The Phoenix area is a hotbed for activity and opportunities in the commercial real estate industry. One community that is experiencing particularly robust growth in the area is Scottsdale. The city is positioning itself as a great place for companies to escape the high costs of California, and it is expected to continue to grow in the coming years. Here are some of the trends we’re seeing in this community.
Population and Job Growth
Scottsdale is one of Arizona’s largest cities with a population more than 240,000. It is home to more than 25,000 businesses with nearly 20% of Arizona corporate headquarters residing in the city. The most prominent industries they facilitate include those in healthcare, finance, and technology. With the tech industry booming in Arizona, it is expected Scottsdale will see more than 10% software employment growth in the next 5 years. As more people move to Scottsdale, you can expect more entrepreneurs to build their businesses in this growing market.
Much like the rest of the Valley, Scottsdale is seeing an increase in companies leasing new office space. Current industries that are active in commercial real estate include health care, technology, and finance. In the last five years, each of these markets grew over 25%, with an expected increase in the next five years. While Scottsdale is featuring some of the highest rents in the valley, its vacancy rate remains low at 11.8%, showing that the community has an active commercial real estate market. One of Plaza’s signature projects, SkySong, is leading much of the growth in the market.
The Greater Phoenix retail industry is bustling with a large increase of businesses opening stores in the area. Scottsdale’s retail vacancy rate is 6.6%, indicating there is a large demand for a business-to-consumer presence in the city. Areas such as the Old Town Scottsdale and Scottsdale Fashion Square are very popular destination spots that offer businesses the ability to engage and sell their products with consumers.
Plaza Companies Can Help You Find the Right Space in Scottsdale
When you are searching for office space in Scottsdale, you want to be sure you are looking at the best possible properties. By partnering with Plaza Companies, you can feel assured knowing that we can properly assess a space based on your practice’s specific needs. With our knowledge and experience, we know you will make the right decision. Contact us today to get started on your journey to find the best real estate for your business.