- Phoenix industrial sector topped US states with nearly $520B in investment in 2025.
- Manufacturing megaprojects in semiconductors, batteries, and aerospace drove the surge.
- Leasing activity in Phoenix industrial hit over 29M SF, highest since 2022.
- Phoenix’s development pipeline is among the nation’s most aggressive, with 85M SF delivered in three years.
Phoenix Industrial Attracts Record Investment
Arizona, led by the Phoenix industrial market, captured the most industrial real estate investment dollars among all US states in 2025, according to Avison Young. Bisnow reports that statewide, nearly $520B was invested across 10 major projects, surpassing Texas, which brought in $373.5B.
Industry experts cite Arizona’s business-friendly environment, logistics infrastructure, and strong federal incentives as key factors. Operating cost advantages, available land, and robust transportation links further strengthened its appeal for large manufacturers.
Megaprojects and Submarket Momentum
Investment flowed into high-growth industrial submarkets across the Phoenix metro. These areas host facilities for semiconductors, pharmaceuticals, batteries, rare earth materials, and aerospace production. Several major projects highlight the surge. LG is building a large battery complex in Queen Creek. Amcorp is developing a semiconductor facility in Peoria. Meanwhile, the Mayo Clinic is expanding its campus to support growing operations. The surge in chip manufacturing projects mirrors a broader national push to expand domestic semiconductor capacity, with companies committing massive capital to new US fabrication and supply chain facilities.
Additional Phoenix industrial activity involved JLL’s sales of Fairway Commerce Center (450 KSF) in Avondale and Sight Logistics Park in Tempe (357 KSF). Nvidia’s expansion of GPU testing sites also stood out in 2025.
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Leasing and Construction See Robust Growth
The Phoenix industrial market’s leasing activity exceeded 29M SF last year, its highest since 2022, reflecting strong tenant demand in warehouse, manufacturing, and flex spaces. The region delivered over 85M SF of new product in the past three years, with 90% of recent builds larger than 100 KSF.
Institutional investment reached $1.3B in Phoenix during Q4 2025, marking the second consecutive quarter above the $1B mark, according to Colliers.
Major Projects Set the Pace for 2026
Among the region’s most anticipated undertakings is the ongoing expansion of the Taiwan Semiconductor Manufacturing Co. (TSMC) campus in North Phoenix. The company accelerated development and now controls over 2,000 acres after recent land acquisitions.
Experts expect continued momentum in the Phoenix industrial sector. National reshoring trends and supply chain shifts are driving growth, especially in advanced manufacturing. Arizona and Texas will likely capture a major share of future US investment. Both states benefit from strategic locations and rapidly expanding skilled workforces.
