A national pediatric autism therapy provider has signed a 10-year lease for 9,691 square feet at Terraza Medical Village in San Tan Valley, marking the group’s entry into one of the fastest-growing healthcare submarkets in metropolitan Phoenix.
The tenant will occupy Suite 201, the full second floor of Building 3, at 40201 North Gantzel Road. The commitment brings Building 3 to full occupancy.
Michael Douglas, CCIM and Mary Nollenberger of the ICRE Investment Team at ORION Investment Real Estate represented the landlord in the transaction. Julie Harris of Locate AI represented the tenant.
The lease reflects a widening gap between healthcare demand and available medical space across the Southeast Valley. San Tan Valley grew 44 percent between 2010 and 2020, and the growth has not slowed. Within three miles of Terraza Medical Village, 63,313 residents are projected to reach 75,433 by 2029. The five-mile population of 118,916 is projected at 141,808, and the ten-mile population stands at 346,426 with a daytime population of 386,450.
Household economics are equally supportive. Average household income measures $139,258 within three miles and $144,586 within ten, against a median age of 37.4 and average household size of 3.1 — a young, family-heavy profile that drives pediatric and primary care demand. The trade area counts 126,587 housing units within ten miles. (Source: SitesUSA, 2024.)
Supply has not kept pace. Physician-services spending indexes at 169 and dental at 149 within three miles, supporting an estimated $671 million in annual healthcare spending. Yet the area supports only about 15.6 health establishments per 10,000 residents, against a national norm of 25 to 30 — roughly half the provider density of a typical U.S. market.
“The rooftops got here well ahead of the exam rooms, and providers are finally catching up,” said Michael Douglas, CCIM, Senior Vice President with ORION Investment Real Estate and leader of the ICRE Investment Team. “Families in San Tan Valley and Queen Creek have been driving twenty and thirty minutes for care that ought to be five minutes from home. When you have a median age of 37, three-person households, and roughly half the healthcare establishments per capita that the rest of the country has, the demand isn’t speculative — it’s already here and underserved. That’s what national operators are responding to, and it’s why we’re seeing decisions made faster and terms committed to longer than we would have seen in this submarket even two years ago.”
Momentum at Terraza Medical Village
Leasing across the five-building campus has accelerated sharply. Buildings 3 and 5 are now fully leased, with Building 5 occupied by dermatology, oncology and family primary care practices. Building 4 has a
single remaining opportunity — Suite 101 at ±3,165 rentable square feet — the last remaining space of its size at the project. Tri-City Cardiology is among the providers already operating at the campus.
Located at the southeast corner of Gantzel and Ocotillo roads, Terraza Medical Village sits within 25 minutes of Phoenix-Mesa Gateway Airport, Banner Ironwood Medical Center, Dignity Health Mercy Gilbert Medical Center, Banner Heart Hospital, HonorHealth Mountain Vista Medical Center and Dignity Arizona General Hospital, alongside established providers including Ironwood Women’s Centers and Southwest Kidney Institute.
The Class-A campus is surrounded by more than a dozen active residential developments from Pulte, Taylor Morrison, Tri Pointe, Meritage, Shea, Ashton Woods, Beazer and Lennar, representing tens of thousands of planned units within the immediate trade area.
Additional information on the project and remaining availability is available at terrazamedicalvillage.com.
About the ICRE Investment Team
The ICRE Investment Team, led by Michael Douglas, CCIM, is part of ORION Investment Real Estate and specializes in healthcare and commercial investment properties throughout Arizona. The team provides advisory services including acquisition strategy, site selection, investment underwriting, and transaction management for investors and healthcare operators.
The team works with commercial investors, property owners, companies, banks and commercial loan servicers across the greater Phoenix, Scottsdale, Mesa, Tempe and East Valley markets, with medical office and healthcare real estate as a core focus.
Michael Douglas, CCIM
Senior Vice President | Leader, ICRE Investment Team
ORION Investment Real Estate
Office: (480) 977-2935
Email: michael.douglas@orionprop.com
