Commercial real estate serves as a mirror to the multitude of social changes we’ve experienced since the onset of the COVID-19 pandemic. This economic sector has long been known for its cyclical market, but we may be seeing much longer-term trends.
Greater Phoenix continues to be a hot spot for industrial development despite more challenging market conditions. Reshoring manufacturing, especially for advanced products ranging from semiconductors to autonomous and electric vehicles to industrial chemicals, looks to be a more permanent change as companies aim to prevent supply chain disruptions.
With higher interest rates, capital is harder to come by for much-needed multifamily projects. Nevertheless, people from across the United States and beyond continue to choose Arizona as their new home. As our population increases, so does the need for a range of housing options. Developers are working to meet the growing need for luxury, workforce and affordable multifamily housing in communities throughout the Valley despite it having become more difficult to finance these important projects.
Retail real estate is experiencing a resurgence. More residents drive the need for more shopping and dining options. Exciting new entertainment projects that combine dining, hospitality and engaging retail are popping up all over the Valley.
For this month’s cover story, In Business Magazine worked with leaders in the four sectors of commercial real estate — industrial, retail, office and multifamily — and a specialized sector that is seeing significant growth: healthcare and biosciences. Speaking to the current state of CRE and what the future economic picture looks like given the state of today’s market, they give insight into how CRE developers and brokers deal with tenant needs such as employers struggling to anticipate changing workplace needs due to the pressure of accommodating in-office, remote and hybrid workforces as well as other unexpected results of the pandemic while also being directly impacted by market forces such as increasing land values and construction prices.
The regular monthly CRE department presents two articles on trends playing out in the market. One discusses the transition in real estate development to sustainable energy sources; the other focuses on emerging trends locally in the demand for office space.
Offering insight into another key economic sector, Enterprise Bank & Trust vice president Julie Fletcher’s feature on “red flags” for business loans discusses what businesses should avoid and how they can be best prepared for the loan process — from basic items to less common ones — when applying for a business loan.
In Healthcare, another regular monthly department, Dr. George Orras completes Denova Collaborative Health’s two-part look at mental health with an article that offers tips to help business leaders build mental health awareness and support right into their company culture.
This May edition premiers a new Guest Columnist column: Resilience, the Core of Everything. In this bi-monthly feature, Kathleen Gramzay aims to help business leaders leverage the potency of human resilience through a holistic and comprehensive look at relationships and interaction within organizational structure.
Startups, rebranding, what’s happening in our local semiconductor industry, even where to enjoy a “Power Lunch” are among the varied topics that fill this May edition as In Business Magazine continues to help strengthen our business community through relevant, informative content.
I am pleased to help bring you this May edition of In Business Magazine and invite you to enjoy the rich and varied content.
Sincerely,
Suzanne Kinney
President & CEO
Arizona Chapter of NAIOP
Suzanne Kinney is president and CEO of the NAIOP Arizona, the commercial real estate industry association. During her tenure, the organization has grown to have more than 1,000 members and has won several national awards, including NAIOP Chapter Executive of the Year and Chapter of the Year. Kinney has been named a Real Estate Power Broker twice and a Woman Achiever by the Arizona Capitol Times. Previously, she has run her own consultancy and worked at the Arizona Chamber of Commerce and Industry and Morrison Institute for Public Policy at Arizona State University.
