“Arizona continues to be one of the top commercial real estate markets in the country, and, as a business community, we need to celebrate this success …”
At the start of this year, the commercial real estate market was in a really strong position. Although we initially experienced a small decrease in retail and office-space leases in the first quarter, we have since returned to pre-pandemic occupancy as we continue to attract a range of new locally and nationally recognized tenants to our Arizona-based properties.
I think the biggest opportunity the pandemic presented for developers was a pause in an overheated construction market. This allowed for stability of pricing and better service by architects, engineers and construction companies. In addition, the lower interest rates have given us the chance to acquire new properties at fair prices, which paints a bright path for future development.
Although the pandemic greatly impacted Downtown Phoenix these last few months, we’ve never been as confident in the market as we are right now. Arizona continues to be one of the top commercial real estate markets in the country, and, as a business community, we need to celebrate this success and be careful not to jump to conclusions about the long-term effects COVID-19 with have on the economy.
Instead, we need to continue to navigate the ongoing implications and realign our strategies to better serve our communities and our developments as a whole. These last few months, we’ve seen a resurgence of higher-end and esteemed brands such as Fox Restaurant Concepts, LGO Hospitality and WeWork making investments, opening new locations and attracting all new clientele at Block 23 and CityScape.
Our vision for these developments has always been to create a thriving destination where people can live, work, play and connect within the heart of Downtown Phoenix, and the pandemic has not changed that. With these new tenants paired with the major renovations happening at Talking Stick Resort Arena, we’re very optimistic about the Downtown Phoenix market going into 2021.
Mike Ebert is the managing partner of Phoenix-based RED Development. As a founding partner, Ebert has shaped the company’s successful development arm in projects across the country since 1995. His keen insights and knowledge about the qualities that come together to create a compelling property are an essential part of RED’s continued evolution as a preferred partner for national retailers, real estate investors and property owners.