R.O.I. CRE Newsletter Oct 2025_v4We are seeing ongoing positive activity in the Greater Phoenix commercial real estate market, much of it spurred by years’ worth of economic development efforts that are now coming to fruition. In particular, the action continues to be hot in and around the Northwest Valley area occupied by Taiwan Semiconductor Manufacturing Co. (TSMC), Amkor, and all of their assorted vendors. Just this week, TSMC announced that it has applied for 902 acres of state trust land just south of its existing campus, through an Arizona State Land Department auction planned for January 7, 2026 with a starting bid of $197.25 million.
With a tighter supply overall, fewer players are able to purchase and develop the properties within that high-demand and increasingly pricey submarket. Other parts of the Valley still have significant vacancy levels from an industrial standpoint, but we seem to be burning through the excess inventory and reaching the price levels where properties are most likely to trade.
The most recent surge in activity has been within a growing number of industrial parks underway as well as changing hands. Notable events include:
- ViaWest Group’s announcement of an office-to-industrial conversion in Deer Valley, an 809K SF industrial park that will be called Re Discover Logistics Park.
- BKM Capital Partners’ acquisition of 8 light industrial buildings in Phoenix and Tempe that total nearly 900K SF across 46 buildings.
- Dollar Tree’s acquisition of a 1.3 million SF Class A industrial building at Lincoln Property Co.’s Park303 logistics park near Glendale, Ariz., for $147.1 million—the company’s first regional distribution facility in the Valley.
- Barclay Group’s announcement that it will build Vistancia Commerce Park, 239,700 SF planned for completion in mid-2027, located just a few minutes from TSMC.