Tag Archives: construction

[SLIDESHOW] JLL’s Project & Development team transforms former mall into corporate office

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For office tenants able to think outside of the big box, Arizona’s lingering retail vacancies can equate to major opportunity. Such is the case with the recently completed renovation of the Tucson Galleria – a $16.4 million effort led by the Phoenix office of JLL that transformed a long-vacant retail mall into a cutting-edge Western region customer support center for Comcast Cable.

Located in Tucson, the 165,000-square-foot Comcast facility was originally built… Read More

Largest absorption gains in Phoenix since recession – Q4 2015 Office Reports just released

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Central Business District encouraging tech migration with redevelopments
Despite having many of the live-work-play elements that attract tech companies and the millennials that often make up their workforce, the CBD has not attracted nearly as many of the tech companies that have propelled the economies of suburban submarkets in… Read More

Retail and manufacturing construction activity is strong as consumers spend – Q3 Construction Perspective

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Picture2Construction activity is shifting nationwide as manufacturing and retail companies make efforts to modernize, create more just-in-time shipping locations and link operations digitally.

Aiming to appeal to millennials and other city dwellers, many retailers continue to invest in small, stand-alone stores in city-center locations, focusing on unique interior construction that creates a… Read More

Phoenix Unemployment Update: November 2015

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Phoenix job growth continues to gain momentum, adding 46,800 jobs to the Valley in the 12 months ended in September 2015.

Education and Health Services saw the largest gains, adding 8,400 new jobs (3.1 percent) over the last 12 months.… Read More

Construction starts are at the highest point since the downturn, as the U.S. economic recovery continues

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ConstructionQ2Construction costs continue to grow nationwide, and many landlords are looking to redevelop existing stock in major markets. Tenant improvements (TIs) are also gaining momentum, and office landlords are competing for by offering more attractive TI packages. These offerings allow tenants to customize interiors without paying for a full redesign out of pocket,… Read More

Q2 Phoenix Industrial Insight: Construction shaping the industrial landscape

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Developers focusing on submarkets with large existing availabilities
The two largest industrial submarkets in the Valley, Southwest and Airport, feature some of the highest availability rates at 16.6 percent and 12.8 percent, respectively. Despite large amounts of available space, including a total of 54 blocks of available space of 100,000 square feet or more, developers have chosen these submarkets as the location for 88 percent of the new, mostly speculative product currently under construction market-wide. Corporate tenants have moved away from the outdated space offerings currently available, preferring to pay a premium for design-builds or newly delivered speculative Class A product that can offer more functional space with larger clear heights.… Read More

Phoenix employment update: May 2015

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Slide 1Phoenix 12-month job growth has remained strong, adding over 55,000 jobs to the Valley.

Education and Health Services led the charge, adding 11,700 new jobs over the last 12 months. Professional and Business Services came in close second with 11,207 new jobs and Trade, Transportation, and Utilities added an additional 10,803. The under-performing Construction sector… Read More

Q1 Industrial Outlook: 2015 marks a turning point in the Phoenix economy

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IndustrialOutlookEconomy
The Phoenix economy exceeded expectations in 2014, and despite a seasonal slowdown after the holiday season, the first quarter of 2015 kicked off in the right direction as well. The core industries in the Valley, including financial services, tourism, and professional services, have been driving much of the growth. Phoenix is outperforming the Western U.S. in year- over -year nonfarm payroll growth and continues to see strong levels of hiring. Unfortunately, a few pockets of weakness continue to delay a full recovery in Phoenix. Construction and Manufacturing industries within the Valley are stagnant and have not added many new jobs since the recession. The single-family housing market has cooled and developers remain stubborn as new construction permits remain at record low levels. Demographic trends within the Phoenix metro area continue to defy limited new residential construction. The Valley is seeing population gains accelerate and are expected to exceed the historical average soon. A majority of growth stems from migration into Phoenix as evidenced by the fact that the local pool of residents grew nearly twice as fast as the nation’s in 2014. These demographic trends support growing household formation, labor force expansion, and additional residential construction in 2015.… Read More

Phoenix Class A leads the way

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Phx historical net absorption2

In the years of recovery following the recession, there has been increased demand for quality, Class A office space. Often making up for losses recorded within Class B and C properties, Class A absorption has outpaced that of overall Phoenix since 2008.

Tenants have been flocking towards these newer Class A properties, driving demand… Read More

Chart of the Week: Employment winners and losers in Phoenix

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BLOG_COW_Phoenix_November10

Phoenix has yet to recover all the jobs lost in the recession. A few employment sectors such as financial activities and leisure & hospitality have already exceeded their previous peak. Unfortunately, their gains are not enough to offset the dramatic losses experienced by the lagging industries: manufacturing and construction.

Click here for more market insight… Read More