The landscape of Southwest commercial real estate is changing and
growing. Within the last few years, high-tech companies have been looking to the Southwest as a new alternative to pricier markets for commercial office space.
In August 2020, Amazon announced that they will be adding a 100-million-dollar expansion to office spaces in Phoenix with 500 new jobs attached. Acronis, Valor Global, Infosys and TEKsystems have also announced expansions into the Southwest within the past few years. As large corporations turn to the Southwest for commercial office space, more people are beginning to consider Arizona and other major cities within the Southwest region as the newly dubbed Silicon Desert.
Why the Southwest Region?
According to Orlando Tech, the Southwest Region is appealing to Fortune 500 companies because of its high standard, low cost living, budding and flourishing pool of talent, and lower costs for businesses. Goodyear Mayor Georgia Lord of Phoenix states, “Arizona continues to foster a welcoming pro-business environment for new and existing companies” (Gossie, 2019).
In late 2019, CBRE ranked Las Vegas, along with Phoenix, as one of its top 10 “up and coming” tech talent markets in the United States (Horwath, 2019).
The average rent for office space per square foot annually in Phoenix and Las Vegas is $24.22 and $20.88 respectively. In comparison, Silicon Valley and Seattle average costs per square foot are over $100 (Orlando Tech, 2020). Fortune 500 conglomerates can save about 60 percent when compared to Silicon Valley, and about 50 percent when compared to Seattle.
With these trends in mind, we can certainly expect the Southwest commercial real estate market to thrive and prosper, and for more large companies to follow suit and move into this region.
Pro Employer Environment
Other positive factors inspiring companies to make a move to the Southwest include the pro-business policies, access to quality employees and overall lower cost of living. Phoenix tops the list as one of the fastest growing populations – with more people moving to the Valley of the Sun every year. This coupled with strong engineering, business, supply chain and sustainability programs at the Universities offer an excellent pool of candidates.
Whether it is tech – which touches nearly every industry – hospitality, sports, logistics or ecommerce, the Southwest Region is the place to be when it comes to doing business. With an experienced team of professionals and locations across Arizona and Las Vegas, Landmark Title is prepared for the growth in the commercial and residential real estate sectors.
Choosing a detail-oriented title and escrow agency is paramount when handling complex commercial real estate transactions, Landmark Title’s team is highly knowledgeable and experienced. Contact our Arizona or Nevada locations today to learn more about our services.