The Phoenix CRE Brief - 4/23/2026

Executive Summary

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

1. Greater Phoenix Records Strongest Industrial Investment Quarter on Record at $990.8 Million: First-quarter 2026 data confirmed Phoenix logged the highest industrial investment sales volume on record, up 24.0% year-over-year, with average sale pricing climbing to $245.48 per SF (up 17.4% year-over-year). All five of the quarter's top transactions involved Class A assets constructed within the past four years, reflecting intense institutional appetite for core product.

2. Arro to Become Arizona's Tallest Building in Downtown Phoenix: Developer Empire Group rebranded its previously announced "Astra" project as "Arro," a ~1.8 million SF two-tower development anchored by a 541-foot north tower (the state's future tallest structure) and a 425-foot south tower. The program includes 380 Class A+ residential units, a 250-key luxury Optimist hotel, approximately 150,000 SF of Class A office, 30,000 SF of retail, a 275-unit co-living component, and a 16,000 SF rooftop restaurant.

3. Pinal County Emerges as the Valley's Hyperscale Data Center Frontier: The Pinal County Planning and Zoning Commission voted 7 to 2 recommending approval of a rezoning for a 3,300-acre Vermaland LLC site near Eloy that would host the La Osa Energy Center, housing up to 59 data center buildings, two gas-fired power plants, and battery storage.

Market Overview

Activity this week confirmed that the Valley's center of gravity is migrating north and west, away from legacy Central Corridor office and toward TSMC-adjacent Deer Valley, Halo Vista, and Loop 303 industrial corridors, with Pinal County emerging as a new hyperscale frontier. Industrial remains the thesis-setter, now backed by record quarterly investment volume and single-digit vacancy even as deliveries collapse. Water, power, and entitlement velocity, not capital, are now the binding constraints on growth. The 12th Annual AZRE Forum on April 16 at The Camby Phoenix Biltmore, themed "Water and Power: The Building Blocks of Growth," centered on these infrastructure constraints, with panels addressing the hyperscale data center thesis in the West Valley.

Land

Pinal County P&Z Recommends Approval for 3,300-Acre La Osa Energy Center Near Eloy - KTAR News (April 20, 2026)

The Pinal County Planning and Zoning Commission voted 7 to 2 to recommend approval of a rezoning for a 3,300-acre Vermaland LLC site off Picacho Highway near Eloy. The La Osa Energy Center would house up to 59 data center buildings, two gas-fired power plants, and battery storage, positioning Pinal County as the Valley's newest hyperscale frontier.

• Site size: 3,300 acres

• Proposed use: Up to 59 data center buildings, two gas plants, battery storage

• Commission vote: 7 to 2 in favor

Source

ViaWest Group Acquires 53.1 Acres at Camelback Road and Loop 303 for Class A Industrial Development - AZ Big Media (April 21, 2026)

ViaWest Group closed on a 53.1-acre site at Camelback Road and Loop 303 in Goodyear, located less than a mile from a full-diamond interchange offering frictionless connectivity to I-10 and I-8. The developer is preserving optionality by simultaneously marketing the site for build-to-suit opportunities and evaluating multiple configurations ranging from a single 850,000 SF cross-dock facility to a four-building layout totaling 900,000 SF.

• Site size: 53.1 acres (2,313,036 SF of land)

• Maximum programmed capacity: 900,000 SF across up to 4 buildings

• Location: Camelback Rd & Loop 303, Goodyear

Source

Creation and Crow Holdings Capital Close on 38-Acre Avondale Tech Center Site - AZ Big Media (April 21, 2026)

Creation, partnered with a fund advised by Crow Holdings Capital, closed on a 38-acre site at the northwest corner of 117th Avenue and Corporate Drive in Avondale. The planned Avondale Tech Center will deliver approximately 700,000 SF across three buildings, featuring 36-foot clear heights and 3,000-amp/480V power expandable to 6,000 amps, engineered to accommodate advanced manufacturing tenants.

