To identify the multifamily trends that people working in commercial real estate should know about, AZRE talk with Chris Brozina, executive vice president at Mark-Taylor Companies.
AZRE: Downtown urban areas (Phoenix, Tucson, Gilbert, Mesa, Scottsdale) seem to be drawing much of the current multifamily development in the Valley. What’s driving this trend?
Chris Brozina: Equity. Developers develop where their equity source tells them to develop and that reflects, at least theoretically, where people want to live in apartments. The important point to understand, however, is that institutional-equity is generally headquartered on the coasts and almost never coming directly from Arizona. This means there will always be a coastal-market thought influence directing where equity is placed in a market like Phoenix. Today, the coastal, denser market trend is to build more mixed-use, dense, walkable apartments in locations that are suitable. You can see that influence in Phoenix today.