Phoenix CRE Roundup: Waymo, Microsoft Make Major Land Plays as Multifamily, Industrial, and Retail Markets Stay Active

Alphabet's autonomous vehicle unit Waymo and Microsoft made sweeping land acquisitions in the Phoenix metro last week, collectively committing more than $350 million to sites in Surprise and Goodyear, while a wave of multifamily real estate, industrial real estate, and retail real estate transactions reinforced the Valley's position as one of the country's most active commercial property markets. The deals were compiled in Colliers' Phoenix CRE Brief for the week ending June 11, 2026.

Big-Tech Land Acquisitions Signal Long-Term Phoenix Commitment

Waymo closed on a 5,458-acre former Chrysler and Apple automotive proving grounds near 211th Avenue and Dove Valley Road in far northwest Surprise on June 5, with the company confirming the purchase June 8. The $220 million transaction — roughly $40,300 per acre, or approximately $0.93 per square foot of land — is one of the largest single-user land plays in recent Phoenix metro history. The site will support the expansion of Waymo's autonomous vehicle testing operations.

Microsoft separately acquired approximately 100 acres in Goodyear for more than $130 million, adding to its existing data center footprint along the I-10 corridor in the West Valley. At a minimum of $1.3 million per acre — more than $29.84 per square foot — the parcel priced in line with power-served data center land. The acquisition comes as Arizona's data center tax incentive environment faces scrutiny, with a moratorium on certain incentives prompting some developers to reassess site selection criteria and water efficiency requirements. Projected regional data center capacity is approaching 3.75 gigawatts by 2031, according to reporting cited in the brief.

A third land transaction saw a Gilbert megachurch win a public auction for a 19-acre city-owned parcel at the northeast corner of Ray Road and Santan Village Parkway, adjacent to Topgolf and established retail amenities, for $9 million — approximately $476,000 per acre, or $10.93 per square foot. The site had been vacant for decades before the Town of Gilbert brought it to market.

Multifamily Real Estate Active Across Price Spectrum

Phoenix-area multifamily real estate drew institutional capital and public-private investment simultaneously last week, with transactions spanning luxury, affordable, and office-conversion segments.

Quarterra sold the 290-unit Residences Kierland at 15825 N. 71st St. in Scottsdale to MacNaughton in the property's first trade. Built in 2023, the six-story community sits on approximately four acres with unit sizes ranging from 691 to 2,025 square feet. The sale price was not disclosed. Nationwide provided a $90 million, five-year acquisition loan to support the transaction.

In Chandler, the City of Chandler and Gorman & Company officially opened Villas on McQueen at 77 N. McQueen Road, a 157-unit affordable housing community representing Chandler's first public housing project converted under HUD's Rental Assistance Demonstration program. The $58 million development — approximately $369,427 per unit — replaced two 1972-era public housing communities, rehousing 78 legacy households and adding 79 new Low Income Housing Tax Credit units serving residents at or below 60% of Area Median Income. The project, which broke ground June 27, 2024, was financed through seven sources including the Arizona Department of Housing, Maricopa County, the City of Chandler, RBC Community Investments, Stonehenge, Capital One, and Cedar Rapids Bank and Trust.

In Midtown Phoenix, the 163-unit One Camelback — an office-to-residential conversion of the former BMO building at 1 E. Camelback Rd. — opened pre-leasing targeting early-September move-ins. Kinella Capital, a Mesa-based firm, acquired the vacant property out of foreclosure for $36 million before executing the conversion. The 11-story building features a 150-foot open atrium, rooftop pool, gym, and co-working lounge. Rents range from approximately $1,850 for a studio to $10,000 for the penthouse, across floor plans spanning 532 to 1,898 square feet.

Plans also advanced for Zanjero III Apartments, a 301-unit, four-story community on 8.3 acres near 91st and Glendale Avenues within Glendale's Westgate entertainment district, adjacent to Tanger Outlets and the NFL and NHL venues anchoring the area. Updated renderings were released in early June, with completion expected in 2026.

Industrial and Warehouse Real Estate Tightens Around Infill and Conversion

Phoenix's industrial real estate and warehouse real estate markets continued to absorb supply constraints through redevelopment and infill strategies rather than peripheral greenfield development, with several projects reflecting that trend.

Reyes Beverage Company completed the purchase of Republic National Distributing Company's 282,000-square-foot warehouse at 402 S. 54th Place in Phoenix's established distribution corridor for $42.6 million, or approximately $151 per square foot. The acquisition was part of a multi-state transaction transferring RNDC's operations across 11 states to Reyes and provided clarity on continued operations at the facility following earlier announced potential layoffs of 211 Phoenix employees.

