Recently, Facebook announced that they have selected Mesa for their next data center.
Facebook is projected to invest $800 million in its first Arizona project, which will be just shy of 1 million square feet. Facebook is one of many companies that have chosen to recently expand or relocate to the Valley of the Sun. Here are five reasons why so many businesses are choosing to come to Arizona.
1. ARIZONA IS BUSINESS FRIENDLY
When companies analyze where to relocate, expand or even start operations, they start by evaluating how regulations, governmental policies, tax credits, and even the political climate will impact construction costs, operating costs, and profitability.
Arizona is attractive to businesses as it offers corporations a minimalist regulatory approach, does not impose
a corporate franchise tax, and is a right-to-work state. Additionally, the Arizona Commerce Authority and Greater Phoenix Economic Council (GPEC) work together to provide the foundation for collaborative efforts between the State, municipalities, utilities, and the brokerage community to support businesses looking to make a move.
2. PANDEMIC POLICIES
Arizona has stayed open to a greater extent than many other states during the past 18 months, which has allowed for the expansion of existing companies, and attracted companies from other states. Additionally, the work-fromhome model has made it possible for new business models to be developed outside of expensive urban centers and in markets like Phoenix
3. AFFORDABILITY
According to data provided by GPEC, business operating costs in Greater Phoenix average as much as 36 percent less than in California. So, despite rising land and housing prices, Arizona is still more affordable than many other states.
Businesses are attracted by our reasonable commercial and industrial real estate prices, low personal income taxes, and lower property tax rates.
4. GROWING WORKFORCE
Phoenix Metro area is just shy of 5 million residents and the City of Phoenix is now the fifth largest city in the country. The outmigration of residents from California, Washington, Illinois and other states brings with it amazing talent.
Our workforce is becoming more diverse, more educated, and more experienced — which is a win for companies considering a move to Arizona.
5. LOCATION. LOCATION. LOCATION.
We can’t talk about Arizona without talking about our great weather. We average over 300 days of sunshine annually and we do not have the challenges of hurricanes, tornados, and blizzards that negatively impact business and residents in other states
The Valley is also well connected with infrastructure, which allows more than 35 million consumers to be reached by a truck haul within one day, according to GPEC. Phoenix Sky Harbor International Airport offers access to 129 domestic and international locations, and the growing Phoenix-Mesa Gateway Airport serves 50 destinations.
We are also near Mexico, which is Arizona’s largest trading partner. Arizona’s two-way trade with Mexico was $16.6 billion in 2018, according to Census data.
For all of these reasons, companies are looking to grow their businesses here in Arizona. Our economy is more diversified than ever and will continue to thrive.
This is great news for Arizona residents because it helps to protect our property values, presents us with more opportunities for employment and business development, and brings along the revenues that will help our communities to continue to thrive.
John and Natascha Karadsheh are co-owners of KOR Properties, a boutique real estate brokerage serving the Valley of the Sun, and the creators and founding sponsors of Mesa Food Truck Fridays.
John has been a Multi-Million Dollar producing agent for over 19 years and is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS), a member of the Arizona Regional MLS Rules & Policies Committee & Appeals Committee, and the West and Southeast Realtors of the Valley Professional Standards Committee.
Natascha is an Associate Broker, a Multi-Million Dollar Producer, Founder of Mesa Food Truck Fridays and Member and Past-Chair of the City of Mesa Economic Development Advisory Board.
You can reach John at (602) 615-0843 and Natascha at (602) 909-4995, or visit their website: KORProperties.com.