Commercial Real Estate in Phoenix

Commercial Real Estate in Phoenix

Established as an agricultural outpost developing cotton, the area around Phoenix has transformed from a manufacturing hub into a modern, vibrant city focused on real estate, finance, advanced energy and manufacturing, healthcare, and retail. Tourism and entertainment are also major industries, driving over 40 million visitors and $21 billion to the local economy in 2016.

Today, large Fortune 500 companies have expanded their operations to the Phoenix area, where office and commercial real estate is as plentiful as the young, affluent workforce who choose to call the city home. Technology companies such as PayPal, Zenefits, and more have opened customer service operations in the region, driving the demand for large-scale office space well above previous standards. Plenty of commercial real estate listings, including office space rentals, are available for a median rate per square foot/year at a healthy $26.

Economy of Phoenix

Historically an agriculture and mining hub in the western United States, the economy of Phoenix has continued to shift and change alongside similar western cities, becoming more reliant on the modern technology, finance, manufacturing, real estate, healthcare, professional services, and tourism industries.

With a gross domestic product over $200 billion, the Phoenix metropolitan area has consistently grown year over year since the recession of 2009. Spurring economic development in key sectors, the city has transitioned nicely into a modern, vibrant cultural and economic force in the southwestern United States, bringing in new construction projects focused on residential, high-end real estate, commercial and office spaces, as well as tourist attractions and significant manufacturing and warehouse spaces.

Manufacturing now ranks third in the city’s industries, producing computer and electronic equipment, chemicals, processed foods, and military hardware like missiles and aircraft parts.

Trends of Phoenix

While Phoenix was hit hard by the economic downtown nearly a decade ago, the city’s housing market has snapped back with a vengeance, with home prices expected to rise over the coming year as more professionals relocate to the area.

And that youthful, affluent demographic has shown considerable interest in the city’s emerging cultural scene, spreading art, music, and entertainment events throughout the city’s various sectors and into nearby Scottsdale. Insiders say that despite Phoenix’s comparatively lower cultural profile than Austin, Seattle, or Portland, lower housing costs and costs of living will expand and grow interest in the city in the coming years.