Phoenix is an ideal market for commercial real estate because it is highly affordable, is prepared to host corporate expansions and relocations, and has a unique and enjoyable quality of life. The state has been incentivizing businesses to develop in Arizona with tax breaks to grow the economy. This has attracted new and established businesses to move from big cities like San Francisco and Seattle for a better business climate. With the Phoenix economy on a positive trajectory, now is a great time to invest in commercial real estate.
Here are just a few reasons why Phoenix is a great market for commercial real estate.
Top Location for Business
Many startups are planting their roots in Phoenix not only because of the lower cost of living than other western states, but because of the start-up friendly business incentives and the large talent pool Arizona State University has to offer — including more than 100,000 students and an award-winning business school. In fact, Phoenix was rated one of the top 10 best cities for starting a business in 2020. Not only is the Valley of the Sun a good place for startups, established businesses such as Apple, Google, ZipRecruiter, Stitch Fix and more have moved operations to Phoenix
With the low cost of doing business in Arizona, companies are getting more bang for their buck. In Arizona, 8.4% of a worker’s per-capita income is paid to taxes, while the national average is 9.9% — an attractive tax rate for current and potential employees.
Some other key incentives Arizona as a state has to offer business include:
- $9,000 tax credit over three years for new qualifying jobs
- Reimbursement grants of up to 75% of training costs for new employees in several important industries
- Tax credit for investing in research and development of 24% for the first $2.5 million and 15% after $2.5 million
See more of the state’s incentives here.
Employee Quality of Life
For employees, the cost of housing, grocery items, and healthcare are lower than the national average. On top of that, having access to plenty of outdoor recreation including national parks, golf courses, and professional sports teams make it an enjoyable place to live. This makes it easier for employers to attract and retain their employees.
Growing Talent Pool
According to the census, 222 people move to Maricopa County every day. Phoenix is the fifth-largest city in the country and has the fifth-largest population of Millennial residents, which helps make it a top location for entrepreneurs to start their business. Arizona as a state ranks fourth in semiconductor industry employment and ranks second for space and defense manufacturing employment. This makes it easy for companies looking for access to manufacturing, production resources, and business partnerships in close proximity.
Plaza Companies Can Help
If you are looking for commercial real estate in Arizona, Plaza companies can help. With 40 years of experience, Plaza Companies can assist you with any management, leasing, or development needs. Contact us to get started and to see why our Brokerage Services team was recognized as the Healthcare Broker of the Year by the NAIOP.