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The Phoenix CRE Brief - 5/7/2026
A brief summary of commercial real estate activity in the Phoenix Metro
Ramey Peru & John Finnegan
May 07, 2026
Executive Summary
Three key takeaways from Phoenix Metro commercial real estate activity for the week of April 30 to May 7, 2026:
The Desert Ridge State Trust Land auction cleared at $180 million, blowing past its $108.3M minimum bid by 66%. The 293.498-acre tract sold for $613,292 per acre ($14.08 per land square foot) to Desert Ridge 293 LLC (a Blandford Homes affiliate), resetting the institutional pricing floor for large-scale, master-planned land in northeast Phoenix.
Capital markets bifurcation in multifamily is widening sharply. Blackstone closed an 18% loss on the 412-unit Arrowhead Summit in Glendale ($101.4M, $246,116 per unit), while MetLife paid $327,500 per unit ($45.85M total) for the 140-unit Grandstone at Sunrise build-to-rent community in Peoria. Stabilized BTR product is trading at near-Class-A multifamily metrics, while floating-rate-burdened value-add product is repricing downward.
Phoenix industrial posted its strongest quarter on record with approximately $3.2 billion in Q1 2026 investment volume and 4.4 million SF of direct net absorption, headlined by Amazon Web Services' 1.2 million SF lease at Southern Industrial Center in Buckeye. Power-and-water infrastructure constraints are now the binding variable on future absorption, prompting vertical integration moves like Sundt Construction's acquisition of Industrial Power Solutions.
Land
Desert Ridge State Trust Land Auction Closes at $180 Million AZBEX / Phoenix Business Journal (April 30, 2026) The Arizona State Land Department's auction of a 293.498-acre tract (T4N, R4E, Secs. 18 and 19) within the Desert Ridge master-planned area closed after a roughly 90-minute bidding war at $180,000,000, far above the statutory $108.3M minimum. The winning entity, Desert Ridge 293 LLC (a Blandford Homes affiliate), now controls one of the last contiguous large-scale tracts north of Loop 101 capable of supporting institutional density.
Total acreage: 293.498
Final bid: $180,000,000
Price per acre: $613,292
Price per land square foot: $14.08
Hassayampa Ranch (Tonopah) and Casa Grande Rezoning Approvals Advance AZ Big Media (April 30, 2026) Arizona Land Consulting, led by Anita Verma-Lallian, secured two consequential entitlement approvals in the Phoenix Metro region. The Maricopa County Board of Supervisors granted final zoning to the Hassayampa Ranch AI-focused data center project outside Tonopah, and the City of Casa Grande approved a 273-acre rezoning at I-10 and Florence Boulevard for a master-planned residential and commercial program. Both approvals reflect community-engagement-heavy entitlement strategies and underscore the West Valley and Pinal corridors' continued absorption of data center and master-planned residential demand.
Land Prices Up 77% Since the Pandemic; Inventory Remains Below Pre-Pandemic Levels AZ Big Media (Reported during the week) Realtor.com released its first-ever analysis of U.S. land listings, finding land prices nationally have climbed 77% since the pandemic with active inventory still well below pre-pandemic levels. The dynamic continues to constrain housing supply in Phoenix Metro's growth corridors and reinforces the pricing pressure observed at the Desert Ridge auction.
National land price growth since pandemic: +77%
10 Water and Energy Takeaways from the 2026 AZRE Forum AZ Big Media (Reported during the week) At the 2026 AZRE Forum at The Camby in Phoenix, panelists framed water assurance and electrical load capacity as the dominant variables shaping land development viability across Arizona, particularly along the West Valley and Pinal County semiconductor and data center corridors. Anita Verma-Lallian was among the speakers who emphasized that infrastructure capacity, not zoning, has become the primary bottleneck for institutional capital deployment.
Multifamily
Phoenix Apartment Supply Wave Eases as Vacancies Decline (Q1 2026) CRE News (May 5, 2026) Phoenix apartment deliveries totaled approximately 3,854 units in Q1 2026, the lowest quarterly volume in more than four years and a 20% decline from Q4 2025. The slowdown allowed vacancies to drop to a roughly two-year low while net absorption held steady. More than 26,000 units remain under construction across Greater Phoenix, with nearly half slated to deliver before year-end 2026, keeping localized oversupply risk live in select submarkets.
