Medium Transport aircraft First Officer reported a CFTT event during final approach to FFZ airport. Reportedly; traffic advisories from ATC contributed to the crew losing situational awareness.

Narrative

Runway 22L was being used for landings and doesn't have an instrument approach. The Captain loaded in the FMS a visual approach with vectors to final; which automatically generates a 5 NM waypoint lined up with the runway. As we were about to intercept the final approach course in a 45° angle approximately by flying by this 5 NM waypoint; the tower announced traffic instructions to follow and given the busy training environment taking place in that airspace we both looked for traffic since the FMS LNV/ PATH mode would turn us inbound while descending to the field elevation. While looking outside; the aircraft's GPWS gave us a CAUTION TERRAIN annunciation before turning inbound to the runway due to some terrain around this 5 NM fix which we could have avoided if not given these traffic advisories. We both were looking outside and never let the aircraft get any closer to the terrain. The autopilot was disengaged; the turn was commenced early before sequencing to the runway and rate of descent adjusted to correct for the GPWS caution annunciation.