A LOOK AT PHOENIX’S REAL ESTATE, BUSINESS, AND INVESTMENT ACTIVITIES
The Phoenix area has seen some exciting developments in its business environment, which involves many investors choosing to make the area home to multimillion-dollar projects. This will bring significant benefits to the Valley, such as employment opportunities. Here is an examination of some of these new business developments.
THE PHOENIX METRO SEES AN INCREASE IN INTERNATIONAL COMPANIES PLANNING TO MOVE TO ARIZONA
Audrey Jensen of the Phoenix Business Journal reports that experts say more manufacturers are seeking to take their operations to the US, which has resulted in the Phoenix Metro witnessing an increased interest in international companies planning to move there.
The Greater Phoenix Economic Council (GPEC) says that in the 2023 fiscal year so far, it has been working with approximately 61 international businesses to find a site in the Valley, an increase since ten years ago.
This equals 14,719 jobs and almost $20 billion in investments and is the largest number of global companies considering locating to the greater Phoenix area in recent decades, according to GPEC data.
GPEC says that of the companies considering Arizona, eight are from Canada, a dozen are from Taiwan, and others are from other Asian countries like Japan and South Korea.
According to Andy Blye of the Business Journals, Daedalean, an autonomous flight startup from Switzerland, has chosen to have its first US office in Phoenix.
The company is creating systems and software that can transform aircraft into autonomous vehicles capable of flying independently.
The company began in 2016 and is planning to launch its first commercial product with Avidyne, based in Florida, by the end of 2022.
Arizona has a strong aerospace market with more than 60 airports. It is also home to top aerospace companies. The state also has impressive sunshine and clear skies, making it the perfect place to test AV flying ability.
In the years to come, the Phoenix office will be used for coordinating sales, business development, customer support, and flight testing for customers in North and South America.
APARTMENT UNITS CURRENTLY BEING CONSTRUCTED IN PHOENIX
Angela Gonzales of the Phoenix Business Journal says Chapin Bell, the CEO of Scottsdale-based P.B. Bell Cos., has about 2,000 apartment units under construction or to be constructed. The projects total over $600 million in development fees.
As the projects become completed, Bell continues to scout for land. They come at a time when the Phoenix market is undersupplied. However, the research director for Northmarq, Peter O’Neil, says an active construction pipeline is getting closer to equilibrium. He is tracking 28,000 units that are currently being constructed.
A new study by the National Apartment Association and the National Multifamily Housing Council reveals that the US is experiencing a deficit of 600,000 apartments. Furthermore, the study found that 4.3 million apartments will be needed by 2035 to address demand plus affordability.
According to Michael Salerno of AZ Central, Phoenix has a new airline, Breeze Airways. It is the fourth airline to come to Phoenix since 2022. It will have nonstop service from Phoenix Sky Harbor International Airport to two cities. The first flights will take off come November 2.
Breeze Airways was launched by the founder of JetBlue Airways, David Neeleman, in 2021. It is the 23rd airline to serve Sky Harbor and the fourth to launch there in 2022, joining Denver Air, Southern Airways, and Allegiant Air.
The airline promises customers a seamless booking process and no change or cancellation fees. It also uses smaller planes to maintain lower costs. Breeze will offer service from Sky Harbor Airport to Charleston, South Carolina, and Provo, Utah.
Audrey Jensen of the Phoenix Business Journal reports that a new partnership was revealed on Tuesday for the city of Glendale’s 18,000-seat facility, previously called Gila River Arena. The partnership is between Desert Diamond Casinos & Entertainment and the event management firm, ASM Global.
From now on, the facility will be referred to as the Desert Diamond Arena. The partnership will combine new opportunities between ASM Global, Desert Diamond Casinos, and the arena.
The terms of the partnerships commence this fall and will last for at least ten years. They have the option to renew for another decade. The announcement comes after the venue’s most successful year in revenue for events unrelated to hockey last year.
New promotions, special offers, headline events, and other amenities will be part of Glendale’s expanding entertainment and sports district and partnership. ASM will offer a complete schedule of concerts and notable acts.