Q1 2026 deliveries: 3,854 units (lowest in 4+ years)
Quarter-over-quarter delivery decline: 20%
Units under construction: 26,000+
Blackstone Sells Arrowhead Summit in Glendale at 18% Discount to NALS Apartment Homes Multi-Housing News / Connect CRE (Reported week of May 5, 2026) Blackstone closed the disposition of the 412-unit Arrowhead Summit at 18330 N. 79th Avenue in Glendale to NALS Apartment Homes for $101.4M, an approximate 18% discount to the firm's 2021 cost basis (originally acquired as part of a 17-property portfolio recapitalization backed by a $1.2B CMBS loan). Built in 1999 on 22+ acres adjacent to Loop 101, the property was 93% occupied at closing. The trade is emblematic of distress among 2021-vintage syndications facing expiring rate caps and is one of the largest Phoenix multifamily transactions of the year so far.
Total units: 412
Sale price: $101,400,000
Price per unit: $246,116
Discount to 2021 basis: ~18%
MetLife Acquires 140-Unit Grandstone at Sunrise BTR Community in Peoria for $45.85M CRE News / Connect CRE (April 30, 2026) MetLife Investment Management acquired Grandstone at Sunrise, a 140-unit, 2021-vintage build-to-rent community at 24701 N. Lake Pleasant Parkway in Peoria, from developer Thompson Thrift for $45,850,000. Average unit size is approximately 1,069 SF; the asset includes 70 residential buildings, a resort-style pool, and an amenity building, and benefits from direct Loop 303 access to TSMC and Amkor Technology campuses. The pricing of $327,500 per unit confirms institutional capital's willingness to underwrite stabilized BTR at near-Class-A multifamily metrics due to longer tenant tenure and bond-like cash flows.
Total units: 140
Sale price: $45,850,000
Price per unit: $327,500
Year built: 2021
Hidden Lakes Apartments (483 Units, 1974-Vintage) Trades to Living Well Homes Colliers (May 6, 2026) Colliers brokered the sale of the 483-unit Hidden Lakes Apartments from CORE Realty Holdings Management to Living Well Homes. Pricing was undisclosed. The transaction underscores ongoing demand for value-add workforce housing in Phoenix where new ownership can execute targeted interior and exterior capital programs to drive net operating income on aged inventory.
Total units: 483
Year built: 1974
Sale price: Undisclosed
Wood Partners Begins Pre-Leasing at Alta Dove Valley (380 Units) in North Phoenix Industry Report (May 6, 2026) Wood Partners launched pre-leasing at Alta Dove Valley, a 380-unit luxury community at 2725 W. Dove Valley Road. The project is notable as the first wrap-style development in North Phoenix, where residential units encircle a central parking structure to deliver climate-shielded, same-floor parking access (a meaningful competitive advantage in summer). The community offers one-, two-, and three-bedroom layouts, 12-foot ceilings, and a soundproofed coworking space tailored to hybrid workforce demand. Move-ins begin May 2026.
Total units: 380
Configuration: First wrap-style community in North Phoenix
Move-in: May 2026
Corsica Villas at 20th Street Opens in South Phoenix (Rockefeller Group's First Arizona BTR) AZ Big Media (Reported week of May 5, 2026) Rockefeller Group's debut Arizona build-to-rent platform, Corsica Villas at 20th Street, began resident move-ins on May 5. The two-property Corsica Villas program totals 152 two-story townhomes across 16.5 acres in the Baseline Road corridor; the 20th Street site contains 68 two- and three-bedroom townhomes (each with attached two-car garages), and the sister site at Euclid and 7th Street will deliver 84 residences in the coming weeks. Promotional rents through May 15 range $1,991 to $2,093 for select three-bedroom townhomes and start at $2,017 for two-bedroom carriage units. Floor plans range 1,126 to 1,525 SF.
Total program: 152 townhomes across two sites
Site acreage: 16.5 acres
Unit range: 1,126 to 1,525 SF
One Camelback Office-to-Residential Conversion Resumes Active Construction AZ Big Media (Reported week of May 5, 2026) Kinella Capital, LLC (TK Stratton) restarted construction at 1 E. Camelback Road, the long-stalled Uptown office tower being converted to a 163-unit luxury rental community averaging 980 SF per unit. Rooftop pool and amenity areas are nearing completion, with project delivery targeted for Q4 2026. The redevelopment includes 10,725 SF of ground-floor retail and a five-level subterranean garage. Pre-leasing is expected to begin soon and ground-floor retail tenant announcements are anticipated in the coming months.
