AZRE | AZBigMedia
The Greater Phoenix Industrial market could be poised for a surge in demand for warehouse/distribution space, according to a report released today by Colliers International in Arizona. The “stay at home” orders resulting from the Coronavirus Pandemic have forced more people to shop online and those lasting habits will increase online retailer demand for distribution space in the city.
Year-end 2019 forecasts were very rosy for all sectors of the commercial real estate industry in Maricopa County. The county added more than 89,000 new jobs during 2019, making it the #1 county in the nation for jobs added. Unemployment was just 3.9%, 30 bps below the end of 2018. February brought the first of two major events that changed the economy. Crude oil conflicts significantly drove down the price of oil. Normally a benefit to consumers, this event was followed by the Coronavirus event that put the brakes on oil usage by airlines and workers now bound to their homes. During the week ending March 28, a noteworthy 88,940 unemployment claims were filed in Arizona, marking a 203% increase from the previous week. That figure is increasing as the national shutdown progresses, creating uncertainty for companies as nearly all industries are forced to keep their doors closed.
