The Phoenix CRE Brief - 3/19/2026

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

AuthorAuthor

Ramey Peru & John Finnegan
March 19, 2026

Executive Summary

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

1. Institutional Industrial Capital Deepens Its Phoenix Commitment: A $156.8 million, three-property industrial portfolio trade in Tempe and West Phoenix, combined with a $200 million advanced manufacturing facility opening in Mesa, underscores the metro's standing as a premier destination for logistics and high-tech production capital. Meanwhile, Greater Phoenix industrial vacancy fell to 9.7% on 18.2 million SF of annual net absorption.

2. Adaptive Reuse and Multifamily Repositioning Accelerate: A shuttered full-service hotel on the I-17 corridor is being converted into a 600+ unit residential community at a reported $120 million investment, while a 360-unit Glendale garden-style asset traded at ~$228K/unit, signaling durable investor appetite across the multifamily risk spectrum.

3. Mixed-Use Scale Reaches New Heights in North Phoenix: The $7 billion, 2,300-acre Halo Vista master plan broke ground adjacent to a major semiconductor campus, targeting nearly 30 million SF of commercial space and 9,000+ residential units, the largest single mixed-use announcement in recent Phoenix Metro history.

Land

29-Acre Land Parcel in Florence Sells for $4.7 Million - AZ Big Media (March 17)

A 29-acre parcel at the southeast corner of Felix Road and Arizona Farms Road in Florence sold for $4.7 million. The buyer, Entitlements, LLC, acquired the site from Aspen Nevada SPE LLC and Dolores Darnold. The parcel is positioned south of the San Tan Valley growth area and adjacent to the planned Florence Tech Park. The buyer's name suggests an entitlement-and-flip strategy targeting the emerging Pinal County employment corridor.

  • Sale price: $4.7 million

  • Price per acre: ~$162,069

  • Price per land SF: ~$3.72

293.5 Acres of Desert Ridge Land Headed to Auction - AZBEX (March 18)

An upcoming state trust land auction will deliver 293.5 acres in the Desert Ridge master plan area of North Phoenix for mixed-use and multifamily development. Desert Ridge, adjacent to Scottsdale near Loop 101 and SR 51, represents some of the most premium planned-community land remaining in the Valley. The release is expected to draw national institutional capital.

  • Land area: 293.5 acres

  • Planned use: Mixed-use and multifamily

Mountainside Fitness Acquires Queen Creek Land for New Health Club - AZBEX (March 17)

Mountainside Fitness completed a land acquisition at the northwest corner of Gantzel and Combs roads in Queen Creek for a planned 42,000 SF single-story health club, with an expected opening in December 2026. The acquisition reflects Queen Creek's continued maturation into a self-sustaining municipality demanding large-format fitness and wellness retail.

  • Planned building: 42,000 SF

  • Expected opening: December 2026

Pinal County Secures 100-Year Assured Water Supply Designation - AZBEX (March 17)

Arizona Water Company became the first water provider to receive a new 100-year Designation of Assured Water Supply in the Pinal Active Management Area in more than two decades. This regulatory milestone effectively de-risks thousands of acres of raw land for future development in Florence, Coolidge, and San Tan Valley, Pinal County municipalities that represent the primary expansion frontier for the Phoenix Metro.

Multifamily

Tresa at Arrowhead Apartments Trades for $82.15 Million in North Glendale - Real Estate Daily News / AZBEX (March 17)

Tresa at Arrowhead Apartments (17722 N. 79th Ave., Glendale), a 360-unit garden-style community originally built in 1998 on 19 acres, sold for $82.15 million. The buyer's first Phoenix multifamily acquisition, the trade positions the asset for a value-add renovation program in the supply-constrained Arrowhead Ranch submarket, where infill land for competing new construction is extremely limited.

  • Sale price: $82.15 million

  • Price per unit: ~$228,194

  • Units: 360 | Year built: 1998 | Site: 19 acres

Shuttered Sheraton Crescent to Become 600+ Unit Residential Community - AZ Big Media / Axios Phoenix (March 12)

Foundation 8, a joint venture between Trillium Management and Gia Hospitality, announced a $120 million adaptive reuse of the shuttered 342-room Sheraton Phoenix Crescent hotel into a residential community called "The Crescent." The plan calls for converting the existing hotel structure into roughly 258 apartments and constructing three additional residential buildings on surplus parking, bringing the total to 600+ units. The site, on the I-17 corridor near the former Metrocenter redevelopment and a light-rail extension terminus, targets working professionals in the semiconductor employment corridor.

