $85 million. The 273,973 SF necessity-anchored center — which blends essential services with strong occupancy — validates the "retail as infrastructure" thesis gaining traction across the Phoenix Metro, where service-oriented centers have decisively outperformed discretionary entertainment venues.

  • Sale price: $85,000,000 ($310.25/SF)

  • 273,973 SF; 5110 S. Power Road, Gilbert

  • Buyer: Irgang Group affiliate

Vestar Receives Approval to Develop 500,000 SF Laveen Towne Center — Southwest Phoenix — REBusinessOnline | February 18, 2026

Vestar received approval on February 18 to develop Laveen Towne Center, a 500,000 SF open-air shopping center on 90 acres in the Laveen submarket of Southwest Phoenix. The project is slated to break ground in summer 2026, targeting a winter 2027 opening. The approval reflects the continued expansion of commercial services into the West and Southwest Valley, where residential population growth has significantly outpaced retail supply.

  • 500,000 SF open-air shopping center; 90-acre site, Southwest Phoenix (Laveen)

  • Groundbreaking: Summer 2026; projected opening: Winter 2027

Chandler Fashion Center Launches Major Dining and Entertainment Redevelopment — YourValley.net | February 12, 2026

Chandler Fashion Center launched a major redevelopment of its dining and entertainment district, adding brands including Din Tai Fung and Seafood City — a first-to-market Filipino grocery concept. The redevelopment reflects an industry-wide shift toward modular floor plates and shorter lease terms with percentage rent structures to hedge against rapid demographic change.

  • New tenants: Din Tai Fung, Seafood City (first-to-market Filipino grocery)

  • Leasing model pivoting to shorter terms and percentage rent structures

Boot Barn Signs 19,800 SF Lease at Rooney Ranch — Oro Valley — AZBEX | February 12, 2026

Boot Barn executed a 19,800 SF lease at Rooney Ranch in Oro Valley, continuing its Arizona retail footprint expansion and reflecting the health of necessity-adjacent, value-oriented retail in the Phoenix Metro's outer submarkets.

  • Tenant: Boot Barn; 19,800 SF

  • Center: Rooney Ranch, Oro Valley

Saks Fifth Avenue to Close Phoenix Anchor Store — Connect CRE | February 2026

Saks Fifth Avenue announced it will close its Phoenix anchor location as part of a national portfolio rationalization. The closure will add notable vacancy to the Phoenix luxury retail landscape and may present a significant repositioning opportunity for the property's ownership.

  • Saks Fifth Avenue closing Phoenix flagship anchor

  • Part of a broader national portfolio restructuring initiative

🏛 Office

Phoenix Office Market Rebounds to Pre-Pandemic Levels — Connect CRE / Colliers | February 17, 2026

A market analysis released by Colliers on February 17 declared the Phoenix office market has returned to pre-pandemic performance levels. The recovery is characterized by both robust gross leasing demand and a structural reduction in supply — with office construction at a 10-year low and over 800,000 SF of underperforming inventory removed through demolition and redevelopment over the past year.

  • Net absorption (Q4 2025): 531,893 SF — strongest since Q4 2019

  • Direct vacancy: 15.1% (-20 bps year-over-year)

  • Total availability: 18.1% (-140 bps year-over-year)

  • Sublease availability: Lowest level since Q4 2021 (down 1.8M SF from year-end 2024)

  • Gross leasing activity (Q4 2025): Exceeded 1.0 million SF

  • Gross rental rate: $30.12/SF (+0.53%; third consecutive quarterly increase)

  • Under construction: 564,057 SF (75% build-to-suit; 10-year low)

Tempe Office Park Trades for $61.5 Million — Connect CRE | February 13, 2026

Oaktree Capital Management sold a nearly 300,000 SF office park in Tempe to an investment group led by Andrew Cohn. Near-100% occupancy at the time of sale reflects strong confidence in the asset's income stability and the continued strengthening of Tempe's Class A office fundamentals.

  • Sale price: $61,500,000

  • ~300,000 SF; near 100% occupied at closing

  • Seller: Oaktree Capital Management; Buyer: Andrew Cohn-led investment group

Silver Creek Acquires Rio Yards in ASU Innovation Corridor, Rebrands as "Horizon Bay" — Connect CRE | February 18, 2026

Silver Creek Development acquired Rio Yards at 1337 E. Rio Salado Parkway — a 150,000 SF office asset within ASU's mixed-use Innovation Corridor — from Wentworth Development Co. Brian Ackerman of Colliers represented the seller. Silver Creek secured a $32.355 million loan from Western Alliance Bank to fund the acquisition and a series of planned high-end amenity upgrades. The property has been rebranded as "Horizon Bay," with improvements targeting the flight-to-quality trend: a 90-person training room, a 24-person "war room," private phone rooms, and an indoor-outdoor café.

