A look into the latest business and development trends in Arizona

Arizona has seen significant development for 2022 so far and has maintained its reputation as a top state to live, work and do business. Here is an overview of various articles that have examined Arizona’s latest industry and housing trends, plus those that highlight how the state has been ranked among other states recently.

Phoenix now has two new banks offering commercial lending

According to Erin Edgemon of the Phoenix Business Journal, two new banks have entered the Phoenix metro. The institutions will employ executives from the Valley to be in charge of commercial or small Business Administration lending.

Columbia Bank, based in Tacoma, Washington, has expanded its commercial lending division into Arizona. Columbia Bank will employ Ryan Summers, a former U.S. Bank in Arizona employee who served as senior vice president and business banking market leader.

Texas-based American Momentum Bank has entered the Arizona market and will be engaged in Small Business Administration, expanding its Tampa, Florida-based SBA lending division. Tim Collins has been hired to lead with over 35 years of experience in SBA lending.

Large buildings in downtown Phoenix Arizona on a street corner
Downtown Mesa will have three new businesses

According to AZ Big Media, Caliber, which is a fully integrated alternative asset manager and opportunity zone investor, announced that it has leased three more of its Downtown Mesa properties. This is part of the company’s continuing redevelopment efforts in Mesa.

ZenniHome will be establishing 90 units at 29 West Main Street. The company started in 2019 to give viable solutions to the shortage in the housing industry. This is done by factory-building and designing their model homes so they can be transported and stacked in multi-family configurations. The houses are made with minimal environmental footprint and involve leading-edge technologies.

Busy restaurant in Downtown Phoenix Arizona
Downtown Phoenix sees growth in restaurants despite challenges

According to Cameron Arcand of AZ Big Media, several restaurants recently began operations downtown Phoenix. However, establishments are still facing the impacts of inflation and navigating the pandemic.

While there are risks of the post-pandemic economy, this summer saw the opening of The Desmonds Spirits and Oven restaurants on North First Street, and Wren and Wolf opened on North Central Avenue last fall.

The number of bars and restaurants increased from 141 to 217 between 2015 and 2022 in the greater downtown area. Plus, 15 new establishments are expected to open soon. According to data from Downtown Phoenix Inc., residential units have also increased.

Procter & Gamble to bring facility valued at $500M to Coolidge plus 500 new jobs

According to AZ Big Media, the Arizona Commerce Authority has announced that global consumer goods leader Procter & Gamble (P&G) has plans to construct a new manufacturing facility in Coolidge, Arizona. P&G is an international consumer goods leader with a diverse portfolio of trusted, quality brands.

The new facility will support the company’s fabric care portfolio, including products like Downy Unstopables®, Bounce® Dryer Sheets, and Tide PODS®.

P&G plans to finish land acquisition for the facility this month and will start construction in 2023. It is expected to be operational by 2025 and will bring about 500 new jobs.

San Francisco fintech raises $33M and will hire 100 employees in 2023

According to Ron Davis of the Phoenix Business Journal, Brightside, a San Francisco-based fintech firm, plans to more than double its mark in the Valley after fast growth over the last two years. It intends to hire about 100 employees in Chandler through 2023 after ramping up its hiring across the company last year.

Brightside said it would employ 200 new workers across Chandler, Philadelphia, and San Francisco. Currently, there are more than 175 team members across the board.

City at night time with AI technology lights

The company announced on Thursday that it raised $33 million in series B funding. This will finance its continued growth and enhancements for its platform, such as artificial intelligence capabilities.

Phoenix comes in as the fifth data center market according to sales volume

According to AZ Big Media, the most recent 42Floors report closely examined data centers, the foundation of the quickly growing digital economy. Phoenix data center has been placed at number 5 in the market based on sales volume. It has a total of $482.3 million transactions between 2012 and 2021.

Phoenix is also number 12 among the top 20 data center markets by 10-year growth. Since 2012 it has added 876,000 square feet of new data center space. Phoenix once had two of the largest 20 data center sales of the decade in 2020 and 2013.

Large high rise apartment building on the corner in Maricopa County Arizona
Maricopa County is number one again for attracting talent

The AZ Commerce Authority says Arizona and Maricopa County have been ranked as national leaders for adding skilled jobs and workers in the last five years. Maricopa County was placed at number 1 in the Talent Attraction Scorecard, released by the global leader in labor market analytics, Lightcast.

