October Phoenix MSA Market Update: Economic Growth & Key Developments
The Phoenix market continues to shine as a hotspot for economic growth and innovation. October brought a wave of exciting developments across various sectors, reinforcing the region’s dynamic and diverse economy. With new business expansions, infrastructure improvements, and a booming labor market, Arizona neighborhoods remain a compelling region for investment, business, and growth.
Economic Momentum: Key Developments in the Phoenix MSA
Valley Apparel Company Relocates to Tempe, Boosting Local Economy
In a strategic move, a well-known apparel company, Branded Bills, has relocated its headquarters to Tempe, Arizona. This relocation of 140+ employees after experiencing a 40% growth year-over-year underscores the attractiveness of the Phoenix area for businesses seeking a central hub with excellent infrastructure, a skilled workforce, and strong, fast-paced growth prospects. The move is expected to bring numerous job opportunities to the region, adding to Tempe’s vibrant economy. (PBJ).
LPL Financial Expands Operations in Tempe’s Marina Heights
LPL Financial, a prominent player in the financial sector, has expanded its presence in Tempe by leasing significant office space in Marina Heights, solidifying Tempe as a key financial hub within the Phoenix MSA. LPL’s decision to grow its footprint here not only brings plans to hire 250 high-paying jobs by the end of year, but also showcases the region’s appeal to major financial institutions. Over the next two years, it has plans to hire 700 financial service employees beyond its first goal of 250. (Investment News). As Arizona remains a favored state for business expansion, this development is a testament to the state’s strategic advantages and favorable business climate. (PBJ).
Dutch Bros Opens New Corporate Center in Tempe
Dutch Bros, the popular drive-thru coffee chain, has unveiled its new corporate center in Tempe. This marks an important expansion for the company, reflecting the growing demand for its services and the attractiveness of the Phoenix region for business growth. It already has 85 locations in the state and this development is expected to create jobs and enhance the local economy, adding to the diverse business ecosystem in the area. Chief people officer, Jess Elmquist, said “Our goal is to have 40% of our HQ employees located in Phoenix while also expanding as a company. We’re growing at a significant rate, with hopes to continue that year over year.” (PBJ).
Maricopa Colleges Address Skilled WOrkforce Demand
The Maricopa Community College District has launched initiatives to meet the increasing demand for skilled workers across various industries in Arizona. According to Phoenix Business Journal, by 2030, the state of Arizona aims to add more than 720,000 new jobs across several sectors like health services, information, and manufacturing. With programs focusing on providing hands-on training, the district aims to ensure a steady supply of talent, particularly for sectors experiencing rapid growth such as construction and manufacturing. This effort is crucial for supporting the region’s economic expansion, highlighting Phoenix’s role as a center for workforce development.
Infrastructure and Connectivity
$75 Million in Federal Funding Boosts Arizona Airport Infrastructure
In a significant boost for Arizona’s infrastructure, KTAR News reports that over $75 Million in federal grants have been allocated to improve airports across the state, including Tucson, Mesa Gateway, and Laughlin/Bullhead. These enhancements are set to improve connectivity and support the state’s economic development by facilitating smoother travel for both business and leisure.
“As hubs for tourism and commerce Arizona’s airports play a central role in our economic growth,” said Mark Kelly. “These investments aim to increase the safety of passengers, ensuring our airports will continue operating at full capacity while creating good paying jobs in Arizona simultaneously.” Such investments in infrastructure are vital for sustaining Arizona’s growth trajectory and enhancing the region’s appeal as a business destination. (AZBigMedia).
Best Metro for Distribution Advantages
According to CommercialSearch, Phoenix has been recognized as one of the best metros in the U.S. for distribution, thanks to its strategic location and robust infrastructure. The region’s ability to serve as a central logistics hub makes it an ideal choice for companies looking to streamline their supply chains. This runner-up second place reputation not only strengthens the local economy but also attracts more businesses to set up distribution centers, further boosting job creation. In the last 5 years, the Phoenix market saw a 44% increase in its distribution and warehouse space, which elevated it to the eighth-largest total inventory in the report. The city’s strategic ties to other key markets, including Dallas, amplify its competitive edge.
Small Business Growth and Innovation
Scottsdale Makes Best Cities for Small Businesses
Scottsdale has been ranked out of 136 cities across the U.S. by Coworking Cafe as the number one city for small businesses in the U.S., reflecting the region’s supportive business environment and thriving entrepreneurial ecosystem. The presence of numerous small businesses is a testament to the local economy’s vitality and its ability to foster innovation. The city’s ranking as a top destination for entrepreneurs is likely to attract more startups, further enhancing its dynamic business landscape.
Scottsdale ranked second in the percentage of self-employed business owners, with more than 16% of business owners being self-employed in the Phoenix metro, makes it an attractive destination for new and established companies to thrive. (AZBigMedia).
New Connection Centers Strengthen Links Between Phoenix and Charlotte
CliftonLarsonAllen LLP has announced plans to open new connection centers in Arizona and North Carolina, strengthening the ties between the Phoenix market and other emerging hubs like Charlotte. These centers aim to foster collaboration and support business expansion, offering services that can streamline operations and encourage growth. This expansion is a positive sign for both markets, creating new opportunities for business engagement and development. (CLA Connect).
Community and Business Impact
Fender Expands Presence with New Facility
Fender Musical Instruments Corp., an iconic brand, expects to open a new facility in the Phoenix area in 2025. This $2 Billion redevelopment broke ground on Sept. 30 and not only enhances the local manufacturing sector but also creates 100+ new jobs and supports the creative economy. Fender’s choice of Phoenix reflects the city’s growing appeal as a hub for innovation and creativity.
Andy Mooney, CEO of Fender, told PBJ that “The company doubled in size over the last 10 years and this was a chance to bring everybody together, ultimately creating a truly custom-made building with employee amenities that meet specific needs and give us room to grow in the future.”
GPEC Reports STrong Business Expansion in FY24
According to the Phoenix Business Journal, the Greater Phoenix Economic Council (GPEC), business expansions in the region have remained robust throughout the fiscal year. Companies across various sectors are choosing Phoenix for its strategic location, favorable tax environment, and access to a skilled workforce. With new projects and expansions on the horizon, the region’s economic outlook remains optimistic, creating a thriving environment for growth and investment. There were already 7,431 jobs created with an average salary of $73,000 and 24,251 projected jobs anticipated in 2024. Some highlights from the Valley business expansions and announcements are from these companies:
- Factor: Hired around 800 employees in Goodyear.
- Outerspace: Creating 500 new jobs in Avondale.
- ASM: Opening 500 new jobs in Scottsdale.
- Republic Services: Hiring 600 people in addition to retaining 1,000 employees in Phoenix.
Conclusion: The Future of Phoenix Real Estate
October 2024 marked another period of strong growth for the Phoenix MSA, with continued investment in infrastructure, business expansion, and job creation. As the region remains a hub for economic activity, these developments are likely to drive demand for both commercial and residential real estate. With diverse sectors contributing to the local economy, Phoenix is well-positioned to sustain its upward growth trajectory, offering new opportunities for those looking to invest in this dynamic market.
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 $2.33 Billion+ in total transactions, and currently has $1.88 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.
