Phoenix Ranks Prominently in New Housing, Industrial Development

Rapid growth in e-commerce has spurred demand for industrial product. As a result, the Phoenix MSA continues to rank near the top of the list for new development in the multifamily, single family and industrial sectors. In fact, it ranked sixth in the U.S. in data centers market, thanks to availability of land and power.

This ranking is also attributed to COVID, and the increasingly challenging and costly operating environment for businesses on the West Coast. Moreover, proximity has also helped, with Phoenix located just 350 miles from Southern California, says David Genovese, principal and managing director – Phoenix, Avison Young.

“Tenants are returning to offices, many large companies are considering relocating and others are looking to expand operations,” says Genovese. “Retail has weathered the storm and looks brighter going forward as the population grows. Finally, there have been almost no distressed property types, other than hotels, leading to more investment activity in all property types. And, Phoenix ranks number four nationally as the market investors are targeting in 2021.”