• Site size: 38 acres

• Programmed building area: ~700,000 SF across 3 buildings

• Clear height: 36 feet

• Power: 3,000 amps/480V (expandable to 6,000 amps)

Source

Game-Changing Approvals Clear the Way in Casa Grande and Tonopah - AZ Big Media (April 22, 2026)

Casa Grande City Council approved a 273-acre rezoning at the northwest corner of I-10 and Florence Boulevard, with WinCo Foods in escrow as the anchor. The zoning explicitly prohibits data centers, high-density residential, and truck stops, reflecting negotiated conditions to address community concerns. Separately, the Maricopa County Board of Supervisors unanimously approved industrial use on 2,000 unincorporated acres in Tonopah (Hassayampa Ranch) for a ~1 gigawatt data center corridor, a $25 billion project with a $51 million land basis.

• Casa Grande site: 273 acres (mixed-use commercial and light industrial)

• Tonopah site: 2,000 acres (Hassayampa Ranch)

• Tonopah land basis: $51,000,000

• Tonopah project value: ~$25,000,000,000

• Tonopah power envelope: ~1 GW

Source

Banner Health Acquires 18.81 Acres at I-17 and Jomax Road for $22.13 Million - AZBEX (April 2026)

Banner Health acquired an 18.81-acre parcel at the southeast corner of Interstate 17 and Jomax Road for $22.13 million. The land-banking play front-runs the demographic density expected from the semiconductor ecosystem, with Banner positioning institutional-grade healthcare infrastructure ahead of the TSMC-driven population wave.

• Sale price: $22,130,000

• Acreage: 18.81 acres

• Price per acre: $1,176,501.86

• Price per land SF: $27.01

• Buyer: Banner Health

Source

Multifamily

Sunbelt Holdings and Mosaic Complete Phase 1 of The Hillburn Near TSMC - AZ Big Media (April 22, 2026)

Sunbelt Holdings and Mosaic completed the first phase of The Hillburn, a 283-unit build-to-rent community in North Phoenix's Sonoran Foothills directly in the TSMC orbit. The community features 3-bedroom townhomes (1,729 to 2,291 SF) and 2-, 3-, and 4-bedroom detached homes (1,323 to 2,338 SF), anchored by a 6,200 SF clubhouse.

• Total units: 283

• Townhome range: 1,729 to 2,291 SF

• Detached home range: 1,323 to 2,338 SF

• Clubhouse: 6,200 SF

• Location: Sonoran Foothills, North Phoenix

Source

ColRich Acquires Downtown Phoenix's Camden Copper Square for $77 Million - REBusiness Online (April 2026)

San Diego-based ColRich acquired Camden Copper Square, a 332-unit gated community at 901 E. Van Buren Street in Downtown Phoenix, from Camden Property Trust for $77 million. Built in 2000 on roughly eight acres, the asset includes two parking structures, swimming pools, and coworking space. The acquisition represents a textbook core-plus execution, with the basis well below the replacement cost for new mid- or high-rise construction in the downtown core.

• Sale price: $77,000,000

• Total units: 332

• Price per unit: $231,927.71

• Year built: 2000

• Site: ~8 acres

Source

Weidner Investment Group Acquires 220-Unit Paradise Falls for $10.4 Million - Multi-Housing News (April 2026)

Weidner Investment Group acquired the 220-unit Paradise Falls, located at 15434 N. 32nd Street in Phoenix, for $10.4 million. The 1986-vintage asset (expanded in 1997) trades at a striking basis that insulates the buyer against further downside risk and positions the operator to reposition the community for the Valley's underserved workforce housing demographic.

• Sale price: $10,400,000

• Total units: 220

• Price per unit: $47,272.72

• Year built: 1986 (expanded 1997)

Source

Canyon Place Trades Alongside Paradise Falls in Combined $18 Million Multifamily Sale - Multi-Housing News (April 2026)

The 288-unit Canyon Place property in Phoenix traded for approximately $7.6 million as part of a combined $18 million multifamily sale that also included Paradise Falls. The implied per-unit pricing underscores the extreme bifurcation present in the Valley's multifamily market between newer infill Class A product and older suburban assets carrying deferred maintenance or functional obsolescence.

