Business and Careers

Four cities in the Phoenix MSA were ranked among the top 10 "Best Places for 2018 Graduates to Find a Job" - WalletHub

Best Place to Live

Phoenix ranked among the top 20 "Best Places to Live in the U.S." - U.S. News & World Report

INTRODUCTION The Phoenix-Mesa-Scottsdale, AZ, Metropolitan Statistical Area (MSA) is home to nearly 4.8 million residents, making it the 11th-most-populous metropolitan area in the United States. The vibrant growth of the Fastest-Growing County Phoenix metropolitan area has outpaced U.S. population growth for the past 21 years and is one of only 10 U.S. markets expected to see most of Maricopa County had the largest population increase in 2017 among the nation’s growth over the next 40 years. Metro Phoenix's low cost of counties in the U.S. living and dynamic, diversifying economy has lured thousands of people - U.S. Census Bureau to the region, including many from the country's large coastal markets.

Greater Phoenix represents approximately 75% of the state’s economy and is one of the strongest in the nation. In recent years, the region's economy has evolved from relying on tourism- and consumption-based industries to serving as a major employment center with prevalent Deloitte Expansion segment clusters in high-tech manufacturing, biotechnology, software development, aerospace, manufacturing, and business services. The In Gilbert, Arizona, Deloitte is opening a 102,000-square-foot U.S. region's business-friendly policies have also provided the base for Delivery Center that will be supported by 2,500 employees numerous regional and corporate headquarters, including six Fortune - Deloitte 500 corporations. DEMOGRAPHICS

ND 36.6 65% OF WORKERS ARE IN 2 MEDIAN AGE WHITE COLLAR LARGEST METRO OF METRO POSITIONS METROWIDE IN THE WESTERN RESIDENTS UNITED STATES

5.3m 599.0k 921.3k 1.9m $63.4k

Greater Phoenix's The number of The metro area’s median Approximately 30% of 30% of Metro Phoenix population is forecast households in the household income housing units in Metro residents age 25 and Phoenix MSA is forecast is projected to reach to grow 11.3% over the Phoenix are renter- older hold a bachelor’s to grow 11.1% through $63,389 by 2023, up next five years, reaching occupied degree or higher 2023, surpassing 1.9 10.9% from 2018 nearly 5.3 million million in 2023 residents METRO EMPLOYMENT TRENDS

AVERAGE ANNUAL WAGE BY OCCUPATION

The Phoenix metro area encompasses a variety of industries with the majority comprised of high- Management $ tech, financial, and service industries. Some of the major employers located in the metro include 104.7k Banner Health, Wal-Mart Stores, Wells Fargo, Intel Corporation, and various local governments.

Health Care Practitioners $ Greater Phoenix added approximately 86,800 jobs during the 12-month period ending in 83.7k November 2018, 19,700 of which were in the Professional and Business Services sector. Industry Breakdown Business & $ Construction Financial Operations 69.1k 6% Trade, Transportation, & Utilities Education $ Education & 47.0 k 19% Health Services 15% Construction $ 44.7k

Sales $ 38.8k PHOENIX, AZ, MSA Financial Activities Transportation & $ EMPLOYMENT BY 9% Material Moving 38.8k Professional & Business Services SECTOR Office & $ 17% Administrative Support 37.9 k

Government Production $ 36.9k Other Services 12% 3% Food Preparation $ Manufacturing Information & Services 25.6k 6% Leisure & Hospitality 11% 2% Source: BLS Occupational Employment Statistics Survey Source: BLS Current Employment Statistics Survey METRO EMPLOYMENT TRENDS

NOVEMBER 2018 4.2% the monthly unemployment rate was down 10 bps annually

Employment Trends PHOENIX MSA 12% 140,000 LARGEST EMPLOYERS State of Arizona 36,310 Banner Health 34,780 9% 70,000 Wal-Mart Stores 34,090 Wells Fargo 14,820

6% 0 City of Phoenix 13,780 Maricopa County 12,940 Arizona State University 12,720 3% (70,000) HonorHealth 11,300 Dignity Health 11,180 Intel Corporation 11,000

0% (140,000) Source: Maricopa County CAFR, June 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019*

*Projected Unemployment Rate Jobs Added / Lost

NOVEMBER 2018 86,800 jobs were created metrowide, a 4.2% Y-o-Y increase HEALTH CARE AND BIOMEDICAL

MAYO CLINIC - PHOENIX CAMPUS 269,500 54,000 New Jobs Forecast Jobs Supported over Next Decade

$8 billion 29 Major Hospitals in Economic Impact Greater Phoenix

Metro Phoenix offers a strong, established health care and life sciences industry, with some of the nation’s major players, such as Mayo Clinic, Dignity Health, HonorHealth, and Banner Health contributing to the industry's $8 billion annual local economic impact. Metrowide health care employment is expected to expand 38% over the next decade through the creation of nearly 54,000 jobs. This outpaces the national growth rate of 21% over the same period, surpassing expansion in major health care hubs like Minneapolis, Philadelphia, San Francisco, and Seattle.

