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Breaking Ground on a New Era of Industrial Development in Tempe
In a move set to reshape the industrial landscape of Tempe, Arizona, Creation has officially commenced construction on a significant six-acre development, poised to deliver a total of 120,000 square feet across two warehouses. This project not only signals robust economic activity in the area but also the growing demand for modern industrial facilities.
One of the standout features of this new development is that Pacific Office Automation, a prominent tech company, has committed to leasing a substantial 75,000-square-foot building to serve as its Southwest headquarters. This underscores the strategic importance of the location, situated at 1400 W. 3rd Street, near major thoroughfares including Loop 202 and I-10, which allow for easy access to Sky Harbor International Airport.
Meeting Demand with Modern Facilities
The new buildings will feature impressive 32-foot clear heights and a total of 185 parking spaces, equipped with eight EV charging stations and 14 bike spaces, reflecting a commitment to sustainability and modern workforce needs. The concurrent trends of increased online order fulfillment and the need for substantial logistics support make this development well-suited to meet the growing requirements of businesses in the region.
According to Grant Kingdon, principal of Creation’s Mountain West region, this development highlights a substantial transformation within the North Tempe industrial submarket, where approximately 90% of industrial buildings larger than 40,000 square feet were constructed before the year 2000. With increasing tenant demand, this project is timely, providing state-of-the-art facilities and filling a notable gap in the market.
Local Commitment and Community Engagement
The project's significance extends beyond its commercial ambitions, as Creation and Pacific Office Automation have demonstrated a commitment to community welfare by donating $25,000 to the Boys & Girls Clubs of the Valley. This initiative supports their efforts to provide affordable after-school programs for over 16,000 local youths, reinforcing a positive social impact alongside economic growth.
The industrial sector in Tempe is thriving, driven by a net absorption of 6.4 million square feet in just the third quarter of 2025, marking a high for the area since early 2022. As more companies, including logistics giants such as CEVA Logistics and Walmart, expand operations, the region is well-positioned for continued growth and innovation.
Looking Ahead: The Future of Tempe’s Industrial Market
As construction progresses, stakeholders from various sectors are watching closely. With the integration of sophisticated design and community values, this development is not only setting a benchmark for modern industrial spaces but also fostering a more connected and productive ecosystem within Tempe. Completion is anticipated in late 2026, promising to welcome a new chapter in the city’s industrial narrative.
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