Arizona Why Area, including Phoenix and Tucson

Arizona offers a warm and sunny climate that boasts over 300 days of sunshine each year, an abundance of recreational activities and diverse cultural opportunities. Read more >> Also known as the “Grand Canyon State”, Arizona encompasses 11 regional economies and is world renowned for its unsurpassed natural beauty. Together these traits create a powerful draw for new businesses, residents and travelers alike.

The State’s growing expansion into service, retail, telecommunications, high tech and financial services industries assists with diversifying its economy, which should bode well during the current downturn in the U.S. economy.

Highlights

• 
  Arizona was named the fastest growing state in the U.S. for 2006 with a 3.6 percent growth in population between 2005 and 2006, breaking Nevada’s 20 year stronghold.
• In 2007, a record 33.7 million domestic and overnight visitors traveled to Arizona and spent $18.6 billion bolstering the region’s tourism industry.
• Arizona is becoming a leading state for aerospace, electronics, life sciences and optical and photonic research and development.
• The state’s economy is expected to outperform the national economy with expected growth in 2008 at 1.7 percent compared to 1.1 percent for the nation.
• Unemployment as at April 2008 was at 3.9 percent for Arizona, in contrast to the national average of 5.0 percent.
  

Phoenix

Phoenix  is the state capital and in terms of population is the largest state capital in the United States and fifth largest city. It is the most populous city in Arizona and is known as The Valley of the Sun because of the mountains that surround it. Read more >> Phoenix is the region’s primary political, cultural, economic, financial, technological and transportation center. The city offers residents an arid climate with very hot summers and temperate winters. Although Phoenix’s early economy was primarily agricultural, dependent mainly on cotton and citrus farming, the economy has diversified as rapidly as the population has grown over the last two decades. Due to the warm climate in the winter and over 300 sun-filled days, Phoenix’s economy benefits greatly from seasonal tourism and recreation, and has a particularly thriving golf industry.

Economic Growth | Job Creation | Population Trends Highlights

• Phoenix was ranked the sixth best city for doing business in 2006, based on job creation and other signs of business vitality.   The greater Phoenix area is a $50 billion marketplace driven by technology.
• Google, eBay and AOL have all relocated major centres recently. Read more >> Other companies with major operations in Phoenix include Motorola, Intel, Honeywell, Boeing, American Express, Mayo Clinic, Phelps Dodge and Prudential
• Redevelopment projects totaling $3 billion are currently underway in downtown Read more >> Phoenix, fueled by the TGen biotechnology development, expanded convention center and new Arizona State University extension campus.
• The metropolitan area local employers are  expected to create nearly 631,000 jobs from 2010 to 2020.
• 
  Phoenix is one of the fastest growing cities and metropolitan areas in the U.S. and is poised to growth from the current metropolitan population of approximately 4 million to 4.15 million by 2010 and 5.2 million by 2020.

The Phoenix Real Estate Market – Multifamily

• Multifamily permits are down 60 percent from Q1 2007.
• Cap rates for apartment properties are up averaging in the low six percent range between Q1 2007 and Q1 2008.

Tucson

Founded in 1775, Tucson is the second largest city in Arizona Read more >> and combines Native American, Spanish, Mexican and Anglo heritages. Nicknamed “Old Pueblo”, the city is located in a region that blends the cultures of the United States and Mexico, and is considered the economic, historic and cultural center of the region offering an abundance of amenities and recreational activities for residents and visitors to enjoy. Tucson’s cost of living and quality of life continues to attract businesses and residents, and this trend has seen the city reach an estimated population of 544,445 in January 2007. This is compared to 486,699 in April 2000 based on Census 2000 data.

Economic Growth | Job Creation | Population Trends Highlights

• Ranked 13th best medium sized city in the United States for doing business in 2006 based on job creation and other signs of business vitality.
• The top three major employers broken down as follows:

• U.S. Army Intelligence Center and Fort Huachuca
• Raytheon Missile Systems
• University of Arizona.
• Tucson’s job growth is forecast at 1.8 percent in 2009 adding 6,900 jobs.

The Tucson Real Estate Market

• 
  The market’s Class B/C properties are benefitting the most from a weak local housing market. Since the end of 2007, vacancies at these properties have fallen 10 basis points to 5.8 percent, as compared to Class A vacancy that reached 6.1 percent.
• Multifamily permits declined by 36 percent.
• No apartment buildings are forecast for delivery in 2008.
• As fundamentals remain steady, asking rents this year are projected to increase 2.4 percent, while effective rents advance 2.1 percent.