Excerpt from Globe St. Article:
In Phoenix, robust growth is perhaps signaling too much of a good thing. “The market in Phoenix is strong, to the point that it is a concern,” says George Forristall, director of real estate development at Mortenson. “Demand is outstripping supply in many instances. For example, multifamily continues to be a strong play longer than anticipated.”
Forristall cites downtown Phoenix, Tempe and Scottsdale, where continued high-rise multifamily and hotel RevPAR growth point to demand. In addition, Westside industrial is also in contention, where that submarket includes an abundance of antiquated space.
“Office is creeping back in the Camelback Corridor and downtown Phoenix, where there are new developments,” Forristall says. “But we have to look at developing creatively. Mixed use and reuse are an absolute necessity.