Peoria, Arizona, is making a strategic pivot away from its long-discussed airpark project in favor of a massive new economic development initiative: the Peoria Innovation Core. This 6,700-acre project, a partnership between the city and the Arizona State Land Department, aims to transform the northern part of Peoria into a major employment hub.
Why Peoria Abandoned the Airpark
After investing $553,000 in feasibility studies, Peoria officials determined that an airpark was no longer a priority. One key factor? The rapid development surrounding Taiwan Semiconductor Manufacturing Co. (TSMC), which has already triggered billions of dollars in investment in the region. The presence of this global tech giant significantly reduced the need for another catalyst like an airport.
Instead of continuing with the airpark, Peoria’s leadership saw an opportunity to work with the Arizona State Land Department on a broader vision. Mayor Jason Beck, a driving force behind the shift, emphasized that this partnership will help create a true employment center within Peoria, an area where 85% of residents currently commute outside city limits for work.
What Is the Peoria Innovation Core?
The Peoria Innovation Core is an ambitious development that will focus on industries such as semiconductors, health care, and defense. To kickstart the project, the city is investing $140 million in infrastructure, with the expectation that developers will reimburse up to $500 million over time. The ultimate goal? To attract businesses, create between 15,000 and 20,000 jobs, and establish Peoria as Arizona’s next major employment hub.
Peoria expects to begin auctioning off sites within the development zone as early as this year, with zoning and infrastructure work already in motion.
Lessons from a Lost Opportunity
This shift didn’t happen overnight. In 2023, Peoria was in the final running for a $4 billion semiconductor plant by SK Hynix, competing against cities in Phoenix, Austin, Indiana, and New York. Arizona ultimately lost out to Indiana, a decision that Mayor Beck attributes in part to poor public messaging around the state’s water supply.
This loss was a wake-up call for Peoria’s leadership, prompting them to reassess their approach to economic development. Instead of relying on outside investment opportunities that can be swayed by political factors, Peoria is now focused on unlocking its own potential through state land development.
What This Means for Real Estate Investors
For investors, Peoria’s shift from an airpark to a job-focused innovation hub signals long-term housing demand growth. More jobs in the area mean more demand for rental properties, potentially leading to higher home values and rental rates.
If Peoria successfully attracts large employers, it could dramatically reduce outbound commuting, making it a more desirable place to live, work, and invest. While the success of the Peoria Innovation Core depends on execution, this is a market investors should watch closely.
Peoria may have lost an airpark, but it’s betting big on something even greater: its economic future. 🚀