ARIZONA NEWS

Commercial real estate grows in Arizona despite hits from COVID-19 pandemic

Sep 30, 2021, 4:35 AM
(Facebook photo/City of Phoenix, AZ USA)...
(Facebook photo/City of Phoenix, AZ USA)
(Facebook photo/City of Phoenix, AZ USA)

PHOENIX- The COVID-19 pandemic sent a majority of the workforce home and out of the office, but that doesn’t mean commercial real estate in Arizona took a hit.

“The perceptions of a negative market are pretty over-exaggerated at this point,” Jon Rosenberg, co-founder of LevRose Commercial Real Estate, told KTAR News 92.3 FM.

He adds that despite more people working from home, the commercial market is currently seeing pre-pandemic levels of activity.

“The office market, the first half started out slow, picked up substantially,” Rosenberg said.  “There’s been over 2 million square feet of new leases signed in just the second quarter of 2021.”

That’s up 65% from the same quarter in 2020, which Rosenberg attributes to California firms coming to the state.

“We’re seeing a lot of the California firms come here,” he said. “The rents are much lower, much more affordable.

“The average metro Phoenix rent is roughly 30% lower than the national index.”

San Francisco rents are 2 ½ times higher than Phoenix, according to Rosenberg, and Los Angeles is about 50% higher.

More people and businesses moving to the state also results in the need for additional coffee shops, restaurants and grocery stores as retail real estate is in demand as well.

“Retail overall is much stronger than the perception,” Rosenberg said.

More retail businesses have moved into new spaces than out in the first half of 2021, according to Rosenberg.

“There’s the old saying that retail follows rooftops, so as we continue to see growth in new construction we’re seeing more retail that follows those new developments,” he said.

Rosenberg added a lot of this is smaller California and Texas concepts coming to Arizona, as leases under 5,000 square feet make up 90% of the new activity coming into metro Phoenix.

He attributes this boom to the COVID-19 pandemic allowing workers to move where they want to live, not where they have to live since they’re working from home.

A lot of those workers are now being picked up and hired by the firms relocating in Arizona, Rosenberg said.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(Creative Commons)...
KTAR.com

FBI arrests woman who allegedly robbed 4 metro Phoenix banks

The Federal Bureau of Investigation has arrested a suspect accused of robbing four metro Phoenix banks in September and October.
21 hours ago
FILE - In this Tuesday, Nov. 3, 2020, file photo, voters stand in line outside a polling station, o...
Associated Press

QAnon figure Ron Watkins says he’s running for Congress in Arizona

Ron Watkins, a prolific promoter of false conspiracies about the 2020 election who is closely tied to the QAnon movement, says he is running for Congress as a Republican in Arizona.
21 hours ago
(Facebook Photo/Peoria Police Department)...
KTAR.com

18-year-old man dead after gun accidentally discharged in Peoria

An 18-year-old man died after a friend accidentally shot him in the chest while cleaning a gun in Peoria, authorities said Thursday.
21 hours ago
(AZDHS.gov Screenshot)...
Kevin Stone

Here’s how to make sense of changes to Arizona’s COVID-19 dashboard

The Arizona Department of Health Services rolled out a variety of changes to how it presents data on its COVID-19 dashboard this week, some that could be confusing without further explanation.
21 hours ago
(AP Photo/Ross D. Franklin)...
Associated Press

Judge again rules Arizona Senate’s election review records to be made public

A judge has rejected the Republican-controlled Arizona Senate’s contention that it can withhold a raft of communications between its leaders and private contractors they hired to conduct an unprecedented review of the 2020 election results in the state’s most populous county.
21 hours ago
(Facebook Photo/The University of Arizona)...
Kevin Stone

ASU, UArizona, NAU announce COVID-19 vaccine mandates for employees

Arizona’s three public universities announced Friday they will be requiring most employees to be vaccinated against COVID-19 by Dec. 8.
21 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Why fall maintenance is important for your heating system and A/C

It’s easy to ignore your heater and air conditioner when they’re working but the moment something breaks, you will likely regret not keeping up with maintenance. After all, if something goes wrong, you may be stuck with a repair that will take longer and be more expensive than simple maintenance.
...
Schwartz Laser Eye Center

How to sharpen your vision with elective procedures

Imagine opening your eyes in the morning and being able to see clearly. You wouldn’t have to wait to put on glasses or contacts, and there would be no more blurry showers nor forgetting where your glasses are.
...
Day & Night Air

Tips to lower your energy bill in the Arizona heat

Does your summer electric bill make you groan? Are you looking for effective ways to reduce your bill?
Commercial real estate grows in Arizona despite hits from COVID-19 pandemic