The report ranked the US states based on their talent attraction ability, and Arizona reached the top five. It had the third-highest percentage job growth, the fourth-highest percentage increase in educational attainment, and the fifth-highest percentage of skilled jobs. The state’s ability to attract new residents factored mainly in the rankings, where Maricopa County experienced the largest numeric population growth between July 1, 2020, and July 1, 2021.

According to the most recent Census, Arizona is third in numeric population growth, while the state’s workforce has added people for 27 consecutive months.

Prologis breaks ground on the second phase of industrial park

Ron Davis of the Phoenix Business Journal reports that three new industrial buildings will be constructed close to the west of Phoenix Sky Harbor International Airport. Prologis Inc., based in San Francisco, broke ground for phase two of its park, the Prologis I-17 Logistics Center.

The three new spec buildings will add more than 275,000 square feet to the area. The second phase is located east of its first phase, which became fully leased in 2021. Construction is expected to be wrapped up toward the end of the second quarter or the beginning of the third quarter of next year.

Phoenix metro is ranked as the ninth hottest real estate market in a new report

Audrey Jensen of the Phoenix Business Journal says Phoenix was ranked among the hottest real estate markets to observe in 2023. This is based on a recent report by the Urban Land Institute and PwC.

The Phoenix metro came in ninth place in the nation and is regarded as a “magnet market” and a “super” Sun Belt region in addition to other markets such as Miami, Atlanta, Dallas/Fort Worth, Houston, Tampa/St. Petersburg and San Antonio.

Camelback Mountain Phoenix Arizona

The metro received more international attention recently and attracted more investors, developers, and businesses.

Arizona is seen as the fifth-best state to employ workers

According to AZ Big Media, a recent study, CareerCloud’s “Best and Worst States to Hire Workers,” revealed Arizona as the fifth best state to employ workers.

According to the article, the factors that helped Arizona become the 5th best state to hire people include being ranked number 23 in business tax policies, number 4 in population increase, and number 12 for diversity. Additionally, it is number 29 for adults holding bachelor’s degrees and number 10 for job openings.

Front of a home in Maricopa County Arizona
Increase in mortgage rates cause homebuilding permits in Phoenix Metro to drop

According to Angela Gonzales of the Phoenix Business Journal, the homebuilding industry is seeing difficulties as increasing mortgage rates have led buyers to pause. This has caused homebuilders in the Phoenix area to issue fewer single-family permits.

According to the Home Builders Association of Central Arizona, since this year, permits for single-family homes have been down 14% year over year, falling to 21,284 permits issued throughout September 30. This is down from 24,649 for the same period last year. This drop represents a shift from 18% growth in 2020 and 9% growth in 2021.

The Arizona division president for Landsea Homes Corp., Kaylee Smith, said Landsea is one of the many homebuilders facing more buyer cancellations.

It was also revealed that Landsea continues to sell homes amid the cooling housing market. It closed out its Alamar and Farmstead at Harvest communities faster than expected. Both communities closed out about two years after they were opened for sale.

While land buys also became slow, 461 lots were acquired by Landsea in Pinal County in September. There are plans to develop a community called Wildera.

Apple prepares to receive US-made Chips from a plant in Arizona in 2024

According to Mark Gurman of Bloomberg, Apple Inc is preparing to start sourcing chips for the different devices from a plant currently under construction in the state. This is a significant move towards lowering the company’s dependence on Asian production.

The CEO, Tim Cook, revealed the plans recently and added that Apple might broaden its supply of chips from European plants. He says the company has already decided to buy an Arizona plant that will start in 2024.

Cook is probably referring to an Arizona factory expected to be operated by Apple’s exclusive chip-manufacturing partner, Taiwan Semiconductor Manufacturing Co. (TSMC). It is slated to be opened in 2024. TSMC is also looking at a second US facility to encourage chip production in the country further.

Caliber will carry out the 100-acre Riverwalk project

According to AZ Big Media, a fully integrated alternative asset manager and Opportunity Zone investor Caliber, plans to purchase the lease rights for 100 acres of land. It will be used to start The Riverwalk Development project situated in Salt River Pima Maricopa Indian Community (SRPMIC).

The current plans include dividing the land into seven parcels where restaurants, hotels, mixed-use entertainment, immersive art attractions, and event venues will be featured. The land lease involves the underlying leases for the current Hampton Inn and Topgolf entertainment venue.

Phoenix Arizona sunset over Camelback mountain

Rise48 Equity has completed $1.775 Billion+ in total transactions since 2019, and currently has $1.335 Billion+ assets under management, all located in the Phoenix MSA.