Scroll Top


May 2024 Phoenix Market Update blog

May Market Updates: Phoenix's Economic Boom

The Phoenix MSA continues to experience remarkable growth and economic momentum, claiming its position as a hub for innovation, business, and lifestyle. Recent developments across various sectors paint a promising picture for the region’s future, showcasing a diverse and thriving economy. From a growing bioscience industry to major expansions in technology, education, and transportation, Phoenix is experiencing a wave of positive change. This blog post will delve into the key market updates from May, highlighting the factors contributing to the MSA’s economic vitality and its attractiveness as a destination for investment and growth.

Arizona’s Bioscience Boom

Arizona’s bioscience industry is experiencing remarkable growth, ranking as the fourth fastest-growing in the United States. This surge is fueled by a robust research infrastructure, a supportive regulatory environment, and a highly skilled workforce. As this sector continues to expand, it is expected to significantly contribute to the Phoenix economy, attracting investments, creating high-paying jobs, and fostering innovation in healthcare and biotechnology.

Arizona Bioscience building

Arizona’s bioscience sector is experiencing remarkable growth, ranking as the fourth fastest growing in the nation. The industry is supported by top-tier healthcare and educational institutions, along with innovators in various fields like diagnostics, pharmaceuticals, personalized medicine, genomics, medical devices, cancer treatment, telemedicine, and neuroscience. The state’s growth rate surpasses national averages in many key areas, as evidenced by record-breaking National Institutes of Health (NIH) grants and strong job and wage growth.

The state continues to invest in its bioscience future, with the launch of new medical schools at Arizona State University and Northern Arizona University, the expansion of the University of Arizona’s medical program, and Mayo Clinic’s groundbreaking Discovery Oasis campus. Additionally, global companies like W.L. Gore, Roche Diagnostics, Medtronic ,BD, Bristol Myers Squibb, Dexcom, and Stryker have established a strong presence in Arizona.

Arizona’s bioscience sector demonstrates a unique blend of innovation, collaboration, and economic growth. From groundbreaking startups to established global players, the state provides a fertile ground for discoveries that not only drive the economy but also improve health outcomes for people worldwide. This thriving ecosystem exemplifies Arizona’s commitment to fostering a brighter future through scientific advancement and economic prosperity (AZInno).

Population Growth and Economic Expansion in Phoenix

Metro Phoenix remains a magnet for population growth, securing the fourth spot in year-over-year growth among major U.S. metropolitan areas. With a 1.0% increase, adding 54,916 people, this influx of residents fuels demand for housing, stimulates consumer spending, and creates opportunities for businesses across various sectors. This data, which encompasses population changes for the latter half of 2022 and the first half of 2023, underscores the continued appeal of Sun Belt cities and reveals evolving dynamics within this region. The sustained growth underscores Phoenix’s attractiveness as a place to live, work, and invest.

ASU Polytechnic Campus: Igniting East Valley’s Economic Engine

Arizona State University’s Polytechnic campus is emerging as a driving force in the economic development of the Phoenix East Valley. With the construction of the new ISTB12 building, the campus is set to become a hub for advanced manufacturing, logistics, aerospace, semiconductor, and other industries.

ASU Polytechnic Campus

The $185 million ISTB12 building will house the School of Manufacturing Systems and Networks, focusing on hands-on learning and industry engagement. Equipped with cutting-edge labs specializing in robotics, artificial intelligence, and semiconductor manufacturing, it aims to produce highly skilled graduates ready to meet the workforce demands of the region’s growing industries.

The campus is actively forging partnerships with industry leaders like Intel, Honeywell, FANUC, and Rockwell Automation, ensuring that the curriculum aligns with real-world needs. This collaboration will not only benefit the students but also attract businesses to the area, creating a symbiotic relationship between academia and industry.

The impact of the Polytechnic campus extends beyond manufacturing. Its faculty expertise in cyber manufacturing,robotics, and smart manufacturing will benefit various sectors in the East Valley, contributing to the region’s overall economic diversification and growth.

The campus aims to significantly increase its student population to 15,000, further solidifying its role as a talent pipeline for the region. This influx of skilled graduates will be a major draw for businesses seeking a qualified workforce, boosting the local economy and driving innovation (AZ Big Media).

Plane taking off at Phoenix Sky Harbor airport
Phoenix Sky Harbor Takes Flight

The economic impact of the Phoenix airport system has grown significantly, reaching $44.3 billion annually. This 15% increase since 2016 solidifies the airport system as the largest economic engine in Arizona, supporting nearly 246,000 jobs and generating an annual payroll of $14.8 billion.

The airport has experienced major gains in economic output, total income for workers, and visitor spending. Visitor spending at Phoenix Sky Harbor alone rose 12%, reaching $6.5 billion in 2022.

