The Phoenix CRE Brief - 4/16/2026

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

AuthorAuthor

Ramey Peru & John Finnegan
April 16, 2026

Executive Summary

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

1. Phoenix Industrial Market Posts 4.9 Million SF of Net Absorption in Q1, Up 200% Year-Over-Year: Updated first-quarter data confirms the industrial sector has decisively exited its supply-driven correction. Three separate leases exceeding 1 million SF were executed in a single quarter, entirely exhausting the market's available inventory of contiguous million-SF blocks. Vacancy compressed 80 basis points to 10.2%, and asking rents climbed 6% year-over-year to $1.06 NNN.

2. Phoenix Ranks Second Nationally for New Hotel Room Deliveries in 2026: The Valley is on pace to open 3,650 new hotel rooms across 22 properties this year, trailing only New York City and representing a 117% increase over 2025 deliveries. The supply wave is strategically distributed into outer suburbs including Goodyear, Peoria, Tolleson, and the Mesa Gateway corridor to capture transient corporate workforce demand tied to TSMC, Amkor, and LG Energy projects.

3. Phoenix Office Market Sustains Recovery as Vacancy Falls to 20.3%: The office sector posted a sixth consecutive quarter of positive absorption with 135,807 SF of gains in Q1 2026, while overall vacancy declined from 23.9% in Q1 2024 to 20.3%. Class B product led leasing momentum at 314,836 SF of absorption, and Tempe emerged as the strongest submarket with 166,031 SF of net absorption.

Market Overview

The commercial real estate landscape across the Phoenix Metropolitan Area continues to navigate a profound structural evolution. Between 2019 and 2025, the local economy added more than 250,000 jobs, representing an 11% increase and positioning the region as one of the fastest-growing employment hubs in the United States. At the 2026 AZRE Forum held on April 16 at The Camby Hotel, industry leaders noted that the availability of water and power has eclipsed zoning and capital costs as the primary gatekeeper for future commercial growth. At the Connect Phoenix Multifamily 2026 conference on April 14, institutional capital was characterized as abundant but deploying with extreme selectivity, with investors demanding higher equity return thresholds and closely monitoring submarket-level supply overhangs.

Land

ReDiscover Industrial Park Advances on 2,300-Acre Buckeye Assemblage - Commercial Search (April 2026)

Developers are targeting a 2,300-acre land assemblage in Buckeye for the proposed "ReDiscover Industrial Park," a premier regional industrial hub. The scale of the land play matches the footprint of the largest innovation districts currently underway in North Phoenix and signals strong municipal alignment with the strategy of positioning Buckeye as the dominant logistics and distribution gateway between the ports of Southern California and the broader Southwest.

  • Site size: 2,300 acres

  • Location: Buckeye, West Valley

  • Strategic positioning: Logistics gateway between Southern California ports and the Southwest

Deer Valley Infill Land Assembly Targets Semiconductor Supplier Ecosystem - Rose Law Group Reporter (April 2026)

A Michigan-based developer closed on a 4.5-acre parcel at 2117 West Whispering Wind Drive in the land-constrained Deer Valley submarket as part of a broader 15-acre, $100 million initiative to develop small-bay industrial projects. The surgical infill strategy targets premium, expensive land directly adjacent to the nearby semiconductor fabrication plants to capitalize on the immediate need for localized supplier space.

  • Parcel size: 4.5 acres (part of 15-acre, $100M assemblage)

  • Total investment: $100,000,000

  • Strategy: Small-bay industrial adjacent to TSMC fabrication campus

State Trust Right-of-Way Auction Signals Pinal County Infrastructure Mobilization - Arizona State Land Department (April 16, 2026)

The Arizona State Land Department scheduled a State Trust land auction for April 16, 2026 focused on a perpetual right-of-way easement in Pinal County. While the specific 0.236-acre parcel is limited in scope, the minimum bid of $2,400 represents the type of strategic right-of-way acquisition being actively secured by developers and utility providers to run high-capacity transmission lines, fiber optic networks, and water conveyance systems to previously inaccessible development sites.

