The Scottsdale Airpark is the second largest employment center in Arizona. It is also near some of the highest income demographic areas in the state. The airport is the busiest single runway general aviation airport and the largest corporate jet facility in the US. And the Airpark claims 6 of Arizona’s 13 companies in the Inc. magazine list of 500 fast-growth private companies.
The commercial real estate market in and around the Airpark boasts some of the highest values and lease rates in Arizona. Although hit very hard by the recession, the following charts show the market is making a comeback. And with national unemployment the best in six years (5.9%) and gross domestic product for the most recent quarter at a 4.6%, the economy is also improving.
The Airpark office market has been slowly and steadily improving in recent years. Office market vacancy, once at 27.8%, is down to 16.6% and the average asking rate is up approximately 10% over the past two years.
The industrial market vacancy rate has improved from 21.4% in 2010 to 8.4% currently. The average asking lease rate has also steadily increased to $10.65, a 16% increase over a year ago. One thing that has not returned to the market is new industrial construction, but with lease rates rising and vacancy rates moving lower, new development may be just around the corner.
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