7 Reasons driving the Arizona Commercial Real Estate Market

The Phoenix/Scottsdale area real estate market is thriving. Although Covid-19 has seen the loss of numerous small businesses, there are those businesses that continue to do well and even expand. When businesses fail, there is a high demand for the empty spaces. According to Costar, as of October 27, 2021 industrial vacancy rates in the Scottsdale airpark are ±3.9%and office vacancy is ±15.5%.

It has been noted by many industry specialists that the industrial sector is brimming with out-of-staters moving to the Valley.  The move is driving a robust real estate market. Companies are relocating to Phoenix for various reasons including:

  1. Influx of people moving to Arizona from other states such as California, Oregon, Washington, Texas, etc.  Phoenix was the 7th most popular state to move to in 2020 according to Move.org. Arizona also has one of the fastest growth rates at 5.06% (3rd Place in the US) according to the US 2020 Census.
  2. Moderate taxes
  3. Perceived value of Arizona Commercial and residential real estate compared to many other states
  4. Enterprise Zone Programs
  5. SBA/Low interest rates
  6. Small Business Association (SBA)/Government Incentives
  7. Low inventory of Commercial and Residential Real Estate.