Why West Valley

The West Valley Surrounded by Innovation

METRO PHOENIX 2025

04 10 06 18 20

INTRODUCTION

ECONOMIC PROFILE

DEMOGRAPHICS

LOCAL AMENITIES

STRATEGIC LOCATION

Phoenix’s West Valley has achieved tremendous growth over the last two decades. An influx of residents and businesses is helping the region shed its image as a bedroom community, earning its reputation as a great place to live, work, and play. Today, more than 1.9 million people call the West Valley home, and the population over the next five years is projected to grow at twice the national rate. With a median age of 36 years, where 65% of residents are in the workforce age, the West Valley stands as one of Arizona’s most culturally diverse and inclusive regions, proudly representing a minority-majority population. The region’s mix of luxury and affordable housing contributes to a diverse area that attracts both executives and first-time home buyers. World-class amenities include Westgate, P83, and Park West entertainment districts, State Farm Stadium (home of the Arizona Cardinals), Desert Diamond Arena, five spring training stadiums, Phoenix Raceway, numerous outdoor recreation opportunities, large- scale concerts, and continuously expanding dining options – provide an exceptional quality of life for its residents and visitors. The West Valley’s large talent pool, affordable cost of living, ease of doing business, and availability of land have attracted healthcare, distribution, and advanced manufacturing companies to the region. The region is also a tech oasis, including over $100 billion in investments for semiconductor manufacturing in companies like TSMC. The region is exploding with advanced manufacturing and brand names that are increasingly digitalizing operations. Companies like Nestlé, Williams Sonoma and Microsoft continue adding thousands of jobs to the area. Additionally, Luke Air Force Base, located in the West Valley, is a major economic driver in the region with an economic impact of $2.4 billion in the state of Arizona. Each year, 600 military service members complete their duties in the region. Many of these service members choose to stay in the West Valley, contributing to the strong and diverse workforce. The region is rich in infrastructure investments with a robust freeway system connecting to labor markets and supply chains in the East Valley and Pinal County. Equally important, partnerships and investments around natural resources such as water and power continue to be a top priority to ensure economic growth. The capital improvements, talented workforce, and livability will continue to attract businesses and talent alike for years to come.

West Valley Demographics

• 1.9 million residents + 58% minority population • 13 municipalities • 10 Unincorporated communities

• 3,000 square mile area • Median age: 36.2 years

28-29

3-6

21-23

13 11 14

Legend

COMPANIES

ENTERTAINMENT

Taiwan Semiconductor Manufacturing Company Amkor Ball Corporation Rauch Nestlé USA Red Bull Sub-Zero TYR Tactical Corning Advanced Optics Microsoft Datacenter – El Mirage

Microsoft Datacenter – Goodyear Microsoft Datacenter Compass Datacenter Stream Datacenter

Desert Diamond Arena State Farm Stadium Westgate Entertainment District Topgolf Glendale Parkwest Lifestyle Center

13 12 11

3 4

Intel Intel

Desert Diamond Casino West Valley & Entertainment Desert Diamond Casino White Tanks at San Lucy Peoria Sports Complex P83 Entertainment District, Stadium Point @ P83

6 7 8 9

Honeywell Honeywell Honeywell Insurance Cluster/Loop 101 & I-17

19 18

Key Industries

Business Services

Retail, Hospitality, Tourism

3,460

64,490

3,457

94,180

BUSINESSES

EMPLOYEES

BUSINESSES

EMPLOYEES

Healthcare

Construction

3,219

54,680

2,523

48,420

BUSINESSES

EMPLOYEES

BUSINESSES

EMPLOYEES

Transportation & Distribution

Manufacturing

1,377

59,430

912

36,670

BUSINESSES

EMPLOYEES

BUSINESSES

EMPLOYEES

Education

Technology

874

45,780

515

9,860

BUSINESSES

EMPLOYEES

BUSINESSES

EMPLOYEES

Source: 2022 Arizona COG/MPO Employer Database, employers with 5 or more employees. (All locations shown for FDI)

