For a real estate developer, Phoenix, Arizona represents a great opportunity to locate and invest in commercial projects due to the current and projected population growth. Phoenix is at the center of the fastest growing metropolitan region in the United States with a population of more than 4 million. Phoenix itself has 1.6 million residents and is currently the fifth largest city in the U.S. with projections pegging the city to be #4 by 2020. The U.S. Census Bureau estimates the population of Phoenix will increase to 2.2 million by 2030, and the total population of the metro region will be 6.3 million.
One reason for this growth is the diverse economy, which continues to attract top employers. The Phoenix economy is strong in manufacturing, particularly electronics and aerospace, financial services, information technology, healthcare services, bioscience, logistics, and retail. Logistics is strong in Phoenix due to its proximity to major cities in the Southwest, including Los Angeles and Las Vegas.
Job growth continues to be strong in Arizona overall, increasing by 3 percent this summer in July, according to a recent employment report. In contrast, job growth for the U.S. overall was 1.7 percent in July. Arizona has had 3 percent or higher job growth each month in 2016 except for May, and its annual job growth has been over one percentage point over the U.S. average each month except May. Employment gains for the state’s metropolitan regions in July were: Phoenix 3.1 percent, Prescott 6.4 percent, Yuma 2.6 percent, Tucson 4.2 percent. The private sector contributed the entire gain over the period since government employment declined by 0.2 percent. The highest employment growth by sector came from education and health services.
The Popularity of Phoenix
The Phoenix metropolitan region is highly desirable for people from all demographics. The area attracts singles, families, snowbirds and retirees. With its attractive weather, strong growth and diverse economy, Phoenix will remain an appealing environment for commercial development. A growing, vibrant population requires services, and employers continue to choose the Phoenix metro region for its economy and employees.
If you are a real estate developer seeking opportunities in Phoenix, contact us Menlo Commercial Real Estate. Our team of professionals has been deeply involved in the commercial real estate industry for years. Tap into our depth of experience and knowledge of the surrounding markets by contacting us today at (480) 659.1777.