By Dale Brown
Our country’s current economic situation features uncertainty in a variety of flavors, shapes and sizes, and the commercial real estate market feels the influence of all of them.
In putting together this week’s Commercial Real Estate Brokerages list, we ask the leaders of some of the Valley’s largest brokerages their thoughts inflation, remote work and subleasing in the market.
With such things as rapid inflation, a lingering Covid-19 threat, workers preferring remote employment to office jobs, and growing political polarization, what one thing do you consider to be the greatest current challenge to the Phoenix-area commercial real estate market, and why?
“The threat of a recession is the biggest challenge to the real estate market in the next 24-48 months but as long as businesses are still hiring and wage growth continues, demand for housing and commercial real estate space should remain on an upward trajectory.” – Perry Laufenberg, managing partner, SVN | Desert Commercial Advisors.
“Issues such as rapid inflation, lingering pandemic threat, booming recession, political polarization all impact confidence in real estate-related investments. Confidence is critical and requires leaders to be steadfast, diligent, careful, and thoughtful as business plans are put together, investment funds are raised, and projects implemented. From a positive perspective, the growth in jobs, the diversity of the economy, the enthusiasm for the benefits in Arizona also weigh heavily in decision making.” – Sharon Harper, chairman and CEO, Plaza Companies.
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