  • Parcel size: 0.236 acres

  • Minimum bid: $2,400

  • Implied price per acre: $10,169.49

  • Implied price per land SF: $0.23

Multifamily

Sanctuair Deer Valley Breaks Ground on 363-Unit Class A Eco-Conscious Community - In Business Phoenix (April 2026)

Sunbelt Investment Holdings broke ground on Sanctuair Deer Valley, a 363-unit Class A multifamily community at the northwest corner of 19th Avenue and West Grandview, directly across from Turf Paradise and strategically east of the Interstate 17 employment corridor. Positioned on 18 acres at a density of 20.16 units per acre, the project features unit sizes ranging from 737 to 1,802 SF. The developer is pursuing a National Green Building Standard Silver rating and integrating premium amenities including a cold plunge, golf simulator, meditation room, and citrus orchard, with delivery targeted for Q3 2027.

  • Total units: 363

  • Site: 18 acres (20.16 units per acre)

  • Unit range: 737 to 1,802 SF

  • Target delivery: Q3 2027

  • Certification target: NGBS Silver

X Phoenix Developer Hit With $39.9 Million Judgment; Project Interest Ordered Sold - AZBEX (April 9, 2026)

On April 9, 2026, the Maricopa County Superior Court issued a summary judgment in favor of the general contractor on the stalled second phase of the X Phoenix development at 2nd Avenue and Van Buren Street. The court awarded $31.6 million for unpaid work, along with $8.3 million in accrued interest, and authorized the Maricopa County Sheriff's Office to execute the sale of the developer's interest in the planned 25-story, 592-bed tower. The legal outcome underscores the severe capital market vulnerabilities for large-scale urban infill projects operating without fully secured capital stacks.

  • Judgment amount: $31,600,000 (plus $8,300,000 in accrued interest)

  • Project: 25-story, 592-bed tower

  • Location: 2nd Avenue and Van Buren Street, Downtown Phoenix

Phoenix Launches Public-Private Partnership Repurposing School District Land for Affordable Housing - City of Phoenix (April 2026)

The City of Phoenix initiated a program to repurpose underutilized school district land for affordable residential development, addressing the Valley's estimated 59,000-unit shortage for households earning at or below 50% of area median income. The initiative has facilitated the planned development of Wild Rose Flats (72 units) and Salamanca Square (192 units), providing 264 total affordable units targeted at households earning 80% or less of AMI. Construction is set to begin in 2026.

  • Total units: 264 (72 + 192)

  • Income targeting: 80% or less of area median income

  • Market context: 59,000-unit affordable housing deficit

  • Construction start: 2026

Industrial

Phoenix Industrial Q1 2026: Net Absorption Surges 200% as Vacancy Compresses - Real Estate Daily News (April 2026)

First-quarter 2026 research reports highlight a profound resurgence in tenant demand. The Phoenix industrial market recorded 4.9 million SF of net absorption, a 200% increase year-over-year and nearly 41% above the preceding quarter. Only 1.4 million SF of new space was delivered, the lightest quarterly delivery volume since Q1 2019. Overall vacancy compressed 80 basis points to 10.2%, and average asking rents climbed 6% year-over-year to $1.06 NNN per SF. The big-box segment alone accounted for 5.1 million SF of net absorption, with three separate leases exceeding 1 million SF entirely exhausting the market's inventory of contiguous million-SF blocks.

  • Q1 net absorption: 4.9 million SF (up 200% YoY)

  • Q1 deliveries: 1.4 million SF (lowest since Q1 2019)

  • Vacancy rate: 10.2% (down 80 bps QoQ)

  • Average asking rent: $1.06 NNN (up 6.0% YoY)

  • Under construction: 14.0 million SF (26% preleased)

Three Million-SF-Plus Leases Execute in Southwest Valley During Q1 - Real Estate Daily News (April 2026)

The Southwest Valley submarket served as the epicenter of Q1 leasing activity. Amazon executed a new lease for 1,063,000 SF. DHL signed two massive agreements totaling 1,661,000 SF (1,031,000 SF and 630,000 SF, respectively). Logistics Property Co. secured a tenant for 1,000,000 SF across two buildings at the Olive Logistics Center at 17210 and 17240 West Olive Avenue in Glendale. The LEED Gold campus features 40-foot clear heights, massive solar carport systems, and 190-foot truck courts. Additional notable deals included Tilebar (345,000 SF) and Kenco Group (289,000 SF), both in the Southwest Valley.

