Phoenix is among the top U.S. metro markets for commercial real estate investors, according to CBRE’s 2023 U.S. Investor Intentions Survey.
While CBRE expects that 2023 investment volume will be down by 15% from last year due to rising interest rates, tighter financial conditions and a looming recession, the survey shows that markets within the Sun Belt will continue to attract investors.
Phoenix ranks no. 8 among the top 10 preferred markets by investors, while Dallas, Austin, Miami, Los Angeles and Nashville take the top five spots, respectively.
“Phoenix is well-positioned to sustain positive economic growth through 2023 and 2024,” says Asher Gunter, Vice Chairman of CBRE’s Phoenix office, in a statement. “Phoenix’s high quality of life remains relatively affordable compared to most western markets, which continues to drive in-migration and high employment growth throughout the metro. Phoenix added almost 90,000 jobs annually in November 2022 and large, high-profile job announcements position the region’s diverse employment base to continue growing and drive future demand for multifamily housing.”
According to CBRE, the most sought-after sectors in 2023 remain multifamily, such as apartment complexes, and industrial. Grocery-anchored centers are the most popular sub-sector for retail investors and office investors prefer Class A assets in prime locations.
“The Greater Phoenix region continues to prove that Phoenix is one of the strongest markets in the country,” says Bruce Francis, Vice Chairman of CBRE’s Phoenix Office, in a statement. “Phoenix offers a diverse business economy with sectors including aerospace, technology, agriculture, tourism and active semiconductor industry. Thanks in part to the largest foreign direct investment in the U.S. by the Taiwan Semiconductor Manufacturing Company’s (TSMC) facility in North Phoenix, the Valley is set to be the top semiconductor region in the country once TSMC is up and running. This will only help to expand the Valley’s already growing population.”
Read the complete CBRE report here.