When Changing Lifestyle You Change a home
Listen to Current News Right Now
Welcome to Arizona real estate intelligence brief. In the latest data, Phoenix multifamily vacancies climbed to 8.5%, signaling a softening in rental demand even as 11,200 new units were delivered over the past year. Scottsdale’s $180 million luxury senior living project has launched, addressing a 14% rise in 55+ housing demand, while Mesa’s industrial sector set a record with 4.7 million square feet absorbed in Q2. Office vacancies in Gilbert reached 19%, underscoring the shift to hybrid work, and Queen Creek’s build-to-rent surge—up 34%—highlights evolving investor strategies.
From a wealth management lens, these shifts impact cash flow projections, diversification, and estate planning. For tax strategy, Arizona’s competitive property and development incentives remain a significant advantage. On the regulatory front, legislative efforts prioritize affordable housing, streamlined permitting, and sustainable community planning. In terms of long-term value, adaptive reuse, energy efficiency, and water-wise design now underpin asset resilience. Finally, the region’s smart-city initiatives and sustainability commitments—seen in widespread solar integration and LEED upgrades—reflect a future-focused investment landscape.
According to Yardi Matrix, Phoenix’s multifamily vacancy reached 8.5% in May 2025, up from 7.2% the previous year, as net absorption softened despite 11,200 new units delivered year-over-year. Higher vacancies could temper short-term rental income streams for wealth managers. Landlords should monitor property tax assessments as vacant units influence valuations. Legislative focus on housing affordability persists, with municipal incentives encouraging mixed-income projects. Long-term asset resilience hinges on adaptive reuse potential and energy-efficient retrofits aligned with Phoenix’s climate goals.
This June, Scottsdale approved site work for The Enclave at Silverleaf, a $180 million, 250-unit luxury senior living project targeting high-net-worth retirees. The Cromford Report notes Scottsdale’s 55+ housing demand rose 14% year-over-year. This asset class offers estate planners stable cash flows and potential step-up basis benefits. Arizona tax policy remains favorable for senior housing developers, with limited capital gains impact on long holds. Sustainability measures include solar integration and drought-resistant landscaping, supporting Scottsdale’s smart-growth vision.
CoStar reports Mesa industrial assets absorbed a record 4.7 million square feet in Q2 2025, fueled by semiconductor and EV supplier expansions. With vacancy now at 3.6%, triple-net lease returns remain robust for institutional portfolios. Industrial tax abatements under the Arizona Commerce Authority’s Qualified Facility Tax Credit continue to drive site selection. Zoning reforms expedite permits for clean-tech clusters, reinforcing value stability. High-efficiency HVAC and renewable energy usage support ESG-focused capital.
Gilbert’s Class A and B office vacancy rose to 19% in May 2025, according to JLL, up from 15% the prior year. Sublease space accounts for 28% of total vacancy. Diversified portfolios should hedge by rebalancing toward medical and lab conversions. Municipal tax incentives for knowledge-economy tenants mitigate owners’ operating burdens. Gilbert’s Council recently approved flexible use ordinances, enhancing future-proofing. LEED retrofits and smart HVAC upgrades align with Gilbert’s Smart City Master Plan.
The Arizona Business Gazette highlights that Queen Creek added 1,120 new build-to-rent (BTR) units in the last 12 months, a 34% increase from the prior year. BTR yields continue to attract private REITs seeking predictable income streams. Arizona’s property tax rates for single-family rentals remain competitive versus other Sunbelt states. Zoning updates encourage cluster developments that support attainable housing goals. Developers are incorporating solar-ready designs to align with the town’s sustainability roadmap.
Buckeye City Council approved rezoning in May for a new 2,500-acre mixed-use community expected to add over 6,000 homes by 2030. According to the Arizona Commerce Authority, Buckeye’s population has grown 9% annually for the past three years. Wealth managers may consider land banking strategies in adjacent parcels. Arizona’s development impact fees fund vital infrastructure, which affects pro forma returns. Design guidelines require water-wise landscaping and stormwater harvesting, reinforcing long-term viability.
Tempe’s Convention and Visitors Bureau reports five hotels totaling 720 rooms are under construction as of June 2025, responding to steady visitor volume from ASU and tech conferences. Hospitality investors gain diversification within mixed-use portfolios. City occupancy taxes, averaging 11.5%, contribute significantly to local revenues. Regulatory focus on short-term rental caps ensures stable RevPAR for hotel operators. Many new builds pursue Green Globe certification, appealing to eco-conscious guests.
