When it comes to commercial real estate, the market in the Phoenix area has been anything but settled in the last decade. After the real estate bubble burst, the metro Phoenix area fell out of the top ten real estate markets in the U.S. and is still recovering. Currently, it ranks 26th in the nation out of 75.
However, while the area is still in recovery doesn’t mean that businesses are not buying or building. What it does mean is that all parties need to be more cautious with their decision process to ensure that they reach the correct decision.
Phoenix is still recovering from the binge of home building that occurred between 2000 and 2007 when the building came to an abrupt stop. And the slow growth of jobs and wages has also affected the commercial real estate market, with less demand.
However, in a recent survey of Phoenix area brokers, 100 percent reported they were optimistic for the commercial real estate market. Moreover, another report suggested that a majority of real estate experts note that for buyers, now is a good time to purchase in Phoenix.
If your business needs to expand, move or acquire additional locations, an important element of the transaction is ensuring all the necessary due diligence has been completed, with both the legal and financial aspects of the deal.
This can prevent unpleasant surprises from arriving on the eve of the closing, which can derail the transaction and throw your plans in chaos.
As the Phoenix market continues to stabilize and mature, it allows businesses the time to properly investigate properties before investing and it provides them with the opportunity to make quality transactions that will truly benefit their long-term health.
Arizona State University, “Phoenix commercial real estate in recovery” Mark Stapp, October 10, 2014
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