Mesa, AZ Economic Overview
Mesa is the second-largest city in the Phoenix metropolitan area. With a population of nearly 500,000 residents, Mesa is larger than Minneapolis, Atlanta, or St. Louis. Part of a 21-city region with over 4.3 million people, the commercial real estate market in Mesa is driven by the city's diverse economy, access to a well-educated workforce, and a pro-business government that is committed to creating economic opportunity.
High-technology, aerospace, light manufacturing, and healthcare businesses all have a significant impact on the economy in Mesa, including Apple, Boeing, Bridgestone, FUJIFILM, Mitsubishi, Ulthera, and McDonnell Douglas Helicopters.
With a median household income of over $49,000 a year and a job base growing by nearly 8% annually, residents in Mesa earn more, on average, than other parts of the metropolitan Phoenix area. With an unemployment rate of just 5%, income growth in Mesa is expected to remain strong and steady and companies of all sizes and types are attracted to the city's location in the center of Arizona and its strategic positioning for business access and service to the global economy.
Mesa, AZ Commercial Real Estate Market
The continuing growth of the Mesa commercial real estate market is driven in large part by Mesa's industries of opportunity: Healthcare, Education, Aerospace/Aviation/Defense, Tourism, and Technology. The demand for office, industrial, and retail space in Mesa is consistently strong due to the area's quality infrastructure, able workforce, and projected growth and dynamic presence in the global market place.
The business districts in Mesa of Downtown Mesa, Falcon Field District, Fiesta District, Mesa Gateway, Mesa Riverview, and the Superstition Freeway Corridor all have the infrastructure and attributes to help business succeed, while at the same time offering unique advantages based on industry-specific needs.
As part of the Southeast Industrial submarket, Mesa has a significant share of the market's 86 million square feet of industrial, warehouse, manufacturing, and flex space. With an overall vacancy rate of less than 10%, industrial space in Mesa continues to see positive net absorption, and stable rental rates with a minimal amount of product in the pipeline.
Commercial office space in Mesa has all market indicators moving in the right direction, with vacancies declining, and rents and net absorption on the rise. At over 133 square miles, Mesa is so large that it is comprised of two markets within the Suburban submarket of metropolitan Phoenix: Mesa Downtown and Mesa East. These two areas have a combined office space inventory of nearly 3 million square feet of primarily Class B and Class C office space.
With vacancy staying stable, net absorption decreasing and construction and asking rents increasing, developers and investors definitely have their eye on the future growth of commercial space for retail use in Mesa. Part of the East Valley Retail Submarket, the area has nearly 62 million square feet of retail space, with less than a 10% vacancy rate and a positive net absorption.
Mesa, AZ Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Mesa, AZ Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Mesa, AZ Commercial Inventory Breakdown
Total: 7,751,825 SF
By square footage range:
- 50k to 100k SF: 3,664,851 SF / 47.28% of total office
- 100k to 500k SF: 4,086,974 SF / 52.72% of total office
- Class A: 1,351,021 SF / 17.43% of total office
- Class B: 3,945,627 SF / 50.9% of total office
- Class C: 261,177 SF / 3.37% of total office
Total: 8,500,903 SF
By square footage range:
- 50k to 100k SF: 382,683 SF / 4.5% of total industrial
- 100k to 500k SF: 7,594,710 SF / 89.34% of total industrial
- 500k to 1M SF: 523,510 SF / 6.16% of total industrial
- Class A: 4,458,072 SF / 52.44% of total industrial
- Class B: 1,008,699 SF / 11.87% of total industrial
Employment in Mesa, AZ
Job growth in Mesa has increased by nearly 8%, with an unemployment rate of just 5%. Nearly 34% of the labor force works in the areas of management, food service, cleaning & maintenance, production, transportation, and construction and extraction, demonstrating the diversity of employment in Mesa, Arizona. Major employers in Mesa include:
- Banner Health System with nearly 9,600 employees;
- Mesa Public Schools with 8,500; Boeing with 4,700 workers;
- City of Mesa with over 3,500 employees;
- Walmart with over 2,500 workers;
- Fry's Food and Drug Stores with over 1,000 employees;
- Mesa Community College with over 1,000 employees;
- Home Depot with nearly 1,000 workers.
Education in Mesa, AZ
Mesa Public Schools is the largest public school district in the State of Arizona, educating over 64,000 students through the 55 primary, nine middle schools, six high schools and numerous alternative schools that the District operates. The school district offers progressive opportunities to its students, such as Montessori schools, International Baccalaureate, dual-language immersion, traditional Franklin schools, and honors and advanced placement courses.
Students seeking post-secondary educational opportunities have access to both Mesa Community College, the largest of the Maricopa Community Colleges with over 24,000 full- and part-time students, and the Polytechnic Campus of Arizona State University located in Southeast Mesa with over 6,000 undergraduate and graduate students studying in the scientific and engineering fields.
Commuting Time in Mesa, AZ
Residents of Mesa have an average commute time of just under 24 minutes, giving work day drivers one of the shortest commutes in the metropolitan area. Nearly 12% of commuters in Mesa carpool, while nearly 6% have the advantage of working at home.
The diversity of transportation options in Mesa fuel the creation of commerce corridors and serve both current and future centers of population:
- Mesa has direct access to all of the major freeways and highways in the metropolitan area, including Loops 101 & 202, U.S. Highways 60 & 87, and the I-10, I-17, and I-8 freeways which link Mesa to the Arizona, California and Mexico market places.;
- Valley Metro provides both bus and Metro Light Rail transit throughout the Mesa and Phoenix metro areas.;
- Freight rail service in Mesa is provided by the Union Pacific and Burlington Northern Santa Fe railroads, with both trailer and container capabilities.;
- Air freight and passenger service in Mesa is provide by the two local airports of Falcon Field and Phoenix-Mesa Gateway, and the city is within a short drive of Phoenix Sky Harbor International Airport.
- Total Population479,317
- Male Population(49.4 %) 236,580
- Female Population(50.6 %) 242,737
- Median Age35.90
- Average Household Income$69,553
- Median Household Income$52,155
- Median Income Under 25$30,947
- Median Income 25-44$52,901
- Median Income 45-64$65,475
- Median Income Over 65$43,124
Residential Rents in Mesa, AZ
Over 40% of the residents of Mesa rent where they live, giving Mesa one of the highest percentages of renters in both the Phoenix metro area and the entire state. Average residential rents in Mesa have increased over 8% the past year, with the median rent in Mesa coming in at $1,350 per month.
The most expensive neighborhoods for rentals in Mesa are Parkwood Ranch, Fountain of the Sun, and Meadowgreen, while the most affordable areas to rent in Mesa are the Dobson Ranch, Arboleda, and Alta Mesa neighborhoods.
Mesa, AZ Average Rental Price, August 2019
- $ 895/mo
- Studio: $ 665
- 1 Bedroom: $ 807
- 2 Bedrooms: $ 976
Mesa, AZ Rent Trends
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