Phoenix has been experiencing a boom in growth due to its growing population, diverse economy, and lower-than-national-average rent. It’s become home to several Fortune 500 companies and continues to attract industry leaders to build their businesses in the Valley. With such a huge investment in the area, there will be many trends to watch out for in commercial real estate.
Plaza Companies has been one of Arizona’s leading commercial real estate firms for almost 40 years. One reason for this is our extraordinary insight into real estate trends that help to meet your business’s needs. Our real estate expertise is one of the many reasons investors come to us for innovative solutions. Read our article below to learn what commercial real estate trends to watch out for in Phoenix.
Job and Population Growth Will Create Greater Demand for Multifamily Housing
One of the biggest things we are seeing with Phoenix’s population growth is the growing need for housing. The City of Phoenix estimates that it will gain more 350,000 residents between 2015 and 2030 due to the growing job market in the Valley. Additionally, retirees represent a large portion of the population growth — four cities in the Valley (Mesa, Chandler, Peoria, and Gilbert) were among the top 10 cities with people aged 60+ moving to in 2017.
In order to meet the demands of a growing population, Phoenix is seeing growth in the number of multifamily housing properties. There’s been more than $42 billion in multifamily sales in the last 10 years, with no signs of slowing down. As a result, many people are investing in multifamily properties in Phoenix to experience incredible ROI.
Phoenix’s Commercial Real Estate Will Change With Diverse Lifestyles
With a growing diverse population making its way into Phoenix, it is no surprise that there will be a shift in lifestyles. This has especially been true as we all continue to live with the COVID-19 crisis. According to Phoenix Magazine, while malls are becoming things of the past, their empty spaces are finding new life. They are becoming home to grocery stores, multifamily housing, health centers, entertainment spaces, and so much more. And because outdoor malls have been more resilient during the pandemic, many planners are even considering transforming indoor malls into outdoor ones.
Environmental Considerations are Making Their Way Into Phoenix Real Estate
In the recent Emerging Trends in Real Estate 2022 report from PwC US and the Urban Land Institute, 82% of commercial real estate industry professionals said that they consider environmental, social, and corporate governance elements when making operational decisions. As a result, many commercial properties are being designed with sustainability in mind.
As an example, Plaza Companies has extensive experience in green building, and has made SkySong — one of the region’s most innovative hubs in Arizona — into an ideal example of environmentally conscious construction as well. In fact, the SkySong property has earned the prestigious LEED certification for its sustainability and environmentally friendly construction.
Plaza Companies is Phoenix’s Premier Commercial Real Estate Expert
As one of the top Phoenix development services companies, Plaza Companies has partnered with a diverse range of clients. Our team of experts ensures our clients’ highest standards are met. We provide customized services designed to target cost-efficient operations and build a strong ROI. Contact us today to learn more about our development and commercial construction services.