McCarthy Building Companies is planting deeper roots in central Phoenix, locking in a nearly 100,000-square-foot lease in the Camelback Corridor while also turning a nearby Tempe hotel into a regional training hub. Together, the two moves rank among the firm’s biggest local commitments this year and signal a long-term bet on the Valley.
According to Phoenix Business Journal, McCarthy signed a 96,252-square-foot lease at 3133 E. Camelback Road in the Camelback Corridor. The deal nearly doubles the company’s Phoenix office footprint and follows its recent purchase of a Tempe hotel that is slated to become a learning campus for employees.
Where the New Space Sits
Property listings describe 3133 E. Camelback Road as a Class A office building totaling roughly 100,000 square feet, which means McCarthy’s lease would cover the vast majority of the property, according to CREXi. Marketing materials highlight renovated lobbies, built-in training-room spaces and prominent plaza frontage, all catnip for tenants chasing large, contiguous blocks of space in the Camelback Corridor.
Training Campus and Regional Push
Earlier this year, McCarthy closed on the former DoubleTree in Tempe and said it will convert the roughly 12-acre property into a Center for Learning and Development designed to host thousands of employees for skills and leadership training, per a City of Tempe press release. Local coverage also noted McCarthy’s plan to modernize the campus while preserving its mature landscaping and to roll out upgrades in phases over the next 18 to 24 months, as reported by ABC15 Arizona.
What It Means for the Phoenix Office Market
The lease lands at a moment when the Phoenix office market is starting to find its footing again. Lee & Associates’ Q1 2026 market overview reported about 191,294 square feet of net absorption, a 19% vacancy rate and shrinking sublease inventory, conditions that make big-block deals like McCarthy’s more workable. Asking lease rates also inched higher in the first quarter, giving landlords in core submarkets such as Camelback Corridor more room to push rents on well-amenitized space, according to Lee & Associates.
For Phoenix brokers and developers, McCarthy’s decision reads as a clear vote of confidence in the market’s ability to absorb sizable office requirements. It also hands the Camelback Corridor another marquee tenant to spotlight as the area works to regain its pre-pandemic momentum. With office build-out and training-campus renovations now in motion, McCarthy’s Arizona presence is poised to stretch beyond project sites and into a more permanent regional operations base.
