This owner-user conversion shows demand for industrial space from a company serving data center and semiconductor construction.
The Nox Group bought a 128,000 SF industrial building at 1255 W. Washington St. in Tempe's Arroyo complex and is converting it into its headquarters.
It also leased 98,000 SF of manufacturing space at 1330 W. Warner Road. The purchase price was not disclosed.
Nox plans $30M of upgrades: plumbing, a new roof and reinforced concrete throughout, plus a pickleball court, wellness rooms and a patio. Gensler is the architect.
The industrial construction enterprise is approaching $1B in revenue in 2026, according to Phoenix Business Journal. It serves data center, water treatment and semiconductor projects. Completion is expected in summer 2027.
An owner-user buying for function does not price like an investor, so this is not a clean comp for landlords. It does show end-user demand competing for shells in Phoenix. For a lender, the collateral question is resale: reinforced floors and bespoke amenities can appeal to fewer buyers. Ask what share of the $30M is structural and reusable and what is company-specific.
Key Takeaways
- End-user conversions take industrial shells off the investor market, and heavy customization can narrow what the building is worth to the next buyer.
- $30M over 128,000 SF is about $234 per SF of upgrades (derived), on top of an undisclosed purchase price
- The two Tempe sites total about 226,000 SF (derived)
- The $30M budget and revenue figures are as reported by the Phoenix Business Journal through Connect CRE
Phoenix Business Journal — Valley firm set for rapid expansion, Oct. 9, 2026 https://www.bizjournals.com/phoenix/news/2026/10/09/valley-firm-set-for-rapid-expansion.html · Connect CRE — Tech High-Flyer Converting Tempe Warehouse into HQ, Oct. 12, 2026 https://www.connectcre.com/stories/tech-high-flyer-converting-warehouse-into-new-hq/ · Nox Group — company overview https://noxgroup.us/
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