Due to the abundance of blue collar labor, low taxes, and inexpensive land, Phoenix should top the list of cities in the industrial market. Corporate employers are relocating to the Valley due to the influx of employable, skilled workers, and low hourly wages. In turn, the near future for industrial and back office space should remain constant and positive. Both leasing rates and square foot sales prices are at the highest in years. Therefore, vacancies have dropped again since last year.
Phoenix ranks as one of the best markets nationally to invest in commercial real estate projects.
Though various construction projects are underway in the area, over-building does not appear to be a threat. The value in the market is now driven by more than weather or retirement. There are over 150 people per day moving to the Valley and with that, over 71,000 new jobs were added last year. With more job opportunities, the demand for not only housing, but for commercial office space increases tremendously. Even if the economy slows, the demand for office space looks promising well into the immediate future.