  • Acquisition financing: $32,355,000 loan from Western Alliance Bank

  • 150,000 SF; 1337 E. Rio Salado Parkway, ASU Innovation Corridor

  • Seller represented by Brian Ackerman of Colliers

Mikhail Holdings Acquires Thirty 03 Office Tower — Midtown Phoenix — Real Estate Daily News | February 2026

Mikhail Holdings purchased Thirty 03, a 26-story, 458,000 SF Class A office tower at 3003 N. Central Avenue in Midtown Phoenix, for more than $32 million. The tower was approximately 81% leased at closing to a diverse mix of legal, healthcare, and architectural tenants. Originally constructed as one of Phoenix's first institutional high-rises, the property underwent $11 million in capital improvements beginning in 2019, including lobby upgrades and full elevator modernization. Its proximity to the Valley Metro Rail stop at Central and Thomas underscores the growing importance of transit-oriented office assets in the current investment cycle.

  • Sale price: $32,250,000+; 458,000 SF; 26 stories

  • Occupancy at closing: ~81%; tenants span legal, healthcare, and architecture sectors

  • $11M in capital improvements completed since 2019; adjacent to Valley Metro Rail

🏙 Mixed-Use

Greenwood Brewing Secures Taproom at The AJ — Downtown Chandler — Real Estate Daily News | February 19, 2026

Greenwood Brewing has signed a lease for a new indoor-outdoor taproom at 55 N. Arizona Place within The AJ, a mixed-use destination in Downtown Chandler owned by Asana Partners. The lease is supported by nearly 8 million SF of office space within a one-mile radius and a growing inventory of upscale housing in the Chandler urban core — a deliberate "intentional placemaking" strategy employed by local municipalities to support established local businesses.

  • Location: 55 N. Arizona Place, The AJ, Downtown Chandler

  • Taproom designed as indoor-outdoor space integrating with the surrounding park environment

🏨 Hotels & Capital Markets

Caliber Companies to Develop 114-Room Hyatt Studios in North Phoenix — AZBEX | February 2026

A subsidiary of Caliber Companies announced plans to develop a four-story, 114-room Hyatt Studios hotel on a 2.28-acre site at 29th Avenue and Sonoran Desert Drive in North Phoenix, as part of a larger commercial master plan development. The North Gateway submarket is benefiting directly from proximity to the TSMC semiconductor campus, which is generating sustained demand for extended-stay and boutique hospitality from a specialized incoming workforce.

  • 114-room Hyatt Studios; 4 stories on 2.28 acres; North Gateway submarket

  • Part of a development rights agreement to build 15 hotels across target markets

  • Demand driver: TSMC semiconductor workforce in North Phoenix

121-Room Phoenix Metro Hotel Sold — REBusinessOnline | February 13, 2026

A 121-room hotel property within the Phoenix Metro changed hands on February 13. Buyer, seller, pricing, and submarket were not disclosed in publicly accessible reporting.

  • 121 rooms; exact location and pricing undisclosed

  • Transaction closed February 13, 2026

Orion Properties Secures $215M Revolving Credit Facility and Extends $355M CMBS Loan — Financial Times Markets | February 19, 2026

Orion Properties Inc. announced a significant capital structure enhancement: a new $215 million senior secured revolving credit facility (maturing February 2029, with a 50 basis point reduction in interest rate margin) that refinances a prior $350 million facility, alongside an extension of its $355 million CMBS loan through August 2030 at a sub-5% fixed rate. The transaction eliminates near-term maturity risk and demonstrates that established sponsors with resilient asset pools can still access favorable institutional financing in a higher-for-longer rate environment.

  • New revolving credit facility: $215,000,000; matures February 2029; -50 bps rate reduction

  • CMBS loan extended: $355,000,000 through August 2030 at sub-5.0% fixed rate

  • Prior facility refinanced: $350,000,000

The Phoenix Brief | Week of February 12–19, 2026 | Compiled from publicly available sources. All data points should be independently verified prior to investment decisions.

John Finnegan

Senior Vice President | Land

(602) 222-5152

Ramey Peru

Senior Vice President | Land

(602) 222-5154