Business Migrations Fueling Major PHX CRE Growth

Credit: Industry Today

By Andrea Davis CRE 

Companies across the U.S. are packing up their businesses and flocking to Arizona. 

With its high-skilled talent pipeline, affordable cost of living, and lower taxes than neighboring states, Arizona – and primarily Metro Phoenix – has developed its position as an attractive business location, with no signs of slowing down. 

One recent addition is scientific equipment supplier Atonarp Inc. from Fremont, California, who will call the Valley of the Sun home at 15950 N. 76th Street, Scottsdale. 

Atonarp works at the forefront of next-generation molecular profiling, developing instrument platforms and software applications that enable healthcare and industrial markets to more predictably and precisely identify, analyze, and act upon real-time molecular insights. It plans on hiring 20 scientists and engineers and building a state-of-the-art optics lab to support its work. 

While Arizona has witnessed companies from all industries relocate to Arizona, some commercial real estate sectors are experiencing more growth than others. With the increased data demand from increased home offices, online schooling and more, industrial property construction has intensified over the last year, with a buildout of more than 270MSF across nearly 1,000 properties.  

Warehouse construction has also increased to support the demand for manufacturing and production. Companies like Intel and Amazon are just a few of the companies that have opened or plan to open warehouses in Arizona. Metro Phoenix ranks No. 3 in the Sun Belt for new construction, behind only the Texas markets of Dallas-Fort Worth and Houston.   

The interest in medical office buildings has increased as Metro Phoenix continues to expand its economic and healthcare footprint. Net absorption for medical office space in Q4 2020 reached nearly 112KSF. 2020 ended with a positive net absorption in all four quarters. Demand in this sector is expected to remain high the remainder of 2021. (Source)

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