TUCSON, AZ (December 20, 2024) -- Commercial real estate in Southern Arizona is in the midst of an unprecedented run. Even after the pandemic rocked the business community, Arizona’s commercial real estate industry developed innovative ways to survive and thrive. You need to know that cutting-edge innovation is evident in these 12 commercial real estate projects in 2025. Construction is poised for transformative developments in and around Tucson, driven by cutting-edge technologies, sustainability trends, and urbanization.
Under Construction 194,874 SF Industrial
Butterfield Logistics Center
Block D- Butterfield Business Center, 3725 East Columbia Street, Tucson 85714
Under Construction – Planned Completion Q3 2025
194,874 SF Industrial Distribution Center divisible to 32,232 SF
Clearance height: 32’, Column spacing: 52’x48’ with 60’ Speed Bay
Loading: 56 Dock High Positions. Electrical 3,000 Amp Service, 6” Slab thickness.
Parking: 146 Spaces, Sprinkler ESFR, Truck Court: 135’
Developer: TPA Group
For leasing information, contact Stephen Cohen, Cushman & Wakefield | PICOR – 520.546.2750 scohen@picor.com
Under Construction 373,811 SF Industrial
I-10 International
I-10 International broke ground September, 2024
A 1 million square foot Class A industrial development near TIA. Cushman & Wakefield | PICOR is pleased to announce the groundbreaking of I-10 International, a I-10 International industrial project. Located on 79 acres in the Tucson airport submarket, this development marks Lincoln Property Company's entry into the Tucson market.
The $75 million Phase I encompasses 373,811 square feet across two premiere warehouse/distribution buildings: Building 1:158,944 SF and Building 2: 214,867 SF. Based on market demand, a third building of 188,434 SF will be constructed. Lincoln owns an additional 42.3 acres at I-10 International, able to accommodate future Class A industrial development that would ultimately bring the project to more than 1 million square feet.
All buildings at I-10 International Phase I will be state-of-the-art cold-capable with 32’ clear height, 14’ tall glass entrances, full concrete truck courts, generous use of clerestory windows to let in abundant natural light, and an R-38 insulated roof deck system.
I-10 International will follow a “creative industrial” vision, delivering amenities often only found in Class A office buildings and designed to attract and retain a new generation of highly skilled employees offering specialized expertise. This includes a best-in-class outdoor amenity space with shaded and landscaped areas, built-in barbecue equipment, and seating for outdoor relaxing, dining, and games.
Brinkmann Constructors is the general contractor for I-10 International Phase I. The project’s design is a collaboration between architects Butler Design Group and Ware Malcomb.
Expected completion is 2025.
For leasing information, contact Jesse Blum, Principal & Industrial Specialist at Cushman & Wakefield | PICOR at (520) 546-2772 / jblum@picor.com.
Under Construction 146,963 SF Industrial
Corona Commerce Center
Corona Commerce Center broke ground at 2713 E Corona Rd in Tucson.
This will be a 146,963 SF industrial building, divisible to +/- 16,260 SF, adjacent to TIA and located within the largest and most active sub-market in Tucson metro area, and approximately 7 miles from the Port of Tucson a full-service inland port with rail yard and intermodal and transload faciltity serving multiple steam ship lines.
It is also within an hour of the Mariposa Port of Entry, which opened in 1973 and expanded in 2014 at the cost of $244 million. This port can now handle upward of 4,000 commercial trucks per day.
The developer is Schnitzer Properties and expected completion is 2026.
For leasing information, call CBRE, Tim Healy at 520.323.5119 Tim.Healy@CBRE.com and Jackson Kraft at 520.271.3601 Jackson.Kraft@CBRE.com
Under Construction 350,000 SF Senior Care Facility in Oro Valley
La Posada at Pusch Ridge Senior Care Facility
Phase I will comprise 166 independent living units on a 79-acre site at 9740 N Oracle Road in Oro Valley, AZ.
The first phase consists of a five-story, 166 unit, 350,000-square-foot facility with a detached two-level parking structure, resort-level amenity building and significant site development. Amenities include multiple dining venues, kitchen, pool and spa, and multi-use rooms, gym and more. The units offer residents a higher degree of customization than a typical multifamily apartment complex.
Sundt Construction was selected to construct the project in collaboration with Gensler, the Architect; and The WLB Group, the Civil Engineer and Landscape Architect.