  • Amazon: 1,063,000 SF (new lease)

  • DHL: 1,661,000 SF combined across two transactions

  • Logistics Property Co. (tenant): 1,000,000 SF (Olive Logistics Center, Glendale)

  • Tilebar: 345,000 SF

  • Kenco Group: 289,000 SF

LG Energy Solution Leases 597,357 SF at CapRock West 202 Logistics - AZBEX (April 14, 2026)

LG Energy Solution leased 597,357 SF across two freestanding warehouses at CapRock West 202 Logistics - Phase 2. Colliers provided leasing advisory services for the transaction, which supports the broader expansion of battery and electric vehicle manufacturing in Arizona.

  • Lease size: 597,357 SF

  • Tenant: LG Energy Solution

  • Property: CapRock West 202 Logistics - Phase 2

  • Advisory: Colliers (leasing)

Chandler Bay Breaks Ground as $25.3 Million Class A Shallow-Bay Industrial Project - AZ Big Media (April 14, 2026)

A Class A shallow-bay industrial project broke ground at 1820 East Germann Road in Chandler. The 110,481 SF facility is engineered to support high-tech manufacturing, featuring a 5,000-amp power capacity (roughly double the standard for comparable structures) and flexible bay configurations starting around 9,000 SF.

  • Building size: 110,481 SF

  • Project cost: $25,300,000

  • Implied cost per SF: $228.99

  • Power capacity: 5,000 amps (approximately 2x standard)

  • Bay configurations: Starting at ~9,000 SF

Chandler Innovation Park Begins Construction on 327,776 SF Across Three Buildings - City of Chandler (April 2026)

Construction began on the Chandler Innovation Park at 19051 South Arizona Avenue. The 21-acre development will provide 327,776 SF across three buildings, featuring 28- to 32-foot clear heights designed for light industrial and logistics users looking to capitalize on proximity to Chandler Municipal Airport and the Loop 202 freeway.

  • Total size: 327,776 SF

  • Site area: 21 acres

  • Building count: 3

  • Clear heights: 28 to 32 feet

Developer Pursues Entitlements for 1.3 Million SF Warehouse in Buckeye - Connect CRE (April 2026)

A developer is working to secure zoning approval for a 1.3 million SF warehouse project on an 85-acre parcel at State Route 85 and Interstate 10 in Buckeye. The proposed project reinforces the West Valley's consolidation as the region's primary big-box logistics submarket.

  • Proposed size: 1,300,000 SF

  • Site area: 85 acres

  • Location: SR 85 and I-10, Buckeye

Retail

Westwood Financial Acquires Paradise Hills Shopping Center in Phoenix - REBusiness Online (April 2026)

Westwood Financial acquired the Paradise Hills Shopping Center at 10604 to 10622 North 32nd Street and 3110 to 3116 East Shea Boulevard in Phoenix. Colliers represented the seller in the transaction. Positioned on 7.5 acres, the 83,787 SF center is fully occupied by 16 diverse tenants including Ace Hardware, Pet Supplies Plus, and Uptown Jungle, alongside a robust mix of localized food and beverage operators. The transaction exemplifies the liquidity available for well-located, fully leased neighborhood retail assets serving daily consumer needs.

  • Building size: 83,787 SF

  • Site area: 7.5 acres

  • Tenant count: 16

  • Occupancy: 100%

  • Brokerage: Colliers (seller representation)

Trader Joe's and Aldi Expand Footprints in North Phoenix - Rise48 Equity (April 2026)

The influx of high-income engineering and technology professionals associated with the TSMC development has triggered aggressive grocer expansion in North Phoenix. Trader Joe's confirmed expansion into the North Phoenix corridor, while Aldi is securing its footprint in the area as the primary retail anchor for the proposed Bell 17 development in Deer Valley.

