Anchor Health Tops Out 100 KSF Phoenix MOB

Anchor Health Properties has topped out HonorHealth Medical Campus at Peoria, a 100,000-square-foot medical office building in Peoria, Ariz. Project partners also include health-care provider HonorHealth and SMIL, a physician-owned provider of imaging services.

Architecture companies DAVIS and ArchSol, together with construction management firm Oakland Construction, are part of the development team. The project broke ground in November and is slated for delivery in early 2025.

As of April, Phoenix had a total of 48 medical office buildings various stages stages of development, set to add approximately 4.8 million square feet to the existing inventory, CommercialEdge data shows.

HonorHealth Medical Campus at Peoria, up close

Upon completion, the Class A, three-story facility will host a variety of services such as cancer care, primary care, physical therapy, gastroenterology, breast surgery, outpatient surgery and medical imaging, among others. HonorHealth and SMIL will be on the property’s tenant roster.

HonorHealth Medical Campus is taking shape on the east side of the Loop 101 on 83rd Avenue, between Thunderbird Road and Bell Road. Downtown Phoenix is some 16 miles southeast of the site. Other health-care providers in the surrounding area include Digestive & Liver Disease Center, Star Surgery Center, Phoenician Primary Care and Banner Thunderbird Medical Center, among others.

Outpatient development doesn’t seem to be as affected by macroeconomic factors as other sectors, hence some perspectives remain fairly optimistic. Mervyn Alphonso, executive vice president of development and acquisitions at Anchor Health, previously told Commercial Property Executive that medical outpatient construction has been on the rise since 2022 and peaked last year; for this year, he expects the construction volume in the sector to be fairly steady.