The industrial sector of the East Valley of Phoenix (Gilbert, Chandler, Mesa, Tempe, Queen Creek, and Scottsdale) has exhibited very strong fundamentals over the past several months and years. Valley wide, there have been several driving factors that helped boost the industrial market. Strong job growth and economic growth have been the key factors in the success of the growth. Manufacturing, retail distributors, and tech companies have led the charge in providing job and economic growth in the East Valley. With easy access to highways and airports, the East Valley will continue to see bigger and more abundant deliveries over the next couple of years. These areas have been become popular landing spots for California businesses. Phoenix has become very attractive to these types of markets because of affordable taxes and land. For example, our clients with MADD Gear Action sports saves tens of thousands of dollars to relocate their HQ from California to Chandler!
As the demand has increased, the supply has not been able to keep up pace. This has created a compression in vacancies and availability in the East Valley. Vacancy rates have dipped as low as 3% in places like Tempe, but average around 5-6% in most areas compared to 7% for all of Metro Phoenix. Rent growth has also seen a steady increase in areas like Gilbert and Chandler, where you’ll find growths around 5%. Other strong fundamentals, include sales prices which average about 15% more per square foot than Metro Phoenix as a whole.
That’s what has happened over the past few years.
However, as you undoubtedly know, the present coronavirus situation is starting to have a drastic impact on the market and on the economy.
What does this mean for you?
It means that if you’re looking to buy, sell or rent, you need someone on your side who can adapt to the ever changing market situation.
At Bronstein Commercial, we believe in constantly making adjustments as necessary and in then constantly making adjustments to our adjustments. That’s what it takes to be successful in this present market.
Our designated broker, Stanley Bronstein, is not only a real estate broker, but an experienced real estate attorney and real estate CPA as well. If you’re going to do anything in this present real estate market, that’s the kind of knowledge and experience you need on your side.
Stay safe and if we can be of any assistance, please don’t hesitate to contact us using the Contact Form on our website.