• Sale price: ~$7,600,000 (implied)

• Total units: 288

• Price per unit: ~$26,388.88

Source

City of Phoenix Breaks Ground on $30 Million, 80-Unit Helen Drake Village for Seniors - The Center Square (April 21, 2026)

The City of Phoenix broke ground on Helen Drake Village, an $30 million, 80-unit senior affordable community (74 one-bedroom units and 6 two-bedroom units) for adults 55 and older earning between 30% and 60% of area median income. The project is rising on city-owned land adjacent to the Helen Drake Senior Center, with Phoenix providing $5 million in loans and 40 project-based vouchers. Co-developer is The Richman Group, with EOS Builders serving as general contractor and Biltform Architects. Completion is targeted for 2027.

• Project cost: $30,000,000

• Total units: 80 (74 one-bed, 6 two-bed)

• Cost per unit: $375,000

• Income targeting: 30% to 60% AMI

• City contribution: $5 million in loans plus 40 vouchers

Source

New Multifamily Component Added to Village at Prasada in Surprise - AZBEX (April 22, 2026)

A new multifamily component is being added to the 700,000 SF Village at Prasada master-planned retail center at Loop 303 and Waddell Road in Surprise, positioned within the broader 3,355-acre Prasada master plan. The addition reflects the accelerating convergence of lifestyle retail and residential components in West Valley master-planned communities.

• Retail center size: 700,000 SF

• Master plan acreage: 3,355 acres

• Location: Loop 303 & Waddell Road, Surprise

Source

Industrial

Greater Phoenix Posts Strongest Quarter of Industrial Investment on Record at $990.8 Million - AZ Big Media (April 21, 2026)

First-quarter 2026 market data surfaced this week confirmed Phoenix posted $990.8 million in industrial investment sales, a record quarterly total and a 24.0% increase year-over-year, with the average sale price climbing to $245.48 per SF, up 17.4% year-over-year. Net absorption ran more than 3.5 times the 1.38 million SF of new supply, pushing vacancy down to 9.2%. Companion coverage attributed leadership to the Halo Vista groundbreaking and strength in the Glendale, North Chandler/Gilbert, and Goodyear submarkets.

• Q1 investment sales: $990,800,000 (record; +24.0% YoY)

• Average sale price: $245.48 per SF (+17.4% YoY)

• Net absorption: ~4.4 million SF (+200% YoY)

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

• Vacancy: 9.2% (down 80 bps QoQ)

• Asking rent: $1.06 NNN (+6.0% YoY)

Source

Burlington Stores 2 Million SF Distribution Center Advances at Westpark 360 in Buckeye - AZ Big Media (April 20, 2026)

The Burlington Stores 2 million SF distribution center at Westpark 360 Industrial Park in Buckeye continued to lead West Valley coverage this week, cementing Burlington's role as one of the anchor tenants driving the West Valley's big-box absorption cycle. The project reinforces Buckeye's emergence as the region's primary logistics submarket serving the broader Southwest and Southern California supply chains.

• Size: 2,000,000 SF

• Location: Westpark 360 Industrial Park, Buckeye

• Category: Distribution center

Source

Arizona Corporation Commission Workshop Highlights Data Center Load Pressure - AZCC (April 20, 2026)

The Arizona Corporation Commission held an April 16 workshop focused on large-load customers. Salt River Project currently serves 59 large-load customers totaling approximately 7,000 megawatts, while Arizona Public Service projects peak large-customer demand to reach approximately 13.1 gigawatts in 2026. The workshop underscored power availability as the binding constraint on industrial and data center development across the Valley.

• SRP large-load customers: 59

• SRP large-load capacity served: ~7,000 MW

• APS 2026 peak large-customer demand: ~13.1 GW

Source

Data Centers Drive Construction Backlog as Industry Confidence Holds High - AZBEX (April 17, 2026)

AZBEX reported that data centers are now the dominant driver of construction backlog in Arizona, with industry confidence remaining at elevated levels. The structural shift reflects the degree to which hyperscale and mission-critical infrastructure demand has eclipsed more traditional commercial and residential project pipelines in shaping statewide contractor activity.

