The market for development may have slowed from its peak level of activity a couple years ago, but there are still many significant projects under construction across the valley. These projects will impact the skyline, job creation and the future economic foundation for many years to come. Here is a list of some of my favorite projects that will change the Arizona commercial real estate and economic landscape:
Taiwan Semiconductor Manufacturing Company
It would seem wrong not to begin with this project which I have written about before. The largest foreign capital investment in Arizona history is now in its third year of construction and is expected to have its first fab completed in 2025. TSMC has already hired more than 2,000 employees and is expected to hire at least another 2,500 at full buildout. This is now a $40 billion project across two semiconductor fabrication facilities that have already impacted the real estate and economic dynamics in Phoenix. Simply put, this is a BIG deal!
Intel Expansion
As if TSCM isn’t enough, the valley is expanding its presence in the semiconductor industry with Intel’s construction of two new fabs totaling $20 billion in Chandler. These new fabs are expected to generate 3,000 high paying tech jobs directly and another 15,000 indirect jobs over the next 3 to 5 years as they approach buildout.
Nestle
Who doesn’t love Nestle! Did you know that Nestle is building a 630,000 SF manufacturing plant in the Glendale area? Situated on 150 acres, this $675 million development will produce creamers for Coffee Mate, Coffee Mate Natural Bliss and Starbucks brands plus the capacity to expand with additional beverages in the future. The project is expected to be open in the next few months and employ about 350 full time people.
VAI Resort and Mattel Adventure Park
This $1 billion project is also in Glendale and its first phase consisting of a music-themed hotel, amphitheater, concert venue and indoor theme park is expected to be open by the end of 2024. Concerts should start this year and reach 100 shows per year. The full development will consist of four hotel towers, a party island, a beach-like water feature, luxury retail, dining and entertainment with an economic impact to Glendale of $32 million annually or about $800 million over the next 25 years. Way to go Glendale!
Mall Madness
Three mall re-development projects are under way in the Valley – Metrocenter Mall, Paradise Valley Mall and Fiesta Mall. At one time these were all major destination shopping sites but changing consumer habits and aging infrastructure took their toll on the retail viability of these sites. Expect these new developments to include multi-family units, hotel, retail, dining, class A office space in addition to a fair mixture of community and park space mixed in. The next generation of these once popular malls is looking very bright once again.
South Pier
For those of us who have lived here for twenty years plus we have witnessed first-hand the birth and growth of Tempe Town Lake. What amazing progress and beauty has transpired in this part of Tempe not to mention the billions of dollars invested in this prime area. South Pier is another multi-billion-dollar project on 18 acres that will include office space, rentable luxury apartments, condominiums, senior housing, two luxury hotels and an entertainment district that will include restaurants, nightlife experiences, concert venues, fountain shows and a large Ferris wheel. This project is expected to take a decade or longer for completion, so be patient and enjoy the continued transformation of this important economic engine in Tempe.
Discovery Oasis
Phoenix City Council in late 2023 approved new ordinances paving the way for a new Mayo Clinic Discovery Oasis Biotech corridor on a 120-acre hub south of the 101 between 56th and 64th Street. I had the chance to see Mayo Clinic in action when my father received a kidney transplant in 2023, saving his life and in turn blessing all his friends and family who love him. I saw how one of the greatest medical institutions in the world functions and it is both awesome and inspiring to see what can happen when the best of intentions, investment and genius come together. This project will add 2,000 high-wage jobs to the valley, but the real impact is on the lives transformed for the thousands of patients that travel from around the world for this one-of-a-kind medical institution. The fact that it happens to be in this town we call home is something all of us should be proud of.
One Camelback
This project represents one of several office-to-residential conversions in Phoenix Metro. It’s considered to be the most high-profile of the projects because of its prime location on Camelback and because the project has had several challenges since breaking ground in 2020 underscoring how complex these conversions are and the risk that developers take to transition a struggling asset class like office to a healthier product like apartments. It may sound like a no-brainer but it is much more complicated and plenty risky for these developers. Still, because of the dwindling available land left in metro Phoenix to build on, you will find more of these types of projects trying to capitalize on conversions.
Data Center
Phoenix has the largest pipeline of new data center developments in the country. They may not be as exciting as South Pier or an adventure park, but their presence and impact on the Valley’s economy cannot be ignored. This new wave of data centers will cost billions of dollars, cover millions of square feet and will power some of the largest tech users in the world like Meta, Google, QTS Realty Trust and Vantage Data Centers. In fact, the Google project in Mesa will power the company’s tools like Search, Gmail, Maps, and the next generation of artificial intelligence innovation. So, can we agree that they are a little exciting??
Scottsdale Developments
Scottsdale has several large projects under way bringing new nighttime retail options to this already popular entertainment center. The Sidney is a $100 million project on 26 acres near 90th Street and the Loop 101 freeway that will include a new Reverb hotel by Hard Rock, Pickle and Social, The Rustic and Goodsurf. Speaking of Pickles, the new Riverwalk Development, located along the 101 between Talking Stick Way and Via de Ventura will be the home to Pure Pickleball, an 11-acre facility consisting of 40 indoor and outdoor pickleball courts and the future headquarters and training center for USA Pickleball, which is the governing body for the sport. Look for these projects to be open by the end of 2024.
There are dozens of projects under development Valley-wide, but these are some of the ones I am most looking forward to seeing in the coming months. I hope you are excited as I am to see our great city continue to grow, diversify, and build the foundation for our economic future!
