Commercial real estate growth continues to outpace supply

By Corina Vanek | Phoenix Business Journal

Arizona’s commercial real estate industry saw growth in all its sectors during the past year, a big sign the local and state economy were booming.

CoStar Director of Market Analytics Jessica Morin has had an inside look at some of the goings-on with the industry, and sheds some light on how the CRE market is functioning.

What were some of the main trends in commercial real estate in 2019?
Robust employment growth continued to outpace conservative levels of new supply. Phoenix has maintained a balanced supply and demand dynamic that has supported vacancies and rent growth that is well above the national average for industrial and office products.

High returns and steady demand drivers are attracting new buyers to the market, especially out-of-state and foreign investment from Canada. Sustainable economic drivers built through the diversification of industry have enticed buyers who once wrote off Phoenix.

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