Total units: 163
Average unit size: 980 SF
Ground-floor retail: 10,725 SF
Targeted completion: Q4 2026
Willetta 15 Boutique Apartment Community Opens in Downtown Phoenix AZ Big Media (Reported week of May 5, 2026) JAG Development (principals Allan and Benjamin Gutkin) opened Willetta 15, a 15-unit boutique community at the corner of Willetta and 7th Street within the East Evergreen Historic District. Each one-bedroom unit measures 826 SF with starting rents of $1,899 per month. The project marks the fourth and final phase of JAG's 20-year, $15 million Willetta and 7th Street campus, designed by architect Rob Paulus.
Total units: 15
Unit size: 826 SF (one-bed/one-bath)
Starting rent: $1,899/month
TBBG Investments and Titan Development Break Ground on 132-Unit BTR in Laveen Corridor AZ Big Media (Reported week of May 5, 2026) A partnership between Phoenix-based TBBG Investments and Albuquerque-based Titan Development broke ground on Southern Grand Townhomes, a 132-unit two-story attached-garage build-to-rent community at 35th Avenue and Southern Avenue in South Phoenix. The 7.8-acre site was acquired roughly two years ago for approximately $3.8 million, equating to approximately $487,179 per acre or roughly $11.18 per land square foot.
Total units: 132
Site acreage: 7.8 acres
Land basis: $3.8 million ($487,179 per acre, $11.18 per land SF)
Industrial
Amazon Web Services Leases 1.2 Million SF at Southern Industrial Center in Buckeye Commercial Real Estate Direct / Phoenix Business Journal (Reported week of April 29, 2026) Amazon Web Services executed a 1,200,000-SF lease at the Southern Industrial Center, 24105 W. Southern Avenue in Buckeye, the largest single industrial lease in the metro area during Q1 2026. The 2023-built facility was developed by Parklane Development Group and Miramar Industrial Partners. Buckeye permitting filings indicate AWS will install specialized high-pile storage racking. The lease materially expands Amazon's already substantial Phoenix Metro footprint (which includes 1.2M SF blocks each at The Cubes in Glendale, Prologis 303 in Goodyear, and Mesa, plus 1M SF at Paloma Vista in Buckeye) and structurally suppresses big-box vacancy in the West Valley.
Lease size: 1,200,000 SF
Submarket: Buckeye / West Valley
Tenant: Amazon Web Services (cloud computing)
Metro Phoenix Posts Strongest Quarter of Industrial Investment on Record (Q1 2026) AZ Big Media (Reported week of May 5, 2026) According to a report released by Colliers, Greater Phoenix industrial recorded its strongest quarter on record for investment sales volume in Q1 2026 at approximately $3.2 billion. Net absorption exceeded 1 million SF for the 20th consecutive quarter. West Valley submarkets (Glendale, Goodyear, West Phoenix) led both leasing and pipeline activity, anchored by mega-scale logistics and manufacturing tenants.
Q1 2026 investment volume: ~$3.2 billion
Q1 net absorption: >1 million SF
Consecutive quarters of >1M SF gross absorption: 20
Phoenix Industrial Q1 2026 Snapshot: 7.5M SF Leasing, 4.4M SF Net Absorption AZ Big Media (Reported week of May 5, 2026) Q1 2026 leasing activity reached 7.5 million SF with direct net absorption of 4.4 million SF. Glendale, North Chandler/Gilbert, and Goodyear led activity, driven by manufacturing and distribution expansion. Industrial vacancy is forecast to continue declining through year-end 2026, although West Phoenix remains a hotbed for warehouse development that may temporarily expand the construction pipeline.
Q1 leasing: 7.5 million SF
Q1 direct net absorption: 4.4 million SF
Phoenix Industrial Demand Pivoting to Semiconductor, Data-Center Supply Chain, and Advanced Manufacturing In Business Magazine (May 2026) Phoenix's industrial demand profile is shifting from e-commerce-led distribution toward semiconductor, data-center supply-chain, and advanced-manufacturing tenants. A reported 824,000 SF Phase II spec project across three buildings completed at year-end 2025 is now approximately 73% leased, demonstrating that high-spec speculative product is being absorbed quickly even at higher rents.
