Surprise, Arizona, January 30, 2026

Surprise, Arizona, is making headlines with the Department of Homeland Security (DHS) purchasing a $70 million industrial building, marking a significant federal investment. This acquisition signals the city’s growing importance within the Phoenix AZ business landscape and demonstrates an upward trend in economic activity. The 418,000 square foot facility, previously known as the Surprise Pointe Commerce Center, is expected to boost local business potential, although its intended use remains undisclosed. With a steady population increase and notable GDP growth, Surprise continues to emerge as a key player in Arizona’s economic growth narrative.

Surprise Scores Major Federal Investment: DHS Acquires $70M Industrial Hub

Surprise, Arizona, continues its impressive trajectory of growth and development, recently welcoming a significant federal investment that underscores the city’s increasing prominence in the regional economy. The Department of Homeland Security (DHS), through U.S. Immigration and Customs Enforcement (ICE), has acquired a substantial industrial building in Surprise for approximately $70 million. This acquisition highlights the West Valley’s expanding role as a key player in the Phoenix AZ business landscape and points to the potential for further economic activity in the area.

This strategic move by a federal agency into one of Arizona’s fastest-growing cities reflects a broader trend of decentralized economic activity, where communities like Surprise are becoming attractive hubs for diverse operations. Such investments, whether private or governmental, often signal robust infrastructure and a business-friendly environment, contributing to the overall strength of the Phoenix AZ economy.

The Details of a Landmark Acquisition

U.S. Immigration and Customs Enforcement (ICE), operating under the Department of Homeland Security (DHS), completed the purchase of a large warehouse facility in Surprise, Arizona, for approximately $70 million in cash. This transaction was recorded in public property records on January 23, according to Maricopa County property records.

The acquired property is a sprawling industrial building, approximately 418,000 square feet, which is equivalent to the size of more than seven professional football fields. It is situated in the West Valley region, specifically near Sweetwater Avenue and Dysart Road. This facility was previously known as the Surprise Pointe Commerce Center and was designed for multi-tenant industrial use, having been completed just a few years ago.

While the federal authorities have not publicly disclosed the intended purpose for this warehouse, the acquisition has drawn considerable attention and speculation regarding its future use. The City of Surprise indicated it was not informed in advance of the purchase and lacks specific information about future proposals or projects related to the property.

Surprise: A Beacon of Growth in Arizona

Surprise, Arizona, has consistently demonstrated remarkable economic vitality and population expansion, making it an increasingly attractive location for both residents and businesses. The city experienced a 16% population increase since 2020. In 2022, Surprise was ranked as the No. 8 top growth city in America by the U-Haul Growth Index, a position it also held in 2020. This ranking is based on the net gain of one-way U-Haul trucks arriving versus departing. People arriving in Surprise in one-way U-Haul trucks increased more than 6% over 2021, while departures rose only 5%, with arrivals accounting for over 53% of all one-way truck traffic.

Further illustrating its economic strength, Surprise’s Gross Domestic Product (GDP) saw a 42% rise, placing it seventh nationally in one study. The city’s ongoing development is expected to bring more employment opportunities closer to home, potentially reducing the need for longer commutes for its residents. As of 2023, Surprise boasts a diverse economy with key sectors including retail, healthcare, and tourism significantly contributing to job creation, supported by a low unemployment rate of approximately 3.5%.

The city’s commitment to enhancing the quality of life, including expanding recreational facilities and educational opportunities, contributes to its appeal for new residents and businesses, fostering a robust environment for Arizona AZ entrepreneurs.

Economic Ripple Effects for the Greater Phoenix Area

Federal investments, such as the DHS acquisition, typically have a multifaceted impact on local and regional economies. In 2024, an estimated 96,806 federal employees resided in Arizona, representing 2.7% of the civilian workforce, with an average salary of $95,165. Reducing federal employment can impact local economies by affecting housing, retail, and services. Conversely, an increase in federal presence can stimulate these sectors.

The broader Phoenix AZ economy has seen significant growth, with the Arizona Commerce Authority and economic partners winning 90 competitive projects in calendar year 2025. These projects are projected to create 27,749 new jobs and attract over $34 billion in investments statewide. Expansions occurred across various cities, including Surprise, highlighting the widespread economic development. The growth spans advanced industries such as semiconductor, technology and AI, manufacturing, battery, aerospace and defense, and bioscience.

Arizona’s data center industry, for example, contributed $11.1 billion to the State’s Gross Domestic Product (GDP) in 2023 and generated $2.3 billion in local and state revenue between 2021 and 2023. In the same year, the data center industry created nearly 109,000 new jobs statewide. These figures underscore the substantial economic impact that large-scale investments and operations, including those by federal agencies, can have.

Fostering a Dynamic Business Environment

The presence of a large federal facility in Surprise can signal a stable and strategic location for other businesses, potentially drawing more private sector interest and investment into the West Valley. This can benefit Phoenix small business ventures that provide goods and services to larger entities or the growing workforce. The economic development team in Surprise is actively engaged in attracting quality jobs and businesses to the city and the Greater Phoenix Area.

The city’s proactive approach to planning aims to manage its rapid population growth effectively, which increased by 16% since 2020, to prevent strain on infrastructure and public services. This forward-thinking governance creates an environment where both large-scale operations and local entrepreneurs can thrive, promoting a healthy balance between development and community well-being.

Looking Ahead: Opportunities and Engagement

The Department of Homeland Security’s acquisition in Surprise is a notable event for the city and the wider Midlands economic growth narrative. While the specific long-term uses are yet to be fully articulated, the investment itself is a testament to the region’s appeal. It underscores the importance of a robust infrastructure and a strategic location in attracting significant entities, which in turn can foster a more dynamic marketplace for local enterprises.

As Surprise continues to evolve, it remains crucial for residents and businesses to stay informed and engaged. Opportunities for entrepreneurial innovation often emerge from such developments, as supporting services and related industries grow around new major facilities. We encourage our readers to stay connected with HEREPhoenix.com for ongoing coverage of how these developments shape our community and contribute to the vibrant future of the Phoenix metropolitan area.

Frequently Asked Questions

What federal agency made the acquisition in Surprise, Arizona?

The Department of Homeland Security (DHS), through U.S. Immigration and Customs Enforcement (ICE), acquired the industrial building in Surprise, Arizona.

What was the purchase price of the industrial building?

The industrial building was purchased for approximately $70 million in cash.

Where is the acquired industrial building located in Surprise?

The property is located in the West Valley region near Sweetwater Avenue and Dysart Road.

What is the size of the industrial building?

The industrial building is approximately 418,000 square feet, which is the size of more than seven professional football fields.

What was the former name of the acquired facility?

The facility was formerly known as the Surprise Pointe Commerce Center.

Has the intended purpose of the warehouse been disclosed by federal authorities?

Federal authorities have not publicly disclosed the intended purpose for the warehouse.

How has Surprise, Arizona’s population grown recently?

Surprise experienced a 16% population increase since 2020.

How does Surprise rank nationally for economic growth?

Surprise’s Gross Domestic Product (GDP) saw a 42% rise, placing it seventh nationally in one study.

Key Features of the DHS Acquisition in Surprise

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Author: STAFF HERE PHOENIX WRITER

The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.