In February, we explored the impact of foreign investment on Arizona’s economy. Research showed a healthy flow of foreign financial interest into local development, but we were still unable to see the bigger picture when it came to any solid comparisons. In other words, how does Arizona stack up to the age-old lucrative markets on the West Coast and Eastern Seaboard? Considering the question, led us to examining how cumulative investment drives our state’s rankings compared to other states.
One of the foremost sources of expertise on the subject comes from a yearly ranking released by PricewaterhouseCooper and the Urban Land Institute, the Emerging Trends in Real Estate® 2016.
According to the list, Phoenix sits comfortably towards the top of the pack – 18 out of 84 – when compared to other U.S. metro areas. As far as the Southwest is concerned, it beats out Albuquerque, Salt Lake City, and Las Vegas – but falls behind L.A. and its surrounding suburbs, as well as Denver, which rests at number six.
In terms of a breakdown – Phoenix’s main pull to the top involves overall investment. The metro area falls to the middle of the pack when looking at development (40), office real estate (45), retail (59) and industrial (56).
Tucson fared poorly across the board. The Southern Arizona city’s final score came in at 79 out of 84. It’s highest-ranking category was investment, which only placed the city at 50.
When compared to last year, Phoenix moved up eight places, from 26 in 2015 to this year’s 18, while Tucson has fallen from a score of 65 in 2015 (though it’s worth noting only 75 markets were scrutinized last year, as opposed to 84 this year).
It seems clear that while the Phoenix area continues to play host to a steady growth in real estate across the board, Tucson still lags behind in development.