One of the primary drivers of infill value is land scarcity. In core areas of Phoenix, Tempe, and Scottsdale, large undeveloped parcels are increasingly rare. As a result, centrally located sites near employment centers, transit, and amenities are becoming more desirable, even as acquisition costs rise. Developers are willing to pay a premium for these locations because they reduce entitlement risk and offer built-in demand.
Infrastructure efficiency is another key factor. Infill sites benefit from existing roads, utilities, transit access, and public services, significantly lowering the cost and timeline of development compared to greenfield projects. These efficiencies help offset higher land prices and make dense, mixed-use projects more financially viable.
Market demand is also shifting in favor of infill locations. Tenants and residents increasingly prioritize walkability, shorter commutes, and access to dining, healthcare, and services. Office users are downsizing footprints but seeking better locations. Multifamily renters are choosing urban convenience, while medical and retail tenants value visibility and accessibility within established communities.
Zoning flexibility and adaptive reuse are further accelerating infill activity. Municipalities are updating zoning codes and encouraging redevelopment of underutilized properties, allowing higher density and mixed-use configurations. Older office buildings, shopping centers, and industrial sites are being reimagined to meet modern needs.
As Arizona continues to grow, infill development is no longer a niche strategy—it’s a core economic driver. Urban land is gaining value not just because of where it is, but because of what it enables: efficient, connected, and resilient commercial development built for the future.
PLAZA COMPANIES IS THE PREMIER CHOICE IN COMMERCIAL REAL ESTATE
Plaza Companies is a full-service real estate firm specializing in the leasing, management, construction, and development of some of the most innovative medical office and commercial real estate projects in Arizona. Our firm specializes in staying connected and conscientious of all emerging trends in commercial real estate. Contact us today to learn more about leasing the right space or anything else we offer!