General Contractor Eyes Expansion In Phoenix's Growing CRE Scene

Phoenix has risen as one of the top cities for commercial real estate development in the past few years, and this momentum is not expected to stop any time soon.

Bolstered by a growing population, an active industrial market and its status as an entertainment hub, Phoenix is an attractive place for businesses and families to live and grow.

General contracting firm PCL Construction has worked on civil infrastructure projects in the Phoenix area for more than 30 years. PCL District Manager David Campbell said the company is establishing an even larger footprint in the region due to its dynamic market and diverse economy.

PCL has seen rising demand for entertainment and commercial projects in Phoenix while also recognizing the city’s rapid emergence as a hub for data centers and advanced manufacturing, a trend that has gained momentum in recent years, Campbell said.

Campbell shared with Bisnow three key reasons why PCL is confident Phoenix will remain a high-growth market.

A Thriving Hospitality Industry

Phoenix represents a significant growth opportunity for hospitality construction, and PCL sees itself as well-positioned to meet that demand. With more than 45 million tourists visiting Arizona in 2023 and spending over $29B, the state’s hospitality sector plays a vital role in driving both economic growth and community development, Campbell said. 

Additionally, a recent study by Lodging Econometrics ranked Phoenix in the top five markets with the largest hotel construction pipelines.  

“Tourism and leisure travelers account for up to 70% of hotel revenue, underscoring the need for facilities that are not only functional but also compelling and experience-driven,” Campbell said.

As one of the largest general contractors in North America, PCL brings deep hospitality expertise and long-standing client relationships to the Phoenix market. And as Phoenix’s population continues to grow and attract more visitors, the need for innovative, sustainable and guest-centric hospitality infrastructure will only accelerate, Campbell added.

“With our proven track record and local market knowledge, we’re ready to help shape the next generation of hospitality spaces in the Valley,” he said.

The Rise Of Aviation Projects 

Not only does PCL see hospitality as a big part of Phoenix’s growth, but aviation and hospitality are also bubbling to the surface. Phoenix is currently the sixth-largest finance and insurance cluster in the U.S., made up of over 1,200 companies.

“As the region becomes a leading business center, there’s also an expected increase in both business and commercial travel,” Campbell said.

Phoenix has allocated $2B through 2028 for capital improvements across four regional airports, creating the opportunity for new aviation projects. And since tourism is a major driver of hotel revenue in the city, PCL views this as another important market.

A Mission-Critical Future

PCL has been recognized as a leader in mission-critical infrastructure, with more than 120 projects in its portfolio. Tyler Kautz, PCL’s newly appointed vice president of data centers and mission critical, said major technology, semiconductor and infrastructure firms are positioning Arizona as a hub for critical manufacturing and data centers.

Several hyperscale operators, like Microsoft, Google, Meta and Amazon Web Services, have acquired hundreds of acres across the region to build out massive campuses. The area offers several strategic advantages: a low risk of natural disasters, access to clean energy through providers like APS and SRP, and a business-friendly environment that supports long-term infrastructure investment. 

“Phoenix has become a cornerstone of the country’s digital infrastructure,” Kautz said. “PCL wants to be part of the projects that help generate billions in economic impact while creating new opportunities in both construction and the digital economy.”

Looking ahead, Campbell said the company’s goal is to build essential projects that strengthen Phoenix’s economy, support its communities and enhance its resilience for decades to come. 

“With the ability to deliver across buildings, civil and industrial sectors, we’re uniquely positioned to support the region’s rapid growth,” he said. “From commercial, hospitality and aviation projects to advanced manufacturing, technology facilities and essential water infrastructure, PCL can deliver innovative and transformative solutions.”

This article was produced in collaboration between PCL Construction and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.