Whether it’s because of the year-round golf available or the rapid economic growth that’s happening, Arizona continues to attract thousands of new residents every year. Naturally, the population growth leads to changes in the commercial real estate market, as cities adapt in order to support new residents, their businesses, and their investments. From the Phoenix metro area to growing communities in Pinal County, population growth is driving demand for commercial property, retail development, industrial space, and professional services.
The big question is: how will the population growth affect the commercial real estate market in these areas? From necessities, like gas stations and grocery stores, to retail and office complexes, there has to be a shift in order to support the community.
What areas are we seeing growth take place? Based on population growth analysis from 2020 to 2025, here are five of Arizona’s fastest-growing cities and why they are worth watching for commercial real estate investors, property owners, and businesses.
1. Coolidge: 48.7% Growth
Located in Pinal County, Coolidge is gaining attention for its available commercial land, strategic location between Phoenix and Tucson, and growing manufacturing presence.
2. Queen Creek: 47.9% Growth
Queen Creek continues to experience significant residential and commercial development. Growing household incomes, new neighborhoods, and business investment are creating demand for retail space, shopping centers, medical offices, and professional services throughout the Southeast Valley.
3. Colorado City: 40.7% Growth
Located in Mohave County near the Utah border, Colorado City is a smaller market experiencing notable population growth. Its expansion creates opportunities for neighborhood retail, healthcare facilities, and other commercial businesses serving the local population.
4. Buckeye: 34.3% Growth
One of the West Valley’s fastest-growing markets, Buckeye continues to attract residents, retailers, and industrial users. Available commercial land and access to major transportation routes make it an attractive location for warehouse, distribution, manufacturing, and retail development.
5. Maricopa: 33.2% Growth
Located in Pinal County, Maricopa’s growing residential population is creating demand for additional retail centers, restaurants, medical offices, and everyday services. As the community expands, commercial development has an opportunity to grow alongside it.
What Does This Mean for Arizona’s Commercial Real Estate Market?
Population growth brings more than new rooftops. It creates demand for the commercial properties, businesses, and services that support expanding communities.
- Retail Real Estate: More residents mean increased demand for grocery-anchored shopping centers, restaurants, fitness facilities, and neighborhood retail space. Keeping with the natural trend of supply and demand, retail lease rates in these in-demand areas have been and likely will continue to be much higher than in surrounding areas that aren’t experiencing as much growth.
- Office Space: Growing communities create opportunities for medical, dental, financial, and professional office users looking to serve local populations.
- Industrial Real Estate: Manufacturing, logistics, and distribution investments are driving demand for warehouse space and industrial properties in areas with available land and convenient transportation access.
- Commercial Land & Development: As residential growth expands, well-located commercial land becomes increasingly important for developers and investors planning future retail, office, and industrial projects.
As the resident count increases, the commercial real estate developments and projects should, too. If you’re looking to lease, buy, or sell a commercial real estate property in Arizona and want an expert opinion on the market’s condition, you’ve come to the right place. COBE Real Estate helps businesses and investors navigate opportunities throughout the east valley and beyond!
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