Phase II project size: ~824,000 SF (three buildings)
Current lease-up: ~73%
Sundt Construction Acquires Industrial Power Solutions, Vertically Integrating Electrical Capability AZ Big Media / Sundt (May 6, 2026) Tempe-based Sundt Construction acquired Phoenix-based Industrial Power Solutions (IPS), a full-service industrial electrical contractor founded in 2008 with operations in Tempe and Glendale. IPS will operate as a wholly owned subsidiary, more than doubling Sundt's skilled electrical workforce. IPS leadership, including Lucas Bruxvoort, remains in place. While not a real estate transaction, the acquisition is a significant signal: as power delivery becomes the rate-limiting input for Phoenix industrial development, large general contractors are bringing electrical capability in-house to insulate project pipelines from subcontractor labor shortages.
IPS notable projects: Deer Valley, Union Hills, and 24th Street water treatment plants
Strategic rationale: vertical integration to control power delivery on industrial / advanced facilities builds
Retail
Ninety Nine Ave Grocery-Anchored Retail Center Sells for $30.7M All-Cash ($650.41/SF) Shopping Center Business / REBusinessOnline (Reported week of May 5, 2026) A private buyer acquired the 47,201-SF, 2024-built Ninety Nine Ave at 99th Avenue and McDowell Road in West Phoenix from the developer for $30,700,000 in an all-cash transaction. The 5.3-acre center was 100% leased at sale to a curated mix of internet-resistant tenants including Sprouts Farmers Market, CAVA, Hand & Stone, and Mountain Mike's Pizza. The all-cash structure is highly indicative of current capital markets dynamics: private high-net-worth buyers are bypassing leverage to secure stabilized, daily-needs retail.
Building size: 47,201 SF
Site area: 5.3 acres
Sale price: $30,700,000 (all-cash)
Price per SF: $650.41
Year built: 2024
Pecan Plaza Shops in Queen Creek Trade Off-Market for $13.35M ($656.83/SF) REBusinessOnline (Reported May 5, 2026) The 20,325-SF, 2022-built Pecan Plaza Shops at the northwest corner of Ellsworth and Riggs Roads in Queen Creek sold off-market for $13,350,000. The shadow-anchored multi-tenant center was 100% leased at closing to a service-based tenant mix anchored by entertainment and fitness concepts. The pricing closely tracks the Ninety Nine Ave benchmark, confirming a clear core-retail valuation band of approximately $650 to $660 per SF for fully stabilized, daily-needs and experiential centers.
Building size: 20,325 SF
Sale price: $13,350,000
Price per SF: $656.83
Year built: 2022
Elliot & Ellsworth Retail Development Announced in Southeast Mesa AZ Big Media (Reported week of May 5, 2026) Diversified Partners (developer) and BPR Companies (general contractor) announced the Elliot & Ellsworth retail project, a 17-acre, six-building center at the intersection of Elliot Road and Ellsworth Road in Southeast Mesa. Confirmed tenants include Starbucks, Aveda, Afterburn, Hand & Stone, Port of Subs, Senor Taco, and Zeitouna. Project Manager Quentin Gomez of BPR is leading site execution. The site benefits from positioning within the Mesa Tech Corridor near Apple, Edgecore, and the future Google site.
Site area: 17 acres
Buildings: 6
Barclay Group Pursues 178,155-SF Fry's-Anchored Retail Project at Harvest Grove (Gilbert) Local Reporting (May 6, 2026) The Barclay Group is seeking Gilbert Planning Commission approval for a 178,155-SF retail program across 13 buildings within the 311-acre Harvest Grove development at Val Vista Drive and Germann Road. The plan would be anchored by a 99,000-SF Fry's grocery, plus a 5,400-SF gas station with 16 pumps, a convenience store, a credit union, multiple restaurants, and a high-capacity car wash. The horizontal multi-pad ecosystem reflects modern suburban retail design but will require exhaustive municipal coordination given projected vehicular traffic.