Key Employers

EMPLOYER

EMPLOYEES

Amazon

17,490

United States Air Force

9,070

Banner Health

7,810

Pinnacle West Capital Corporation

5,050

State of Arizona

4,390

Grand Canyon University

4,060

United Parcel Service (UPS)

3,640

USAA

3,400

HonorHealth

2,680

Blue Cross Blue Shield of Arizona

2,480

Discover Financial Services

2,420

Palo Verde Power Generating Plant (APS)

2,370

Honeywell

2,120

Maricopa County Community College District

2,090

Cox Communications

1,980

Abrazo Healthcare

1,950

PetSmart

1,670

FedEx

1,550

American Express

1,500

Shamrock Foods Company

1,460

Swift Transportation Co, Inc.

1,200

Desert Diamond Casino

560

Microsoft

Source: 2022 Arizona COG/MPO Employer Database, employers with 5 or more employees. (All locations shown for FDI)

Companies Expanding and Moving to the West Valley

COMPANY

CITY

NEW JOBS

Amkor Technology

Peoria

803

Outerspace

Avondale

500

GTI Fabrication

Goodyear

236

Tricolor Auto

Surprise

204

Saddle Creek Logistics Service

Glendale

196

Old Dominion Freight Line

Buckeye

180

Olam Nuts

Phoenix

161

CMS Cooling

El Mirage

104

Parts Town

Glendale

100

Precision Science

Phoenix

Unical Aviation

Glendale

Triple S Steel

Surprise

Steelcase

Glendale

SC Data Centers

Phoenix

Romac Industries

Goodyear

WMC – Wire Mesh Corp

Phoenix

Exhibitus

Surprise

Source: GPEC.

Retailers Expanding in the West Valley

Greater Maricopa Foreign-Trade Zone

The Greater Maricopa Foreign-Trade Zone (GMFTZ Zone #277) is Western Maricopa County’s federally recognized FTZ and is one of the fastest-growing zones in the U.S. The Zone enables manufacturers and e-commerce fulfillment centers to minimize their duty impact and maximize their Customs efficiencies. The Zone has spurred a wave of industrial development, including build-to-suit and spec building projects of over $4 billion in the West Valley since its inception. There are 15 different nationally recognized companies (Sub Zero, Red Bull, Mark Anthony Brewing, REI, Five Below and more) operating in the Zone today. The current economic impact is over $2.7 billion per year, with well over 4,000 high-paying jobs included.

Demographic Profile More than a third of Phoenix metro residents live in the West Valley.

WEST VALLEY 1.9M

METRO PHOENIX 5.1M

POPULATION (2024)

The West Valley’s population is projected to grow more than double the national rate of growth over the next five years.

65% of the West Valley population is in the workforce age.

West Valley Population by Age

UNDER 18 18-24

25-34 35-44

45-54

55-64

65+

Demographics

Median Age Median Household Income

Median Home Price

WEST VALLEY

36.9

$82,192

$364,571

PHOENIX METRO

38.2

$84,845

$404,142

UNITED STATES

39.3

$79,068

$355,577

Page Sources: Esri, 2024; U.S. Census Bureau, 2024; Maricopa Association of Governments, 2022, JobsEQ.

West Valley Educational Institutions

Career & Technical Programs

Community Colleges + Estrella Mountain Community College + Glendale Community College + Phoenix College + Rio Salado Community College Public + ASU West Valley Campus + NAU at Glendale + NAU at Estrella Mountain + NAU at North Valley Private + Arizona Christian University + Arizona College + Carrington College + DeVry University + Embry-Riddle Aeronautical University + Franklin Pierce University

+ Arizona Automotive Institute + Maricopa County Community College District + Universal Technical Institute + West-MEC > Central Campus

> Northeast Campus > Southwest Campus > Northwest Campus

+ Grand Canyon University + Huntington University + Midwestern University + Ottawa University + University of Phoenix + Webster University

Spring Enrollment – 2024

INSTITUTION

ENROLLMENT

Grand Canyon University

25,800 (Fall 2023)

Glendale Community College

12,584

Estrella Mountain Community College

8,549

Arizona State University, West

5,354

West Valley Rio Salado College

15,642

Ottawa University

1,736 (Fall 2022)

West Valley Educational Attainment

Bachelor’s+ Associate’s/Some College High School 24.4% 33.2% 27.2%

Construction

45% of construction workers in Maricopa County reside in the West Valley.

