Natascha Ovando-Karadsheh
As chair of the City of Mesa Economic Development Advisory Board, I love updating clients on what is happening in the City of Mesa, especially as it relates to economic development.
Economic development is important for homeowners because there is a strong relationship between economic development and household wealth, housing quality and growth. Better quality jobs equal higher household incomes, equal higher quality housing demand, and equal higher property values for all.
Just look at what has happened around Intel, in Chandler. After the Intel announcement two years ago, we watched housing values jump by almost $30 per square foot in the course of 60 days. This is what business expansion and job creation can do for homeowners.
Currently, there are several great things happening around Mesa. So, here’s the scoop.
Elliot Tech Corridor
It recently was my honor to attend the opening of the $2 billion Apple Global Command Center, in Mesa, on the Elliot Tech Corridor. This huge 1.3 million square-foot facility is the worldwide hub for all Apple data centers, and supports Apple’s iCloud, iMessage and iTunes, among other platforms.
The Elliot Tech Corridor runs along the north and south sides of Elliot Road, from the 202 Freeway, to Signal Butte Road, and has been developed by the City of Mesa to support high-growth, high-technology businesses with amazing infrastructure, including extensive power capacity and advanced fiber networks.
The Apple announcement has garnered global attention for the area. More than half the parcels of land along the corridor have changed hands in the last 18 months. In March, Edgecore broke ground on the first of several buildings at their Mesa Data Center Campus, which is expected to eventually feature 1.25 million square feet of space. EdgeConnect and Digital Realty also have purchased property for development, and Dignity Health soon will be opening its newest hospital on the corridor.
Phoenix-Mesa Gateway Airport and Skybridge
Phoenix-Mesa Gateway Airport is a huge asset for Mesa, and will be the key to growth in the southeast Valley for decades to come. With its three massive runways, Gateway Airport is perfectly poised to absorb the coming population growth and manage air traffic overflow from Sky Harbor International Airport.
The other exciting news at Mesa-Gateway Airport is the opening of SkyBridge Arizona, a 360-acre development offering the nation’s first international air cargo hub. Housing both Mexican and United States Customs operations, SkyBridge Arizona allows distributors sending air cargo to clear Mexican customs in Mesa before flying into Mexico. The customs process normally takes up to two weeks in Mexico. SkyBridge Arizona reduces the time to less than two days. Governor Doug Ducey expects SkyBridge Arizona to lead to the creation of 17,000 new and indirect jobs.
Opportunity Zones
The most recent federal tax bill established the creation of approximately 8,500 Opportunity Zones throughout the United States and territories. Referred to as a once in a lifetime opportunity, Opportunity Zones have the ability to accelerate growth and employment in low-income census tracts, while providing investors unprecedented tax benefits.
Mesa has 14 strategically chosen Opportunity Zones getting attention from national investors, particularly surrounding Downtown Mesa, Phoenix-Mesa Gateway Airport and Falcon Field. While the government has yet to release all of the regulations on these Opportunity Zones, the window to achieve the maximum benefit is limited, with the highest returns reserved for investments made in 2018.
This benefit is employment creation, not single-family housing creation. It is important for the City of Mesa to protect these zones and work to attract great companies.
The Union
Clients have asked me why Mesa doesn’t have great looking office buildings like those along Tempe Town Lake. My answer always has been, “Because we haven’t had a developer willing to do so.” After almost two years of planning and negotiation, Mesa selected prestigious Lincoln Property Co. and Harvard Investments to develop the soccer fields at Riverview and create a 1.35 million square-foot mixed-use district called The Union. This project will provide Class A office space designed to attract premier companies and employees.
A Strong Economy
Job creation, household wealth and home values are on the rise across the Valley. We have the tailwind of a strong national economy, but our local success also is the product of many years of economic planning and diversification in the Valley. For decades, our economy was based exclusively on construction and housing. During the recession, business and community leaders in Mesa and throughout the Valley realized a diverse economy was the key to our success.
The challenge now is to stay the course and encourage our city leaders to continue to advocate for great projects, amenities and job creation. Housing developers are an aggressive bunch, and they push their projects with ferocity. By contrast, Fortune 500 companies have to be wooed. Our future will be determined by the thoughtful decisions made by our leaders. We want Mesa to be a great city with enviable mixed-use projects, great high wage jobs for our citizens, rising property values and great amenities for all our citizens to enjoy.
Mesa native and Las Sendas resident Natascha Ovando-Karadsheh is chair of the City of Mesa Economic Development Advisory Board, Associate Broker, owner of KOR Properties and the founder of Mesa Food Truck Fridays. A graduate of Princeton University and The French Culinary Institute, she is a member of Who’s Who in Luxury Real Estate.