Roosevelt Point
year, Camacho adds. “A s s u c h , o u r c o nt i nu e d commitment to an expeditious municipal permitting process will be a differentiator against other states as the economy continues to improve.” In 2012 GPEC launched its California 100 campaign on the heels of a $6b tax increase in California, and has led to more than a dozen leads and direct contact with CEos. China continues to be one of GPEC’s most targeted countries for foreign direct investment. last year, GPEC launched its Z Corridor strategy in partnership with Arizona Commerce Authority and Asu. In the southeast valley, Mesa is seeing positive economic trends from 4Q 2012, according to Economic Development Director bill Jabjiniak. “Anyone who has been in economic development for any length of time will tell you that having base industries employing a skilled and educated workforce will increase demand for housing, which in turn leads to commercial real estate development,” Jabjiniak says. “our region would be well served in focusing on attracting those sectors offering high wage jobs. “We have seen an increase in high quality business prospects with gains in advanced business services and manufacturing sectors,” he adds. “There remains interest in existing real estate assets, however, as these
become occupied and/or are not suitable for business needs there will be demand for new construction.” Also in the southeast valley, Chandler has seen more than its fair share of exciting projects in the past few years. Economic Development Director Christine Mackay says she does not expect 2013 to be any different. “With our office vacancy rate continuing to hover in lowersingle digits, the demand for new office space has created the need to build,” she says. “The Douglas Allred Companies was first to market with a new, 92,000 sf office building that is now 100% leased to Infusionsoft. That success prompted Allred to start construction on an additional 68,000 sf building, and this has encouraged other developers to consider doing the same. Chandler could see several office projects come out of the ground in 2013, including the Rockefeller Group’s Chandler 101 development, which will start its kick-off of infrastructure and road construction in mid-2013. Pr ice Cor r idor continues to be a significant draw for large employers, but development will begin to gain steam along loop 202 as well, Mackay adds. Continuum’s improvements are nearly complete and that signature business park is primed to attract new companies. Joyce Grossman, e xecut ive
director of the Arizona Association for Economic Development added: “With employment improving, housing permits on the rise, 2013 promises to be a better year for the commercial real estate industry in Arizona. We expect a positive year in 2013 and an even stronger year in 2014.”
LEADING INDICATORS In 2013, the industry that will lead the local and national economy is housing, says Jim belfiore, president of belfiore Real Estate Consulting. last year, Metro Phoenix homebuilders boosted production by 64%; this year, growth will top 50%, as purchasing activity surges off of 40+ year lows. housing supply is extremely low, belfiore says, lower than anytime since late 2005. “In an environment of rising jobs, rising population, rising consumer confidence, and all-time low interest rates, homebuilders are going to find themselves busy,” he says. And according to Costar Group, national sales of commercial real estate reached nearly $64b in 2012, an increase of 22% from 2011. Even land prices showed signs of recovery in 4Q 2012. sales activity spiked in December, Costar reports, as investors wasted no time in closing deals. based on the investment market in
Curt Johnson
Tamara Caraway
Chris Camacho 19