  • Reported investment: ~$120 million

  • Phase 1 conversion: ~258 units (existing hotel structure)

  • Additional new construction: 350+ units across three buildings

Covenant Capital Acquires Phoenix-Area Multifamily Community for $110 Million - Multi-Housing News (March 12)

Covenant Capital acquired a Phoenix-area multifamily community for $110 million, financed with a non-recourse, $76.7 million Fannie Mae loan at a fixed rate of 4.97%. Specific property details and unit counts were not publicly disclosed. The asset previously traded for $74 million in 2018, reflecting a 48.6% appreciation over the eight-year hold period. The ability to secure sub-5% agency permanent debt underscores institutional confidence in Phoenix apartment fundamentals.

  • Sale price: $110 million

  • Fannie Mae loan: $76.7 million at 4.97% fixed

  • Prior sale (2018): $74 million (+48.6% appreciation)

The Moreland Phase I Breaks Ground in Downtown Phoenix - City of Phoenix / Morningstar (March 13)

CVS Health joined local leaders and development stakeholders for the groundbreaking of The Moreland Phase I, a 131-unit affordable housing project developed by Brinshore Development in downtown Phoenix. The project is part of the broader HUD Choice Neighborhoods Initiative to revitalize the Edison Eastlake community and will ultimately deliver 237 total residential units across all phases. Units are targeted at households earning 30%, 40%, 60%, and 80% of Area Median Income. CVS Health's involvement highlights the growing intersection of healthcare capital and affordable housing finance.

  • Phase I units: 131 (affordable)

  • Total project at full build-out: 237 units

  • AMI targets: 30%, 40%, 60%, 80%

Atavia Luxury Condominiums Top Out in North Scottsdale - Phoenix Business Journal (March 12)

Chicago-based Belgravia Group topped out vertical construction on Phase I of Atavia, an 88-unit luxury condominium project at the northeast corner of Scottsdale Road and Loop 101 within DMB Associates' $1 billion One Scottsdale master plan. The gated community will comprise 14 four-story buildings with units priced from $860,000 to $1.7 million (1,570–3,015 SF), pushing well past $500/SF. Belgravia developed the adjacent 112-unit Portico project, and the continued investment signals deep affluent buyer demand fueled by out-of-state equity migration and local empty-nester downsizing.

  • Units: 88 (Phase I)

  • Price range: $860,000 – $1.7 million

  • Unit sizes: 1,570 – 3,015 SF (~$500+/SF)

Industrial

BKM Capital Partners Acquires $156.8 Million Industrial Portfolio from Starwood Capital Group - AZBEX (March 12)

BKM Capital Partners acquired a three-property, 778,000 SF industrial portfolio from Starwood Capital Group for $156.8 million. The transaction included assets in Tempe and West Phoenix, with a significant pricing premium for East Valley proximity to Sky Harbor Airport and the ASU workforce corridor. The Tempe assets will be rebranded, notably, Hohokam Industrial Park becomes "Sky Harbor Landing", targeting aerospace, defense, and air-freight logistics tenants.

  • Kyrene CommercePlex (8240 S. Kyrene Rd., Tempe): 312,400 SF — $75.5M (~$241.68/SF)

  • Hohokam Industrial Park (912 S. Park Ln., Tempe): 134,200 SF — $27.1M (~$201.94/SF)

  • Estrella Business Park II (801 S. 75th Ave., Phoenix): 331,400 SF — $54.2M (~$163.55/SF)

Commerce 303 Breaks Ground - 497,234 SF Spec Warehouse in Glendale - AZ Big Media (March 17)

A 497,234 SF cross-dock speculative warehouse broke ground on a 70-acre site at 15600 W. Camelback Rd. in Glendale. Dubbed "Commerce 303," the project targets modern logistics users with 40-foot clear heights and tilt-up construction.

  • Building size: 497,234 SF

  • Site area: 70 acres

  • Clear height: 40 feet

Hadrian Opens $200 Million Advanced Manufacturing Facility in Mesa - AZ Big Media (March 17)

An advanced manufacturing company opened a 290,000 SF facility in Mesa backed by a $200 million investment, producing precision components and mission-critical systems. The opening is positioned as part of a broader national reindustrialization narrative and brings approximately 350 jobs to the East Valley.

  • Facility size: 290,000 SF

  • Capital investment: $200 million (~$690/SF capital intensity)

  • Jobs created: ~350

Falcon 12 Aviation Center Tops Off at Falcon Field Airport - AZ Big Media (March 17)

The 68,500 SF "Falcon 12" complex at Falcon Field Airport in Mesa reached its topping-off milestone. The project comprises four hangar buildings on just over four acres, providing twelve aircraft hangars for lease and approximately 7,400 SF of corporate office space.