Total retail SF proposed: 178,155 SF (13 buildings)
Anchor: 99,000 SF Fry's grocery
Status: Planning Commission review
Queen Creek Residents Force Continuance on Proposed Circle K at Ocotillo and Meridian Local Reporting (May 5, 2026) Organized resident opposition cited concerns over traffic, loitering, and environmental impacts to push back against a proposed 5,200-SF Circle K convenience store, 4,600-SF canopy, and seven fuel pumps at the northwest corner of Ocotillo and Meridian Roads in Queen Creek. Despite preliminary Planning and Zoning Commission approvals, the developer requested a continuance from Town Council, delaying a final decision until May 20.
Convenience store: 5,200 SF
Fuel canopy: 4,600 SF (7 pumps)
Status: Continuance to May 20, 2026
Yee Family Trust Pursues 11,047-SF Commercial Project at Seventh Street and Maryland (Phoenix) Local Reporting (May 5, 2026) A rezoning request for a 1.15-acre commercial development east of the northeast corner of Seventh Street and Maryland Avenue advanced toward Phoenix City Council. The Yee Family Trust plans to construct an 11,047-SF building. Adjacent residents lobbied at the planning commission stage for stipulations requiring advanced air filtration "vent scrubbers" for any future restaurant tenant, illustrating the persistent NIMBY friction now embedded in even modest Phoenix infill retail entitlements.
Site area: 1.15 acres
Building size: 11,047 SF
Status: Advancing to City Council
National Retail Asking Rent Growth Moderates; Phoenix Continues to Outperform CoStar (May 4, 2026) A national retail forecast from CoStar noted U.S. retail asking rent growth has moderated to +1.9% year-over-year, but specific Sun Belt markets continue to materially outperform the national baseline. Phoenix was explicitly named as a market posting solid year-over-year rent gains, supported by population influx and household formation that insulate local landlords from broader spending normalization.
U.S. retail asking rent growth: +1.9% YoY
Phoenix: identified as outperforming the national baseline
Office
Metro Medical Plaza Sells for $10.4M ($179.31/SF) in Northwest Phoenix Industry Reports (May 6, 2026) The eight-building, 58,000-SF Metro Medical Plaza at 3201 W. Peoria Avenue sold for $10,400,000. The asset was 90% leased to a synergistic medical tenant mix including dentistry, family medicine, orthopedics, physical therapy, and diagnostic imaging. Albuquerque SNF, LLC acquired the asset from Helix Properties (Phoenix Metro, LLC). The property is positioned within walking distance of The Metropolitan, the approximately $850 million mixed-use redevelopment underway on the former Metrocenter Mall site, and is the only medical office complex within the immediate three-mile catchment, providing meaningful long-term rent growth optionality as the residential redevelopment delivers.
Total SF: 58,000 (8 buildings)
Sale price: $10,400,000
Price per SF: $179.31
Occupancy at sale: 90%
Phoenix Office Bifurcation Persists; Broker Sentiment Index at 62.7 AZ Big Media (Reported week of May 5, 2026) The most active office storyline in this window remained the conversion of legacy commodity office to residential use (exemplified by One Camelback). Pure-office investment activity remained limited. Premium Class A nodes (Camelback, Tempe Town Lake, Scottsdale Quarter, the Esplanade) continue to firm on occupancy and rent, while older commodity space carries elevated vacancy. The W. P. Carey Center for Real Estate and Finance's Commercial Broker Sentiment Index registered 62.7, indicating moderate optimism heading into the back half of 2026.
W. P. Carey CBSI: 62.7 (moderate optimism)
Mixed-Use
Empire Group Rebrands Downtown Phoenix Twin-Tower Megaproject from "Astra" to "Arro" AZ Big Media (Reported week of May 5, 2026) Empire Group of Companies, through luxury division Aspirant Development, formally rebranded its Downtown Phoenix high-rise project to Arro. The estimated $675 million development will span approximately 1.8 million SF on 2.18 acres between 2nd Avenue and the Van Buren / Fillmore corridor. Components include a 541-foot, 45-story north tower (slated to be the tallest building in Arizona, surpassing Chase Tower's 483 feet) with 380 Class A+ residences and the 250-key Optimist luxury lifestyle hotel; a 425-foot, 36-story south tower with approximately 150,000 SF of Class A office, 30,000 SF of retail and restaurant, and a 275-unit luxury co-living component; and a roughly 16,000 SF rooftop dining and nightlife concept on the top two floors operated by Pretty Decent Concepts. Permit-ready by year-end 2026, with approximately three years of construction thereafter.
