2016 Phoenix Growth: One of the Big Turnaround Stories…
By Harmel Rayat – One of my primary investment goals has been to invest where there is a growing population with diverse economic activity, as I noted here crestor price.
Its just part of the reason I began investing in the Phoenix market for example.
At one time, Phoenix was one of the most battered real estate regions in the country. Almost a quarter of the approximated 80 million sq. ft. of commercial real estate office space inventory sat empty, allowing investors to pick up quality assets, often below the cost of construction.
Population growth prospects for the Phoenix region gave us reason for excitement. In fact, according to the Urban Land Institute’s Emerging Trends in Real Estate 2014, the Phoenix population was projected to grow 2.6%. With that growth came the potential for 2.4% jobs growth, driving an explosive need for office space.
“The recovery in Las Vegas and Phoenix will get a boost from strong population growth as these two markets will have the highest rate of growth in the survey,” according to the 2014 report.
Nowadays, Phoenix has returned to being a high-growth market, according to the 2016 Emerging Trends in Real Estate report, as the population grows.
In fact, Phoenix is now considered to be the best city in the U.S. for healthcare jobs, as reflected by commercial real estate growth. According to AZ Big Media:
“Projects like the North Phoenix KUD Biomedical corridor in conjunction with Mayo Clinic, Sundt Construction’s work on Banner Health’s 11-story tower at University Medical in Tucson, Phoenix Children’s Hospital’s new Emergency Department and Level 1 Pediatric Trauma Center and ASU’s 193,000-square-foot Biodesign Institute expansion are all promising commercial prospects either underway or slated for 2016. Experts believe these developments will serve as the catalyst for not only future advancement in Biodesign construction, but will undoubtedly stimulate job and economic growth exponentially once completed.”
In the area, multi-family vacancy rates are at 1999 lows. More than 20 apartment and condo developments are currently under construction there, too.
Phoenix is presenting smart investors with plenty of growth opportunity moving forward.