In May 2025, a $150 million biotech manufacturing facility broke ground in Chandler’s Price Corridor, supported by Arizona Commerce Authority incentives. The plant is projected to create 400 jobs by 2027. Direct ownership or REIT exposure provides life sciences diversification. State R&D tax credits enhance return metrics for investors. Zoning fast-tracks life sciences clusters to hedge cyclical volatility. Facilities are designed for renewable energy usage and net-zero waste compliance.
CoStar notes Goodyear’s retail vacancy declined to 4% in May 2025 from 5.3% a year ago, driven by new grocery-anchored centers and health-focused tenants. NNN retail remains a preferred hedge against inflation for UHNW portfolios. Arizona’s commercial property tax remains competitive for retail asset classes. City initiatives streamline signage and drive-thru approvals to boost tenant absorption. Energy-efficient façades and smart lighting reduce operating costs and meet local green building mandates.
Casa Grande’s industrial lease rates rose 15% year-over-year as demand for logistics and food processing space surged, per CBRE. Institutional investors expand holdings due to resilient supply chain fundamentals. Local tax increment financing supports large distribution centers. Zoning adjustments allow taller clear heights, appealing to e-commerce operators. Developers commit to solar panel installation on new rooftops, promoting carbon neutrality targets.
AZ Big Media reports a 12% year-over-year increase in building permits for residential tear-down and custom rebuilds in Paradise Valley as of May 2025. This trend aligns with sustained demand for bespoke estates among UHNW buyers. Wealth managers note valuation resets offer capital gains planning opportunities. Local ordinances maintain low density, preserving exclusivity. Long-term value is reinforced by stringent design codes and smart irrigation mandates to curb water use.
Fountain Hills Town Council approved a $60 million revitalization of its Civic Center in June 2025, adding new office, retail, and residential units. East Valley Tribune data shows commercial vacancy at 6.1%, favoring mixed-use resilience. Tax Increment Financing supports public infrastructure upgrades, boosting investor confidence. Local policy includes dark-sky compliance and pedestrian-focused zoning. Energy-efficient HVAC systems are mandated for new structures, aligning with Fountain Hills’ sustainability goals.
According to the Ravenscroft Group, Peoria has approved phase two of its North Gateway Logistics Park, adding 800,000 square feet by 2026. Industrial vacancy stands at 4.3%, providing steady yield for logistics REITs. The city’s Foreign Trade Zone status offers tax deferral advantages. Council policies expedite permits for clean-energy warehousing. New buildings meet LEED Silver standards, supporting institutional ESG mandates.
CoStar indicates medical office space in Sun City West has seen a 9% annual rent growth, with vacancy at 5.2% in Q2 2025. Private investors favor MOBs for income stability tied to demographic aging. Arizona’s property tax rates for healthcare real estate remain moderate, supporting predictable net yields. Regulatory reforms facilitate expansions for outpatient services. Buildings integrate smart HVAC and energy controls to meet green benchmarks.
Sonoran News highlights that New River issued 48 new permits for custom ranch homes in the first five months of 2025, a 22% increase year-over-year. Such properties attract wealth preservation strategies through land value appreciation. Maricopa County’s rural zoning policies protect low-density character. Local water sustainability rules require private well monitoring. Future-proofing includes off-grid energy options and fire-wise landscaping.
AZ Business Gazette confirms Tolleson approved a $90 million cold storage distribution center breaking ground this summer. Demand is driven by regional food logistics growth, with industrial rents up 11% annually. Investors benefit from depreciation schedules unique to refrigerated warehousing. City incentives include sales tax rebates for infrastructure investments. Facilities must comply with energy efficiency standards for refrigeration systems.
Surprise Unified School District approved a new 700-student K-8 charter school in June 2025 to meet enrollment demand, which has risen 8% year-over-year. Institutional investors monitor education corridor land values for redevelopment potential. Arizona tax credits support private donations to charter schools. Zoning allows for future expansion. Sustainable campus design includes solar panels and green stormwater management.
Phoenix Business Journal reports construction has commenced on a 500-home subdivision in Laveen, driven by 7% annual population growth in the corridor. Builders leverage low impact fees to optimize margins. Property tax valuations expected to rise with new amenities. Laveen’s area plan prioritizes greenbelt connectivity and pedestrian trails. Homes include energy-efficient appliances and drought-tolerant landscaping.
