Recession, increasing interest rates, inflation among Valley commercial real estate brokers' biggest concerns - Phoenix Business Journal

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'Rapid inflation - with the largest direct challenge being the massive increase in construction costs will cause problems for our industry.' — Eric Termansen, founder, Western Retail Advisors

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.

"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

"Rapid inflation - with the largest direct challenge being the massive increase in construction costs will cause problems for our industry." — Eric Termansen, founder, Western Retail Advisors"The sublease market is full of opportunities for businesses to experiment with new/different/better locations on a cost-effective basis while"right-sizing" in-person office requirements." – Beth Jo Zeitzer, CEO and designated broker, R.O.I. Properties.

"Sublease space has risen significantly over the last year, in the near term, larger tenants will be finding some opportunities that they may not have been able to locate or afford in recent years. As the large-block, dense-office users continue to reevaluate how they utilize space with shifting to smaller footprints and lower employee-in-office occupancy I feel we will continue to see a surge of sublease options hitting the market.

"The upcoming state and local elections are vital to our continued success. We can't have election deniers in office, and expect to be a destination for investment and intellectual capital." – Termansen

 

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