The Phoenix metro population grew to 4,948,203 people by July 2019, making the Valley the No. 10 most populous in the country and bumping Boston out of the top 10, according to U.S. Census Bureau data released Thursday. From April 1, 2010 to July 1, 2019, the Phoenix area added 755,074 people, meaning, on average, the Valley grew by about 207 people per day during that decade, including babies born and people moving to the area…. According to U.S. Bureau of Labor Statistics data released in February, Maricopa County also experienced the biggest increase in job growth among the largest counties. Between September 2018 and September 2019, Maricopa County had a 3.2% increase in employment, adding 106,600 jobs.
AdhereRx, a courier pharmacy service, is opening a new facility in Phoenix in May to support managed care organizations and patients with chronic conditions. Located at 1343 N. Colorado St., Gilbert, the new 18,000-square-foot facility will employ 50 people.
Cathleen Walker, the new regional president and head of corporate banking for PNC Bank NA in Phoenix, is making big plans for the bank’s expansion into the Valley. While in temporary co-working space at Serendipity Labs, 2801 E. Camelback Road, plans call for taking 10,000 square feet in that building — which is nearly all of the fourth floor — by this fall. That new office will house up to 50 people, she said. But she’s only just begun. Plans include opening eight to nine retail locations in the market within the next two years. It will be the first time PNC has a retail presence in the Phoenix area.
A Houston company plans to build a $3 billion facility in Casa Grande that will make gasoline out of natural gas. Nacero Inc. announced Tuesday it plans to produce 35,000 barrels daily of gasoline the company claims will have a smaller carbon footprint than traditional gasoline. The company said in announcing plans for the plant that its manufacturing process does not produce the byproducts of crude oil refining….The plant will create about 2,000 construction jobs and 265 permanent jobs. Casa Grande is in Pinal County, about 50 miles southeast of Phoenix.
Just do it, in Goodyear. Nike subsidiary Air Manufacturing Innovation, the maker of Nike Air shoes, plans to open a multimillion-dollar facility in Goodyear, which will employ at least 505 people in full-time manufacturing roles. According to city documents, Nike will buy an existing building and invest at least $184.5 million in the first phase of the new facility. The company anticipates starting operations in 2020, and over the course of three years will fully put the Goodyear facility into service by adding lines and operations.
Phoenix MSA continues to lead the nation in rent growth, rising 9% y/y to $1,185, still well below national average rent of $1,415. More than 8,700 units came online during 2019. Given the current construction rate, 2020 should prove to be the highest delivery amount since 2009’s 9,315-units.
Union @ Roosevelt, a recently developed mixed-use project within the popular Roosevelt Row district of Downtown, has been sold to a Chicago-based investor for $27 million. Located at 888 N. 1st Ave., features 80 luxury, mid-rise apartments with 9,100 square feet of ground floor retail space and 28,000 sqft of land.
The fully-leased apartment community is home to three retail outlets. GenuWine is a self-serve wine bar with a wide selection of wines, as well as a variety of cheeseboards and locally brewed beer. Fatty Daddy’s ice cream provides customers with local, hand crafted pastries and desserts, free from preservatives, GMOs and artificial colors. Finally, there are multiple letter of intent for the remain restaurant space that will provide the full service restaurant experience for the tenants living at Union and the general public.
Apartment rents witnessed the slowest annual rise in 17 months – a 3% increase in one year, reaching $1,474, according to a report from RENTCafé. The national average rent ended 2019 by slipping $1 compared to November, but the rent increases are still an average of $43 more compared with one year ago.
Here are the highlights for rent increases in Metro Phoenix:
• Phoenix ended the year charging $1,123 in average rent, after a $98 increase over one year, or 9.6%. This is the largest increase from among the US renter mega-hubs.
• Even higher increases were registered in Avondale, 11.2%, and Mesa, 9.9%. Avondale rents added $122 since the end of 2018, reaching $1,215. Meanwhile, Mesa average rents went up $99, to $1,094.
• Scottsdale charges the most expensive rents, $1,560 on average. They went up $91 compared to one year ago.
• The cheapest rents are in Glendale. Here the average reached $1,026, after adding $79 since the end of 2018.
• The slowest rent increase was registered in Goodyear, as rents here added $62 in one year, reaching $1,252.
As we embark upon a new decade, it’s hard to miss the technological advances happening all around us. Arizona in 2020 is a state ripe with investment in cutting-edge technology, one where entrepreneurship is thriving and the breakthroughs of tomorrow are happening right in our own backyard.
Arizona’s autonomous vehicle sector is a prime example of how our state has positioned itself to be on the leading edge of the future. After all, it’s where The New York Times said “self-driving cars go to learn.”
While it’s easy to imagine a future zipping around the state in driverless cars, what hasn’t been simple is measuring the actual economic impact of this future for our state. But economist Jim Rounds crunched the numbers and recently released a report for the Arizona Chamber Foundation on the various models and assumptions for Arizona. One thing they all point to? By leading other states, Arizona is poised to reap a disproportionate share of the billions in economic growth and investment this new industry will bring.
Even a rise in interest rates cannot slow Arizona’s red-hot housing market.
“The modest uptick in mortgage rates over the last several months reflects declining recession fears and a more sanguine outlook for the global economy,” says Sam Khater, chief economist for Freddie Mac. “Due to the improved economic outlook, purchase mortgage applications rose 15 percent over the same period a year ago, the second-highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into 2020.”
That renewed confidence in the economy has most Arizona experts bullish on Arizona’s residential housing market.
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