RENT Magazine Q1 '22

PHOENIX, AZ

TAMPA, FL

The Greater Phoenix area has long been a favorite among large and small real estate investors, but now there is a new reason to be bullish. Back in May of 2020, TSMC (Taiwan Semiconductor Manufacturing Co.) announced a plan to build their first US-based manufacturing plant in North Phoenix at an investment of $12 billion. TSMC is responsible for manufacturing about 25% of the world’s semiconductors. The chips they produce are used in household appliances, vehicles, iPhones, and aerospace equipment. The Phoenix plant, which broke ground in July and is scheduled to begin production in 2024, plans to hire over 2,000 people to work in the first phase of manufacturing. Supporting suppliers and businesses are already beginning to flock to the area, bringing along the need for workers to secure housing. The plant will be a catalyst for exponential growth and development of industrial, office, retail, and housing projects in the area for years to come.

The Tampa Bay area has experienced a meteoric rise into the national investment spotlight in the last couple of years. Multifamily product remains in extreme demand. Nearly 12,000 units were absorbed in the last 12 months, with more than 10,000 additional units currently under construction. Based on the market’s healthy vacancy rate of 3.6% and significant rent growth of 21.6% year-over-year, Tampa can easily support its current pipeline of new inventory, and then some. Factors contributing to this increasing popularity include our area’s relentless population growth as people migrate from the Northeast, as well as its strong economy and stable employment market. Our area is also attracting global attention for its premier mixed-use developments, from Strategic Property Partners’ 50-acre Water Street project in Downtown Tampa to the proposed redevelopment of St. Petersburg’s Tropicana Field site. The market is also quickly turning into Florida’s tech capital, ranked by Forbes as the No. 1 “Emerging Tech City”, which is bringing new companies and talent to the market. • Healthy vacancy rate at 2.6% • Rent growth of 21.6% year over year • Ranked #1 Emerging Tech City by Forbes • Warm weather, beautiful beaches, and no state income tax

• $12B semiconductor plant will be built in North Phoenix • The plant will hire 2,000 manufacturing workers who will need to secure housing • Exponential growth and development predicted for years to come

Ryan Hoover Realtor, Ryan Hoover Real Estate Connect with Ryan

Darron Kattan Managing Director, Franklin Street Connect with Darron

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