• Trend: Data centers now dominant driver of construction backlog

• Industry sentiment: High confidence holding

Source

Prologis Acquires Cotton 303 Logistics Center for $104 Million - AZ Big Media (April 2026)

Prologis acquired the Cotton 303 Logistics Center for $104 million during the first quarter, reinforcing the institutional preference for core, Class A logistics product in the West Valley's Loop 303 corridor. The transaction illustrates the continued flight to quality, with buyers underwriting aggressive forward rent growth assumptions to justify cap rate compression in the submarket.

• Sale price: $104,000,000

• Buyer: Prologis

• Asset class: Class A logistics (Loop 303 corridor)

Source

Retail

Rialto Capital and Capital Development Southwest Acquire The Wells in Maricopa - AZ Big Media (April 22, 2026)

Rialto Capital, partnered with Capital Development Southwest, acquired The Wells at 41650 W. Maricopa-Casa Grande Highway, a 122-acre site with 61 acres of remaining development opportunity. The shopping center is ringed by 20 active housing developments (17,000+ homes built and 5,500+ lots in planning), and the acquisition resets the land basis below prior ownership, positioning the partnership to recruit retail, restaurants, hotels, offices, and multifamily.

• Site size: 122 acres (61 acres developable)

• Surrounding housing context: 17,000+ homes built, 5,500+ lots planned

• Buyer: Rialto Capital / Capital Development Southwest

• Location: 41650 W. Maricopa-Casa Grande Hwy, Maricopa

Source

Scottsdale Clears Way for First-Ever Costco on Tribal Land - AZ Big Media (April 20, 2026)

Scottsdale officials cleared the way for the first-ever Costco located on tribal land, establishing a notable precedent for large-format retail development on sovereign parcels within the metro. The approval positions the big-box operator to serve a demographic catchment traditionally underserved by its conventional siting strategy.

• Concept: First-ever Costco on tribal land

• Market: Scottsdale

Source

Aardex Completes 27,000 SF Adaptive Reuse Renovation of One West Madison in Downtown Phoenix - Shopping Center Business (April 2026)

Denver-based Aardex completed the comprehensive renovation of One West Madison, a century-old 27,000 SF adaptive reuse project at 1 W. Madison Street in Downtown Phoenix. The transformation delivers roughly 13,500 SF of ground-floor retail alongside "The Vault on Madison," a climate-controlled self-storage concept activating the basement level. The dual-use configuration creates a yield-blending strategy, using self-storage economics to subsidize competitive retail lease rates for experiential food and beverage tenants.

• Total renovation: 27,000 SF

• Ground-floor retail: ~13,500 SF

• Subterranean concept: "The Vault on Madison" self-storage

• Location: 1 W. Madison St., Downtown Phoenix

Source

Smalls Sliders Signs 15-Unit Phoenix Metro Franchise Agreement Using Modular Units - Shopping Center Business (April 2026)

Atlanta-based cheeseburger concept Smalls Sliders signed a 15-unit franchise agreement for the Phoenix Metro, with the first Arizona locations slated to open later in the year. The concept exclusively utilizes prefabricated modular units known internally as "Cans," drastically reducing construction timelines, lowering capital expenditures, and accelerating speed to revenue in a high-cost construction environment.

• Franchise commitment: 15 units in Phoenix Metro

• Format: Prefabricated modular ("Cans")

• First openings: Later in 2026

Source

Office

ASU Health Headquarters Breaks Ground on $200 Million, 175,000 SF Medical Facility in Downtown Phoenix - AZBEX (April 17, 2026)

Arizona State University broke ground on ASU Health Headquarters, a 5-story, 175,000 SF, $200 million facility at 620 N. Fifth Street in Downtown Phoenix. The project will house the John Shufeldt School of Medicine and Medical Engineering, with McCarthy Building Companies serving as general contractor and DFDG/CO Architects leading design. Completion is targeted for summer 2028.