NewHomeSource data confirms a $25 million retail center in Apache Junction broke ground in April 2025, with anchor tenants secured for 70% of leasable space. Retail cap rates remain stable around 6.2%. Arizona’s tax environment is supportive for mid-size retail developers. Municipal planning includes traffic flow improvements. New builds incorporate smart lighting and low-emission building materials.
AZ Big Media notes that Pinal County approved a 55-room boutique resort for Gold Canyon, with an emphasis on spa and wellness tourism. Boutique lodging ADRs have grown 9% annually in this submarket. Investors gain exposure to experiential hospitality. Resort taxes contribute to county revenue diversification. Design guidelines enforce low light pollution and preserve desert ecology.
Arizona Commerce Authority reports that Florence approved the next phase of Anthem at Merrill Ranch, adding 1,200 single-family homes through 2028. The area’s median home price increased 6.5% year-over-year. Long-term hold strategies benefit from steady absorption. Arizona’s streamlined permit process helps builders manage carrying costs. Community plans integrate reclaimed water irrigation and extensive trail systems.
AZ Capitol Times confirms Maricopa City Council approved an expansion of its medical campus, adding a 30,000-square-foot surgical center by late 2026. Medical real estate sees consistent occupancy rates near 95%. Wealth advisors recognize predictable income streams. State tax credits incentivize rural healthcare development. Facility design aligns with energy efficiency codes and telehealth readiness.
Axios Phoenix reports that downtown Tucson added 400 new multifamily units in Q1 2025, marking a 10% increase in the core area’s apartment inventory. Urban infill aligns with revitalization tax credits. Strong absorption supports diversified income for multifamily syndicates. Zoning overlays allow increased density near transit nodes. Developers pursue Green Building certification to enhance tenant appeal and utility savings.
Arizona Capitol Times states Sedona maintained its cap on new short-term rental licenses after a heated council session in May 2025. Rental occupancy rates remain stable at 72%. Wealth managers adjust local rental income projections accordingly. Sedona’s occupancy taxes fund municipal services. Regulations balance neighborhood preservation with tourism revenue. Many owners upgrade properties for energy efficiency and noise control.
Payson Town Council approved a 200-lot custom home enclave this spring, responding to a 5% uptick in high-altitude relocations. Wealth portfolios benefit from land banking opportunities. Gila County’s impact fees remain moderate. Zoning ordinances protect forested buffers, ensuring asset value against wildfire risk. Green building standards apply to all new construction within town limits.
East Valley Tribune highlights that Prescott’s downtown retail corridor posted a 7% annual rent increase, driven by new restaurants and boutique shops. Local retail assets remain attractive for 1031 exchanges. Arizona’s sales tax rates enhance municipal revenue. Main Street preservation ordinances maintain charm and draw steady foot traffic. Business owners pursue energy-saving retrofits for historic façades.
According to the City of Show Low, a new 100,000-square-foot mixed-use hub broke ground in May 2025, blending retail, office, and residential. Mixed-use development aligns with Show Low’s economic diversification plan. Tax credits incentivize downtown infill. Zoning encourages pedestrian-friendly design and green space. Builders implement high-efficiency insulation and smart thermostats.
AZ Business Magazine reports a new phase for Verde River Golf & Social Club, adding 200 luxury homes and upgraded clubhouse amenities. Luxury second-home demand rose 8% in the region. Wealth advisors note long-term capital growth potential. Property taxes for resort communities support local infrastructure. Homeowners’ associations enforce sustainable water usage and native landscaping.
CoStar reports El Mirage industrial vacancy dropped to 3% in Q2 2025 amid strong demand for small-bay manufacturing. Triple-net leases attract regional private equity buyers. City tax incentives target industrial job creation. Zoning streamlining accelerates tenant improvements. Buildings meet Energy Star standards and utilize solar-ready rooftops.
Phoenix Business Journal confirms Ahwatukee’s new STEM-focused high school will break ground by late 2025, serving 1,000 students. Educational assets bolster neighborhood stability. Arizona tax credits support donations for school infrastructure. Local zoning reserves adjacent parcels for future expansions. Smart building systems ensure low operating costs and sustainable performance.
Scottsdale is emerging as a quietly effective case study in how smart city financing can directly benefit private wealth holders.
