Commercial Real Estate News / Buying / Top 5 Cities to Buy Land for Sale in Arizona

Top 5 Cities to Buy Land for Sale in Arizona

Published: 10-25-23 Category: Buying

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

A plot of land in Arizona during the day.

Thanks to its rapidly growing population, Arizona continues to draw the attention of commercial real estate investors as land sales rise and ground lease activity grows.

Its many uses, recession-resistant qualities, and capacity to naturally appreciate in value over time make land one of the more sought-after asset classes for today's investors, and Arizona's land market is ripe for the picking.

Here, we'll cover the top five cities for buying land for sale in Arizona, based on land prices, demand, tax rates, and incentives for development. We'll discuss Arizona's land market as a whole and answer some frequently asked questions about the state's supply.

Let's get started.

#1 – Casa Grande

Casa Grande was originally a mining town in the 1800s, and its mining industry forms the keystone of its economy, even today.

The city has seen notable population growth, and much of the land for sale in Casa Grande, AZ is up for development in its industrial corridor.

Major industrial distribution centers currently in the city include Abbott Nutrition, Frito Lay, and Wal-Mart.

Moreover, because Casa Grande sits between Tucson and Phoenix, it doubles as an important transportation and logistics center. Casa Grande's cost of living is also slightly below the national average, making it an affordable place to own a home and live.

#2 – Eloy

Buying land for sale in Eloy may lead you to more passive profit thanks to the city's location on the I-10 industrial corridor.

Eloy has positioned itself as a major transportation hub for interstate commerce and has recently welcomed a number of major industrial tenants in the past few years, such as National Gypsum and Otto Industries.

Eloy is also well-suited for agriculture thanks to its location in the Santa Cruz Riverbed, making its farming and pasture land for sale viable investment options.

#3 – Douglas

Douglas is located in Cochise County, right next to the US-Mexico border. The city is a historic mining town and still produces silver, gold, and lead, and its location on the Mexican border makes Douglas a regional center for international trade.

The city recently began work on a new commercial port of entry that's estimated to bring in an additional $10 to $20 million in revenue per year. The new commercial port of entry aims to increase trade, transportation, and tourism.

#4 – Tucson

Tucson, the largest city on this list, currently boasts affordable land prices that are experiencing solid growth: Land prices in Tucson grew 21% between 2021 and 2022.

With over 1.8 million square feet of industrial space under development, land for warehousing, manufacturing, and distribution in Tucson will be in high demand.

The city government also provides construction tax reimbursements for land owners and can provide up to 8 years of tax abatements for commercial property projects in central business districts.

#5 – Yuma

Located midway between San Diego and Phoenix, Yuma has a population of about 77,000 and experiences 300 days of sunshine, granting it status as one of the sunniest cities on earth.

Like many other cities in Arizona, Yuma has a lot of industrial land for sale near the Interstate 8 Corridor.

Yuma is also a major agricultural producer, so buying farmland for sale in Yuma can be a high-yield investment. The city also provides several economic incentives for developing commercial land, including construction tax savings and utility fee savings.

What's the Average Cost per Acre of Land for Sale in Arizona?

Top 5 Cities to Buy Land for Sale in Arizona

According to the USDA's 2023 Land Values Report summary, the average cost of an acre of farmland in Arizona is approximately $4,200. The average value of cropland in Arizona is $8,600 per acre.

No matter where you're looking to buy land, make sure you work with a commercial real estate broker. A broker on your investment team can:

Analyze land financials;
Draft letters of intent;
Gather environmental reports and disclosures; and
Explore land financing options.

Working with a broker can help you avoid the common pitfalls of buying commercial property and get the most out of your investment.

Where Is the Cheapest Place to Buy Land in Arizona?

Arizona's cost of land is slightly higher than the national average, but Arizona's land prices are still very affordable compared to many other states.

Based on our research, the cheapest place to buy land for sale in Arizona is Cochise County, which has an average land cost of about $2,000 per acre—nearly half the state average.

Is Arizona a Good Place to Buy Land?

From the perspective of a commercial real estate investor, buying land for sale in Arizona can be a smart move. Why? Let's take a look.

#1 – Affordable

Land prices in Arizona are among the most affordable in the country, even as the cost of housing in the state has grown.

Land near major metro areas can be very expensive, but rural farmland doesn't usually cost much to finance. Raw land also has relatively few management and upkeep costs.

#2 – Low Property Taxes

Arizona has a relatively low effective property tax rate of about 0.50%, thanks to laws that limit tax rates on land with owner-occupied homes.

More specifically, Arizona assesses property taxes based on the land's "limited property value" (LPV), not cash value, and laws limit LPV growth to 5% per year.

#3 – Versatile

Without a doubt, land is a versatile resource. Aside from living on it, you can lease your Arizona land to others for several purposes.

Arizona is a big state for game hunting, so you could negotiate leases for hunting and other recreational organizations.

Arizona also produces a lot of copper and silver, and you can lease your land for mineral extraction to make passive income.

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