The metro Phoenix manufacturing sector is thriving, attracting heavy-hitter industries as part of a North American surge that — between 2010 and 2023 — has tripled the nation’s average yearly manufacturing construction spend rate to $210 billion.
Reinforced by increased reshoring following the pandemic, U.S. manufacturing footprints have expanded, particularly in the semiconductor, electric vehicle, advanced manufacturing, data center, energy and life science sectors (industries that are further supported by the Chips, Infrastructure Reinvestment and Science acts).
Arizona has captured a notable portion of today’s $400 billion in U.S manufacturing investments — an outlay that, according to Newmark, will require at least 250 million square feet of new manufacturing construction by 2030.
In the Valley, mega users like Taiwan Semiconductor Manufacturing Company and Intel are driving activity across the inventory ladder, as are emerging groups like them. In response, more than 16 million square feet of metro Phoenix industrial space was delivered during the first half of 2024 and another 32 million square feet is under construction, according to JLL.
We see this evolution in the Graycor pipeline, from our new state-of-the-art completion for chemical supply chain expert Rinchem (serving semiconductor, pharmaceutical, biotech and aerospace) to the Phase I delivery of Camelback 303, a Sunbelt Investment Holdings project adding 4 million square feet, including manufacturing capabilities, to the booming Loop 303 Corridor.
Also newly completed by our team: One million square feet of Class A industrial at IndiCap and Invesco’s Virgin Industrial Park along the Loop 303, and one-half-million square feet at SkyBridge, offering Class A industrial for skyrocketing aerospace-related demand at Phoenix-Mesa Gateway Airport.
With even more investment on the horizon, Phoenix will no doubt continue to evolve as a manufacturing leader. Our team is aligned for that growth — ready to continue to solidify this market’s position on the national stage.
Rusty Martin is general manager at Graycor Construction Company.
Photos courtesy of Graycor
