Demand for commercial real estate has maintained its strength in the greater Phoenix area. A lacking supply of affordable residential housing and industrial properties has provided developers ample opportunity for new projects, however, economic conditions - especially supply chain shocks - have limited the supply of labor and materials required for these projects. As a result, construction costs have increased significantly.
What’s New?
Phoenix is currently ranked fifth nationally for industrial space currently under construction (approx. 35 million square feet). However, new developments come at a new price: input materials have increased 20% YoY since 2020 and products like concrete are taking up to a year and a half to receive.
Exciting Projects Transforming Phoenix
Chicago-based LG Development Group has proposed a 29-story mixed-use building that would cover a 2-acre site at 601 N. Central Ave. The multi-hundred-million dollar project would include 747 residential units with an additional 29,000 square feet of commercial space. Such an addition of housing units should, in theory, contribute heavily to the desired outcome of greater affordability within the greater Phoenix area.
The City of Glendale is moving forward with the $70M revitalization of its downtown campus. Since its completion in the 1980s, the 6-story campus hasn’t seen much polishing to its 90,000 square feet of space.
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Arizona Digest