More than 300 days of sunshine

Metro Phoenix is more than just a place to enjoy 300 days of sunshine. It’s booming metropolis drawing people in droves due to its remarkable quality of life including exceptional job opportunities, quality higher education and affordable cost of living. Not to mention the area is host to an ever-growing roster of top restaurants, shopping, theatres, music venues and other entertainment options and amenities to enjoy life. This makes Phoenix a top destination for the highly sought after “live work play” environment residents desire, particularly Millennials.

no. 8

Best City for Future Job Growth Through 2017

Qualities businesses need in the environment residents desire

Did you know Phoenix has one of the lowest costs of living among major U.S. metropolitan areas? Couple that with an average year-round temperature of 75 degrees and a short average commute time of 25.4 minutes, it’s no wonder Phoenix is increasingly seen as a destination for lifelong residents and out-of-staters alike.

Over the last 35 years, the population of Metro Phoenix has nearly tripled, growing from 1.6 million people in 1980 to approximately 4.7 million residents today.
Phoenix, Arizona skyline (image)

Strong population growth is why some of the most prominent, innovative companies are establishing a footprint here. Many companies are dipping their toes in our pool and finding there’s more than meets the eye. Not only is Phoenix a business-friendly environment, but our diverse labor pool—drawn from our dozens of in-state colleges and universities—makes for prime recruiting grounds. Being home to the number one ranked Most Innovative School in America at the center of the metro doesn’t hurt either. Arizona State University contributes to the more than 300,000 students currently pursuing higher education opportunities in Phoenix.

no. 1

Most Innovative School in America
Arizona State University–Tempe

A changing environment

Phoenix may have relied on construction employment in previous economic cycles but our people and businesses have evolved to ensure we are in lock step with national and global economic drivers and needs. Over the last decade, large employment gains in the Education & Health Services, Financial Activities and Leisure & Hospitality sectors have resulted in a shift in our economy, with an increase of 158,900 jobs.

Top five employment sectors include:

  1. Trade, Transportation and Utilities
  2. Professional and Business Services
  3. Education and Healthcare systems
  4. Government
  5. Leisure and Hospitality

Phoenix is also emerging as a hub for some of the most transformative industries, ripe for continued innovation and development, including high technology, manufacturing, bioscience research and advanced business services.

Positive real estate trends

With positive absorption gains over the past seven years, the Metro Phoenix office market has experienced a strong recovery.

  • Phoenix is among the most improved U.S. markets as the total office vacancy rate in the Valley has decreased more than eight percent since 2011.
  • Phoenix ranks No. 4 in the nation for positive office net absorption since 2011, behind only Dallas, Seattle and Silicon Valley.

One of the largest industrial markets in the West, Metro Phoenix boasts over 265 million square feet of industrial space, behind only Los Angeles and the Inland Empire.

  • A hotspot for developers in the West with at least 4 million square feet of new construction every year since 2012.
  • Since 2014, over 6 million square feet of industrial space has been absorbed each year.

The Metro Phoenix ranks among the top quartile of U.S. metros in terms of multifamily rent growth.

  • Despite an active development pipeline and many projects beginning lease-up together, rent growth remains among the strongest in the country.
  • Excellent net migration and employment growth has sustained strong demand for apartment units and is expected to help fill up all of the new properties opening their doors.

Metro Phoenix retail continues to enjoy the trend of lower vacancy rates coupled with increased asking rents, which should continue in the foreseeable future.

  • The trends in the residential real estate market of increased construction, along with affordable housing, has led to the demand for new retail development Valley-wide.
  • Increases in asking rents driven by the demand for new restaurant related concepts.

Due to an attractive tax incentive program, consistent diverse fuel mix and low susceptibility to natural disasters, the Metro Phoenix provides one of the lowest cost regions for data center operations.

  • A healthy mix of colocation providers--with new providers entering to market--keeps “price-per-kW” rates low as demand for more construction and commissioning of white floor space remains steady.
  • Metro Phoenix also offers competitive green energy solutions through renewable energy resources and growing solar energy generation projects which is increasingly important to data center end-use.

Achieve your ambitions in Phoenix

At the end of the day, Phoenix has tremendous runway for continued success and prosperity, for businesses and residents alike. Our growing urban hubs and transportation systems are continuing to transform this great city.

It’s strong. It’s beautiful. It’s where you should be.

To learn more about our great city, download our Why Phoenix brochure. Take a deeper dive into the economic, population and real estate trends impacting us most, including snapshots of activity occurring in the great towns and cities that make up Metro Phoenix.

Questions? Contact:

 

Dennis Desmond

Senior Managing Director
+1 602 282 6300

 

Email Dennis



 

Pat Williams

Managing Director
+1 602 282 6300

 

Email Pat