Phoenix is currently experiencing an impressive commercial real estate market boom, including ranking second in the nation for industrial development growth. It’s an unprecedented time for commercial real estate developers to capitalize on the underlying reasons for the increased growth along with the many lucrative possibilities that accompany it.
All types of commercial real estate are expanding throughout the city, including new office spaces, industrial areas, hotels, retail outlets, and mixed-use properties to name a few. What’s causing this fast-growing commercial real estate development? Keep reading to find out and discover how you can benefit from this opportunity.
Reasons for the Increased Commercial Real Estate Development
You have an advantage when making strategic planning efforts while keeping an eye on the trends impacting your industry the most. In commercial real estate, the greater Phoenix area has seen a significant increase due to the following reasons:
Economic Development – The Phoenix area is more tax-friendly than many other states and large cities. Also, in comparison to other major cities, the cost of living remains relatively lower than other major cities of its size.
Other reasons Phoenix is experiencing more economic growth include lower regulations on businesses and a noticeable increase in relocation. With the higher number of transplants making Phoenix their new home, there’s a greater pool of talented individuals contributing to the expansion of businesses and livelihoods.
Stronger Industry Commitment — With the relocation of highly skilled and qualified individuals driving up business growth comes a stronger commitment to the areas that contribute most economically. What drives the economic growth and expansion of Phoenix?
There are eight key sectors that our city heavily relies on when it comes to economic stability.
- Technology
- Biomedicine
- Health care
- Manufacturing
- Business operations
- Finance
- Aerospace
- Warehousing / distribution
Naturally with the expansion of workers and business owners in these areas, the economic pillars of Phoenix are considerably strengthened. Within the past year, Phoenix has seen an increase of 154,000 new jobs according to the U.S. Bureau of Labor and Statistics.
Phoenix has also received billions of dollars in investments by Taiwan Semiconductor Manufacturing Co. and Intel, increasing the amount of high-earning jobs and countless partnership opportunities available.
Commercial Real Estate is Responding
What does all this mean for commercial real estate? Big business. And so far the response is matching the demand in record numbers with no sign of slowing down. Real estate investors and developers are at a huge advantage with the favorable growth and stability of increased relocation and business development.
Additionally, the Phoenix metroplex landscape and climate is an ideal place to expand without the limitations common to other parts of the country. The possibilities for commercial construction spans wide along with the warm climate which helps attract people from all over the world and nation seeking better weather and more stability in commercial real estate investment outcomes.
Plaza Companies is the Premier Choice in Commercial Real Estate
Plaza Companies is a full-service real estate firm specializing in leasing, management, construction, and development of some of the most innovative commercial real estate projects in Arizona.
Plaza Companies is successfully competing in the commercial real estate space. Remaining compliant with all accessibility needs is a top priority along with all other legal obligations. Our firm specializes in staying connected and conscientious to all emerging trends.
Contact us today to learn more about leasing the right space or anything else we offer!