Phoenix, Ariz – Marcus & Millichap reports strong demographic trends contribute to demand growth for Phoenix retail. As the metro’s economy continues to grow, so will consumption. The increases in jobs, housing supply and residents add to the growing need for retail space. Phoenix is expecting to post the nation’s third largest household growth for 2019 with 42,400 and the greatest positive net mi-gration with nearly 80,000 residents anticipated to join the desert metro by the end of the year. The ongoing growth is causing retail demand to in-crease at a strong pace as well. Residential construction has been rampant across the metro, particularly in the East Valley and West Valley. As the new residences are leased and sold, demand for necessity retail in the form of grocery, fitness centers and other power centers will be amplified.
In comparison to the three previous years, construction levels are down significantly. A modest 431,600 square feet is scheduled for com-pletion in 2019, approximately one-third of the total space delivered last year. The diminished pipeline has some investors wary that the recovery may be nearing its conclusion. While limited, the construction is spread across the metro, with many of the market’s deliveries coming to the East Valley. In the other side of the metro, Buckeye is expecting the state’s first Aldi location, which is set to open later this year. The discount grocer is well established on the East Coast and has been growing rapidly across the United States.
Read the Marcus & Millichap report here.
About Marcus & Millichap (NYSE: MMI)
With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.