October 2018 – Letter From the Publisher
October 1, 2018
President, Arizona Journal of Real Estate & Business
If you have visited downtown Phoenix recently, you will notice some changes to the skyline – condominium development is in full swing. In addition to a 30-story high-rise apartment building, there will be 1 million square feet of office space, nine new restaurants, and nearly 2,000 residential units. Dozens of projects are taking place downtown to watch for in the years ahead.
Trends are showing that buyers want more of an urban city lifestyle – commercial real estate is reacting to meet the demand with multifamily housing. Downtown Phoenix is going through a renaissance of growth and development that continues into the future. Christine Mackay, director of community and economic development for the City of Phoenix, said over the past two years the city has completed 2,000 new high-rise apartments with plans to add 3,000 more.
Historically, the words “multifamily housing” and “luxury” were never used simultaneously. In recent years, however, that mindset has changed as luxury condominiums and apartments develop all over town, including the downtown area. Two demographic groups are driving the demand for this development – baby boomers and millennials. Baby boomers are looking to downsize, and millennials are looking to make their first purchase, forgoing a larger home for social activities and walkability.
A strong, multifamily real estate market provides opportunities for retail development. Recently, a Phoenix City Council subcommittee voted to request for proposals for a mixed-use residential and commercial development downtown. One thing is for certain, downtown Phoenix is booming! Business, restaurants, a grocery store, and more are attracted to build here as the urban population increases.
Regardless of your specialty, it’s imperative to understand the local and global trends in commercial development and how they affect other areas of the real estate industry. Join us at our Commercial Real Estate seminar on October 26th as we take an in-depth look at the current growth, trends, and opportunities affecting the Arizona commercial marketplace. You need to know how this will affect real estate in the year ahead to confidently educate your clients about critical decision-making in 2019.