According to the U.S. Census Bureau in 2017, Phoenix edged Philadelphia out to become the fifth biggest city in the United States, with an estimated population of over 1.61 million, and is forecasted to rank at least fourth by 2020. It’s worth looking at how a flourishing flexible office market supports widespread growth.
Bill Gates to Invest in the Nation’s Next Smart City in Arizona
Entrepreneur and American business magnate, Bill Gates is set to invest $80 million in what he calls the next “smart city,” which is also popular with several major players in the autonomous vehicle industry — Waymo, Uber and Intel.
Key Growth Drivers
The U.S. Census Bureau expects Phoenix to provide some of the largest growth nationally over the next 10 years, with an extra 2.2 million people expected to move into the area, and entrepreneur Bill Gates investing $80 million in what he calls the next “smart city.”
The Two Key Reasons for Growth in Phoenix
The low occurrence of weather disruptions and earthquakes, as well as the location of the greater metropolitan area itself, make Phoenix idea for companies looking to create manufacturing hubs and disruption centers. And the lower cost of living and lack of congestion mean that, for many families, it’s ideal for those looking to escape the rising living costs associated with cities that are highly populated, such as LA and San Diego.
Successfully establishing itself as an industrial base, the Greater Phoenix area continues to attract companies such as Apple, Intel, Geico and Charles Schwab. It has also become a new healthcare services and biosciences hub; jobs in this industry have been growing at three times the national average since 2002.
Large business are not the only ones increasingly making Phoenix and the wider state of Arizona their home. In 2018, 121 Arizona-based businesses made the 2018 Inc.5000 list, which highlights the fastest-growing companies in the U.S.
Demand for Flexible Workspace in Phoenix Up by 150%
The widespread expansion has been supported by an equally flourishing flexible office market, providing hybrid space, serviced offices and co-working spaces in Phoenix. The Instant Group tracks 51 centers in Phoenix and a further 28 in the wider area.
The Instant Group has seen demand grow by more than 150 percent over the last 12 months. With rates for flexible space ranging from $388 to $640, the competitive pricing means we expect this market to remain buoyant going forward.