Market Study for Phoenix Az

Scenario:

I am a portfolio manager for a global REIT that specializes in acquiring commercial office buildings and development. I am been asked to research major cities within the southwest United States for the feasibility of purchasing major office complexes. This report would be for the city of Phoenix, AZ.

1.0 Introduction

1.1 Geography / Climate

The Phoenix-Mesa-Glendale MSA (metropolitan statistical area) is located in the southern half of the state of Arizona. Its city limits are surrounded by four mountain ranges, The Phoenix area is surrounded by the McDowell Mountains to the east, the Superstition Mountains to the east, the Sierra Estrella to the south, and the White Tank Mountains to the west. Most development is contained within the basin between the mountain ranges offering an ideal flat surface for development.

Nicknamed The Valley of the Sun, the entire city falls within the Sonoran Desert and has a subtropical desert climate. This area sees very hot conditions throughout most of the year with little or no rain. Temperatures exceed 100 degrees Fahrenheit most days from May through September and average less than 1 inch of precipitation throughout most of the year. Snowfall is nonexistent in the Phoenix basin but does exist in higher elevations to the north.

Phoenix is isolated from other MSAs, which is uncommon for most large cities within the United States that neighbor each other contiguously. Its closest neighboring areas are Tucson AZ, 103 miles to the southeast; San Diego, CA 300 miles to the west; Las Vegas, NV 300 miles to the north; and Albuquerque, NM 330 miles to the east.

1.2 Transportation

Phoenix is served by a broad network of streets and freeways. These freeways outline the current urban development and are the main source of transportation for Phoenix residents. According to the U.S. Census Bureau, 75.3% of all residents drove alone to work. This is on par with the US average of 75.8% when measuring the...