Investing in commercial real estate can be a risky, difficult step for many people in Arizona. The commercial real estate market has been on a rollercoaster ride since the housing market crashed, forcing investors to make tough decisions regarding commercial property and new investments.
While the commercial real estate market in Phoenix did take a hit, it appears that it is one the rebound. More investors are entering the commercial real estate market in Phoenix. The improvement is good news, and Phoenix is now ranked No. 25 in the best markets for commercial real estate investors.
What has contributed to the rebound in the area’s commercial real estate market? There are several factors that have influenced the commercial real estate market in Phoenix. Phoenix has seen increases in population and employment, which always helps the area’s commercial properties. Phoenix also has a lower cost of doing business compared to other cities, making it an ideal place for investors to purchase commercial property.
The Phoenix area is expecting to see a 2.6 percent increase in population this year, which is higher than other local areas. Reports also predict that people between the ages of 20 to 34 will increase by 11 percent during the next five years.
All these factors have contributed to the improved outlook for commercial real estate investments in Phoenix. Investing in commercial property is a big investment and there are many factors that should be considered before purchasing commercial real estate in Phoenix or in any other area.
Source: AZ Central, “Commercial real estate set to heat up in Phoenix area,” Catherine Reagor, Dec. 31, 2013