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 chooses to call the city home. Technology companies such as PayPal, Zenefits, and more have opened customer service operations to the region, driving the demand for large-scale office space well above previous standards. Plenty of and 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 and dependant on modern technology, finance, manufacturing, real estate, healthcare, professional services, and tourism.
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.
Where to Rent Office Space in Phoenix
In response to the influx of young, creative professionals flocking to the city, Phoenix developers have responded by revitalizing worn-down and long neglected neighborhoods to transform the city’s outer limits into urban areas filled with restaurants, bars, shopping areas, and modern manufacturing and warehouse facilities to cater to expanding business interests.
The Warehouse District in particular, which lies south of Jefferson Street, has seen an increased interest by technology companies looking to attract affluent young workers who wish to avoid the hustle-and-bustle of downtown Phoenix, where finance, commerce, and professional and business services continue to call home. Companies seeking office spaces with exposure and visibility in Phoenix should take a hard look at the Downtown or Midtown regions (which are about to explode with new and planned redevelopment projects) but retail and foot traffic-dependent organizations will find plenty of interest in suburban regions of the city like Central Avenue, South Phoenix, and North/Northwest Phoenix, where lease terms are more lenient and flexible by comparison.