Healthcare

37% of healthcare workers in Maricopa County live in the West Valley, yet only 24% of the jobs are located here.

Manufacturing

Finance & Insurance

34% of the manufacturing workers in Maricopa County live in the West Valley, yet only 27% of the jobs are located here.

32% of finance and insurance workers in Maricopa County live in the West Valley compared to 19% of jobs located here.

Aerospace & Aviation

Information Technology

25% of aerospace and aviation workers in Maricopa County reside in the West Valley.*

19% of information

technology workers in Maricopa County reside in the West Valley.*

Sources: *Maricopa County Travel Reduction Program, 2021; U.S. Census Bureau American Community Survey, 2020.

Professional Services Labor Cost Comparison

Phoenix's West Valley professional services labor costs are close to the national average. Compare this to markets like Denver and Los Angeles, where the same labor costs 9% and 16% more than the national average.

OCCUPATION

U.S. AVERAGE WEST VALLEY

Administrative Assistants

$49,810

$47,969

Financial and Investment Analysts

$123,330

$105,548

Human Resources Specialists

$77,260

$70,259

Registered Nurses

$94,480

$92,466

Pharmacists

$134,790

$134,656

Bookkeeping, Accounting, and Auditing Clerks

$49,580

$51,073

Customer Service Representatives

$43,520

$44,561

Source: CBRE Labor Analytics, ERI Economic Research Institute, 2022.

Manufacturing Labor Cost Comparison

A typical manufacturing firm in Phoenix’s West Valley saves 1.5% on labor costs compared to the national average. By comparison, the same firm will spend 3% more for labor in Dallas and 12% more in Denver or Los Angeles.

OCCUPATION

U.S. AVERAGE WEST VALLEY

Industrial Production Managers

$60.53

$64.13

Miscellaneous Assemblers and Fabricators

$20.39

$21.80

Laborers and Freight, Stock, Material Movers, Hand

$19.12

$20.00

Packaging and Filling Machine Operators, Tenders

$19.81

$18.82

Production Workers (Helpers)

$19.90

$18.50

Source: CBRE Labor Analytics, ERI Economic Research Institute, 2022.

AUSTIN, TX DALLAS, TX DENVER, CO LOS ANGELES, CA SALT LAKE CITY, UT

$46,740

$45,080

$48,480

$52,680

$43,900

$114,770

$102,190

$116,600

$116,990

$103,970

$77,280

$71,590

$85,820

$83,840

$72,830

$95,150

$94,240

$93,190

$121,440

$86,070

$135,040

$136,230

$142,200

$148,600

$127,610

$48,370

$50,320

$55,840

$55,440

$50,830

$41,940

$43,160

$47,470

$49,140

$43,870

AUSTIN, TX DALLAS, TX DENVER, CO LOS ANGELES, CA SALT LAKE CITY, UT

$65.91

$61.05

$72.21

$62.04

$59.58

$17.76

$19.93

$20.99

$21.47

$20.58

$18.26

$18.48

$21.44

$19.80

$19.73

$18.01

$17.85

$20.56

$19.56

$19.47

$18.69

$19.92

$24.08

$21.58

$19.40

Major Attractions

Parks & Recreation

+ Arrowhead Mall

+ 50+ Golf Courses

+ Castle Hot Springs Resort

+ Estrella Mountain Regional Park

+ Desert Diamond Arena

+ Lake Pleasant Regional Park

+ Desert Caballeros Western Museum (Smithsonian Affiliate)

