Phoenix summer construction roundup

Carpenter on a job site

The 2020 pandemic heavily impacted construction activity around the country in the second quarter, even pausing some Phoenix-area projects as a result. Now that construction has been given the green light to proceed with new COVID-19 safety measures in place, we’re once again seeing development activity back up and running around the Valley. 

West Valley 

As e-commerce booms, the logistics industry responds by developing regional data centers, warehouses, and fulfillment centers. The pandemic has only increased consumer tendencies to shop online, making these industrial spaces even more important. Industrial buildings hitting the market this year are still seeing tremendous interest from buyers and tenants.

Phoenix’s West Valley suburbs have long been attractive to industrial real estate developers. Thanks to a favorable economic climate and large plots of undeveloped land, Avondale, Buckeye, Goodyear and Glendale are some of Metro Phoenix’s fastest-growing industrial hotspots.

Denver-based Stack Infrastructure recently announced plans to build a 1-million-square-foot, 79-acre data center complex in Avondale. The technology infrastructure company found Avondale an attractive location due to access to low-cost power, fiber, and renewable energy sources. The build-to-suit project will be neighbors with one of Microsoft’s new West Valley data centers.

Meanwhile, a little closer into town, construction has started on a 388,600-square-foot, 30-acre industrial and office complex in Glendale. The Northern 2020 Commerce Center will consist of four buildings, developed with e-commerce distribution tenants in mind. The speculative project is scheduled for an early 2021 completion.

Paradise Valley and Scottsdale 

If the West Valley has a reputation for booming industrial growth, the East Valley communities of Paradise Valley and Scottsdale combine to form a mecca for luxury hospitality, retail, residential and mixed-use developments. 

The Palmeraie is a 122-acre master-planned community under construction at Scottsdale and Indian Bend roads, on the PV/Scottsdale border. In addition to 160,000 square feet of high-end mixed-use space, the development will feature the new The Ritz-Carlton, Paradise Valley. Slated to open by late 2020, the hotel’s 215 private-entry rooms, casitas and bungalows will sprawl across 20 acres in the shadow of Camelback Mountain. The Ritz-Carlton Residences, Paradise Valley will surround the resort, and are priced from $1.6 million for multi-family, to more than $5 million for single-family estates.

Located a few miles south of The Ritz-Carlton, in the heart of the Scottsdale dining lifestyle district, is the site of the future 265-room Caesars Republic Scottsdale hotel. Opening at Goldwater Blvd. and Highland Ave. by early 2022, this will be the brand’s first non-gaming hotel.

Developers have submitted plans to the City of Scottsdale for the Scottsdale Collective project, hoping to incorporate more mixed-use buildings into the existing entertainment district. The proposal is to redevelop several parcels near Scottsdale and Camelback roads into a combination of hotel, office, retail and residential space. Initial plans include more than 580,000 square feet of commercial space and 512 multi-family residential units.

Southeast Valley 

As one of the fastest-growing towns in the country, Gilbert is experiencing high demand for office, retail, hotel and multi-family residential space. Downtown Gilbert has responded with the Heritage District, a series of mixed-use buildings that complement long-standing restaurant and retail establishments along Gilbert Road. 

Local developers recently announced plans to build Heritage Park, a 531,350-square-foot mixed-use development in the core of Downtown Gilbert. A continuation of the “live, work, play” energy of the area, Heritage Park will house office space, a boutique hotel, multi-family residences and retail space. The project will be a natural continuation of the recent revitalization efforts in the area.

In neighboring Chandler, a commercial developer is planning a two-building industrial complex worth $11.95 million. Totaling 144,000 square feet of speculative office space, the project is scheduled to open next year near the Chandler Municipal Airport.

Skilled Trades Still in Demand

Despite the temporary strain the pandemic put on the construction industry, dirt is still moving in the Greater Phoenix area. SitePro Solutions has seen a steady demand for skilled trades to build projects in Arizona, and in major construction markets across the U.S. SitePro is constantly seeking out new talent in the skilled trades, providing clients with instant access to pre-screened, highly qualified construction candidates to keep projects moving on schedule. To find out how to put SitePro to work for you, visit our Services page.