The airport system’s success is attributed to continued investments, which create jobs, support businesses, and connect Phoenix to global opportunities. The positive impact of the airports extends beyond the aviation industry, boosting tourism and contributing to the overall economic vitality of the region (AZ Big Media).

American Airlines, the largest airline operating at Phoenix Sky Harbor International Airport, is anticipating its busiest summer in years. This surge in passenger traffic surpasses last summer’s numbers and marks a significant recovery from 2019. The airline expects to serve 3 million passengers with over 26,000 departures this summer. This growth is attributed to the addition of new destinations, including exclusive flights from Phoenix to Pasco, Washington, and Tijuana, Mexico, along with a general increase in commercial aviation traffic. American Airlines’ competitor, Southwest Airlines, is also experiencing a substantial increase in passenger traffic in 2024 (Phoenix Business Journal).

Magna Steyr Accelerates Job Growth in Mesa

Magna Steyr, a leading automotive manufacturer, is expanding its operations into Mesa, Arizona, with a new manufacturing facility. This move is expected to create significant job opportunities in the Greater Phoenix region, with the company actively recruiting for various positions.

Mesa, AZ Mountains above the city

The details of the Mesa facility remain largely undisclosed, but the company has been linked to the Power Industrial park in the 85212 ZIP code, known for its industrial activity. Recent filings for building permits further suggest Magna Steyr’s presence in the area. The facility’s size and scope hint at a substantial operation, though no official announcements have been made by the company (Hoodline).

This expansion is poised to reshape the economic landscape of the region, offering new employment opportunities and contributing to the area’s industrial growth.

Downtown Gilbert, AZ
Legacyev’s New Headquarters: A Legacy of Growth in Gilbert

Legacy EV, a Tempe-based company specializing in electric vehicle conversion kits, is experiencing rapid growth. The company is relocating to a larger facility in Gilbert to accommodate its expanding operations in research and development, validation, and warehousing.

Legacy EV distributes and integrates components from other manufacturers into kits for auto shops and authorized installers, facilitating the conversion of gas-powered cars into electric vehicles. The company also offers a certified technician program to educate individuals on proper kit installation.

The construction of Legacyev’s new headquarters in Gilbert marks a significant milestone in the town’s economic development. This investment not only brings a prestigious company to the area but also creates a substantial number of jobs. The ripple effects of this development are expected to extend beyond Gilbert, contributing to the broader Phoenix MSA’s economic landscape (AZInno).

Dutch Bros. Brews Economic Opportunity

Dutch Bros Inc., the Oregon-based drive-thru coffee chain, is making significant strides in its expansion into Arizona. The company’s CEO confirmed during a recent earnings call that the expansion of its corporate offices in the state is progressing as planned.

Dutch Bros has already established an office in Scottsdale and is actively hiring in the Phoenix market. By early 2025, the company aims to have at least 40% of its corporate staff working in the Valley, and is currently seeking a larger,permanent office space.

Phoenix is a key market for Dutch Bros, with high brand recognition and customer loyalty. The company is leveraging this enthusiasm to develop new product initiatives, such as testing order-ahead technology within its mobile app in Arizona.

Despite the costs associated with the office move, estimated at $41 million, Dutch Bros remains optimistic about its prospects in Arizona. The company’s strong first-quarter results, with a 39.5% revenue jump, further reinforce its positive outlook for growth and expansion in the region (Phoenix Business Journal).

Chandler, AZ aerial view of the city
Penn Foster Group Expands in Chandler

Penn Foster Group, an online education company, has opened a new call center in Chandler, Arizona, and plans to hire 100 employees. The Arizona Center of Excellence will provide customer service support to Penn Foster’s learners, helping them complete their high school, career, and college programs. 

Penn Foster chose Chandler for its expansion due to the area’s focus on education and access to a bilingual workforce.This expansion not only creates numerous job opportunities but also reinforces the region’s commitment to fostering a skilled workforce. As Penn Foster Group establishes its presence in Chandler, it is poised to contribute to the city’s economic growth and innovation ecosystem (Phoenix Business Journal).


In conclusion, the Phoenix MSA underscores a region with opportunity and potential. The flourishing bioscience industry, fueled by innovation and research, is set to become a major economic driver. The sustained population growth, coupled with the expansion of educational institutions and corporate offices, demonstrates the region’s allure for both individuals and businesses. Furthermore, the robust performance of the airport system and the thriving tourism sector further contribute to the economic vitality of the area. These positive developments, along with strategic investments in infrastructure and clean energy, position the Phoenix MSA for a bright future. As the region continues to evolve and adapt, it remains an attractive destination for those seeking a thriving economy, a diverse workforce, and a high quality of life.

Since 2019, Rise48 Equity has completed over $2.21 Billion+ in total transactions, and currently has $1.78 Billion+ of Assets Under Management located in Phoenix and Dallas. All of the company’s assets under management are managed by Rise48 Equity’s vertically integrated property management company, Rise48 Communities.