+ Skyline Regional Park

+ White Tank Mountain Regional Park

+ Desert Diamond Casino White Tanks

+ Desert Diamond West Valley Casino

+ Mattel Adventure Park

+ Park West

Sporting Venues

+ P83 Entertainment District

+ Five MLB Spring Training Stadiums: > Camelback Ranch (White Sox & Dodgers) > Goodyear Ballpark (Guardians & Reds) > Maryvale Baseball Park (Brewers) > Peoria Sports Complex (Mariners & Padres) > Surprise Stadium (Rangers & Royals)

+ Six Flags Hurricane Harbor

+ Talking Stick Resort Amphitheater

+ Tanger Outlets

+ Topgolf – Glendale

+ VAI Resort

+ Vee Quiva Casino

+ Phoenix Raceway (host to NASCAR)

+ Village at Prasada

+ State Farm Stadium (Arizona Cardinals)

+ Westgate Entertainment District

+ Wigwam Resort & Spa

+ Wildlife World Zoo, Aquarium & Safari Park

The West Valley’s proximity to global ports of entry in Long Beach and Los Angeles continues to attract major companies from California’s Inland Empire. The region is cost competitive with a one-truck day turnaround from the West Coast, combined with a business- friendly state approach that continues to attract advanced manufacturing. The robust and modern freeway system connects to labor markets and supply chains in greater Arizona. Strategic Location

Flight Times

1 HOUR

2 HOURS

3 HOURS

4 HOURS

Population Reach from Phoenix

2024 POPULATION

2029 POPULATION

2024 POPULATION

2029 POPULATION

DISTANCE

5,654,841

5,924,773

40,697,688

41,245,524

100 MILES

500 MILES

7,466,810

7,753,373

50,719,771

51,576,542

600 MILES

200 MILES

15,404,147

15,875,797

64,654,664

65,792,618

300 MILES

700 MILES

34,706,077

35,094,635

67,710,437

68,932,930

400 MILES

800 MILES

Source: Esri, 2022.

Highway and Rail

LEGEND

RAILWAYS 1-DAY HIGHWAY DELIVERY 2-DAY HIGHWAY DELIVERY 3-DAY HIGHWAY DELIVERY

SALT LAKE CITY

DENVER

BAY AREA

LAS VEGAS

INLAND EMPIRE

ALBUQUERQUE

PHOENIX

SAN DIEGO

DALLAS

TUCSON

EL PASO

SANTA ANA

HOUSTON

CHIHUAHUA

Highway Travel Times from Phoenix

LOS MOCHIS

TORREON MONTERREY

CITY

MILES HOURS

MAZATLAN

125

1.8

TUCSON

CIUDAD VICTORIA

285

4.1

LAS VEGAS

310

4.1

INLAND EMPIRE

350 4.8

SAN DIEGO

440 6.0

EL PASO

475

6.3

ALBUQUERQUE

635

11.0

SALT LAKE CITY

750 12.0

BAY AREA

1,120 15.0

DALLAS

1,185 17.5

HOUSTON

Source: Greater Phoenix Economic Council.

West Valley software companies grew by 30% from 2023 to 2024 and includes:

Autonomous Support

Open Tech Alliance

BusinessWare Services

Promineo Tech

Cognizant

Sun Stream Global

Cottonwood Software

TCR Software

eDoctorWeb

Time Clock GO

Embark IT

TRA Fleet Management

Exponent

Tranzact Global

GoenTech Solutions

Vantari Genetics

Honeywell Aerospace

Versatile Software

Nextiva

Workamajig

In addition, the West Valley is home to eight enterprise companies:

Aerspace Defense

Nikola Motor Company

Amazon Web Services

Stream Data Centers

DHL Supply Chain

T Mobile Tech Hub

Microsoft Data Center

Vantage Data Centers

Source: West Valley Innovation Alliance.