Estimated cost: $675 million
Total program: ~1.8 million SF on 2.18 acres
North tower: 541 ft / 45 stories (tallest in Arizona)
Hotel: 250 keys (The Optimist)
Office and retail: ~150,000 SF office, 30,000 SF retail
The Vine @ Skyline Rezoning Advances in San Tan Valley Local Reporting (May 5, 2026) Pinal County officials are reviewing a rezoning and Special Area Plan amendment for The Vine @ Skyline, a 7.7-acre parcel at the northwest corner of Gary Road and Skyline Drive originally entitled for grocery-anchored retail. Developer The Cravath Whole Life Communities, LLC is seeking to convert the program to a mixed-use format featuring 118 residential units (90 apartments and 28 three-bedroom townhomes) plus commercial frontage along Gary Road for three restaurants, a daycare, a bank, and a convenience store. The project illustrates the broader regional trend of downzoning over-allocated retail acreage in favor of missing-middle housing.
Site area: 7.7 acres
Residential program: 118 units (90 apartments, 28 townhomes)
Commercial frontage: restaurants, daycare, bank, convenience store
Queen Creek Files for $24M to $28M Sossaman and Germann Intersection Improvements Local Reporting (May 6, 2026) The Town of Queen Creek filed an application with the Arizona Corporation Commission for major improvements at the Sossaman and Germann intersection, an estimated $24 million to $28 million project funded through Maricopa County Proposition 479. The intersection straddles the limits of Queen Creek, Mesa, and Maricopa County and includes a Union Pacific Railroad crossing, with traffic projected to exceed 54,300 vehicles per day by 2030. Mayor Julia Wheatley emphasized the project's role in unlocking residential, commercial, industrial, school, and Mesa Gateway Airport-adjacent development. Public works investments of this scale are profound leading indicators for adjacent land valuations in the Southeast Valley.
Project cost: $24M to $28M
Funding source: Maricopa County Proposition 479
Projected 2030 traffic: 54,300+ vehicles/day
Hotels
Fire 'N Ice Arena, Hotel & SSS Academy Restarts Construction at 2727 W. Bronco Butte Trail (North Phoenix) AZ Big Media (Reported week of May 5, 2026) The 250,000-SF, nearly $190 million multi-sport, hotel, and academy complex on 17.5 acres in North Phoenix (near I-17 and Sonoran Desert Drive, adjacent to TSMC) is back under active construction following an ownership and financing reset under SSS Partners CEO Shubham Pandey. Components include Fire 'N Ice Arena (two NHL-size ice rinks and a 2,500-seat multi-use arena), the SSS Academy school, and a hotel that the developer indicates is targeted as a Hilton flag (Hilton has not yet confirmed). The arena is targeted for an August 15 grand opening (hard deadline September 1); the hotel is described as opening within roughly two months of the report. Financing includes $185 million in educational facilities revenue bonds (SSS Academy) and $15.2 million in hotel revenue bonds (Fire 'N Ice Hotel) issued through the Phoenix Industrial Development Authority. SSS has signed a partnership with Entertainment Events Inc. to program more than 100 ticketed events in year one, alongside Arizona's first NA3HL junior hockey team, the Phoenix Inferno, launching in August.
Total project size: 250,000 SF
Total project value: ~$190 million
Site area: 17.5 acres
Hotel financing: $15.2M revenue bonds (room count not yet disclosed)
Education financing: $185M revenue bonds
Connect with Us
We connect with landowners and developers across the Phoenix Metro on a daily basis. Whether you are sizing up a Desert Ridge or Pinal County land basis after the latest auction comparables, recalibrating a multifamily exit in the West Valley as 2021-vintage debt resets, underwriting a build-to-rent disposition or acquisition, weighing the implications of a 1.2 million SF lease on neighboring industrial rents, or working through entitlement and infrastructure friction on a mixed-use site, we are available for confidential conversations on how the activity in this brief may affect your business and your pipeline. Reach out to start the dialogue.
John Finnegan Senior Vice President | Land (602) 222-5152 | Ramey Peru Senior Vice President | Land (602) 222-5154 |