A rezoning for the proposed project was approved in 2014. Subsequent conceptual design plans (site plan, landscape plan and architecture) were approved in 2016. The current architecture proposal aims to replace the previously approved design.
Opening is expected for March 2025.
Under Construction
Wilmot Energy Center II
Wilmot Energy Center II, LLC, an affiliate of Florida-based NextEra Energy, bought a 1,076-acre solar site at Andrada Road and Wilmot Road in Tucson for $14 million ($13,011 per acre / $0.30 PSF). This will be the company's second solar site in Tucson. The seller was an affiliate of Diamond Venture, and the buyer was Wilmot Energy Center II, LLC, a subsidiary of NextEra Energy.
The Wilmot Energy Center, the first 100-megawatt AC photovoltaic project with 30MW of linked battery storage, began operations in June 2023. It was constructed by the same developer, NextEra Energy Resources, on 1,130 acres at 11425 S Swan Road in Tucson.
The Wilmot Energy Center II project will also feature:
- Photovoltaic (PV) solar arrays generate up to 100 megawatts (MW) of clean, renewable energy.
- A $314 Million Project investment that will create 200 construction jobs.
The project is scheduled to begin operations by May 2025, subject to local and state approvals.
Under Construction 70,000 SF School at Rocking K
Saguaro Creek K-8 at Rocking K
On May 2, 2024, we broke ground on our 22nd school, Saguaro Creek K-8 in the Rincon Valley within the Rocking K Community.
Concord General Contracting is the contractor and Swain Associates, the architect.
The 70,000-square-foot K-8 school will serve 800 students, with K-7 opening the first year with 600 students for Phase I. Estimated construction costs are $27 million.
Kate Robold, Planning Principal.
The school is set to open in July 2025.
Under Construction 98,000 SF School at Gladden Farms
New K8 School in Gladden Farms
The Marana Unified School District broke ground for its 98,000-square foot, K-8 school May 2024 and is set to open in Gladden Farms in Fall 2025. The school is on 15.5 acres at the intersection of Clark Farms and Mike Etter Blvd. in Gladden Farms.
The school’s name, mascot and boundaries have yet to be determined. It marks the town’s third K-8 school, and it will accommodate up to 800 students.
The principal will be Zach Singer, who currently leads Quail Run Elementary School.
The cost to build is $40 million, secured after Marana voters approved the move in 2022. The school was designed by BWS Architects, while Core Construction is building the new campus.
The school is expected to open in the fall, for the 2025-26 school year.
Under Construction 100,000 SF Bass Pro Shop at The Bridges
Bass Pro Shop Mega Store at The Bridges
Bass Pro Shops is building a new mega outdoor retail store at The Bridges on Tucson’s south side. The company is building a 100,000-square-foot store on a 13-acre leased site between Costco and the new Hotel at the Bridges.
The opening of Outdoor World will mark the third Bass Pro Shops location in Arizona. The company continues to expand its presence to serve the passionate sportsmen and women in the Southwest with the broadest selection of quality products at the best prices, providing genuine, friendly, expert service.
Tucson City Council unanimously approved sales-tax incentives worth an estimated $1.4 million for the new store. The company will spend $35.8 million to complete the new store and is expected to hire approximately 128 full- and part-time workers when it opens in 2025.
Expected Grand Opening is 2026.
73,000 SF EXPANSION for New Walmart Supercenter at Tucson Place
Walmart Supercenter Conversion at Tucson Place
Walmart store at 455 E Wetmore Road in Tucson, at Tucson Place Regional Shopping Center from a 86,900-square-foot store into a 160,000-square-foot Walmart Supercenter. The last Supercenter to open in Tucson was nearly 15 years ago.
Start date: March 2025 with expected completion 2025.
REPURPOSING of 30,000 SF at Oro Valley Marketplace
The Picklr in Oro Valley
Utah-based company The Picklr is set to open a 30,000-square-foot indoor pickleball facility at 11855 N Oracle Road in the Oro Valley Marketplace at Oracle and Tangerine Roads in spring 2025.
A renovation of the former Best Buy store in Oro Valley Marketplace. Premits have been pulled for the demolition.
The announcement is a welcome addition to the town’s existing courts at Naranja Park and the Oro Valley Community Center. The state-of-the-art facility will accommodate the growing community of pickleball enthusiasts.
The new venue will feature 12 courts, outdoor surfacing, ball machine, lockers, showers, pro shop, league play, and a private event space. Most importantly for many players, it will be fully indoors—providing a safer option during the sweltering summer months.