  • Market driver: TSMC-related demographic growth

  • New entrants: Trader Joe's (North Phoenix), Aldi (Bell 17 anchor)

Din Tai Fung to Make Arizona Debut in Scottsdale - Rise48 Equity (April 2026)

Internationally acclaimed culinary brand Din Tai Fung is preparing to make its Arizona debut in Scottsdale, signaling the market's rising profile in the luxury retail landscape. The announcement reflects the broader trend of experiential dining operators clustering into the Valley's high-income corridors.

  • Market: Scottsdale (Arizona's first location)

  • Category: Luxury experiential dining

Perry's Steakhouse & Grille to Open First Arizona Location in Gilbert - AZ Big Media (April 2026)

Perry's Steakhouse & Grille announced plans to open its first Arizona location in Gilbert, slated for a June 2026 delivery. The debut continues the trend of upscale national restaurant brands using Gilbert and the East Valley's SanTan corridor as entry points into Arizona.

  • Market: Gilbert (Arizona's first location)

  • Expected delivery: June 2026

Harkins Theatres Rolls Out 4D Immersive Experience Across Three Valley Theaters - Connect CRE (April 2026)

Arizona-based cinema chain Harkins Theatres announced the rollout of an immersive 4D sensory experience across three local theaters. The concept integrates synchronized motion seating and environmental cues, reflecting the retail sector's broader mandate to offer compelling, out-of-home experiences that cannot be replicated digitally.

  • Rollout: 3 Valley theaters

  • Concept: Synchronized motion seating and environmental cues

Otra Pizzeria and Better Days Bar to Open in Historic Phoenix Building - WhatNow Phoenix (April 9, 2026)

Otra Pizzeria and Better Days bar are opening inside a revitalized historic building in Phoenix, blending high-quality Neapolitan culinary offerings with neighborhood-centric entertainment programming. The adaptive reuse project illustrates the continuing momentum of historic structure revitalization across the urban core.

  • Concept: Neapolitan pizza and craft bar

  • Strategy: Adaptive reuse of historic structure

Office

Phoenix Office Market Extends Recovery in Q1 2026; Vacancy Falls to 20.3% - Real Estate Daily News (April 2026)

The Phoenix office sector posted 135,807 SF of positive net absorption in Q1 2026, extending a stabilization streak that contrasts with the severe contractions observed in 2023. Overall vacancy declined to 20.3%, a significant improvement from 23.9% in Q1 2024. Sublease availability fell 30 basis points quarter-over-quarter to 4.2%. Class B properties drove leasing momentum with 314,836 SF of positive absorption, while Class A and Class C assets experienced negative quarterly absorption (though Class A has absorbed nearly 891,000 SF over the trailing four quarters). Tempe led all submarkets with 166,031 SF of net absorption.

  • Q1 net absorption: +135,807 SF

  • Vacancy rate: 20.3% (down from 23.9% in Q1 2024)

  • Sublease availability: 4.2% (down 30 bps QoQ)

  • Class A asking rent: $42.02 FSG per SF

  • Class B asking rent: $30.29 FSG per SF

  • Top submarket: Tempe (+166,031 SF)

Local Investor Acquires Black Canyon Corridor Office Building for $5.35 Million - Real Estate Daily News (April 16, 2026)

A local investor acquired a two-story, 56,042 SF office building at 2225 West Peoria Avenue for $5.35 million. Colliers handled the transaction, providing representation and leasing expertise to the seller. Positioned less than one mile from the $850 million redevelopment of the former Metrocenter Mall, the transaction reflects the stabilization of values for well-located suburban office assets as older, uncompetitive structures are systematically removed from the submarket.

  • Sale price: $5,350,000

  • Building size: 56,042 SF

  • Price per SF: $95.46

  • Brokerage: Colliers (seller representation)

  • Location: 2225 W. Peoria Ave., Phoenix (Black Canyon Corridor)

Mixed-Use

Bell 17 Advances as 82-Acre Mixed-Use Campus in Deer Valley - Hoodline (April 2026)

A major mixed-use campus branded "Bell 17" is advancing at the southwest corner of 19th Avenue and Bell Road. Spanning roughly 82 to 93 acres and originally acquired at a state land auction for $26.5 million, the developer envisions a 1 million SF business and residential park. The site plan incorporates general industrial buildings, flex and corporate office space, high-density apartments, and retail pads, with Aldi secured as a primary retail anchor.