  • Total size: 68,500 SF

  • Hangars: 12 (for lease)

  • Office component: ~7,400 SF

South Phoenix Infill Industrial Sale - 1702 S. 19th Ave. - AZBEX (March 17)

A small infill industrial property at 1702 S. 19th Ave. in Phoenix sold for $2.2 million. The site includes a 6,700 SF shop, 1,200 SF office, and 1,600 SF canopy structure (~9,500 SF total described improvements).

  • Sale price: $2.2 million

  • Described improvements: ~9,500 SF

  • Price per improvement SF: ~$232

Greater Phoenix Industrial Market Snapshot - Vacancy Falls to 9.7% - AZ Big Media (March 17)

A year-end 2025 industrial market report shows Greater Phoenix industrial vacancy declined to 9.7%, marking three consecutive quarters of improvement. Full-year 2025 net absorption reached 18.2 million SF, with Q4 alone accounting for 3.2 million SF. The construction pipeline has contracted to 10.6 million SF under construction — the lowest level since Q3 2020 — suggesting tightening conditions ahead. Average industrial rent was reported at $1.14/SF.

  • Vacancy: 9.7% (down for three consecutive quarters)

  • 2025 net absorption: 18.2 million SF

  • Under construction: 10.6 million SF (lowest since Q3 2020)

  • Average rent: $1.14/SF

Colliers Report: Phoenix Industrial Demand Remains Nationally Leading - Connect CRE (March 17)

A mid-March report published by Colliers highlighted that strong tenant activity heading into 2026 positions Phoenix as a leading national hub for logistics tenants and investors. Limited new deliveries in specific micro-markets, combined with healthy leasing velocity, drove industrial vacancy down by 10 basis points during the tracking period — countering national narratives of an industrial supply glut.

Retail

Joint Venture to Develop 225,000 SF Skyline Ranch Marketplace in San Tan Valley - Shopping Center Business (March 17)

A joint venture between Pennant Development and REALM LP acquired a 31-acre land parcel in San Tan Valley for $10 million to develop Skyline Ranch Marketplace, a retail center totaling 225,000 SF at full build-out. The seller, WinCo Foods, retained 10 acres for ground-up construction of its own store — providing a built-in, high-frequency grocery anchor and guaranteed daily traffic for future inline tenants.

  • Land acquisition: 31 acres at $10 million

  • Planned retail: 225,000 SF

  • Shadow anchor: WinCo Foods (10-acre retained site, under construction)

Family-Owned Dealer Expands with New Goodyear Location - In Business PHX (March 17)

A new auto dealership is slated to open April 1, 2026 at 13725 W. Test Drive in Goodyear, extending the city's expanding auto retail corridor near I-10.

  • Opening: April 1, 2026

  • Location: 13725 W. Test Drive, Goodyear

BMO Adding 15 Arizona Bank Branches Over Next Five Years - Connect CRE (March 18)

BMO Financial Group announced plans to open 15 new branch locations across the Phoenix area and Tucson over the next five years. The expansion signals that despite banking digitization, physical retail branch presence remains a critical deposit-capture strategy in high-growth Sun Belt metros — and will absorb prime retail end-caps and pad sites across the Valley.

Westgate Entertainment District at 98% Leased - Shopping Center Business (March 17)

The retail portion of Westgate Entertainment District in Glendale, a 623,734 SF super-regional mixed-use project owned by YAM Properties, is currently 98% leased across 388,885 SF of shops, eateries, and entertainment venues in 15 buildings. The tenant mix, anchored by eatertainment concepts, continues to drive high weekend traffic alongside adjacent sports venues. Capital improvements underway include an upgraded family splash pad and permanent stage at Fountain Park.

  • Total project: 623,734 SF

  • Retail component: 388,885 SF across 15 buildings

  • Occupancy: 98% leased

Office

Kellwood Company Acquires 19-Story Downtown Phoenix Office Tower for $17.08 Million - Your Valley (March 17)

Kellwood Company, a leading apparel business, purchased the 19-story, 256,682 SF Class A office tower at 111 W. Monroe Street in downtown Phoenix for $17.08 million as its new corporate headquarters. Originally constructed in 1964 and extensively renovated to Class A standards in 2019, the acquisition price of ~$66.54/SF represents a fraction of current high-rise replacement cost ($300–$400+/SF). The relocation from higher-cost coastal markets to a pro-business environment exemplifies the generational value available to cash-flush owner-users in the current capital-starved office investment cycle.

