According to JLL’s Q2 Phoenix Industrial Insight Report, the hot activity of manufacturing companies is driving up industrial rental rates. In the last year alone, manufacturing rates have surged 18.6 percent, to $0.59 per square foot. This sector has been particularly active in the Southeast Valley, especially in Tempe and Mesa.
Construction 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
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 has been mistakenly classified as a construction- and real estate-intensive metro by many, when in fact the economy is very diverse relative to other metros and states. Despite trade, transportation and utilities as well as professional and business services being the primary employment sectors, education and health services has grown over… Read More
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.
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Note: The following interview and article featuring Anthony Lydon, JLL’s Managing Director – Industrial, originally aired on 91.5 KJZZ and appeared on KJZZ.org.
Listen to the interview:http://joneslanglasalleblog.com/Phoenix/wp-content/uploads/2014/04/Manufacturing-Down.mp3
A new report highlights how manufacturing has changed in Phoenix over the last year, and what could happen as the industry comes out of the recession. The report from JLL is generally positive: The housing market is stabilizing while… Read More
Phoenix employment growth has slowed slightly to 2.2 percent over the last 12 months. The Valley added 39,900 new jobs new jobs over the last year.
The top four sectors include Trade, Transportation & Utilities, Education & Health Services, Professional & Business Services, and Financial Activities. These four employment sectors make up the… Read More
Although Phoenix lost 31,600 jobs in January due to seasonal lay-offs, the valley is still far ahead of last year’s January totals. Phoenix 12-month job growth is at 2.7 percent which translates into 48,405 new jobs added since last January.
All major employment sectors shed jobs in January with the biggest losses… Read More
Click here for more market insight on our Phoenix research group web page: Phoenix – Research
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Phoenix added 6,400 jobs, in December, well below expectations. Unemployment rose from 6.0 percent to 6.2 percent due to growth in the labor force.
Trade, Transportation & Utilities as well as Education and Health Services continue to lead the way adding 23,500 jobs. Financial Activities along with Professional and Business Services also… Read More