Phoenix is defying national trends with a 3% increase in occupied industrial space and the delivery of 16.5 million square feet of industrial product in Q3 2023, making it a hub for tech giants. The construction workforce in Arizona is expanding alongside economic growth, adding over 900 construction jobs in the Phoenix metro area in November 2023. Nationally, job growth increased in November, but the unemployment rate rose to 3.8%, signaling a softening of labor market conditions. Material price increases in construction are stabilizing at 3% to 5%, with some items facing ongoing price increases due to high demand and limited manufacturing capacity. While Phoenix excels in industrial space occupancy, the office real estate outlook is cautious, anticipating a slow recovery to pre-pandemic levels.
