Phoenix Business Journal’s coverage of impactful real estate deals in 2023 has led to the identification of key projects that will redefine the Valley’s real estate landscape in 2024.
These developments are expected to shape the region’s real estate and economic development sector through job creation, employment parks, destination experiences, and the emergence of new industries like hydrogen plants, film production hubs, and rapidly growing sectors such as data centers.
Here are three noteworthy projects from the list:
One Camelback
A prominent office-to-residential conversion project in the Phoenix metro, One Camelback, faced setbacks after commencing construction in 2020.
Delphi Financial Group now owns the project after a credit bid of over $44 million in a November 2023 auction, following the default of the previous owner, Camelback Owner LLC.
The project, approximately 85% complete at the time of the ownership transfer, is undergoing scrutiny to determine a completion timeline.
Nestlé Manufacturing Plant
Nestlé has made significant progress on its $675 million, 150-acre manufacturing plant in the Glendale area.
The 630,000-square-foot facility, situated off Northern Parkway, is set to produce creamers for Coffee Mate, Coffee Mate Natural Bliss, and Starbucks brands.
Construction is nearing completion, with operations expected to commence in the second quarter of this year. The plant aims to recycle up to 75% of its treated process water and operate fully on renewable electricity.
Nestlé is currently hiring for roles across numerous functions including operations, maintenance, electrical and automation, utilities, supply chain and warehouse, distribution and quality. The plant will employ about 350 people total.
VAI Resort and Mattel Adventure Park
The first phase of the $1 billion VAI Resort and Mattel Adventure Park in Glendale anticipates opening by the end of 2024, featuring a music-themed hotel, amphitheater, concert venue, and an indoor theme park.
VAI Global Development celebrated a construction milestone with a $40 million concert stage in December, with concerts expected to commence by the end of 2024.
The overall development, including four hotel towers, a party island, a beach-like water feature, luxury retail, and dining, is projected to have an annual $32 million impact on Glendale over 25 years. Construction progress indicates the structures were approximately 60% completed as of December.
Outerspace
New Jersey-based Outerspace has chosen metro Phoenix as the location for its new West Coast hub, marking its fourth and largest facility to date. Specializing in third-party logistics and high-touch operations for high-growth consumer brands in the e-commerce sector, Outerspace’s 1 million square feet warehouse in Avondale at the Fairway 10 industrial project is expected to open in March 2024.
The Avondale facility, spanning 389,000 square feet, is a flagship for Outerspace and is projected to bring 500 new jobs to the region. The company, founded just five years ago, has existing warehouses in New Jersey and Pennsylvania, with this new location representing a substantial investment.
Once operational, the facility is expected to handle close to 100,000 direct-to-consumer e-commerce orders daily, showcasing the significant scale of Outerspace’s operations. The company has worked with notable brands like Brunt Workwear, Hill House Home, and Ogee Cosmetics, providing services such as pick and pack, personalization, embroidery, UV printing, laser engraving, and more.
Amazon
Amazon.com Inc. is looking to hire thousands of employees in Arizona to meet the demand from consumers.
Amazon recently announced it plans to hire for 9,300 roles based in Arizona as part of its cyclical hiring push geared towards the holidays.
AZ is getting approximately 3.7% of Amazon’s overall hiring spree, which is planned to include 250,000 positions throughout the United States.
Amazon is already one of the top employers in the state with 33,000 employees at its several facilities across Arizona, the majority of which are in the Phoenix area. The newest Amazon facility in the state is a 1.2 million-square-foot storage and distribution center at 8560 E. Elliot Road, just off the Loop 202 in Mesa.
The roles Amazon is hiring for are a mix of full-time, seasonal and part-time positions across the company’s operations network, and include tasks such as packing, picking, sorting and shipping. Amazon said pay for these jobs will range between $17 and $28 per hour, with the average hourly pay being $20.50.
LG Energy
At full operation the plants are expected to produce up to 53 gigawatt-hours and create nearly 4,000 new jobs. It will also be Queen Creek’s largest private employer, located northeast of Ironwood and Germann roads.
LGES started preliminary site work on its project — the company’s second stand-alone battery complex in the U.S. — at the end of 2023 and recently started vertical construction. The company also secured financing for its first battery plant in Arizona in March.
The cylindrical battery plant is expected to be completed at the end of 2025 followed by the ESS battery facility, according to an update from LGES in April. Both are estimated to begin production in 2026, about a year later than previously proposed.