Commercial real estate development can impact home values and investment. If real estate is a significant part of your investment portfolio following commercial development in the valley should be key in determining the best location for a flip, a rental, or the home you will occupy. Why commercial when we’re focused on residential? Because commercial and industrial buildings increase the need for housing within a few miles of that employment center. At the moment we’re seeing a few areas in which housing demand is strong due to proximity to major employers.
The east valley, ChandlerHomes for Sale in Chandler, Gilbert and Queen Creek in particular, is seeing increases in demand for commercial space as Tempe becomes built out for commercial and industrial square footage. Employers such as Microsoft, Conair, California Closets, Red Bull and many technical and financial companies relocating to the Price Road tech corridor are drawing employees to the east valley. A drive around Chandler and Gilbert quickly confirms that business space is sprouting on every corner. Chandler is outpacing much of the valley in terms of population, education, median household income and median home values. Imagine owning a rental property near Paypal or the huge Wells Fargo campus in south Chandler. You can easily anticipate low vacancy rates and higher rents coming in.
The same can be said of the west valley where we see commercial activity drawing companies like Microsoft, Fairlife, Nike and Anderson Windows to name a few. The west valley’s proximity to Los Angeles, and the opening of the 303 freeway that runs from Goodyear up to the 17 freeway in North Peoria is bringing high demand for commercial space. We are seeing housing demand increases along the 303 freeway in Goodyear, Litchfield Park, Surprise, Glendale and Peoria as employers recruit staff for their businesses. Rental properties in these areas, particularly with good proximity to the freeway will be in demand for the foreseeable future.
There is a lot to consider when looking at the investment value of real estate, whether your focus is on appreciation, or return on investment on a rental, or both. Following the blazing trail in commercial real estate projects is just one data point that can be very useful.