Commercial Real Estate Conditions have Improved modestly, What about in Arizona?

Investment condition ratings for all property types – office, industrial, retail, apartments multi family apartment buildingand hotel – improved during third-quarter 2012. These results were released today by CCIM Institute (www.ccim.com),  following a national third-quarter survey of CCIM members conducted by Real Estate Research Corp. (RERC).

Nationally, high unemployment and anticipated federal tax increases  continue to negatively impact the commercial real estate investment environment. However, investing in commercial real estate remains a reasonable and sturdy investment choice for investors seeking realistic returns and less volatility than many other investment vehicles.

I reported on the commercial real estate market conditions in the Phoenix-area in previous posts, but what can we expect going into 2013?
I don’t have a crystal ball but when we look at Arizona in terms of economic recovery,  job creation it can look promising.

According to a new report out this week from the Brookings Institution, Phoenix ranks 3rd among the nation’s top 100 metropolitan areas in terms of economic recovery,.

The Phoenix Business Journal reported that, Arizona’s unemployment rate dipped below the 8 percent mark for the first time in four years in November, according to new state jobs data from the Arizona Department of Administration. Most of the state job gains came from the private sector.
As Arizona’s jobless rate continues to fall, its population has been growing at one of the fastest rates in the nation this year.

The state of Arizona’s population rose by 1.33 percent year-over-year in July , according to the latest estimates from the U.S. Census Bureau. In actual numbers, however, Arizona’s population growth ranks No. 6, the report said.

Nationally Franchise business formation, job creation and GDP output is expected to grow as well.

The International Franchise Association reported, that though its growth is projected to slow slightly, Franchise businesses will increase in number by 1.4 percent in 2013. The industry grew by 1.5 percent in 2012, the franchise industry will continue to outpace economic growth in other sectors.
The Franchise Business Economic Outlook: 2013 forecasts similar growth rates in new franchise business formation, job creation, output and contributions to U.S. gross domestic product. Jobs at franchise businesses will increase 2 percent next year, according to the report

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This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared

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