  • Site size: 82 to 93 acres

  • Land basis: $26,500,000 (state auction)

  • Implied price per acre: $284,946 to $323,171

  • Programmed capacity: 1,000,000 SF

  • Retail anchor: Aldi

Globe Approves "Marigold," the City's First Mixed-Use Development on 58 Acres - AZBEX (April 9, 2026)

The Globe City Council approved a planned area development modification on April 9, 2026 for a 58-acre mixed-use project on Highway 60 named "Marigold." Demonstrating the outward push of institutional development into historically rural tertiary markets, the master plan will deliver a diverse housing stock and commercial amenities across three phases. Phase I includes 120 single-family housing units on 16.52 acres, while Phases II and III will introduce 600 mid-rise multifamily units, a 300-room hospitality asset, and a convention hall across 18.28 acres.

  • Total site: 58 acres

  • Phase I: 120 single-family units (16.52 acres)

  • Phases II & III: 600 multifamily units, 300-room hotel, convention hall (18.28 acres)

Hotels

Phoenix Ranks Second Nationally for 2026 Hotel Room Deliveries with 3,650 New Rooms - Orion Investment Real Estate (April 2026)

The Phoenix Metro is on track to open 3,650 new hotel rooms across 22 properties in 2026, ranking second nationally behind only New York City and representing a 117% increase over 2025 deliveries. The supply wave is strategically distributed beyond luxury Scottsdale resorts and downtown convention properties, with developers aggressively building extended-stay and limited-service product in outer suburbs including Goodyear, Peoria, Tolleson, and the Mesa Gateway Airport corridor. The geographic strategy is explicitly designed to capture transient corporate workforce demand tied to TSMC, Amkor, and LG Energy mega-projects.

  • New rooms in 2026: 3,650

  • Properties opening: 22

  • National ranking: #2 (behind NYC)

  • Year-over-year growth: +117%

164-Room AC Hotel by Marriott Approved for Downtown Mesa - AZBEX (April 10, 2026)

On April 10, 2026, the Mesa Board of Adjustment approved critical variances necessary for the construction of an AC Hotel by Marriott at 104 East Main Street, on the northeast corner of Main Street and Centennial Way. The five-story, 88,900 SF property will feature 164 rooms and a pedestrian-oriented courtyard. The city's willingness to grant variances regarding floor depths and courtyard dimensions demonstrates a proactive approach to facilitating dense, urban infill development aligned with the revitalization goals of Downtown Mesa.

  • Rooms: 164

  • Building size: 88,900 SF

  • Stories: 5

  • Implied SF per room: ~542

  • Location: 104 E. Main Street, Downtown Mesa

114-Room Hyatt Studios Proposed for North Phoenix Master Plan Near TSMC - AZBEX (April 2026)

A Scottsdale-based developer's subsidiary is seeking a zoning stipulation modification to advance a four-story, 114-room Hyatt Studios hotel in the North Phoenix corridor. Located on a 2.28-acre commercial pad near 29th Avenue and Sonoran Desert Drive, the project is part of a broader 40-acre master plan that includes multifamily and retail components. The proposal requires the removal of an existing 25-foot height limitation. The Hyatt Studios brand, an upscale extended-stay concept, is tailored to capture long-term corporate lodging demand generated by the adjacent TSMC ecosystem.

  • Rooms: 114

  • Stories: 4

  • Hotel site: 2.28 acres (within 40-acre master plan)

  • Brand: Hyatt Studios (upscale extended-stay)

Let's Connect

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, transactions, or market trends may affect your land, your portfolio, or your next project, we'd welcome the conversation. Reach out anytime.

This digest is compiled for informational purposes and reflects publicly reported commercial real estate activity in the Phoenix metropolitan area for the week of April 9 to April 16, 2026.

John Finnegan

Senior Vice President | Land

(602) 222-5152

Ramey Peru

Senior Vice President | Land

(602) 222-5154