Office The West Valley’s office footprint accounts for 16.2% of the metro’s total office inventory with 17.2 million sq. ft. Comprised primarily of corporate headquarters and major users that occupy significant space, the West Valley office market offers competitive lease rates in some of the fastest growing suburbs in Metro Phoenix. With 1360 N Bullard Ave now completed in Goodyear, the West Valley is home to an additional 26,124 sq. ft. of office space. West Valley Commercial Real Estate (2024)

Total Inventory (SF) 17,234,428

Vacancy Rate 24.9%

Asking Rent (FSG/Annual)

New Supply (SF)

$24.41

26,124

WEST VALLEY

106,404,929 23.0%

$31.14

404,922 PHOENIX METRO

PHOENIX METRO

Source: CBRE Research, Q4 2024. Submarket estimates aggregate to the West Valley.

Industrial The industrial sector has a strong presence in the West Valley due to the large labor pool, strategic location, and relative affordability compared to coastal markets. West Valley industrial space accounts for 55.9% of metro-wide inventory, and an additional 10.8 million sq. ft. of space is currently underway. Notable projects in the development pipeline include Taiwan Semiconductor’s fabrication plant at Pinnacle Peak, Amkor’s semiconductor packaging and test campus in Peoria and Microsoft’s data center expansion in El Mirage. The West Valley remains one of the hottest industrial markets in the U.S.

Total Inventory (SF) Vacancy Rate 245,021,230 11.9%

Asking Rent (FSG/Annual) New Supply (SF) $0.93 10,840,960

WEST VALLEY

438,691,064

11.2%

$1.00 15,877,007

PHOENIX METRO

Retail Booming population growth continues to attract new retailers to the West Valley, particularly grocers, restaurants and fitness users. The West Valley’s retail base is 53.9 million sq. ft., with another 551,732 sq. ft. in development. This includes Verrado Marketplace, a 500,000 sq. ft. premier shopping and entertainment destination in Buckeye, slated to open in Spring 2026. Retail assets are poised to grow at a strong pace as new residents flock to several new and existing master-planned communities in the West Valley, each with built-in retail amenities. West Valley Commercial Real Estate (2024)

Total Inventory (SF) 53,972,638

Vacancy Rate

Asking Rent (FSG/Annual)

New Supply (SF) 551,732 WEST VALLEY

5.5%

$17.73

WEST VALLEY

152,989,887

5.7%

$18.25

1,075,695 PHOENIX METRO

PHOENIX METRO

Source: CBRE Research, Q4 2024. Submarket estimates aggregate to the West Valley.

Medical Office The West Valley’s medical office footprint accounts for 33.1% of the metro’s total inventory with 9.2 million sq. ft. Strong demographics in the West Valley, supported by robust population growth and housing starts continue to fuel demand for medical office space. This is evident by the West Valley’s vacancy rate, which is 250 basis points below (bps) the Phoenix metro average. Roughly 100,000 sq. ft. of new medical office product was completed in 2024, headlined by Buckeye Medical Plaza.

Total Inventory (SF) 9,152,837

Vacancy Rate 12.9%

Asking Rent (FSG/Annual)

New Supply (SF) 100,000 WEST VALLEY

$24.19

WEST VALLEY

27,686,395 PHOENIX METRO

15.4%

$25.47

240,136

PHOENIX METRO

For more information about this report, please contact:

CATHY TEETER Managing Director CBRE +1 602 735 5603 cathy.teeter@cbre.com

SINTRA HOFFMAN President and CEO WESTMARC +1 623 680 0645 shoffman@westmarc.org

© Copyright 2025. All rights reserved. Information contained herein, including projections, has been obtained from sources believed to be reliable, but has not been verified for accuracy or completeness. Westmarc and CBRE, Inc. make no guarantee, warranty or representation about it. Any reliance on such information is solely at your own risk. This information is exclusively for use by Westmarc CBRE clients and professionals and may not be reproduced without the prior written permission of CBRE’s Global Chief Economist. Westmarc, CBRE, the Westmarc logo and the CBRE logo are service marks of Westmarc and CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

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