Phoenix Medical Office Market Update: New Healthcare Projects from Buckeye to Gilbert (November 2026)

Healthcare real estate activity across the Phoenix metro in late 2026 points in one direction: medical services continue to follow population growth. In the West Valley, that means new hospitals, freestanding emergency departments and clinics opening closer to newer neighborhoods. In the East Valley, it means well-leased medical office buildings trading to institutional buyers and older office properties being converted into clinical space. This update summarizes recent, verifiable projects and transactions and what they mean for physicians, practice administrators and property owners.

What is happening in the Phoenix medical office market right now?

Short answer: Demand remains steady. Transwestern's Q2 2026 Phoenix healthcare market report recorded 130,000 square feet of net absorption, a direct vacancy rate of 13.3%, an average asking net rent of $25.24 per square foot, and roughly 475,000 square feet under construction across the metro.

The same report noted that quarterly medical office sales volume reached $153 million in Q2 2026, its highest level since Q4 2024, and that orthopedic, cardiovascular, spine, oncology and behavioral health practices were among the most active occupiers. Demand is strongest in fast-growing suburban submarkets where hospital and outpatient infrastructure is still expanding.

What new healthcare projects are planned in the West Valley?

Short answer: The largest recent announcement is a planned 40-bed inpatient rehabilitation hospital in Glendale, and Banner Health is opening a new outpatient and emergency campus in Buckeye.

Dignity Health and Lifepoint Rehabilitation in Glendale

In late October 2026, Dignity Health and Lifepoint Rehabilitation announced plans for a 40-bed inpatient rehabilitation hospital on the campus of Dignity Health St. Joseph's Westgate Medical Center, 7300 N. 99th Ave., Glendale. The project still requires regulatory approvals, and the partners project an opening in the second half of 2028. It would be the joint venture's third rehabilitation hospital in the Valley, following facilities in Chandler and Gilbert. Hospital campus investments like this often draw physician groups, therapy providers and other outpatient users to nearby medical office space.

Banner Health Center Plus Verrado in Buckeye

Banner Health Center Plus Verrado, 20751 W. Market St., Buckeye, opens November 16, 2026, with a public open house on November 13. The campus includes primary care, endocrinology, imaging, a lab and a 24-hour freestanding emergency department. Gastroenterology, nonsurgical orthopedics, sports medicine and behavioral health are planned for 2027. Banner has stated that the campus is not the full-service hospital once discussed for the site, but it brings emergency and everyday clinical care much closer to Verrado and the surrounding Buckeye communities.

Which healthcare tenants are opening new locations in the Phoenix area?

Short answer: Recent openings and announced locations include autism therapy, dental, family medicine and freestanding emergency operators, spread from Buckeye to Queen Creek to Scottsdale.

• ACES (autism therapy), Buckeye: ACES lists a new Buckeye center at 6213 S. Miller Rd., Suite 113, with an opening expected in early 2027. • Heartland Dental, Queen Creek: Heartland Dental is opening a new supported office, Power Heights Dental Care, at 23773 S. Power Rd., Suite 101, in March 2027. • MY DR NOW, Scottsdale: On November 9, 2026, MY DR NOW opened a family medicine clinic at 6339 E. Greenway Rd., Suite 107, in the Fry's center at 64th Street and Greenway. The clinic is open seven days a week. • Instinctive Health, Phoenix and Tempe: Instinctive Health lists two locations as coming soon: 5314 N. 7th St. in Central Phoenix and 7305 S. Kyrene Rd. in South Tempe. Opening dates have not been published.

Together, these moves show the types of users currently competing for neighborhood retail and medical office space: specialty therapy, dental, primary care with extended hours, and emergency or urgent care formats.

What did recent medical office sales in Gilbert and Mesa sell for?

Short answer: Copper Point in Gilbert sold for $51.5 million in June 2026, the largest medical office sale of the year to date, and Stapley Medical Center in Mesa sold for $48 million in the same quarter, according to Transwestern.

Copper Point, Gilbert

Fidelity Investments acquired Copper Point, a Class A medical office building at 3530 S. Val Vista Dr., Gilbert, for $51.5 million in June 2026, according to Transwestern's Q2 2026 report. Transwestern lists the building at 93,262 square feet and the price at about $552 per square foot, and reports that the property traded 43% above its prior sale price of $386 per square foot in March 2025. The sellers were Transwestern Investment Group and RX Health & Science Trust. Local coverage described Copper Point as a fully leased, three-story building anchored by City of Hope, across from Dignity Health Mercy Gilbert Medical Center.

