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June 2023 | Phoenix MSA Market Updates

June Exec Desk Phoenix Blog

Unlocking the Growth Potential of the Phoenix Market: A Hotspot for Job, Rent and Population Growth

The Phoenix Market is an attractive investment hub for employment, rental, and population growth. This metropolitan Arizona city has an increasingly successful economy, a flourishing job market, and a rapidly growing rental market that has attracted many investors. This article examines the job opportunities, rent, population and general market development in Phoenix.

Scottsdale ranked among best cities for recent college grads to start their careers

The Phoenix market has been booming with job growth in recent years, making it an attractive location for businesses and young professionals alike. In fact, according to the Phoenix Business Journal Scottsdale was ranked in the top 10 among mid-sized cities in CoworkingCafe’s report called Best Cities for the Class of ’23: Top Places to Start Your Career with a BA.

ASU Graduate in front of Tempe Town Lake Orange Sunset

The Valley city has a strong job growth market, attracting both local and national companies. For example, RK Logistics is looking for a warehouse of 200,000 square feet to support suppliers to the electric vehicle and semiconductor industries. The company expanded to the Phoenix metro because of its strategic location, strong logistics infrastructure, and abundant workforce.

Not only does RK Logistics operate in Phoenix, but it also has its headquarters there. The company searched multiple states and regions for its new corporate office space, but ultimately chose a site in the Valley because of its attractive business climate, affordable cost of living, and vibrant culture. 

Phoenix Arizona Cactus
BUsinesses continue to expand in the valley

Republic Services’ announcement of its new corporate headquarters in north Phoenix signifies significant growth and job opportunities for the city. This project will create more than 500 new jobs and an investment of more than $100 million in the Valley, which will further strengthen the local economy.

Phoenix has become a hub for businesses looking to expand, thanks to its strategic location and friendly business environment. The addition of Republic Services to the growing list of companies calling Phoenix home demonstrates the city’s continued growth and appeal to the business community.

This investment in Phoenix comes at a crucial time when the city is striving to diversify its economy and attract new businesses. Republic Services’ investment will be a significant boost in achieving this goal, helping the city’s economy move beyond its traditional sectors of healthcare, education, and real estate.

Furthermore, the creation of 500 new jobs in the city provides new opportunities for residents. As the local workforce grows, Phoenix is expected to see an increase in talent retention and attraction. This, in turn, could lead to further business expansion, attracting new investments to the city.

The Republic Services move also demonstrates the potential for a cleaner and more sustainable economy in Phoenix. As a waste management and environmental services provider, Republic Services’ investment highlights the city’s commitment to sustainability. This move supports the local government’s efforts to implement greener initiatives, encouraging more businesses to adopt sustainable practices.

Additionally, the recent $14 million series A funding round for EvolvedMD, a Scottsdale-based healthcare technology company, is even more exciting news for the growth of Phoenix. With San Francisco-based Conductive Ventures leading the round, it’s clear that outside investors are recognizing the potential of the Phoenix startup scene. This funding will allow EvolvedMD to expand their workforce and footprint, which will likely create new job opportunities and stimulate the local economy.

As Phoenix continues to establish itself as a hub for innovation and technology, we can expect to see more companies like EvolvedMD and Republic Services attract substantial investment and contribute to the city’s economic growth.

Semiconductor supplier to hire dozens at new Phoenix HQ & Amazon opens one of its biggest US facilities in East Valley

Highlight Tech Corp.’s announcement about its new U.S. headquarters in Phoenix signifies another victory for the Valley’s growth. The semiconductor supplier will not only bring dozens of new jobs to the area, but it will also open the door to more opportunities for the tech industry in Phoenix.

With an already thriving tech scene in the Valley, Highlight Tech Corp.’s move adds another dimension to the area’s economy. It’s clear that Phoenix is quickly becoming a hub for innovative companies that seek to expand their footprint. Highlight Tech Corp.’s decision to open a new headquarters here not only affirms the region’s business-friendly reputation, but also proves that Phoenix is now a force to be reckoned with in the tech industry.

