Commercial Real Estate & Business News – July 6, 2017

Over the last couple decades and especially in the last five years, a combination of factors, investments and new developments have aided in the revitalization of Downtown Phoenix and its continued resurgence into the future, which fosters a live-work-play environment unlike any other urban market in the Valley of the Sun. Between 2005 and 2016, the broader 1.7-square-mile redevelopment area in downtown experienced more than $4.8 billion in investments for things like transportation, office, residential, education as well as research, arts, culture, sports and hospitality…»

There’s plenty of positive indicators when it comes to the Phoenix commercial real estate market and office space. The commercial real estate firm JLL (NYSE: JLL) projects 2017 will be another year with 2 million square feet of absorption (i.e. net leasing). The Class A office vacancy rate is as low as 6 percent in parts of Scottsdale, 7.5 percent in Tempe, 12 percent near Phoenix Sky Harbor International Airport and 15.6 percent in downtown Phoenix…»

Rental rates also continue to inch higher, driven by manufacturing properties. In the last year alone, manufacturing rates have surged 18.6 percent, to $0.59 per square foot. Growth in this sector has been particularly exceptional in the Southeast Valley, especially in Tempe and Mesa.…»

According to a 2013 Arizona State University study, the airport has a $1.3 billion annual impact and supports more than 10,000 jobs in the region. In just the past few months, the airport announced a major employment project expected to bring 200 high-wage jobs and eight new non-stop destinations provided by Allegiant Air, its major commercial airline. Twenty-five years after the East Valley cities took control, the airport is finally what proponents hoped it would be, said Councilman Kevin Thompson, who represents the area…»

The Phoenix market is on pace for an above average year of net absorption. Pre-leased construction will add another 1.8 million square feet of absorption gains this year alone. Development activity is showing no signs of slowing down, keeping up with strong tenant demand. An abundance of speculative properties continue to provide modern, more functional options for the many users still in the market for space…»