Tucson, ARIZONA (November 7, 2025) — Beale Infrastructure (“Beale”) has announced a major sustainability and community investment initiative for its planned data center project in Pima County’s Southeast Employment and Logistics Center (SELC). Beale is committing to match 100% of energy use at its Pima County data center with renewable energy and to invest $15 million in Pima County to support local education, workforce development, and long-term community growth.

Beale’s commitment to pursue 100% renewable energy for its Pima County data center is a significant additional investment and reflects the company’s dedication to sustainable infrastructure development. To achieve this, Tucson Electric Power (TEP) will serve the data center through an energy supply agreement, and Beale will seek to accelerate the development of new renewable energy resources for TEP’s grid that produce enough energy to match 100% of the data center’s energy consumption—at the data center’s cost. As these new projects come online, the commitment to 100% renewable energy will be fulfilled through the purchase of renewable energy credits (RECs). Achieving 100% renewable energy not only reduces the project’s lifetime carbon emissions but also supports Pima County’s Climate Action Plan and broader regional goals to pull forward the delivery of new renewable energy generation.

The community investment initiative will launch with a $5 million scholarship fund designed to support STEM education and trade school training in Pima County, positioning local students and trade professionals to thrive in high-demand technical careers. The fund aims to empower the next generation of technical talent in southern Arizona and to foster local economic opportunity through educational investments.

An additional $10 million will be allocated in future phases of the project for community benefit projects identified in collaboration with Pima County leadership. These investments will be tailored to local priorities and will provide long-lasting benefits for county residents, such as digital equity investments and fiber infrastructure expansions.

Beale plans to finalize the acquisition of the Pima County property at the end of the year and subsequently begin construction, marking a significant milestone for southern Arizona investment and development.

The project’s initial phase is expected to bring $3.6 billion in capital investment during its multi-year construction. It is expected to generate $152 million in tax revenue over 10 years, with $58.5 million allocated to Pima County and $93.5 million to the State of Arizona. The construction phase is expected to create 3,000 jobs, prioritizing local union and trade labor, with 180 permanent data center campus jobs to be established by 2029. The data center will utilize an air-cooled design, eliminating the need for water for cooling. Water from an Arizona Department of Water Resources (ADWR) approved source will be used to supply domestic needs, including bathrooms, as well as fire suppression systems.

“Beale Infrastructure’s commitments to renewable energy and additional community investments demonstrate how economic development projects benefit our community beyond the billions in capital investment and job creation the company has already pledged,” said Joe Snell, president & CEO of The Chamber of Southern Arizona. “Beale’s focus on identifying community benefits projects, such as those supporting STEM education and trade school training, will further regional efforts to strengthen the talent ecosystem in Pima County and boost our regional competitiveness.”

Union leaders expressed support for the project’s commitment to hiring local workers.

“Beale Infrastructure’s data center project will create thousands of critical, good-paying construction jobs with benefits vital to working families in southern Arizona,” said Michael S. Dea with LiUNA Local 1184. “The apprenticeship opportunities present real-world training experiences for those coming up in the ranks in our industry. These benefits will strengthen the surrounding communities for years to come.

“This project will create a strong pipeline of long-term, good-paying jobs for Apprentice and Journeyman Union Carpenters in Southern Arizona,” stated Fabian Sandez with the Western States Carpenter Union and president of Local 1912. “A project of this scale demands precision, skill, and safety—qualities that trained union carpenters bring to every job. This project represents an opportunity to build the future of southern Arizona, raising the standard of living for families through stable jobs, fair wages, and quality benefits that come with a career as a union carpenter.”

“We’re proud to invest in Pima County and to support local workforce training and commit to pursue 100% renewable energy for our first data center project in Arizona,” said Brendan Gallagher, senior vice president at Beale. “This commitment reflects our belief that sustainable development and community investment must work hand-in-hand to create lasting value and opportunities for the region.”

