January 2025 Phoenix MSA Market Recap
Phoenix continues to demonstrate strong economic growth, cementing its position as a leading hub for innovation, infrastructure development, and job creation. This momentous month’s updates provide a snapshot of the region’s transformation, with key developments in aviation, technology, and higher education.
Phoenix Tops Site Selection List for New Headquarters
Phoenix was ranked as one of the top cities in the U.S. for headquarters site selection. The report also ranked for the top three cities for headquarters – Dallas, Charlotte, and Atlanta. Companies are drawn by the region’s favorable tax policies, access to a highly skilled workforce, and strategic location. The report highlights that Phoenix is particularly attractive to firms in tech and manufacturing, bolstered by its proximity to key markets in California and Mexico. In 2024, the top county in the U.S. for economic growth from job growth and investments was Maricopa County. With its infrastructure and talent pipeline evolving rapidly, the city is well-positioned to maintain this momentum throughout 2025. (Phoenix Business Journal).
Gulfstream Invests $130M in Mesa Gateway Airport Expansion
Gulfstream Aerospace Corp. unveiled a $130 million service center at Mesa Gateway Airport, further solidifying the Phoenix area’s position as a key player in the aviation industry. Derek Zimmerman, Gulfstream’s president of customer support, said, “We saw high demand from consumers and lots of job applications.” Currently, Gulfstream has over 250 employees in Mesa, with plans to hire up to 400. The new facility, which spans over 225,000 square feet, is expected to bring hundreds of high-paying jobs to the region.
This marks a significant step in Mesa’s economic development strategy, as the airport continues to attract major investments and boost connectivity. (PBJ). Gulfstream has over 3,200 aircraft operations across the world, and now Mesa can service up to 13 jets at once at this new facility, per KJZZ.
“Gulfstream’s opening of the new Mesa Service Center highlights our strategic vision of providing the industry’s most modern service network. It’s sustainably designed with serving customers whenever and wherever needed,” said the president of Gulfstream, Mark Burns. (GPEC).
ASU Completes $78M Gateway Building in Tempe
Arizona State University has completed construction on its $78 million University Gateway building in Tempe. This state-of-the-art, 128,000-square-foot, five-level facility will serve as a hub for innovation, offering cutting-edge resources for students and researchers. The building consists of classroom, administrative, mixed-use, and retail space. The project underscores ASU’s commitment to fostering growth in science, technology, and entrepreneurship, aligning with the broader economic goals of the Phoenix metro area. (AZ Big Media and YourValley.net).
Phoenix: An Emerging Tech Innovation Powerhouse
Phoenix is evolving into a leading tech innovation region, with initiatives like the Tesoro VC Accelerator and a surge in venture capital funding paving the way for new startups. Andy Lombard, founder and CEO of Tesoro.vc said “Arizona is at the point of becoming a global startup leader.” Phoenix Mayor Kate Kallego said, “With strong interest, growth, and ideation thriving across the semiconductor, climate-tech, and healthcare industries, there’s never been a better time than now to invest in and scale the top-tier companies emerging from Phoenix.” Greater Phoenix has attracted over $1 billion in venture capital investments every year for the last seven years. The city’s vibrant entrepreneurial ecosystem is supported by a growing pool of talent, thanks in part to its universities and corporate partnerships. (AZ Big Media and GPEC).
Phoenix Shines in 2025 Best Jobs Report
Phoenix earned national recognition in the 2025 U.S. News Best Jobs Report, with several professions in the region ranked among the top careers for growth and quality of life. The Valley is one of the top five highest-paying cities in the U.S. for radiologists ($434,700), biomedical engineers ($122,920), and fundraisers ($90,550). The report highlights the city’s strengths in healthcare, technology, and skilled trades, reflecting its diversified economy and robust job market. With a median salary increase of 4.6% year-over-year and steady job growth accounting for nearly 70% of state gains across key industries, Phoenix continues attracting professionals seeking career advancement and competitive wages. These trends underscore the city’s growing reputation as a leading destination for top talent. (PBJ).
Semiconductor Advancements: ASU Receives CHIPS Act Funding
Arizona State University was selected to host a national facility for advanced semiconductor packaging, funded by the CHIPS Act. It’s expected to operate in the fourth quarter of 2028 at the earliest, bringing hundreds of new jobs and billions of dollars in investment to the Phoenix market. (ASU News). This $1.1 billion development positions Phoenix as a critical player in the semiconductor industry, which is essential to national security and technological innovation.
ASU’s Ira A. Fulton Schools of Engineering is the largest engineering school in the U.S., with over 33,000 students and 600 faculty members. They plan to support the facility through core research facilities and state-of-the-art labs. The facility will focus on research and workforce training, helping address the global chip shortage while bolstering Arizona’s economy. (PBJ).
KeenStack Launch Reinforces Phoenix’s Role as a Tech Innovation Hub
The launch of KeenStack, a Phoenix-based data analytics platform, highlights the city’s growing reputation as a hub for technological innovation and economic development. Valley tech entrepreneur Thiru Thangarathinam said KeenStack is ambitious to scale into a $50 million company within the next five years. In the same time, he anticipates creating around 400 employees in the Chandler and Phoenix region. Designed to streamline data visualization and decision-making for companies, KeenStack helps businesses implement and manage ServiceNow platforms.
Thangarathinam told AZ Inno, “An area of key focus at KeenStack is that there’s a lot of efficiency to be gained when leveraging AI capabilities of ServiceNow.” This addition to the Valley’s tech ecosystem reflects Phoenix’s strategic emphasis on fostering startups and attracting investment in emerging technologies. With a robust infrastructure and support for entrepreneurial ventures, the region continues to position itself as a leader in tech-driven economic growth.
conclusion
The Phoenix MSA continues to thrive as a center for economic opportunity and innovation. From major investments in aviation and semiconductor technology to groundbreaking advancements at Arizona State University, the region is poised for sustained growth. These developments reflect the resilience and dynamism of the local economy, offering exciting opportunities for businesses and residents alike.
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