By Angela Gonzales | Phoenix Business Journal
At a time when the office sector remains in recovery mode nationwide, multifamily and industrial are expected to continue to thrive in 2022, according to a new 2022 outlook report released by Umpqua Bank.
Tight demand and short supply in the multifamily and industrial sectors are driving the national outlook for 2022, according to the report, “Headwinds & Opportunities: Economic Trends & Predictions for Businesses in 2022.”
The report comes on the heels of Roseburg, Oregon-based Umpqua Bank announcing it is expanding its services into Arizona.
With $30 billion in assets, Umpqua Bank is a subsidiary of Umpqua Holdings Corp.
Kevin Gillette, who was named market director of Middle Market Banking and is leading the Phoenix expansion, said multifamily is projected to remain strong as a result of Arizona’s growth, coupled with an unprecedented short supply of inventory in the housing market.
“Property values in the metro Phoenix area grew by 32% in 2021, and Millennials want to live close to amenities,” Gillette said. “Both of these factors make multifamily very attractive.”
Sean Kia knows it.
The co-founder and principal of Los Angeles-based Tides Equities LLC bought 58 multifamily properties totaling $3.5 billion in the Phoenix, Dallas and Las Vegas markets.
Of those, 17 properties totaling $1.1 billion were in metro Phoenix. The company invested about another $100 million to renovate and rebrand those properties in metro Phoenix, he said.
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