“Beale’s investment in Pima County’s digital infrastructure is about more than technology—it’s about opportunity,” said Ted Maxwell, president & CEO of Southern Arizona Leadership Council. “In addition to expanding access and digital equity, the new workforce development fund will help grow local STEM talent and strengthen the region’s innovation economy.”

Catch our full discussion with Tony Burkart in the Trend Report this month.

ViaWest Group and Barings to develop 808,448-square-foot ReDiscover Logistics Park

PHOENIX, (Nov. 7, 2025) –  JLL Capital Markets announced today it has arranged $107 million in construction financing for ReDiscover Logistics Park, an 808,448-square-foot industrial development located at 2402 W Beardsley Rd. in Phoenix, Arizona.

JLL worked on behalf of the developer, ViaWest Group and Barings, to secure a loan through a life insurance company.

The project encompasses four state-of-the-art industrial buildings located on 43.5 acres in the highly sought-after Deer Valley submarket. It is strategically positioned adjacent to the Loop 101 and Interstate 17 interchange, providing immediate freeway access and unparalleled regional connectivity. The property sits approximately 15 minutes from Taiwan Semiconductor Manufacturing Company’s $165 billion manufacturing facility, positioning it to capitalize on the influx of suppliers and support businesses attracted to the semiconductor hub.

ReDiscover Logistics Park will feature individual building sizes ranging from 189,280 to 212,000 square feet with clear heights of 32 to 36 feet, designed to accommodate a diverse range of manufacturing and distribution tenants. The development incorporates premium building specifications, including flexible space configurations, 200-foot shared truck court depth, FM Global-compliant sprinkler systems, and 980 parking spaces.

Construction has commenced, with project completion anticipated for the first quarter of 2027.

The JLL team was led by Capital Markets President Kevin MacKenzie, Senior Director Jason Carlos and Analyst Lilley Kroll.

“We’re seeing unprecedented demand in the Deer Valley submarket driven by TSMC’s transformational investment and the broader semiconductor supply chain ecosystem it’s creating,” said Carlos. “With no additional development currently under construction in the submarket and active tenant requirements exceeding available vacancy, ReDiscover Logistics Park’s premium specifications and irreplaceable location at the Loop 101 and I-17 interchange make it ideally positioned to serve the next generation of tenants seeking proximity to this critical industrial hub.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

TUCSON, AZ (November 7, 2025) — Tucson’s Q3 Office Market Report concluded the quarter with an overall vacancy rate of 10.2%, reflecting stable conditions. Healthcare remained the primary demand driver, with Tucson Medical Center (TMC) accounting for two of the quarter’s largest lease transactions. TMC’s activity included new leases supporting cancer care and other medical services, underscoring the sector’s ongoing role as the leading source of office absorption. Medical leases included 77,971 square feet (sf) at 1400 North Wilmot Road and 30,757 sf at 603 North Wilmot Road.

Submarket dynamics varied. The Foothills and Northwest Tucson continued to demonstrate strong performances, with limited availability contributing to sustained demand. Downtown Tucson, by contrast, experienced relatively stable occupancy with modest leasing momentum. Suburban areas near healthcare hubs demonstrated resilience and continued to be attractive to medical professionals. Construction activity was limited, as the abundance of available space reduced the need for speculative projects.

Average lease rates remained consistent at $24.28 per square foot (psf), with tenant demand continuing to focus on well-located and smaller suites. In comparison, larger contiguous blocks of space are experiencing slower activity. Class A average lease rates were slightly higher at $25.15 psf.

Sales activity was limited as investors remain selective. Transaction volume slowed as high construction and financing costs kept many buyers on the sidelines, with only value-add opportunities attracting interest. 5320 North La Cholla Boulevard was the most notable sale at $1,134.56 psf.

The cost of new construction remains a significant barrier to new projects. Instead, adaptive reuse has become a trend: former call center spaces are increasingly being repurposed for industrial use, reflecting a persistent lack of demand in that segment. Looking ahead, a potential decline in interest rates may improve office investment activity, although no significant near-term absorption gains are expected.

READ FULL REPORT HERE.