Multifamily Booms in Phoenix as Market is Ripe for Continued Development Across All Sectors

Phoenix construction

Joe Strobbe – Vice President, Brinkmann Constructors

As ULI’s ninth hottest market to watch in the US, Phoenix is primed and ready for development in overall real estate prospects. From apartment complexes, student housing and senior living, to manufacturing and cold storage warehouses and beyond, the Valley and the entire State of Arizona are full of opportunities.

State of the Market

Brinkmann and The X Company are working to add to the downtown Phoenix skyline with the 19-story, 400-bed X Roosevelt. With 3,500 SF of retail space, coworking areas, a dog park and more, X Roosevelt is adding more than just housing to the bustling downtown area. X Roosevelt will be the epitome of a live, work, play lifestyle – a trend that has been elevated due to the rise in the want, and in some cases need, to rent instead of buy.

Within the rise of multifamily developments comes a renewed vision for student living, one that focuses more on the experience of residents while adding to the community and its environment. Gone are the days of “just a place to live” for college students, and here are the days of a full student housing experience. Park Place Flagstaff from developer Park 7 is currently under construction near Northern Arizona State University, bringing 201 units and 628 beds along with indoor and outdoor amenities. With space for students to study, relax and connect, this luxury student living development is more than living, it’s a lifestyle.

As the general contractor on these projects, Brinkmann worked with all stakeholders and partners involved to deliver the creative and innovative Insight Beyond Measure we’ve been known for for nearly 40 years. With the opening of Brinkmann’s fifth office location in Scottsdale late last year, Brinkmann has been able to establish a greater presence in the Arizona market which we have been working in for years.

Brinkmann’s total completed work in Arizona exceeds $377 million with $283 million and 2.6 million SF under construction currently – a testament to Brinkmann’s experience and dedication to developing quality projects in Arizona.

Future of the Market

Phoenix’s diverse and growing population attracts a variety of businesses and residents, which opens the door for diverse and varied development opportunities. Along with the continued strength for multifamily and student housing, there are signs that point to a strengthening senior living sector.

As senior housing capital markets stabilize and we look to the continuum of care for an aging population, continuing care communities will be a vital part of the landscape. With 9.3 million SF and $1.77 billion of senior living facilities built around the nation, Brinkmann understands the unique needs surrounding senior living builds, many of which have arisen within the last few years due to the pandemic and a shift in what seniors need, both in terms of assisted and independent living, active adult living and memory care. That means an emphasis on safety and designs that promote safe and healthy living, outdoor and indoor amenities that give seniors opportunities for activity within their own living community, and much more.

With the rise of industrial in the thick of the pandemic and the current stabilization of that market, predictions are that while the industrial warehouse sector will remain strong, the market may pivot to focus on more build-to-suite opportunities such as cold storage and manufacturing, with less speculative space needed. Brinkmann, who specializes in a variety of industrial work, has 46 million SF and $2.6 billion of warehouse space under its belt and growing.

A strong partner on these builds who understands the specific needs of owners and end users is vital to successfully completing projects and growing and improving communities. Because Brinkmann was built on relationships, teams understand the importance of putting people first, leading with integrity, honesty and accountability.

 

Joe Strobbe has more than 20 years of experience in construction and executive leadership. He is focused on growing Brinkmann’s presence, team and opportunities in the Southwest as well as day-to-day operations of the Arizona office. His insight of the industry and passion for advocating for Brinkmann’s clients have positioned him to make an impact and help strengthen the community. Joe has been a resident of Chandler for many years and is married with four children.