Top 5 Industrial Properties Under Construction in Phoenix
Industrial projects continue to move forward, albeit at a more moderate pace. According to CommercialEdge data, approximately 401 million square feet of industrial space was under construction across the U.S. by the end of April, accounting for 2.0 percent of total stock. The development of industrial properties in Phoenix has led the nation, with nearly 42 million square feet under construction as of the end of April, representing 10.8 percent of its inventory.
High-tech industries, such as semiconductor manufacturing and data centers, are driving growth bringing cutting-edge technology and innovation to the region and enhancing its attractiveness. The table below highlights the largest industrial projects underway in the Phoenix metro as of the end of April, according to CommercialEdge data. These projects encompass manufacturing plants, distribution hubs and data centers.
1. 5088 West Innovation Circle, Phoenix
Taiwan Semiconductor Manufacturing Co. (TSMC) is currently constructing the largest industrial property in the Phoenix area, located at 5088 West Innovation Circle in the metro’s North Gateway submarket.
This facility will be the most advanced semiconductor fabrication plant on U.S. soil, boasting a production capacity of over 20,000 chip wafers per month. Spanning 805 acres, the property will encompass a total of 3.8 million square feet. Construction began in May 2021, with completion anticipated at the beginning of 2025.
TSMC plans to add a third fabrication facility, bringing the total investment to more than $65 billion. This significant project is supported by $6.6 billion in direct U.S. funding provided under the CHIPS and Science Act. According to an announcement by the U.S. Commerce Department in April, the entire project is expected to be fully operational by the end of the decade.
2. Lucid Advanced Manufacturing Plant–1, Casa Grande, Ariz.
Lucid Motors has commenced construction on the Lucid Advanced Manufacturing Plant–1 (Lucid AMP-1), a 2.8 million-square-foot facility in Casa Grande.
The electric vehicle manufacturing plant aims to enhance the company’s production capabilities ahead of the launch of its new fully electric SUV, the Lucid Gravity. When completed, it will be one of the largest industrial properties in Phoenix.
The expansion will include a manufacturing facility and warehouse, consolidating several functions onto one campus. Upon completion, the site will feature a new general assembly line, new quality and semi-knock down centers, expanded body and paint shops, a relocated logistics center and an expanded powertrain facility.
According to CommercialEdge data, the property is scheduled for completion later this year, the development spans over 470 acres at 317 South Thornton Road, approximately 50 miles south of downtown Phoenix. The site benefits from its proximity to Interstate 10 and is near major Walmart distribution centers.
3. Ross Distribution Center, Buckeye, Ariz.
In June 2022, Ross Stores started construction on a 1.7 million-square-foot distribution hub in Buckeye, Arizona. Situated at 23255 West Southern Avenue, the facility is scheduled for completion this summer. Covering 215 acres, the distribution hub will create over 1,300 jobs. The site benefits from its strategic location near Interstate 10, at the intersection of Southern Avenue and Watson Road.
Ross Stores acquired the site in 2022 for $28.3 million. The facility will be situated across from a Walmart distribution center and adjacent to a Union Pacific rail line. In the same year, Ross Stores opened 100 new locations, maintaining its status as the largest off-price apparel and home fashion chain in the U.S.
4. Meta Mesa Data Center–Building 3, Mesa, Ariz.
Last July, Meta broke ground on Building 3, a 1.5 million-square-foot facility at the Meta Mesa Data Center in Mesa.
This project, located on 200 acres at 3841 South Ellsworth Road, is the metro’s fourth-largest industrial development currently underway and is expected to be completed in early 2026.
The Meta Mesa Data Center, first announced in August 2021, is a greenfield development featuring a five-building campus with over 2.5 million square feet of data center and administrative space. California-based contractor DPR Construction is responsible for building the $1 billion facility.
Upon completion, the campus will be one of the most advanced, energy- and water-efficient operating data centers, providing over 200 operational jobs to the local community. It will also be Meta’s 18th data center globally and its 14th in the U.S.
5. Luke Field–Building C, Glendale, Ariz.
Lincoln Property Co.’s 1.3 million-square-foot Building C at the Luke Field campus in Glendale ranks fifth among the metro’s largest industrial projects. Construction began in November last year, with completion expected by the end of this year. Bank OZK financed the development with a $74.2 million loan.
Situated next to Luke Air Base on the eastern side of Route 303, Building C is the largest of three facilities planned for the nearly 140-acre site, located about 24 miles northwest of downtown Phoenix. The other two buildings, Alpha and Bravo, are also under construction and will add a combined 1.1 million square feet upon completion.
The post Top 5 Industrial Properties Under Construction in Phoenix appeared first on Commercial Property Executive.