  • Sale price: $17.08 million

  • Building size: 256,682 SF (19 stories)

  • Price per SF: ~$66.54

Medical Office Building at 8921 W. Thomas Rd. Sells for $17 Million - AZBEX (March 17)

A 42,100 SF medical office building at 8921 W. Thomas Rd. in Phoenix sold for $17 million as part of a $26.2 million 1031 exchange. The building is fully leased to a medical imaging user and positioned across from a hospital campus, a profile that commands significant pricing premiums over traditional multi-tenant office.

  • Sale price: $17 million

  • Building size: 42,100 SF

  • Price per SF: ~$403.80

  • Occupancy: 100% (single-tenant, medical imaging)

Phoenix Area Among Fastest-Growing U.S. Destinations for Corporate Headquarters - Your Valley (March 17)

The Valley of the Sun added 31 corporate headquarters between 2018 and 2024, tying with Houston for fourth-most among all U.S. metro areas. Notably, city economic development officials reported that roughly 90% of these new headquarters moved into existing office space, absorbing large blocks of vacancy rather than requiring ground-up construction - a dynamic that is quietly stabilizing the metro's office fundamentals from within.

Mixed-Use

Halo Vista Breaks Ground - $7 Billion, 2,300-Acre Master Plan Adjacent to Semiconductor Campus - AZ Big Media (March 17)

A ceremonial groundbreaking was held for Halo Vista, described as a $7 billion, 2,300-acre master-planned mixed-use development adjacent to a major semiconductor campus in North Phoenix. The target program includes nearly 30 million SF of industrial, retail, office, research, and healthcare space alongside 9,000+ residential units. Early announced components include an auto mall, Costco, and two hotel products (Courtyard by Marriott and Residence Inn). The project is designed to function as a self-sustaining economic ecosystem directly serving the semiconductor supply chain and its workforce.

  • Estimated investment: $7 billion

  • Site area: 2,300 acres

  • Commercial program: ~30 million SF

  • Residential: 9,000+ units

Developers Plan 255-Unit Apartment Complex at Camelback Colonnade - Phoenix Business Journal (March 17)

Federal Realty Investment Trust and RED Development filed plans with the City of Phoenix for a 255-unit, six-story apartment complex within the existing footprint of Camelback Colonnade, a prominent central Phoenix retail center. The project converts underutilized surface parking into mid-rise residential density — creating a captive on-site consumer base for existing retail tenants while monetizing excess land without new acquisitions.

  • Planned units: 255

  • Height: 6 stories

  • Strategy: Legacy retail densification

Novus Innovation Corridor PAD Amendment Advances in Tempe - AZBEX (March 17)

A Joint Committee recommended a Planned Area Development (PAD) amendment for Phase V of the Novus Innovation Corridor in Tempe, a mixed-use development on Arizona State University land that blends Class A office, luxury multifamily, retail, and collegiate athletic facilities. The ongoing amendment signals continued refinement and expansion of one of the most successful public-private mixed-use nodes in the state.

Hotels

Palo District at Former Fiesta Mall Site Gets Two New Hotels Totaling 600 Rooms - AZ Big Media (March 17)

Two hotels were unveiled for the Palo District redevelopment on the former Fiesta Mall site (~80 acres) in Mesa. Plans call for a 400-key lifestyle/full-service hotel adjacent to a stadium with restaurant and meeting facilities, plus a 200-key extended-stay concept supporting the district's planned women's health campus. Both are targeted for early 2028 delivery.

  • Hotel 1: ~400 keys (lifestyle/full-service)

  • Hotel 2: ~200 keys (extended-stay)

  • Combined rooms: ~600

  • Expected delivery: Early 2028

LivAway Suites Opens Newest Extended-Stay Property in Glendale - AZ Big Media (March 17)

LivAway Suites announced the opening of its newest Glendale extended-stay property, positioned around access to major employment nodes and sports venues across the metro. The opening continues the brand's Arizona expansion.

Metro Phoenix Experiences Hotel Development Boom - 27 New Properties Announced - AZ Big Media (March 17)

A metro-wide hospitality pipeline feature reports 27 new hotel properties announced across Greater Phoenix, adding nearly 4,500 rooms. The development surge is led by extended-stay and limited-service products in submarkets tied to employment growth, particularly the semiconductor and advanced manufacturing corridors.

  • New hotel properties announced: 27

  • Rooms being added: ~4,500

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

We connect with landowners and developers across the Phoenix Metro on a daily basis. If you'd like to discuss how any of these developments, entitlements, or market trends may affect your land, your portfolio, or your next project, we'd welcome the conversation. Reach out anytime — we're here to help you stay ahead of the market.

John Finnegan

Senior Vice President | Land

(602) 222-5152

Ramey Peru

Senior Vice President | Land

(602) 222-5154