Banner Health has initiated construction on a new medical campus at Power and Germann roads in Mesa, representing a $400 million investment. The facility will feature a 120-bed hospital and an adjoining medical office building, expected to create approximately 1,000 new healthcare jobs upon completion in 2026. This expansion will meet the city’s rising population demands, supporting health-sector growth while enhancing regional tax revenue through increased employment and property values. The project aligns with state healthcare expansion policies and leverages Banner’s reputation for operational excellence. Designed with LEED standards in mind, the development aims for energy efficiency and low water use, enhancing its long-term value proposition. The project team includes architects from HKS, Inc., with Layton Construction as the builder, both of whom have delivered similar large-scale facilities for Banner throughout Arizona. Community feedback points to broad support for improved access to care and economic stimulus.
Retail investors are actively repositioning small neighborhood centers through re‑tenanting and upgrades, particularly following a 90‑day pause on China tariffs in mid‑2025 that stabilized material costs and consumer confidence.
For diversified RE portfolios, value‑add retail offers opportunistic yield upside. Municipal incentives and sales‑tax abatement tools support repositioning. Repositioned centers often enjoy more balanced tenancy and longer lease durations. Retrofit standards improve energy performance and pedestrian access.
Phoenix’s multifamily segment showed signs of stabilization post‑2018‑2022 market correction, with leveling pricing, strong job in‑migration, and rising rental demand in early 2025.
Investor portfolios benefit from stabilizing yields and diversifying occupancy risk. Rental income fuels property tax base growth. Developers adapt under municipal permitting and material‑cost pressures. Balanced supply and demand points to resilient forward value. Many newer properties include solar-ready infrastructure and water‑efficient landscaping.
National CRE investment totaled $92.5 billion in Q1 2025, up 17 percent year‑over‑year, with Phoenix contributing meaningfully via active industrial, multifamily and retail repositioning projects despite a 12 percent drop in transaction count.
Investors focused on long‑duration cash flows find Phoenix attractive. Tax-relevant transfers incur capital gains and ongoing property assessments. Federal tax policy shifts and zoning changes influence structuring. Diverse asset exposure smooths volatility. Many projects are designed with energy‑efficient materials and transit accessibility.
Scottsdale was ranked second globally for millionaire population growth in May 2025 (14,800 millionaires, +125 percent decade‑over‑decade). Wealth‑management and private capital are flowing into luxury residential, private aviation, bespoke retail and hospitality near Scottsdale Airport.
Tax revenues benefit from high‑value property assessments. City regulations support zoning for upscale districts. Luxury asset demand supports capital stability. Private‑aviation infrastructure aligns with carbon‑offset and energy‑management initiatives.
OrthoArizona announced plans in mid‑2025 to build five new medical facilities and expand five existing operations across Phoenix–Mesa–Tempe, boosting annual patient visits from 674,000 in 2023 to 766,000 in 2024.
For healthcare REIT strategies, expansion signifies durable leasing prospects. Tax base impact extends from building property to local payroll. Projects navigate commercial and medical zoning approvals. Steady patient growth enhances long‑term revenue predictability. Facilities are built with energy‑efficient HVAC and wellness‑design considerations.
Verrado, a New Urbanism master‑planned community in Buckeye, continues its build‑out toward 14,000 dwelling units within its Main Street District, integrating retail, schools, parks and multi‑family buildings in walkable layout.
Residential portfolios focusing on amenity‑rich, lifestyle communities benefit from strong demographic tailwinds. Tax revenues on rising residential density are supported by structured HOAs and school districts. Zoning supports mixed‑use and transit‑ready corridors. Portfolio value stabilized via community‑scale planning. Urban infill and shared infrastructure support sustainability metrics.
Howard Hughes Corporation started development of Teravalis (formerly Douglas Ranch) in October 2022, with lot sales initiated in 2024. At full build‑out, it is expected to include up to 100,000 homes, serve 300,000 residents, and deliver 55 million sq ft of commercial space on 33,800 acres west of Phoenix.
Mass‑residential development offers scale for institutional residential portfolios. The project is structured under Arizona water‑law compliance and master‑planning regulatory constraints. Infrastructure phasing supports long‑term value capture. Sustainability planning includes water‑rights strategies and clustered density.
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Avondale Tech Center: How the 117th Avenue & Corporate Drive Business Park Is Shaping the Future of Jobs, Housing, and Smart Growth in Arizona’s West ValleyThe 38-net-acre site at the north-west corner of Corporate Drive and 117th Avenue in Avondale, Arizona, situated just south of the Interstate 10 (I-10) and adjacent to key logistics corridors in the Nice to meet you! I’m Katrina Golikova, and I believe you landed here for a reason.
I help my clients to reach their real estate goals through thriving creative solutions and love to share my knowledge.