Stapley Medical Center, Mesa

Stapley Medical Center, 1840 and 1910 S. Stapley Dr., Mesa, sold to RX Health & Science Trust for $48 million in June 2026, per Transwestern. The report lists the property at 176,842 square feet, or about $271 per square foot.

What these sales signal

Institutional buyers continue to pay a premium for medical office buildings that are fully leased, anchored by recognized health systems or specialty groups, and located near hospital campuses. For owners of comparable buildings, these sales are useful reference points; for practices, they show why space in hospital-adjacent buildings can be competitive.

Can empty office buildings be converted into medical office space in Phoenix?

Short answer: Yes, when the building fits. Conversions are becoming a meaningful source of new medical space, but not every office building is a good candidate.

AZ Big Media reported on the trend in November 2026, citing ViaWest's Chandler Integrated Care Campus, a conversion of the former Countrywide Financial headquarters for HonorHealth, as a local example. Transwestern's report also notes that adaptive reuse of underused office and retail buildings can offer faster delivery and lower development costs than ground-up construction.

Whether a conversion works usually comes down to physical factors:

• Parking: Medical uses typically need more parking than general office. • Plumbing: Exam rooms, procedure rooms and labs need sinks and drain lines throughout the suite. • Power and HVAC: Imaging and specialized equipment can require upgraded electrical service and dedicated cooling. • Floor loads and structure: Heavy equipment may require structural review. • Zoning and access: Local zoning, accessibility and patient drop-off all affect feasibility.

Frequently asked questions

Is the Phoenix medical office market growing? Yes. Transwestern's Q2 2026 report showed positive net absorption, declining direct vacancy and about 475,000 square feet under construction, with 190,000 square feet of that underway in Scottsdale.

Where is new healthcare development happening in the West Valley? Recent examples include Banner Health Center Plus Verrado in Buckeye and the planned Dignity Health and Lifepoint rehabilitation hospital at St. Joseph's Westgate in Glendale.

What is the average asking rent for medical office space in Phoenix? Transwestern reported an average asking net rent of $25.24 per square foot in Q2 2026. Actual rents vary by submarket, building age, hospital proximity and lease terms.

What was the largest medical office sale in Phoenix in 2026? According to Transwestern, the $51.5 million sale of Copper Point in Gilbert was the largest medical office sale of 2026 as of its Q2 report.

Medical Office Brokers helps healthcare tenants, buyers and sellers across the Phoenix metro lease, buy and sell medical office space.

Have questions about leasing or purchasing medical office space in Arizona? Give us a call at 602.456.2209. We’d be happy to talk through your options. - Medical Office Brokers

Sources

• Transwestern Q2 2026 Phoenix Healthcare Report: https://i.transwestern.com/71e20b7b-e39b-42bf-9846-325b22fd57ac/23d35be4-5d14-4483-9098-3d8888e13894.pdf • Lifepoint Health: https://www.lifepointhealth.net/news/2026/10/29/dignity-health-and-lifepoint-rehabilitation-announce-plans-for-new-inpatient-rehabilitation-hospital-in-west-phoenix • Verrado Way: https://www.verradoway.net/news/banner-health-verrado-opens-november-16-with-appointments-now-available • ACES: https://acesaba.com/locations/buckeye • Heartland Dental: https://jobs.heartland.com/job/34644/general-dentist-queen-creek-arizona-general-dentist-us-az-queen-creek-3695/ • PR Newswire: https://www.prnewswire.com/news-releases/my-dr-now-opens-at-64th-street-and-greenway-where-family-medicine-doesnt-stop-at-friday-302929124.html • Instinctive Health: https://instinctivehealth.com/locations/ • Arizona Digital Free Press: https://arizonadigitalfreepress.com/copper-point-medical-office-building-sells-in-gilbert/ • AZ Big Media: https://azbigmedia.com/real-estate/arizonas-empty-offices-could-become-healthcare-goldmines/

Have questions about leasing or purchasing medical office space in Arizona? Give us a call at 602.456.2209. We’d be happy to talk through your options. - Medical Office Brokers