August Phoenix MSA Market Update: Economic Growth & Key Developments
As August unfolded, the Phoenix MSA continued solidifying its position as a dynamic hub for economic, healthcare, and real estate developments. This month’s updates emphasize the region’s ongoing transformation into a multifaceted business epicenter. From significant educational investments to healthcare expansions, the Phoenix MSA’s growth trajectory remains strong, attracting both businesses and residents.
Economic Momentum: Phoenix MSA's Growth Strategies
ASU’s $25 Million Boost to Real Estate Education
Arizona State University (ASU) is making waves with a $25 million donation from the W.P. Carey Foundation to bolster its real estate education. This generous contribution will support the expansion of ASU’s Carey School of Business, specifically enhancing real estate research and education. It also brings the W.P. Carey Foundation’s overall commitment to over $100 Million. According to ABC News Arizona, W.P. Carey was No. 3 for largest MBA program in the Phoenix metro during Fall 2023 and had 902 students. Recently, the school ranked No. 32 on U.S. News and World Report’s 2024 Best Graduate School list.
The expanded programs, slated to begin in Fall 2025, are expected to attract top talent and further cement Phoenix as “a leader in real estate innovation.” (PBJ). This strategic investment aligns with the region’s ongoing economic expansion and strengthens Phoenix’s reputation as a prime location for real estate development and investment. “We’re pleased to continue supporting the W.P. Carey School of Business at ASU by launching the W.P. Carey Center for Real Estate and Finance,” said William P. Carey II, the chairman of the W.P. Carey Foundation per ASU News.
East Valley Developments: A Catalyst for Economic Growth
The East Valley, encompassing cities like Mesa and Chandler, continues to be a focal point for growth. A recent survey of Phoenix decision-makers revealed a strong consensus on the region’s potential for significant economic development. AZ Big Media wrote that key growth corridors in the East Valley are attracting large-scale projects, including a $100 Million mixed-use development at SanTan Village. This project aims to meet the rising demand for commercial and residential spaces, driven by the area’s burgeoning population and thriving job market.
Blake Bunker, Managing Partner at Okland Capital, said their mission is “To create remarkable experiences for the communities where we develop and build.” These developments highlight the East Valley’s role as a critical driver of the Phoenix MSA’s overall economic success. (PBJ).
Arizona City Ranks Among Top 10 Most Affordable for Remote Workers
A recent ranking by AZ Big Media placed Scottsdale within the top 10 most affordable cities for remote workers in the U.S. This recognition highlights the appeal of the Phoenix MSA for remote professionals seeking affordability without sacrificing quality of life. Over one-third of the area’s workforce is remote and Scottsdale claimed the 10th lowest unemployment rate (only 2.6%) among nearly 200 analyzed cities in the report.
The region’s combination of low living costs, robust internet infrastructure, and growing job opportunities makes it an attractive destination for the modern workforce, further contributing to its economic and demographic growth. Additionally, the density of coworking space available here was ranked at over 12 coworking spaces available per 100,000 residents.
Healthcare, Real Estate, and Infrastructure: Strategic Developments in Phoenix MSA
Brooks Rehabilitation Partners with Mayo Clinic
A landmark partnership between Brooks Rehabilitation and Mayo Clinic is set to reshape healthcare in the Phoenix MSA. Announced this August, the $70 Million rehabilitation hospital will be constructed on the Mayo Clinic campus, enhancing the region’s healthcare offerings. This state-of-the-art facility, beginning construction in December 2024 and expected to open in Summer 2026, will provide advanced rehabilitation services, positioning Phoenix as a leader in healthcare innovation. The collaboration along with Brooks’ vision underscores the region’s commitment to expanding its healthcare infrastructure to meet growing demands while setting the stage for new growth, innovation, and exceptional clinical care. (PR Newswire).
The Future of Commercial Real Estate in Phoenix
The commercial real estate landscape in Phoenix is evolving rapidly, with new projects and expansions on the horizon. Industry experts anticipate a shift towards more sustainable and technology-driven developments, reflecting broader trends in the national real estate market. As Phoenix continues to grow, these developments will play a crucial role in accommodating the increasing demand for commercial space, particularly in thriving areas like downtown and the East Valley.
Clark Princell, president and CEO of Valley Partnership, says “I’d choose this market to be in over anywhere else because of our explosive migration growth, combined with thoughtful actions from folks’ post-recession to lay groundwork for benefits we see in our evolving economy.” (AZBigMedia).
Mesa Gateway Airport: A New Hub for Mixed-Use Development
The Phoenix-Mesa Gateway Airport is poised to become a focal point for a new mixed-use development. This 3,000-acre Easy Valley airport project, part of a broader strategy to enhance the area’s infrastructure, will include commercial, residential, and recreational spaces. It has a planned inside runway reconstruction in addition to its new five-gate terminal that opened in early 2024. The airport is rapidly growing into a popular employment hub in the Phoenix MSA – in aeronautical and nonaeronautical companies – it’s currently home to more than 2,500 employees. As large companies like Gulfstream, Virgin Galactic, and Xnrgy Climate Systems move towards the airport land, that number is anticipating to reach around 4,000 by 2026. (PBJ).
Community and Business Impact
Lessen Inc. Achieves National Recognition
Scottsdale-based Lessen Inc. has earned a spot on the Inc. 5000 2024 list, ranking among the fastest-growing private companies in the U.S. This achievement highlights the vibrant entrepreneurial ecosystem within the Phoenix MSA, where innovative businesses are flourishing. Lessen Inc.’s growth trajectory reflects the broader trend of successful startups and established companies choosing Phoenix as their base for expansion, drawn by the region’s supportive business environment and strategic location.
Lessen was No. 2 on the nationwide list, due to its rapid growth of 45,603% over the past three years. This is the second year in a row Arizona had companies in the top 10 of the Inc. 5000 list of the nation’s fastest-growing private companies in the U.S. (PBJ).
Mining in Pinal County: A Billion-Dollar Economic Generator
Mining activities in Pinal County are expected to generate billions in economic activity, contributing significantly to the Phoenix MSA’s overall economy. This industry’s growth is not only providing thousands of jobs but also spurring infrastructure and community development in surrounding areas. In total, The Arizona Mining Association is reporting that the mining and rock products industries are supporting close to 75,000 jobs in the state of Arizona (Rose Law Group). As mining operations expand, they are likely to attract further investments and drive long-term economic benefits for the region.
The August 2024 updates for the Phoenix MSA reflect a region that is not only growing but also strategically positioning itself for sustained success across multiple sectors. With significant investments in education, healthcare, and infrastructure, the Phoenix MSA continues to emerge as a key player on the national stage.
About Rise48 Equity:
Rise48 Equity is a Multifamily Investment Group with local offices in Phoenix, AZ, Dallas, TX, and Charlotte, NC. “At Rise48 Equity, we provide opportunities for accredited and non-accredited investors to protect and grow their wealth and achieve passive cash-flow. Our team brings expertise to acquire, reposition and return capital to investors upon reaching our business plan. Through our research and strategically formed partnerships, we acquire commercial multifamily apartment properties, strategically add value to the properties, and create passive income for our investors through cash-flow and profits from sale.”
Since 2019, Rise48 Equity has completed over $2.27 Billion+ in total transactions, and currently has $1.83 Billion+ assets under management located in Phoenix, Dallas, and Charlotte. All of the company’s assets under management are managed by Rise48 Equity’s vertically integrated property management company, Rise48 Communities.
