West Valley: In Peak Buying Power Position
Author: Erin Thorburn, WESTMARC
Watch the Buying Power Video at: https://youtu.be/4x4U3gAnBA8
The West Valley dominates the numbers game.
An astonishing 35 percent of Metro Phoenix healthcare workers reside in the West Valley. The region is also home to a staggering 32 percent of Metro Phoenix’s employees in the financial services and insurance sectors, and 33 percent of workers in manufacturing live in the West Valley.
Innovative industry names like Amazon, Ball Corporation, Farmers Insurance, HonorHealth, Conair, UPS and Carvana are just a small sample of nationally recognized companies that are new or fairly new arrivals to the West Valley.
The Westgate Entertainment District, Topgolf, Desert Diamond Casino West Valley, Gila River Arena, White Tank Mountain Regional Park and five Cactus League stadiums are where West Valley residents go to play—and spend their growing incomes.
What does it all mean? Answer: The West Valley has irrefutable buying power.
More than ever before, the West Valley has the skilled labor, employment opportunities and quality of life to produce a profitable buying-power lifecycle. And, the West Valley boasts an average household income that currently hovers around $68,225, with many areas scattered throughout the region where the average household income exceeds $80,000.
“The West Valley is a remarkable collection of communities that enjoy an exceptional quality of life,” says Mayor Cathy Carlat. “Peoria is consistently ranked at the top nationally as a place to live and play; and with an unwavering commitment to delivering reliable and quality services.”
"Peoria is the place where we are the premier ecosystem for world-class, sustainable, and future ready business," adds Peoria’s Economic Development Director, Rick Buss.
Indeed. As a part of the $4 million renovations at Park West, Commercial Investment Real Estate (CIRE) Equity is thrilled to announce the addition of new tenants at Park West Shopping Center in Peoria. Hash Kitchen, The Sicilian Butcher, The Sicilian Baker Cannoli Bar & Market, Jalapeno Inferno and Pita Jungle are adding to an existing lineup of restaurants, retailers and entertainment experiences.
“It’s an exciting time for all of us, as the tremendous growth in the West Valley has assisted us in securing some of the best retail and restaurant concepts in the Phoenix Market,” said Alexis Volen, vice president of asset management at San Diego based CIRE Equity. “We are thrilled see Park West evolve into the premier family-friendly shopping and entertainment destination in the area..”
Of course, Peoria is one of many West Valley communities to take advantage of the proliferation in buying power.
Launched by WESTMARC’s Quality of Life Committee, in November the organization hosted a Restaurant Demo Day to highlight the West Valley’s increasing buying power, and more importantly, their appetite for scratch kitchen restaurant concepts. “We opened our first restaurant, Haymaker, in Peoria, close to home,” says Joey Lucidi, owner of Westside Concepts and Demo participant. “After business grew and we saw the growth of the West Valley, we opened another in Goodyear.”
Lucidi, and other business developers like him are catching on to a fortuitous time of buying power opportunity in West Valley. The current 1.6 million West Valley population is projected to grow twice the national average rate of growth in the next five years alone.
That $68,225 average West Valley household income combined with the dispersed regions of average household incomes exceeding $80,000 is mighty attractive to retailers and restaurants.
The continual amassing of residential community development further exemplifies the increase of average household salaries and consumer power. Communities such as Vistancia, Verrado, Marley Park, Estrella Mountain Ranch and Estrella by Newland provide housing for many higher-bracket wage earners.
The average new home price of Estrella’s Newland 20,000-acre master-planned community, for example, is roughly $327,000.
“Estrella has been an active part of the City of Goodyear for more than 30 years and we are continuing to bring well-respected homebuilders and innovative new amenities into this vibrant, master-planned community,” says William Olson, senior vice president, and division manager for Newland Communities. “Our newest village, Lucero, adds another 10 miles to Estrella’s 40+ trail system, a bike shop, and a café that will all be open to the public, serving not only Estrella residents but the West Valley community as a whole.”
“Something is happening in the West Valley that we’ve been waiting for,” adds Dan Kelly, DMB senior vice president. “We’ve been open 15 years and had our best year last year. Verrado continues to be our number one community in terms of permits. Verrado alone, achieved 530 sales from our builders last year. Year-to-date, if we keep going the way we did last year, both Verrado and Marley Park are expected to have the same or better outcome as last year.”
In an effort to lure even more economic development, WESTMARC recently partnered with eight West Valley Cities to highlight available opportunity zones with deferred tax eligibility (money must be invested in 180 days). Many of these zones are shovel ready and waiting for the next retail, hospitality, office, and entertainment possibility.
“When companies are looking to relocate, one of the many things taken into consideration is the availability and condition of nearby resources,” Olson says. “This includes potential employee housing. Estrella’s variety of homes and amenities appeal to all ages and family dynamics, providing outstanding residential options for their workforce. The community is also still growing and will be able to expand to meet increased housing demands from the city’s ongoing corporate and industrial growth.”
If you’re ready for a slice of original food offerings, family-ready housing, high-wage employment, the West Valley is only happy to provide.