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Retail construction up in Phoenix

New statistics came out recently that show that Phoenix leads the nation in retail construction.  Considering the state of real estate across the nation as well as locally, that is relatively good news.  High retail construction shows that there is still growth.  We have said for a long time, even before the downturn in the market that the Phoenix area should recuperate faster than many other metro areas.  The reason is that we have the overall economy, job growth, and climate to attract people to this area.

There are naysayers who think that the high retail construction will just lead to more empty stores.  But consider this, residential construction typically occurs before the retail and commercial construction.  A decade of strong growth, capped off by record numbers in '04 and '05 mean that it is natural to now see growth in the retail sector.  In residential it is more of a "build it and they will come"  In commercial, it is more like the homeowners saying, we're here when are you going to build it?!  Most of the new construction is occuring along new highway routes where there has been plenty of growth. 

Does this signal the end to the slide and the start of a recovery.  No, but it does show that lenders see the short and long term potential of this construction.  This market will survive, and come back strong.  It will take stabilization of the mortgage and financial markets to make people comfortable again.  Inventory will shrink and "normality" will return.  To see the AZCentral article on Phoenix being number one in retail construction, click here.

Adam Tarr,ABR,e-Pro
Sharon Kotula, ABR
RE/MAX Excalibur
Scottsdale, AZ
Your Phoenix Area Real Estate Source
480-483-3333
info@WeAreAZRealEstate.com

www.WeAreAZRealEstate.com

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