• Total cost: $200,000,000

• Building size: 175,000 SF

• Cost per SF (construction basis): $1,142.86

• Stories: 5

• Target completion: Summer 2028

Source

Phoenix Office Market Shows Positive Absorption for First Time Since 2020 - Bisnow (April 16, 2026)

Ahead of its upcoming Phoenix Office Forum, Bisnow cited data showing Phoenix office is posting its first positive net absorption since 2020, with Maricopa County vacancy easing to roughly 15%. The shift is credited to TSMC-driven expansion and ongoing flight-to-quality migration into Class A buildings.

• Maricopa County office vacancy: ~15%

• Trend: First positive net absorption since 2020

• Driver: TSMC expansion and flight to quality

Source

City of Maricopa to Convert Former Police HQ into $2.9 Million Civic Center Office - AZBEX (April 17, 2026)

The City of Maricopa committed $2.9 million to convert its former police headquarters into a civic-center office for Development Services and Economic Opportunity. The adaptive reuse reflects the broader trend of municipal governments repositioning legacy public-sector facilities to consolidate services and avoid new ground-up construction costs.

• Conversion cost: $2,900,000

• New use: Development Services and Economic Opportunity office

• Strategy: Adaptive reuse of former police headquarters

Source

Mixed-Use

Empire Group Rebrands Astra to Arro; Downtown Phoenix Tower to Become Arizona's Tallest - AZ Big Media (April 21, 2026)

Empire Group, via Aspirant Development, rebranded its Downtown Phoenix project from "Astra" to "Arro." The approximately 1.8 million SF, two-tower development will be anchored by a 541-foot north tower, set to become Arizona's tallest building, paired with a 425-foot south tower. The program includes 380 Class A+ residential units, a 250-key luxury Optimist hotel, approximately 150,000 SF of large-floorplate Class A office, 30,000 SF of retail and restaurant space, a 275-unit co-living component, and a 16,000 SF rooftop restaurant. Arro targets permit-ready status by year-end 2026 with a three-year build.

• Total project size: ~1,800,000 SF

• North tower height: 541 feet (Arizona's future tallest)

• South tower height: 425 feet

• Residential units: 380 Class A+ (plus 275 co-living)

• Hotel keys: 250 (Optimist)

• Office: ~150,000 SF Class A

• Retail: 30,000 SF

• Permit-ready target: Year-end 2026

Source

Hatteras Sky Completes 605,000 SF, $150 Million Saiya Mixed-Use in Downtown Phoenix - Building Design + Construction (April 17, 2026)

Hatteras Sky completed Saiya, a 605,000 SF, $150 million two-tower mixed-use project delivering 389 residential units around the historic McKinley Club on 2nd Avenue. The project combines a 23-story concrete tower with a 5-over-1 wood-frame structure, with JE Dunn serving as general contractor and Shepley Bulfinch as design architect.

• Total size: 605,000 SF

• Project cost: $150,000,000

• Cost per SF: $247.93

• Total units: 389

• Cost per unit: $385,604

• Structure: 23-story concrete tower plus 5-over-1 wood frame

Source

Mack Real Estate and McCourt Partners Detail $7 Billion, 2,300-Acre Halo Vista Master Plan - AZ Big Media (April 17, 2026)

Mack Real Estate Group and McCourt Partners detailed the $7 billion, 2,300-acre Halo Vista master plan adjacent to TSMC, which will deliver approximately 30 million SF of industrial, retail, office, research, healthcare, and hotel space. Announced anchors include Costco, dual-branded Courtyard and Residence Inn hotels, and a DeRito Partners auto mall with 10 to 11 dealerships. The developer projects $33 billion added to the regional economy and 60,000 to 80,000 workers at full 15- to 20-year buildout.

