Here's how confidence is returning to Phoenix commercial real estate sector

An ASU real estate expert discusses industry trends and how W. P. Carey's new Center for Real Estate and Finance will impact Arizona.

In this article published Nov. 20, 2025, on AZ Big Media:

Interest rates are moving in the right direction — downward — and spreads are compressing, which means more deals across the board. That's one reason brokers are feeling positive.

AI looms large as a possible disruptor. Real estate professionals are still figuring out how to use it effectively. It’s helping brokers and analysts process and interpret large amounts of data faster, making them more efficient. They're using it as a powerful analytical and research tool. It's still new, but the early benefits are clear.

As for the broader economy, brokers are generally positive. There's still uncertainty — about tariffs, government regulation, and ongoing layoffs. But Phoenix's diverse economy and population growth remain strong stabilizing forces.

— Tom Johnston, executive director of the W. P. Carey Center for Real Estate and Finance