Defense spending has been set approximately $700 billion for the year of 2018, with an array of awarded contracts finding their way into Arizona. A $16 billion increase is projected for the year of 2019.
Honeywell, Boeing, and General Dynamics continue to be consistent candidates for contracts, with smaller organizations such as Orbital Sciences also finding funding.
Places outside of the Phoenix metropolitan area are receiving large contracts as well, such as Nimbis Services in Oro Valley and KWR Construction in Sierra Vista. Fortunately, contracts continue to come to the Metro area, increasing the probability of manufacturing developments.
Although it falls outside of the valley, defense giant Raytheon will continue to bring contracts, jobs, and overall economic improvement to the city of Tucson, with a $550 million expansion coming to its facilities throughout the next few years.
Source: JLL Research
About the author
Rudolph “Nick” Perez is a market analyst in Phoenix, responsible for tracking and analyzing all local real estate market fundamentals. He works closely with brokerage and support professionals throughout the western region as well as colleagues throughout the global JLL organization to provide best-in-class research that differentiates JLL.