A recent survey of commercial real estate investors ranked Phoenix as a top 10 target among U.S. metros. Phoenix slipped three spots to #10 in CBRE’s 2025 U.S. Investor Intentions Survey.

Investors are strategically focusing on gateway markets offering discounts and high-growth Sun Belt markets. Phoenix is recognized by investors for its pro-business environment, strong population growth, and robust demand across asset types, making it a key target. Dallas maintains its position as the top market for investment for the fourth consecutive year, with Miami ranking second. Boston emerges as an appealing market for investors, with Washington, D.C., and San Francisco also rejoining the top 10 most preferred ranking. Sun Belt markets continue to draw interest, with Atlanta, Raleigh-Durham, and Austin all ranking in the top 10 due to their growth potential.

“It comes as no surprise that Phoenix continues to rank as a top 10 market for investors. Our pro-growth, business-friendly policies are consistently recognized, placing Phoenix among the best-performing markets in the country. Demand for top tier assets across all product types is particularly robust in the region,” said Charlie von Arentschildt, Senior Vice President for CBRE Capital Markets.

“In the Phoenix office market, for example, opportunities to acquire Class A buildings in prime locations are highly limited, and when such opportunities arise, investor interest is significant. As a result, we’ve seen a growing focus on value-add strategies, as they aim to reposition well-located, older assets to compete with the limited supply of trophy products,” von Arentschildt added.

Key Findings From CBRE’s 2025 Commercial Real Estate Investors Survey

• Investor Sentiment: 70% of commercial real estate investors plan to acquire more assets in 2025, driven by favorable pricing and the improving recovery of real estate fundamentals.
• Investment Recovery: Investors are broadly positive about the overall market and even more so about their own plans, with 75% anticipating a rebound in their own investment activity by the first half of the year and over half already experiencing recovery.
• Property Types:  Investors are prioritizing high-quality assets, focusing on multifamily (75%) and industrial and logistics (37%). An increasing number of investors are targeting Retail and Office assets compared to last year.
• Preferred Strategies: Investors are adjusting their strategies to align with the evolving market cycle, with two-thirds favoring value-add and core-plus strategies. This indicates that investors are seeking opportunities that offer higher returns with lower risk amid a continued economic expansion. In line with this trend, opportunistic, core, distressed, and debt strategies have seen declines compared to the previous year.
• Biggest Challenge: Investors cite elevated and volatile long-term interest rates, higher operating costs and an uncertain path for interest rates as the top three challenges in 2025.  – more at azbigmedia.com