Scottsdale is redefining location value through its emerging network of smart districts—urban zones enabled by real-time data, IoT systems, and
Thank you for reading this Arizona market summary. As Arizona continues to evolve with new luxury, industrial, and sustainable developments, we remain dedicated to providing concise, discreet insights for discerning investors. If you found these perspectives valuable, we invite you to share this newsletter, follow us on social media for ongoing updates, and schedule a private Zoom strategy session for personalized guidance. Your privacy and informed decision-making are always our highest priority.
Click here to explore current mortgage rates. Rates may vary based on credit score, loan type, and lender policies. For the most accurate estimate, consult with a lender.
Share
I’d love to connect with you for a complimentary 60-minute Zoom consultation to discuss your real estate goals and answer your questions about Scottsdale’s market. This personalized session is designed to give you clarity and confidence in your next steps.
Focused entirely on you
Tailored to your needs
Clear next steps
Pro tip: Come prepared with your questions for the most valuable conversation!
What’s the one question you’ve been meaning to ask a real estate advisor?
Concerned about childproofing your home? You’re not alone. Safety is a top priority for families choosing a new-build home. In
In a world where time is wealth, many high-performing professionals—business owners, investors, remote executives, doctors, and digital entrepreneurs—are searching for
In Scottsdale, Paradise Valley, and North Phoenix, many professionals relocating for tax-friendly living, wellness-focused design, and modern space are often
Did you know Arizona has distinct land ownership laws compared to other states?
Understanding these differences can significantly impact
Always fresh, smart, data-driven from Sonoran Desert straight to your mailbox
With billions already invested by industry titans and government allies, the state aims to anchor the nation’s chip independence and AI innovation capacity. For wealth stewards, Arizona’s rise signals potential
The Phoenix metro area continues to demonstrate resilience, with median home prices holding firm at just under $470,000 despite a
This edition highlights Phoenix’s dynamic real estate landscape, where infill permits have climbed 14% year-over-year, bolstering historic neighborhoods and preserving
You Can Listen Right Now to Current News
Dose of local insights. Please subscribe and watch.
Scottsdale is taking deliberate steps to future-proof both public health and property values through a pioneering investment in smart air
Scottsdale, Arizona is charting a bold course in disaster resilience, investing heavily in stormwater infrastructure, fire mitigation, and green engineering
In Scottsdale, waste isn’t just being collected—it’s being managed as a quiet pillar of real estate preservation. Through smart waste
Far from a dry frontier, the Sonoran Desert reveals itself as a refined landscape of innovation, wellness, and intentional living. From sipping craft espresso beneath mesquite trees to paddleboarding through historic canals, Scottsdale is proving that desert life can be both invigorating and serene.
This desert renaissance has meaningful implications:
Why High-Income Professionals Are Relocating to Scottsdale for Smart, Luxury Living
In the next 50 years, over 100 emerging high-paid professions will reshape how and where we live. From AI psychologists to space economy strategists, the work landscape is becoming borderless, digital, and deeply personalized. The modern professional isn’t
You can listen right now to current news
You can listen to all AZique real estate news and insights on Spotify or any other preferred platform of yours: YouTube, Amazon, Audible, Apple Podcast. Daily Arizona real estate market pulse – straight from Sonoran Desert to you where ever you are!
Always fresh, smart, data-driven from Sonoran Desert straight to your mailbox
Click here to explore current mortgage rates. Rates may vary based on credit score, loan type, and lender policies. For the most accurate estimate, consult with a lender.
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—giving lots of freebies along the way.
See You Soon,
Katrina
You can listen right now to current news
You can listen to all AZique real estate news and insights on Spotify or any other preferred platform of yours: YouTube, Amazon, Audible, Apple Podcast. Daily Arizona real estate market pulse – straight from Sonoran Desert to you where ever you are!
Always fresh, smart, data-driven from Sonoran Desert straight to your mailbox
Click here to explore current mortgage rates. Rates may vary based on credit score, loan type, and lender policies. For the most accurate estimate, consult with a lender.
Realty One Group
Katrina Golikova
Real Estate Professional
License ID: SA696603000
17550 N Perimeter Dr, Scottsdale, AZ 85255
Copyright ©2021-2025 AZiqueHomes.com. All Rights Reserved.Made in Scottsdale, AZ, USA by AZiqueHomes.com
Scottsdale, AZ
