The Phoenix economic and commercial outlook has admittedly taken a beating for some time, but Phoenix’s 2016 commercial real estate industry is getting ready for another smooth-inclined ride, and with any luck a few positive bursts in certain markets.
Here are local experts’ outlooks for the New Year:
Bo Calbert, president, McCarthy Building Companies “If we can raise economic development in our region, it’s going to rise the tide, adding good paying jobs, increase the middle class and lead to more real estate development.
Cathy Cartlat, mayor, City of Peoria: “I believe businesses are looking for communities with a well thought-out plan for the future. In Peoria, we have a strategic plan to offer that is attractive to businesses, along with unique amenities.”
Charley Freericks, president, DMB: “Building permits are below norms by almost half compared with averages within the last 30 years. Commercial development typically follows residential growth and presently the Southwest Valley is lagging behind the rest of the Valley in all categories.”
John Graham, president and CEO, Sunbelt Holdings: “I think the West Valley is still getting through its adolescent stage. I think its best days are coming soon.”
Mike Haenel, executive managing director, Cushman and Wakefield: “The industrial market continues to remain relatively steady in terms of net absorption. Compared to previous recoveries, the total amount of tenant velocity is slower due to a weak recovering housing market.”
Beth Harmon-Vaughn, managing director and principal, Gensler: “There is increased confidence in our local market, and we anticipate a robust year to come in 2016.”
Cole Johnson, president, Paul Johnson Drywall: “We’re going to see double-digit spending in office and retail. What will be interesting to watch will be labor supply constraints. The problem for all construction companies is difficulty in getting demand; it’s not finding work — it’s getting work done.”
Chris Loeffler, CEO, Caliber Companies: “Record-breaking sales occur as marketplace confidence continues upwards and as new businesses and residents continue migrating into Arizona.”
Micah Miranda, economic development director, City of Chandler: “I think we will continue to see strong demand for space in Chandler, driven by access to freeway corridors, a strong labor pool, high-performing school districts and a clear vision for economic growth.”
Scott D. Peters, founder, chairman and CEO, Healthcare Trust of America, Inc.: “Arizona healthcare systems and physician practices are in the early stages of developing their strategies to compete in the transition to this consolidation and integration of care.”
Elliott D. Pollack, CEO, Elliott D. Pollack and Company: “Make no mistake about it, this has been a mediocre recovery nationally, in the state and in the Greater Phoenix area relative to history. That being said, we are having a dramatic recovery … and the outlook for 2016 is more positive.”
Tiffany Winne, senior vice president and branch manager, Savills Studley Phoenix office: “Savills Studley’s outlook on the Phoenix market for 2016 is bullish. The Valley continues to enjoy steady hiring activity and robust demand for office space from a wide array of industries.”
