AriZona Real Estate insider!

Phoenix commercial real estate is shifting fast, and the latest Colliers CRE Brief makes one thing clear: the Valley is in a new phase of growth — stronger, broader, and more diversified than ever. Here’s the AZREInsider breakdown of what’s really happening across industrial, hotels, office, and development.

Industrial: The Beast Is Back

The industrial market just delivered a monster quarter.

• 4.9M SF net absorption in Q1 — up 200% YoY
• Vacancy compressed to 10.2%
• Asking rents climbed 6% YoY to $1.06 NNN
• Three mega‑leases over 1M+ SF wiped out all remaining million‑SF blocks

The Southwest Valley continues to dominate with huge commitments from Amazon, DHL, and Logistics Property Co. Phoenix is officially operating at national‑tier logistics scale.

Hotels: A Surge You Can’t Ignore

Phoenix ranks #2 in the entire U.S. for new hotel rooms in 2026 — second only to NYC.

• 3,650 rooms across 22 properties
• 117% increase over 2025
• Growth concentrated in Goodyear, Peoria, Tolleson, Mesa Gateway

This isn’t tourism-driven — it’s corporate. Semiconductor giants like TSMC, Amkor, and LG Energy are reshaping lodging demand across the Valley.

Office: Stabilizing and Quietly Strengthening

While many U.S. office markets are still struggling, Phoenix is quietly grinding forward.

• 6th straight quarter of positive absorption
• Vacancy down to 20.3% (from 23.9% in 2024)
• Tempe leads with 166K SF absorbed
• Class B is carrying the momentum

Sublease availability is shrinking — a strong sign of healthier tenant demand.

Land & Development: Big Moves Across the Valley

Major projects are reshaping the region’s development map:

• Buckeye: 2,300‑acre “ReDiscover Industrial Park” advancing
• Deer Valley: $100M small‑bay industrial infill targeting semiconductor suppliers
• Chandler: 110K SF shallow‑bay project + 327K SF Innovation Park underway
• Buckeye: 1.3M SF warehouse seeking entitlements at SR‑85 & I‑10

The West Valley continues to cement itself as the region’s logistics powerhouse.

Multifamily: Eco‑Conscious + Amenity‑Rich

Sanctuair Deer Valley is breaking ground with 363 Class A units and a lifestyle‑heavy amenity package:

• Cold plunge
• Golf simulator
• Meditation room
• Citrus orchard
• NGBS Silver certification target

Phoenix is also pushing forward 264 new affordable units by repurposing school district land.

Retail & Lifestyle: The Valley Levels Up

Retail is following rooftops and high‑income job growth.

Notable moves include:

• Paradise Hills Shopping Center sold (83K SF, fully leased)
• Trader Joe’s expanding into North Phoenix
• Aldi anchoring the Bell 17 mixed‑use campus
• Din Tai Fung making its Arizona debut in Scottsdale
• Perry’s Steakhouse opening in Gilbert
• Harkins Theatres rolling out 4D immersive experiences
• Otra Pizzeria + Better Days Bar opening in a historic Phoenix building

Experiential retail continues to win across the Valley.

Mixed‑Use Momentum

Bell 17 (Deer Valley)

An 82–93 acre mixed‑use campus featuring:

• Industrial
• Corporate office
• High‑density apartments
• Retail pads
• Aldi as anchor

Marigold (Globe, AZ)

A 58‑acre master plan bringing:

• 120 single‑family homes
• 600 multifamily units
• 300‑room hotel
• Convention hall

Institutional capital is pushing into tertiary markets — a trend worth watching.

Hospitality: Mesa & North Phoenix Heat Up

Two major projects are moving forward:

• AC Hotel Mesa — 164 rooms
• Hyatt Studios North Phoenix — 114 rooms, targeting long‑term corporate stays tied to TSMC

The semiconductor boom continues to reshape lodging demand.

The Big Picture

Phoenix added 250,000+ jobs since 2019 — an 11% jump — and the region is still accelerating. But the new bottleneck isn’t zoning or capital. It’s water and power availability, now the top constraint for future development.

Institutional capital is active but selective, rewarding projects with strong fundamentals and strategic locations.

Final Take

Phoenix isn’t just growing — it’s leveling up. Industrial is roaring back, hotels are booming, office is stabilizing, and development is pushing into every corner of the Valley.

For investors, builders, and advisors, this is one of the most opportunity‑rich moments the Phoenix market has seen in years.

Source Credit

Data and market insights sourced from the Colliers Phoenix CRE Brief (April 16, 2026).