Benefits of Investing in Arizona Commercial Real Estate
Arizona’s commercial real estate market is thriving, driven by its robust economy, growing industries, and strategic location. That is why investing in Arizona commercial real estate for long-term financial growth offers numerous benefits, including diversification, additional income, long-term appreciation, and higher returns.
Rowe & Associates is here to provide more details about these benefits and how our team can help investors seeking predictable and sustainable returns take advantage of these opportunities.
Understanding Arizona’s Commercial Real Estate Market
Arizona’s economy thrives on a variety of industries, such as software technology, advanced manufacturing, advanced materials, bio/life sciences, and clean-tech/renewable energy. Furthermore, major cities like Phoenix, Tucson, Tempe, Mesa, and Chandler are seeing rapid growth, leading to a strong demand for industrial and office spaces.
The Arizona Commerce Authority (ACA) shared the following news about recent Arizona commercial ventures:
- In November 2024, PUMA expands automated fulfillment in Glendale with AutoStore and Bastian Solutions.
- In October 2024, Sunlit Fluo & Chemical Co. Ltd., Taiwan’s premier semiconductor chemical supplier, expanded its international footprint with the grand opening of its first manufacturing facility outside of Asia – Sunlit Arizona, LLC. Located in Phoenix
- In October 2024, Nucleus RadioPharma, the first fully integrated organization for the development, manufacturing, and supply chain of radiopharmaceuticals, announced that it has signed a lease and is set to build a new manufacturing facility in Mesa.
- In September 2024, Terraline, an autonomous-ready electric truck company revolutionizing freight transportation, announced plans to establish new engineering headquarters in Greater Phoenix.
Why Does Investing in Arizona Commercial Real Estate Make Sense?
Arizona offers business entrepreneurs and property investors several advantages, making it a prime location for commercial real estate investments:
- Tax Benefits in Opportunity Zones: Designated opportunity zones offer tax incentives for reinvesting capital gains, presenting a high potential for returns in underdeveloped areas.
- Strategic Location: Proximity to major transportation hubs is crucial for logistics and e-commerce.
- Diverse Sectors: The technology and sustainable renewable energy sectors are experiencing rapid growth.
- High ROI Potential: Industrial properties, such as warehouses and distribution centers, can provide consistent cash flow and appreciation opportunities.
Best Practices for Successful Investments
A strategic approach is essential when investing in Arizona commercial real estate:
- Market Research: Assess local economic trends, job markets, and property conditions.
- Professional Support: Collaborate with experienced real estate brokers and agents, attorneys, and accountants to ensure regulatory compliance.
- Maximizing Value: Seek out value-add opportunities, such as renovations or repurposing existing spaces.
For personalized insights and expert guidance, contact Rowe & Associates.
Investment Opportunities Across Arizona’s Growing Industries
Arizona’s key industries are driving demand for commercial real estate in major cities:
- Technology and Manufacturing: Cities like Phoenix and Tempe serve as hubs for software and hardware development, with major players including Intel, Microchip, and Honeywell.
- Aerospace and Defense: Tucson is a significant center for companies like Boeing and Lockheed Martin.
- Bioscience and Healthcare: The Phoenix Bioscience Core (PBC) is a key driver of demand for laboratory and office spaces.
- Renewable Energy: The growth of solar and wind energy sectors is increasing the need for industrial spaces in areas like Yuma and Phoenix.
Rowe & Associates is ready to provide you with information on relevant properties or markets, as well as any brokerage services or industrial real estate consulting you may require.
How You Can Capitalize and Grow By Investing in Arizona Commercial Real Estate
Investing in the Arizona commercial real estate market opens dynamic and rewarding growth options, from value-add properties to opportunities in designated opportunity zones.
Contact Rowe & Associates today to learn how Sam Rowe and his team can help you navigate this diverse market and secure the best opportunities for your investment goals. Call us today at (480) 933-0004 for a free consultation.