Published On: December 20th, 2024

Downtown Phoenix Commercial Sector Skyline

A New Era for Arizona’s Commercial Growth

Arizona’s commercial real estate market is on fire, and 2025 is shaping up to be a landmark year!

With nearly 30 million square feet of projects underway, the Phoenix area is transforming into a magnet for innovation, opportunity, and economic growth.

The numbers alone speak volumes:

  • Positive Absorption: Net absorption hit 3 million square feet in Q3 of 2024 alone, demonstrating consistent demand for industrial spaces despite rising vacancies.
  • Large-Scale Developments: Many of the new commercial real estate projects underway exceed 100,000 square feet.
  • Rising Rents: Asking rents rose by 9.7% year-over-year, holding steady at $1.13 per square foot (NNN) quarter-over-quarter, indicating sustained tenant interest despite an influx of new inventory.
Top 10 Industrial and Commercial Real Estate Markets in the US

The strong momentum in new commercial real estate projects has positioned this region as a focal point for business owners, brokers, and investors.

Q3 2024 Market Report for Phoenix Commercial Real Estate and Industrial Markets

From industrial powerhouses to mixed-use hubs, here are 10 must-watch projects in Arizona as we approach 2025.

1. Prasada NorthPrasada North Commercial Real Estate availability Map

This project will add 350,000 square feet of restaurant and retail space to the existing 700,000-square-foot property of Village at Prasada located in Surprise, Arizona. The population in the area is expected to exceed 216,000 residents by 2030, and this project plays a strategic role in supporting the growth of this region.

The project, valued at $125 million, is expected to be completed in Fall 2025.

2. 747 Acres in Buckeye

747 Acres in Buckeye Arizona

Photo courtesy of Transwestern Real Estate Services.

In a move reflecting the growing demand for land in Arizona’s West Valley, the Vanderwey Family has acquired 747 acres of farmland in Buckeye for $53 million.

Although the Vanderwey family hasn’t announced its development plans for this land, this property is well-suited for long-term development given the rapid population growth in Buckeye and the subsequent rise in demand for land

3. Mack Innovation Park

Phase one of this project will break ground on a 124-acre site, featuring two advanced buildings totaling 305,400 square feet. Upon completion (October 2025), the Mack Innovation Park in North Scottsdale will span 1.2 million square feet across 11 buildings. The 46-foot-tall structures will incorporate steel and stone accents, adding a modern aesthetic to their design.

4. Caliber by Greystar

Caliber by Greystar is the first phase of Greystar’s enormous $500 million master project for Peoria Place. The aim of this Class A project is to revitalize Peoria’s historic downtown and make it a vibrant destination for work, entertainment, and living.

The Caliber portion of the master plan consists of three buildings, totaling 411,918 square feet, serving the city’s need for flexible, modern, industrial spaces. Another feature of this project is that the site is close to major retail spots, transportation hubs, and entertainment facilities.

5. Park Algodon

Algodon Park

Photo Courtesy of CreationEquity.com

Park Algodon will deliver 1.3 million square feet of state-of-the-art industrial space once finished. The project is being developed to address the shortage of small bay industrial space, less than 5000 square feet, in the area.

The first phase will include four buildings that can accommodate tenants ranging from 16,000 square feet to as expansive as 317,000 square feet. Phase two will develop an adjacent 7-acre space called The Shops at Park Algodon to serve as a dining and retail space.

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6. Goodyear AirPark

Located on 565 acres of land next to the Phoenix-Goodyear airport, the first phase of this project is estimated to cost $290 million and will include six Class A buildings, totaling 1.6 million square feet.

Plans include private truck courts, 40’ clear heights, ample parking, and 10,000 square feet of inline retail and pad sites to serve employees and residents. Near key highways and a dark fiber network, Goodyear AirPark combines strategic location with advanced infrastructure to support industries ranging from logistics to data centers.

7. The Ranch

The Ranch is a $1 billion, 311-acre mixed-use development by IndiCap. The project is scheduled for completion in 2028 and will feature 221 acres reserved for light industrial use, 750 multi-family units, and 27 acres dedicated for general commercial use.

The space set aside for industrial use will also include 3 million square feet of industrial buildings. Plans have also been made to have 16 acres of green space in the project. The Ranch aims to create a live-work-play destination, blending residential, commercial, and industrial components.

8. Bond

The Bond aims to serve as the perfect office experience for business teams of any size. Situated in a prime location, it is 15 mins from downtown Phoenix and 10 mins from the Sky Harbor Airport.

Bond Hotel in Phoenix, Arizona - Commercial real Estate Project 2025

Images Courtesy of bondphoenix.com

Plans include features essential for any company—open spaces with video access to foster collaboration, huddle rooms, boardroom-style conference rooms, media rooms, single-person phone rooms, and an extensive list of amenities.

9. The Base, Phase 1

The Base is a $120 million, 144-acre industrial complex being developed in Glendale. Construction on phase 1 of the Base started in late 2023 and will consist of seven high-end Class A buildings, extending between 85,000 and 309,000 square feet in size.

With features like private trucking courts, robust power capacity, and a mix of dock-high and grade-level loading, The Base is designed to meet diverse industrial needs. Strategically located near three major freeways, the Base allows tenants to reach out to customer bases in multiple states including Utah, Colorado, and California.

10. SkyBridge 108 and 109

SkyBridge Arizona, located at the Phoenix-Mesa Gateway Airport, is an innovative industrial development featuring direct runway access and the first-of-its-kind Unified Cargo Processing (UCP) facility. Phase I of SkyBridge includes Buildings 108 and 109, each spanning 250,000 square feet, designed to accommodate diverse tenant needs.

Skybridge Phoenix 2025

Photo Courtesy of skybridge.cbre-properties.com

These buildings include features like reinforced a 7-inch slab, 32-foot clear heights, doors that are 6 ground-level and 30 dock-high, and flexible divisibility. This will allow complete on-site processing and inspection for direct expedition of inbound and outbound shipments to the US and Mexico.

Looking Ahead: Opportunities Abound

The Phoenix area is brimming with opportunities, as demonstrated by these transformative projects. But they’re just the tip of the iceberg. With a booming commercial real estate market, Arizona—and cities across the nation—are full of exciting prospects.

We understand the intricacies of commercial real estate transactions and know what it takes to navigate them successfully. Don’t let the complexities of real estate hold you back—partner with experts who prioritize your success.

Reach out to our team of experts today and discover how we can help you complete your next transaction with confidence and ease.

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