If you are wondering what the coming year has in store for Phoenix offices in terms of real estate, you’re in good company! The general consensus among real estate experts regarding the Phoenix area is that growth can be expected, but at a slow rate. There are many factors to take into account when building a prediction for the coming year. Here is our Phoenix commercial office forecast for 2015!
According to a report from Arizona State University’s W.P. Carey School of Business, Phoenix can expect to see a 2.5% employment growth in 2015, a small step up from the 2.2% growth that Phoenix has seen over the past few years. According to real estate brokers in other areas of the Valley, this increase in employment implies that growth can also be expected in commercial real estate in Phoenix.
From a survey passed around to real estate experts and brokers in the greater Phoenix area, results show that 84% of the group believes that the commercial real estate market is “on the upswing” and that 100% of the group is “optimistic” about the coming year. While the road to recovery may be slow, Phoenix offices and the Arizona community are continually expanding and improving to provide more space and use the most efficient construction technology available.
Arizona is also expected to add 100,000 residents in 2015, helping it keep its ranking as one of the fastest growing states, even though the number is lower than in past years. Forecasters agree that the population increase indicates a positive year for Arizona’s economy in 2015 and in turn for commercial real estate in Phoenix.
Experts say that economic recovery for Phoenix commercial offices and real estate for 2015 will be slow; however, it will still be an improvement from recent years. According to Cushman and Wakefield’s Vice Chairman Larry Downey, the Southeast Valley was among the most active office submarkets last year, making Tempe and other near areas look highly desirable for buyers. As the national economy slowly starts to improve, Arizona’s economy and specifically the Phoenix Valley economy is anticipated to recover along with it.