It’s been an industrious season for the industrial sector of Phoenix’s commercial real estate — more than a year that includes record-setting activity and that also bodes well for Phoenix’s employment numbers.
The Phoenix industrial market continues to surpass expectations, setting records for demand and construction only few markets can rival. Increased tenant demand is the biggest driver for industrial success. Local operators are expanding while out-of-state companies look to relocate their business from neighboring states. Competitive operating advantages, proximity to major markets and a growing workforce make the Valley an attractive metro area in which to locate and grow.
While the Valley has traditionally been a hotbed for e-commerce and third-party logistics operators, interest in high-tech manufacturing, to include semiconductor manufacturing and autonomous vehicles, has grown substantially. The diversified market within the industrial space has led to new investments in the Valley that will create new employment opportunities.
The cover story this month spotlights a sampling of industrial projects throughout the Valley. And new projects are announced seemingly every day. Projects range from large-scale campuses for single users, like the Taiwan Semiconductor Manufacturing Center in North Phoenix, to speculative developments designed to accommodate a variety of light manufacturing and distribution.
The guest columnist from Gensler examines another aspect of construction. In “Materials Matter in Combating Climate Change,” Kaley Blackstock discusses the role of reuse, locality and smart material selection as factors the design of commercial structures.
Cyberattacks is also an issue of growing concern, with online hacking resulting in malicious viruses threatening business operations. Bryce Austin addresses this important topic in feature article ”Beyond Cyberattacks: Ransomware Readiness and Recovery.”
Some new developments are hitting the business community. One is a rule that allows law firms in Arizona to be owned by non-lawyers. In this month’s Legal feature, Andy Kvesic discusses changes this offers to successful businesspeople who, for instance, can now provide their human capital to law firms and focus on operations, technology and scaling — and suggests this idea may be taken up in other states. And in the Roundtable feature, Jake Guttman suggests creative ways employers can augment wages to compensate high-value employees in today’s competitive employment market.
With the usual range of relevant information for our business community, this May edition of In Business Magazine includes articles on healthcare, technology, new startups, and much more. I’m very pleased to be part of bringing this information to you, and hope you enjoy the read.
Senior Managing Director
Arizona native Paul Komadina is the senior managing director and market leader of CBRE’s Phoenix and Tucson offices, where he oversees all aspects of CBRE’s Arizona business operations, encompassing more than 1,000 employees.
Komadina drives the overall strategy across all lines of business, including Advisory & Transaction Services, Investment Sales, Debt & Structured Finance, Asset Services, Valuation & Advisory Services and Project Management.
Komadina received his Bachelor of Science in business administration with an emphasis in finance and real estate from the University of San Diego.