Construction Continues to Boom in Downtown Phoenix
The Valley of the Sun is experiencing one of its biggest construction industry booms in the last 50 years.
With over 5.5 million square feet of space that is currently under construction, being used for offices, housing, retail stores, and hotels, Arizona added 25 percent more jobs in the construction industry compared to previous years. Making this the fastest pace of growth since 2006. This is due to the area seeing high real estate development, especially with large tech companies calling the city of Phoenix home, which is also decreasing the overall unemployment rate in the area.
The growth in construction jobs across the state of Arizona, especially in the city of Phoenix, is proof of the growing construction industry. In fact, Phoenix has the 3rd fastest-growing economy.
Even though many of these construction projects are for retail spaces and restaurants, much of this new construction is planned to be used for housing. In just the last year, over 2,000 apartments have been built in downtown Phoenix and over 1,000 apartment buildings are still under construction. And there are very few vacancies. About 95 percent of the housing units in downtown Phoenix are leased out, a higher rate than most of the other surrounding cities across the state.
Downtown Phoenix is just a small part of the growth of the construction industry in Arizona. Many areas such as Scottsdale, Gilbert, and the west valley are continuing to take on new construction projects as well.
With such a strong 2019, some fear that things may slow down in 2020. There is a chance that the construction industry might slow down towards the end of 2020, but the beginning of the year seems to be going strong and things continue to look promising.
A slow steady decline may start at the end of the year and is expected to last for a couple of years, but luckily it isn’t expected to take a huge dip in Arizona. Plus, housing permits are expected to continue to grow.
Working with a Construction Attorney
Are you involved in a construction project of your own in Phoenix? During these projects, things can come up and you will want an experienced attorney on your side that is well-versed in Arizona construction law. “Given Arizona’s construction boom and corresponding tight labor market, coupled with the over 5% year over year construction material cost increase, it is critical that contractors ensure their contracts protect them from situations that can lead to delays, damages and protracted litigation. Hiring an experienced construction lawyer before signing contracts is more important than ever,” states Murphy Cordier PLC.
Located in the heart of Arizona, the team at Murphy Cordier PLC is full of skilled and trustworthy attorneys that will assist in all things construction law. From the very start of the project to drafting and reviewing contracts, to finalizing all of the details, and aiding in any disputes, Murphy Cordier PLC can offer you the legal advice and representation you need as they are experienced in handling several different construction law issues.