The Picklr is the world's fastest-growing network of premium indoor pickleball courts, offering an unparalleled experience for players of all skill levels. With more than 390 state-of-the-art clubs sold worldwide, The Picklr provides programs for beginners to pros, and a vibrant atmosphere. Membership to The Picklr includes access to all club locations nationwide, free court reservations, four monthly clinics, and unlimited participation in leagues, competitive play/events, and tournaments. Pickleball is the fastest-growing sport in the country, and The Picklr is meeting the demand for a premium pickleball experience with an inspiring, athlete-driven brand.
The grand opening of The Picklr in Oro Valley is slated for March 2025.
PRE-CONSTRUCTION -PRELIMINARY PLANNING
Heritage Shoppes at Gladden Farms Lots 2-13
Velocity Retail Group LLC announced the sale on April 3, 2024, of the 14-acre Heritage Park commercial development site, located at the southeast corner of Tangerine Road & Lon Adams Road, Marana, AZ, for $3,800,000 ($6.23/SF). Brian Harpel and Eli Castronova of Velocity Retail Group LLC brokered the transaction and are handling the sales and leasing.
The 13 commercial lots sits across from the Gladden Farms Marketplace, which is currently under construction and will include a new Fry’s Marketplace, anticipated to open in 3Q 2024. The Gladden Farms Master Planned Community surrounds the property and forms a part of the rapidly developing Tangerine Road commercial corridor.
The Seller, HOH Land Holdings LLC (Waseem Hamadeh), is a highly successful real estate investment company. The Buyer, an entity of Rio West Development & Construction (Walter and Brad Hoge), has an excellent track record with a 30-year completed project history across all commercial sectors in the Tucson metro area. They will continue developing the property into the “Heritage Park Commercial Center” project. The project comprises nine retail frontage pads and two mixed-use pads in the interior. Multiple national tenants are negotiating to participate in the development, and additional pads are also available.
PRE-CONSTRUCTION -PRELIMINARY PLANNING
Canoa Preserve Land Development and Resort
The Canoa Preserve property consists of approximately 350 acres of vacant land in Green Valley, Arizona, which is located approximately 25 miles south of Tucson within the southeast portion of Pima County. The site is generally a square parcel divided by an existing north-south roadway, Camino de la Canoa Road, separating the property into two smaller parcels.
Developer MK Company, Inc. (operating as Canoa Preserve Development Partners LLC) received a conditional use permit that will allow for a 48-room resort development on 30 acres near Continental and Green Valley in Pima County.
The property is part of the Canoa Preserve Final Plat and lies east of South Camino de la Canoa, approximately two miles south of Whitehouse Canyon Road and one mile east of Interstate 19. Platted but vacant subdivisions are located to the north, south and east, while the land to the west is undeveloped, according to the Pima County staff report.
The current zoning allows for a minor resort development with a conditional-use permit.
According to The WLB Group, The Canola Reserve Minor Resort will have 48 units in 24 duplex buildings. A clubhouse and recreation area will also be developed. “The overall intent of the proposed minor resort is to provide a destination offering relaxation and recreation and contribute to small-scale tourism opportunities in Pima County. It has been situated so that (it) is sensitive to surrounding properties and the rural, low-density nature of the area,” the narrative says.
The duplexes are planned for approximately 2KSF total, or 1KSF/unit. Each will have a small yard and an attached carport. The site design and building orientations are planned to promote views of Madera Canyon to the southeast of the property.
Planned amenities on the property include a 1.5KSF clubhouse with a café, communal seating, a meeting room, a fitness center and restrooms. Outdoor recreation amenities include a pool, sports courts, hiking/walking paths, and wildlife observation opportunities.
A key attraction of the resort will be access to recreational features in the surrounding area, including:
- Hiking, birding, nature viewing, and picnicking are offered in Madera Canyon, Mt. Wrightson, and the greater Coronado National Forest;
- Active and passive recreation at Canoa Preserve Park;
- Tubac Presidio State Historic Park;
- Tumacacori National Historical Park, and
- Juan Bautista de Anza National Historic Trail will have access from the resort site.
Pima County planning staff has recommended approval of the conditional use permit request with standard conditions, including a replat.
MK Company, Inc. is the developer, and The WLB Group is the planning firm. Pima County Development Services approved the conditional permit at a hearing on July 10, 2024.
REPRINTED from the Trend Report January 2025 issue, The Best of Trend for 2024