Originally Published: March 17, 2006 4 a.m.
PRESCOTT J.T. Purvis and Tom Raush witnessed the commercial real estate market evolve over more than three decades in local real estate.
The men, with ERA National Realty of Arizona in Prescott, shared their thoughts on the exploding market and the various hot spots throughout the county.
"Everything has increased," Purvis said. "Our city has blossomed. Now it's a matter of scrambling trying to find commercial properties that make sense."
That means northern Prescott is one part of the city prime for commercial real estate growth.
"The amount of sales that has taken place out there is real aggressive," he said.
Raush said commercial growth around Willow Creek and Willow Lake roads is likely to turn that area into the center of town, save for tourism, which will remain focused downtown, in the next decade.
"But you've got to remember where else can it grow," Purvis said. "It has to go north and knowing that costs. I don't care what you pay for it today it's going to appreciate. We just don't know at what rate."
Roush and Purvis said more businesses are considering pre-built buildings rather than buying the land and building on it to keep costs under control.
Purvis pointed out that the costs to acquire dirt and construction costs are skyrocketing. "It's really expensive to develop and rising costs shut out smaller businesses," he said.
"Sticks and bricks costs make them cost prohibitive," he said.
The number of people moving to the community with deep pockets is a buffer of sorts against a steep drop-off in growth, according to Purvis.
"More people, more services, more employment," he said. "It just keeps spiraling upward."
Raush explained that the commercial growth is following the residential housing explosion in the area and some hot spots exist where vacant land exists.
Purvis said another area he expects to see commercial growth is in Williamson Valley.
"With all the rooftops, there is such a demand the pressure will grow so great that eventually it (commercial) will exist," he said.
Raush said Highway 89A and Robert Road in Prescott Valley and Pioneer Parkway and Willow Creek Road are prime for commercial real estate growth.
"They don't have anything out there and they need it," he said.
Other areas the two picked as future commercial hot spots are Young's Farm in Dewey and near the Quailwood subdivision in Prescott Valley.
Purvis said empty buildings are available, however some owners set rents too high. "There is enough competition they aren't going to get those rents," he said.
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