• Total investment: $7,000,000,000

• Site size: 2,300 acres

• Programmed area: ~30 million SF (industrial, retail, office, research, healthcare, hotel)

• Projected economic impact: $33 billion

• Projected workforce at buildout: 60,000 to 80,000

• Buildout horizon: 15 to 20 years

Source

Scottsdale Approves $3.8 Million Early-Works Contract for Old Town Parking Garage Expansion - AZBEX (April 17, 2026)

Scottsdale City Council approved a $3.8 million early-works contract with Chasse Building Team on a 5-to-2 vote to begin the Old Town Scottsdale Parking Garage at 1st Street and Brown Avenue. The three-above-ground-level structure will add 186 new spaces for a total of 412 on a $20.9 million total budget, translating to approximately $97,000 per space compared with a $25,000 Phoenix-metro average. Construction starts summer 2026 with delivery targeted for spring training 2027.

• Early-works contract: $3,800,000

• Total budget: $20,900,000

• New parking spaces: 186 (total of 412)

• Cost per space: ~$97,000 (vs. $25,000 Phoenix-metro average)

• Construction start: Summer 2026

Source

BEX LMS Event Details Major Public Works Projects Across the Valley - AZBEX (April 17, 2026)

AZBEX's BEX LMS public works recap detailed several significant regional infrastructure initiatives, including the $114.4 million Estrella Bridge, the $32.3 million Bullard Wash Trail Extension, and the $34.5 million Municipal Operations Complex. The event also noted the acceleration of two I-10 interchanges originally slated for 2040 through 2045 delivery into more near-term construction windows.

• Estrella Bridge: $114,400,000

• Bullard Wash Trail Extension: $32,300,000

• Municipal Operations Complex: $34,500,000

• I-10 interchanges: Pulled forward from 2040 to 2045 schedule

Source

Hotels

Caliber Advances Hyatt Studios Extended-Stay Development at Scottsdale Riverwalk - GlobeNewswire (April 22, 2026)

Caliber (Nasdaq: CWD) announced it is advancing its Hyatt Studios extended-stay development platform across three markets, including a Scottsdale Riverwalk site controlled via long-term ground lease. Design review and conditional use permit approvals are in process with targeted entitlement completion by Q3 2026. The upper-midscale extended-stay concept is purpose-built to capture corporate and project-driven demand tied to the region's industrial and semiconductor projects.

• Developer: Caliber (Nasdaq: CWD)

• Location: "The Riverwalk," Scottsdale

• Brand: Hyatt Studios (upper-midscale extended-stay)

• Site control: Long-term ground lease

• Entitlement target: Q3 2026

Source

Scottsdale Undergoes Resort Repositioning Wave with Multiple Renovations and New Openings - AZ Big Media (April 20, 2026)

Scottsdale's hospitality market remained the epicenter of Phoenix Metro investment this week. SkyPlus Hotel broke ground on a dual-branded property at SkyBridge Arizona, and the Westin Kierland Resort & Spa launched a multi-phase renovation. The Hilton Scottsdale Resort & Villas continued its $24 million renovation including new 2-bedroom private-pool villas and the Salt & Sol Mediterranean poolside restaurant. New villas are also being added at the JW Marriott Camelback Inn.

• New ground-up: SkyPlus Hotel (dual-branded, SkyBridge Arizona)

• Westin Kierland Resort & Spa: Multi-phase renovation launched

• Hilton Scottsdale Resort & Villas: $24,000,000 renovation

• JW Marriott Camelback Inn: New villa additions

Source

Scottsdale's New Era of Hotels Delivers Kimpton, AC Old Town, and JW Marriott Transformation - Experience Scottsdale (April 2026)

The Scottsdale hospitality pipeline continues to deliver high-profile repositionings, including the Kimpton Miralina Resort & Villas (260 redesigned rooms on a 40-acre foothills site), a $25 million spa transformation at the JW Marriott Camelback Inn, and the 168-room AC Hotel Scottsdale Old Town opened by PEG Companies with Gensler and Edge ID leading design and Okland Construction as general contractor.

• Kimpton Miralina Resort & Villas: 260 rooms on 40 acres

• JW Marriott Camelback Inn spa transformation: $25,000,000

• AC Hotel Scottsdale Old Town: 168 rooms (delivered by PEG Companies)

Source

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 transactions, rezonings, or development announcements may affect your land, your portfolio, or your next project, we would 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 16 to April 23, 2026.