Is it possible for commercial real estate prices to follow the increases that the residential market has experienced in the Phoenix-area? Let look at some stats.
Forbes magazine named Phoenix as one of the fastest-growing cities in America.
Here’s how Forbes broke down Phoenix:
MSA: Phoenix-Mesa-Glendale, Ariz.
2012 Population growth rate: 1 percent
2013 Population growth rate: 2.7 percent
Job growth rate: 2.5 percent
Unemployment: 6.5 percent
Gross Metro Product: 4.1 percent
Median salary: $62,600
Additionally, according to the 2012-2013 Salary Survey from New York-based Dice.com:
Phoenix is one of the fastest growing markets in the country when it comes to tech salaries, up 11.5 percent to a new high of $83,607,
Maricopa County in Arizona, which is largely made up of the Phoenix metropolitan area, has grown rapidly since the mid-1980s, going from roughly 1.5 million residents to 3.8 million has also seen strong personal income growth.
From 1986 to 2011, Maricopa County has registered a growth rate of 383 percent in total personal income, according to the latest analysis from On Numbers of dats from the U.S. Bureau of Economic Analysis.
This may explain the latest figures released Tuesday byZillow Inc. that show Phoenix home values soared by 22.5 percent year-over-year during the last three months of 2012.
That’s significantly better than the nationwide average of 5.9 percent growth for the same period,
So the question remains, while the commercial real estate prices decline had followed the decline in residential real estate a few years ago, will commercial real estate prices also follow the increases that residential real estate is enjoying. What say you?
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