Here at the Phoenix Real Estate Guy, we mainly talk about residential real estate. It’s what we do. It is our passion, and it is how we pay our bills. We talk about job growth as it can help people make decisions as to what part of town they want to move to or invest in. While we don’t practice commercial real estate, we surround ourselves with friends in the commercial real estate business so that we can keep up on industry issues and refer people to knowledgeable and trustworthy people within that field when the need arises. Hey, fair enough, right? People refer their friends and family to us, we need to be able to do the same when there is a need here or across the country!
This past week, there was a panel of commercial real estate experts here in the valley, and they discussed their thoughts on the commercial real estate market in the Phoenix metropolitan area.
I found the discussion of these commercial agents to be interesting, as many of them mentioned a good supply of “cheap land.” While we could see some over-building in the apartment community in the next few years, the overall thought seems to be that Phoenix is going to continue to see quality growth for the next 20 years and beyond. As a residential real estate agent, I like to hear that we’ll be able to add to our database of people instead of watching more people move away.
This was an interesting take on the market:
“Things aren’t out of whack here, but rest assured that there is no exception for anyone… it is just about timing.” Klein said that in looking at housing, which people can afford, retail rents, which shopkeepers can afford etc., the numbers work in Phoenix. Klein does worry about areas outside of Phoenix, in places like San Francisco where he says he “can’t wrap his head around how someone can afford rents,” are concerning.
My good friend Nick Miner sells commercial real estate in Tempe and around the entire Valley. Nick was quoted at the conference as saying:
“The stuff that is being built is for specific build-to-suit.” In addition, he said, rents are affordable. “We have a lot of room to go. As long as we don’t get as crazy as we did before, we will be fine.” Nick Miner – Commercial Real Estate and investments
I’ve also been to a conference recently where they talked about downtown Tempe as one of the “best” commercial real estate markets in the entire country with a less than 10% vacancy rate for Class A commercial space. It was cool to hear people talk about our city in comparison to places like New York, San Francisco and other major commercial property markets.
The residential real estate market is a much different business than commercial real estate, but they certainly have similarities and they absolutely affect one another. ie: Stronger housing numbers and higher populations will create demand for more businesses, shopping centers, retail stores, etc. We’ll continue to keep up on the things that have to do with real estate in the Phoenix area, you continue to trust us with your residential real estate needs. OK?