A 42-acre industrial site in north Phoenix has changed hands for $45.6 million, scooped up by an entity connected to JCW Development and Ares Management. In 2022, companies, including suppliers, were clustering near TSMC and taking industrial space in Deer Valley.
The sale was reported by Phoenix Business Journal, which covered an industrial sale in north Phoenix.
A Submarket Reshaped By TSMC
In 2022, more companies, including suppliers, were clustering nearby and taking down industrial space in the submarket, according to bizjournals.com.
That prediction has largely held up. DAUM Commercial vice chairman Bob Lundstedt told ktar.com that demand has accelerated sharply this year, saying suppliers are “just dropping out of the sky right now, and it's really ramped up since the beginning of the year.” The DAUM team alone completed eight transactions with TSMC vendors in the first quarter of 2026, per citybiz.co.
Nearby Industrial Land Deals
Industrial-zoned dirt near the fabs is genuinely scarce, and suppliers are paying a premium to lock down sites close to TSMC's operations, according to thelandletter.com. The numbers back that up: Phoenix industrial net absorption hit 4.9 million square feet in the first quarter of 2026, a 200% jump from the same period a year earlier, as reported by bisnow.com, while overall vacancy fell to 9.2% as absorption outpaced new supply.
Nearby comparable deals illustrate just how competitive the Deer Valley land market has gotten. Three Taiwan-based TSMC suppliers bought a combined roughly 42 acres of vacant industrial land at Mack Innovation Park on August 10, spending about $48 million total, per thelandletter.com's accounting. Propersys Corporation paid $24.8 million for 21.48 acres in that deal.
Those August purchases followed an even larger one earlier in the year. HVAC company Mornstair acquired about 51.9 acres of vacant industrial land within Mack Innovation Park for $59.9 million in February, and Mack later sold roughly 28 acres in the same master-planned park to semiconductor supplier United Integrated Services Corp. for $41 million, according to ktar.com.
Why Suppliers Need More Than Warehouse Space
Mack Real Estate Group has sold 113 acres at its Deer Valley campus to TSMC suppliers for factories and service facilities totaling about 1.9 million square feet, and directly leased another 250,000 square feet to suppliers on that same campus, according to commercialsearch.com.
Not every nearby deal is supplier-driven. Westcore acquired a three-building, 332,479-square-foot industrial park in the Deer Valley submarket for $90.7 million, as reported by azbigmedia.com, while a fund managed by Ares Real Estate paid $43.1 million for Marigold Two-Pack, a two-building property totaling 237,765 square feet, according to crenews.com. Smaller transactions have moved too: CICA HUNTEK paid $8.06 million for a 25,880-square-foot manufacturing facility at 1654 W. Knudsen Drive, per citybiz.co.
More Projects Breaking Ground
A speculative development is planned in the submarket. ReDiscover Logistics Park is planned as four Class A industrial buildings totaling 808,000 square feet, with delivery scheduled for February 2027, according to yourvalley.net.
The sale involved a 42-acre industrial parcel in north Phoenix.
