Here’s an interesting presentation for you. If you don’t know who Elliot Pollack is, then you haven’t lived in AZ for very long. He’s a fairly large and well known Commercial Developer, especially here in the East Valley. He has put out some great data/presentations, as well as his outlook for 2008 and the Greater Phoenix area. Essentially, 2008 might see the bottom of the market- not much different than what we’re already seeing, prices may decline some, etc. However, he also agrees with the long term outlook for Arizona, that we remain strong for job and population growth. It’s a great market for building your net worth and retirement accounts!
Spend some time on his site, www.arizonaeconomy.com, there’s a TON of great info on there!
The Phoenix Business Journal has an article that the office inventory in Downtown Phoenix is expected to grow by 42% by 2011, as reported by Integra Realty Resources.
Current inventory sits at 4.94 million square feet, with another 2.05 million feet expected to be built between 2008 and 2011, according to the company’s "IRR Viewpoint 2008."
That number puts Phoenix 11th among U.S. cities for downtown construction, which is expected to total 88.5 million square feet nationwide over the four-year period.
The article goes on to day that the current vacancy rate is at 8.5% in Downtown Phoenix, compared to 11.1% for the National Average. This goes right in line with the previous reports of expected job and population growths for Arizona as a whole. Anyone who has a concern about the future of the Arizona Real Estate market really needs to dig into the research and see for themselves. It’s picking up this year, and will continue to rise until our next boom/bust in 15-20 years…