As the demand for technological solutions continues to grow in both the private and public sectors, Highlight Tech Corp.’s decision is a promising sign that the Valley is prepared to deliver the talent and infrastructure required for growth. It’s exciting to see new players entering the market, which not only validates Phoenix’s ability to accommodate businesses, but also encourages innovation.

Amazon Fulfillment Center

Likewise, the recent opening of Amazon’s KRB9 facility in Mesa is set to drive significant growth for the city of Phoenix and the wider East Valley area. The massive 1.2 million-square-foot storage and distribution center is one of Amazon’s largest in the US and will be used primarily for third-party seller storage.

Street in downtown phoenix, arizona

The new facility will bring hundreds of new jobs to the area and could also attract other major companies looking to capitalize on the infrastructure and economic benefits of the East Valley. With the expansion of Amazon’s operations in the area, the city can expect a boost in revenue from increased economic activity and job growth.

Furthermore, Highlight Tech Corp.’s and Amazon’s presence could be a catalyst for other companies in the industry to set up shop in Phoenix. It’s worth noting that tech companies are known for forming ecosystems that complement one another and accelerating innovation. Therefore, this new development has the potential to create a thriving tech community in Phoenix that not only benefits the industry, but also bolsters the local economy.

Overall, Highlight Tech Corp.’s decision to set up a new headquarters in Phoenix is an excellent opportunity for the city and a great boost to the growing tech industry in the area. It signals a bright future for the region, not only in the tech industry but also for the economic prospects of Phoenix as a whole.

Latest population surge puts distance between Phoenix and Philadelphia among largest US cities

As Phoenix continues to outgrow many of the other top 10 cities in terms of population growth, San Jose is no longer the 10th biggest city in the US. Phoenix has become a magnet for people seeking better job opportunities and a more affordable lifestyle. As a result, the city’s real estate market is booming, and rent growth has been one of the most visible indicators of this growth.

Recent studies stated in the Phoenix Business Journal demonstrate that the cost of rent in Phoenix has risen significantly in comparison to the average rate of increase in other parts of the United States. This development has been attributed to a combination of favorable conditions, such as the surge of new inhabitants to the area and the growth of job opportunities, as mentioned earlier.

Large Skyscraper Building in Downtown Phoenix

Phoenix is a desirable destination for its sunny weather, natural beauty, and flourishing economy. Home to numerous big businesses, it has also become a center of innovation and entrepreneurship, bringing thousands of job opportunities. The booming population of the city is creating a surge in the need for housing, leaving developers desperately striving to stay on top of it. Over the last year, Phoenix has welcomed over 100,000 newcomers, raising the population to a staggering 1.7 million. This inflow of residents has been accompanied by a large demand for rental housing.

Arizona Golf Course and Palm Trees
Golf’s growth across Valley spurs $6 billion economic boost while staying environmentally friendly

Even more exciting is the Phoenix Business Journal’s mention of the golf industry’s growth and the resulting economic impact which is not only beneficial for Arizona but also signals a bright future for the city of Phoenix. As one of the state’s major urban centers, Phoenix is poised to reap the benefits of the industry’s success. The number of golf courses and golf-related businesses in the city means that we can consider it a hub for golf-related activities.

In particular, the impact of large events like the WM Phoenix Open cannot be underestimated. The tournament generates millions of dollars that ripple through the local economy, and this could have even greater implications for Phoenix. By drawing in visitors from across the country and the rest of the world, these events put Phoenix on the map for tourists, bolstering its reputation as a destination for both golfers and non-golfers alike.

Moreover, the industry’s emphasis on environmentally friendly practices bodes well for Phoenix’s reputation as a sustainable city. With reclaimed water being used to irrigate the courses and the overall percentage of daily water usage decreasing, the city can continue to present itself as an example of environmentally conscious practices in action.

To facilitate the ongoing growth and evolution of Phoenix, residents should look into ways of cultivating a setting that encourages innovation, stimulates job generation, and affords economic opportunities. Investment in infrastructure, education, and other essential facets will continue to establish Phoenix as a pioneering city in the tech, healthcare, and logistics fields.

Arizona Resort Aerial View

Since 2019, Rise48 Equity has completed over $1.95 Billion+ in Total Transactions, and currently has $1.51 Billion+ of Assets Under Management located in Phoenix and Dallas.