Tempe, AZ - Avery Gilmer, a leading commercial real estate expert, announces an outlook on the Phoenix, AZ, commercial real estate market for 2023. According to the report, the multifamily market in Phoenix experienced massive growth in 2020 and continued into early 2022 due to an influx of movers. However, the absorption rate is now moderating, and supply is outpacing demand, causing the metro’s vacancy rate to reach 7.9 percent. The development pipeline for luxury units is outpacing demand, and renters are seeking more affordable options.

Multifamily investors in Phoenix are seeking first-generation value-add deals, but they are hard to find as 36 percent of the market has already traded. Investors will have the best chance of making money by making improvements to existing properties and operations, focusing on increasing net operating income, and adding other ways to make money.

Phoenix industrial remains strong with a positive outlook due to high rent growth and low supply. In-demand neighborhoods like Scottsdale Airpark are facing land constraints, and large facilities are in high demand. To obtain assets at a lower price per square foot, investors should consider growing submarkets in North Phoenix, East Valley, and West Valley.However, there is a significant amount of supply waiting to enter the market, which could limit an owner’s leverage to raise rents.

In addition, the retail sector in Phoenix has quickly recovered from the impact of COVID-19 and is growing in popularity among investors. Leasing volume is substantial, with smaller, niche tenants performing well and rapidly growing. Rents are above the national average, and investors are entering the market for new development and redevelopment projects.

In conclusion, Phoenix’s commercial real estate market has a positive outlook for 2023, but investors must be strategic in their approach. The multifamily market is moderating, and investors should focus on improving existing properties. The industrial market remains strong, but investors should consider growing submarkets. The retail sector has recovered from COVID-19 and is growing in popularity among investors.

About Avery Gilmer

Avery Gilmer is a highly successful real estate investor and wholesaler who has been able to build a thriving business in the competitive real estate industry. With years of experience and a proven track record, Avery is one of the leading experts in the field and is widely recognized as a thought leader and innovator in the industry.

Avery got his start in real estate investing as a young adult and quickly rose through the ranks to become a seasoned professional. With a keen eye for potential properties, Avery quickly built a reputation for himself as a savvy investor who was always on the hunt for the best deals. Over the years, he has been able to acquire a large portfolio of properties and has become one of the most successful real estate wholesalers in the industry. For more information about Avery Gilmer, please visit https://averygilmer.com/.



Contact:

Avery Gilmer

64 E. Broadway Rd Ste. 200

Tempe, AZ 85282

Averygilmer.com