By Kristena Hansen | Phoenix Business Journal
Commercial real estate may be a few steps behind the housing market’s rapid recovery in metro Phoenix, but it has still been making steady gains this past year as businesses continue adding to their payrolls, according to a statement Monday from Cassidy Turley.
2012 growth in office and industrial jobs Valleywide last year ranked sixth- and eighth-highest in the nation, respectively, giving a much-needed boost to commercial real estate, according to Cassidy Turley, which analyzed data from the U.S. Bureau of Labor Statistics.
However, the statement added that such improvements will be thrown into reverse if Congress is unable to reach a deal later this month to scale back widespread federal spending cuts known as sequestration. Should negotiations fail, the Congressional Budget Office estimates job losses could total 750,000 nationwide this year.
As for commercial real estate, the nation’s 100 largest government contractors could dump an estimated 19 million square feet of vacant office space onto the market by year-end, the statement said.
If you’d like to discuss real estate matters, contact RLG founder Jordan Rose, jrose@roselawgroup.com