Stevens-Leinweber Construction broke ground on TenSixty Interchange at 4415 S. Wendler Drive in Tempe, a 58,250-square-foot Class A small-bay office-to-industrial redevelopment on 4.54 acres developed by Alidade Capital and Pine Creek Real Estate Partners. The project targets the small-bay tenant segment with 24-foot clear heights, 3,000 amps of power, 16 dock doors, and divisibility down to approximately 9,700 square feet. Completion is targeted for Q1 2027. Per JLL research cited in the brief, combined industrial vacancy in the Tempe and Sky Harbor Airport submarkets stood at just 7.5% at the end of Q1 2026, and metro-wide net absorption reached 6.9 million square feet in Q1 — the fifth-largest quarter in Phoenix industrial history.

In West Chandler, Ten56 announced plans to deliver 180,000 square feet of speculative Class A industrial space at the southwest corner of 56th Street and Chandler Boulevard, less than one mile from the I-10 and Loop 202 interchange.

Retail Real Estate Draws Grocery and Net-Lease Activity

Phoenix-area retail real estate saw grocery expansion and a notable net-lease transaction last week. Trader Joe's filed city applications to occupy a 15,000-square-foot former OfficeMax space at Arcadia Crossing, located at 4519 E. Thomas Road at 44th Street in central Phoenix. The center is anchored by Target, Fry's, and Costco. A liquor license application filed with the city in early June confirmed the intended location. The store would be Trader Joe's second location in central Phoenix.

Sprouts Farmers Market announced its first Buckeye location will open July 24, 2026 at the Mix on Roosevelt development, marking a retail milestone for the fast-growing West Valley suburb.

In a separate net-lease transaction, an Arizona-based LLC acquired a 2,458-square-foot single-tenant Chipotle restaurant building at 2975 W. Dove Valley Road in Phoenix for $4.4 million, or approximately $1,790 per square foot, in an off-market deal. The building was constructed in 2025.

Mixed-Use and Civic Projects Round Out the Week

The City of Phoenix advanced plans to redevelop 10.2 city-owned acres at the southeast corner of 19th Avenue and Montebello Avenue, adjacent to the Christown Spectrum Mall and light rail. A City Council subcommittee was set to vote June 10 on issuing a formal Request for Proposals seeking a developer for a mixed-use, transit-oriented project incorporating housing, commercial, and civic uses.

In Maricopa, the City Council was set to approve an approximately $2.24 million land sale — roughly $311,000 per acre, or about $7.14 per square foot — to entrepreneur Scott Bartle for the Maricopa Entertainment Center adjacent to Copper Sky Regional Park near John Wayne Parkway and Martin Luther King Boulevard. Phase one plans call for approximately 25,000 square feet of indoor attractions including miniature golf, duckpin bowling, an arcade, a ropes course, and a cafe, with phase two adding bumper boats and go-karts. The development team is also exploring an adjacent hotel or restaurant opportunity.

Willmeng Construction and the City of Surprise also broke ground on the Surprise Police Department's first substation, located at the northwest corner of 163rd Avenue and San Ysidro.

Sources

• Colliers – The Phoenix CRE Brief, June 11, 2026
• The Real Deal – Waymo Buys Phoenix-Area Testing Grounds for $220 Million
• Connect CRE – Microsoft Adds to Goodyear Data Center Property Locations
• Phoenix Business Journal – Gilbert Topgolf Church Bid
• Multi-Housing News – Quarterra Sells Upscale Asset in Phoenix Area
• AZ Big Media – Villas on McQueen Public Housing Conversion Project Now Open
• AZ Big Media – One Camelback Opens Pre-Leasing
• Copper Courier – West Valley Glendale Apartments
• ABC15 – Reyes Beverage Buys Phoenix Distribution Facility
• AZ Big Media – TenSixty Interchange Office-to-Industrial Redevelopment Begins in Tempe
• City of Chandler – Ten56 to Deliver 180,000 Square Feet of Class A Industrial Space
• AZ Central – Arizona Data Center Incentives Freeze
• ABC15 – Trader Joe's Plans Another Store in Central Phoenix
• Shopping Center Business – $4.4 Million Sale of Single-Tenant Retail Property in Phoenix
• Rose Law Group Reporter – City Eyes Mixed-Use Project at Mall Site
• AZ Big Media – Plans Move Forward for Maricopa Entertainment Center