According to a Biz Journal article, scientists, engineers, and technicians are developing 27-foot mirrors at the Richard F. Caris Mirror Laboratory at the University of Arizona. These mirrors will help power the Giant Magellan Telescope. This earth-based telescope is expected to be the most advanced and largest in the world once finished.
Arizona is poised to capitalize on the different advantages of the Arizona space ecosystem, such as a strong aerospace and defense industry and natural advantages. Plus, it is supported by remarkable university expertise.
According to a 2018 Deloitte assessment, Arizona has all the pieces to compete for new space investments. The Grand Canyon state has a strong presence in manufacturing, validation, and component testing, launch services area, space situational awareness, and mining.
According to Brandon Brown of the Phoenix Business Journal, Xnrgy Climate Systems, a Canadian company that makes data centers climate systems, has presented plans to Mesa to construct its US headquarters and a manufacturing facility.
The company based in Montreal says it will add 800 jobs and make heating and cooling systems to help the Southeast valley’s growing high-tech manufacturing industries.
The documents submitted to Mesa show that Xngry will construct its campus on 38 acres southeast of the city south of the Apple Inc. data center situated on Elliot Road.
Based on documents filed to Mesa, the project will cost $145 million to build. Xnrgy said the 800 jobs will all be full-time positions with an average yearly salary of $65,000.
According to Liz Young of the Wall Street Journal, a new warehouse is being formed just outside Phoenix as companies are seeking alternatives in the US for distribution different from the more expensive coastal gateways. Phoenix is the country’s 3rd busiest site for new logistics activity this year.
Those taking up space in the rapidly increasing logistic hub along Loop 303 include online pet-supplies store Chewy Inc and retailers Recreational Equipment Inc. and Dick’s Sporting Goods Inc.
CBRE Group Inc, which is a real estate services firm, has reported that companies leased industrial space with a net total of 16 million square feet in the Phoenix area during the second quarter.
Plus, 19.8 million square feet more of industrial space is currently under construction in a region in Phoenix that includes the Loop 303 corridor. The increase in logistic activity comes about as several retailers and manufacturers plan to reconfigure their supply chains.
Audrey Jensen of the Phoenix Business Journal says that Solway Corp Inc recently revealed plans to construct a chemical plant valuing $60 million to support the Arizona semiconductor industry.
The new plant will be responsible for transforming hydrogen peroxide into an ultra-high purity grade which will be used to clean silicon wafers required to create semiconductors.
The new plant will be constructed in Central Arizona Commerce Park, owned by Scottsdale-based Saint Holdings. In July, the company bought approximately 25 acres valuing $4.7 million.
It plans to build its new plant in the Central Arizona Commerce Park, which is owned by Scottsdale-based Saint Holdings. According to Pinal County records, the company purchased about 25 acres for $4.7 million between two transactions in July. The real estate database, Vizzda, shows that the property is situated close to the southeast corner of Ash Avenue and Burris Road north of the Lucid plant.
According to Kaely Monahan of AZ Central, the bipartisan CHIPS and Science Act was signed on August 9.
This legislation gives up to $52 billion to assist with developing semiconductor factories, research facilities, and advanced technologies across the US.
This legislation will help to bring about new commercial breakthroughs in growing fields like artificial intelligence (AI) and quantum computing.
The CHIPS Act also positions the US to become a world leader in semiconductor production and challenge China’s dominance in the industry.
Arizona, a desirable location for tech companies like Motorola and Intel for many years, is one of the states that stands to benefit from the law.
According to Jeffrey Steele of Mulitihousing News, a recent study by the National Multifamily Housing Council and National Apartment Association reveals that 4.3 million new apartments need to be constructed by 2035 to address demand and affordability, and deficit. The data features an estimate of future demands for US apartments in the 50 states and 50 metro areas plus the District of Columbia.
A decline of 4.7 million affordable units occurred between 2015 and 2020. The apartment demand also includes a forecasted 3.8 percent hike in the homeownership rate.
Levels of immigration tapered before the pandemic and so remained low. This affected the demand for apartments which will go higher with more immigration. Some 40 percent of the apartment demand in the future will come from the states of Texas, Florida, and California.
Rise48 Equity has completed $1,665,551,000 in total transactions since 2019. We currently have $1,224,986,000 of Assets Under Management, all in the Phoenix MSA.