EDUCATION

ARIZONA STATE UNIVERSITY 212,500 58,300 Students Enrolled in Jobs Supported Higher Education

$11.6 billion Economic Impact by ASU and MCCCD

Metro Phoenix serves as the educational hub for the state of Arizona, supporting 58,300 jobs. The area is home to one of the nation's largest public universities, Arizona State University (ASU), and one of the nation's largest community college districts, the Maricopa County Community College District (MCCCD). Over 212,500 students are enrolled throughout the metro's largest institutions for higher education. ASU and MCCCD combined provide an economic impact of about $11.6 billion to the Metro Phoenix economy. TECHNOLOGY

INTEL - OCOTILLO CAMPUS 83,000+ 46,400 Internet Jobs Jobs Supported Supported

$1.4 billion 2,500 Economic Impact by High-Wage Tech Jobs ASU Research Park Created by Deloitte

Home to over 83,000 high-tech jobs and tech giants such as Intel and Amazon, Metro Phoenix is becoming a hotbed for emerging technology companies attracted by its skilled workforce. Arizona State University's Research Park alone boasts a $1.4 billion economic impact and supports over 16,160 jobs among its more than 50 tenants. In fact, the metro's tech industry ranks among the fastest-growing nationwide, with tech companies continuing to expand their presence including USAA and Deloitte, which plans to create 2,500 high-wage tech jobs.

PROFESSIONAL AND BUSINESS SERVICES

STATE FARM REGIONAL HEADQUARTERS 6 No. 2 Fortune 500 Largest Job Sector Companies

19,700 372,800 Jobs Created Jobs Supported (Nov. '18 Y-o-Y)

A business-friendly environment and proximity to several large economic hubs provide the foundation of Metro Phoenix's professional and business services sector. Comprising 372,800 jobs as of November 2018, this industry is the second-largest sector in the MSA. Companies in this segment include the regional headquarters of State Farm and the corporate headquarters of six Fortune 500 companies, including Avnet, Freeport-McMoRan, Republic Services, Insight Enterprises, Magellan Health, and ON Semiconductor. TOURISM

$ FAIRMONT SCOTTSDALE PRINCESS RESORT 14 billion 235,000 Business Sales from Jobs Supported Tourism

44 million 1.8 million Annual Visitors Cactus League Visitors

With its mild winters, world-class venues, and natural beauty, Metro Phoenix's leisure and hospitality industry supports approximately 235,000 jobs. Annually, Phoenix welcomes approximately 44 million visitors and $14 billion in business sales. Metro Phoenix hosts one of the largest supplies of lodging options in the nation, with over 490 hotels and resorts with more than 62,000 rooms. The metro is also home to multiple major sporting events including MLB's Cactus League, which drew approximately 1.8 million visitors in 2018.

AEROSPACE AND DEFENSE

$ $ LUKE AIR FORCE BASE 2.2 billion 3.5 billion Economic Impact by Defense-Related Luke AFB Exports Annually

5,100 Jobs Supported by Luke AFB

Located in the city of Glendale, Luke Air Force Base (AFB) has a local annual economic impact of approximately $2.2 billion and supports approximately 5,100 jobs. Luke AFB will house 144 of the new F-35 joint-strike fighter jets, making it the largest pilot training base in the country. Greater Phoenix is also home to some of the nation's top defense contractors including General Dynamics Mission Systems, Northrop Grumman, Boeing, Honeywell Aerospace, and BAE Systems, which exports over $3.5 billion in defense-related equipment annually. CONSTRUCTION AND DEVELOPMENT

FAB 42 HEALTHCARE CONSTRUCTION PROJECTS

$7 billion $1.4 billion Investment Total Investments

10,000 2,000 Jobs Supported Jobs Created at Mayo Clinic

Multinational technology corporation Intel is investing over $7 billion to Mayo Clinic plans to invest $648 million, which will nearly double the footprint complete Fab 42 in Chandler, Arizona. The cost of building was about $1.5 of its phoenix campus. To meet the demands of its patients, Mayo Clinic plans to billion to construct with the rest of the investment going towards equipment. add 1.4 million square feet of space that will improve clinical capacity, support The new facility is anticipated to be the most advanced semiconductor factory services, and nearby infrastructure. This investment also calls for increasing in the world, producing microprocessors to power data centers and hundreds the total number of licensed beds at the campus from 280 to 374 by 2023 of millions of smart and connected devices. Forecast for completion in 2021, and creating over 2,000 new jobs by 2029. Additional medical center projects Fab 42 will create approximately 3,000 permanent high-tech, high-wage jobs under construction or planned in the valley totaling nearly $1.4 billion include for equipment technicians, facilities-support engineers, process engineers, expansions at Chandler Regional Medical Center, Banner Boswell Medical and technicians. The facility will also generate 7,000 indirect positions for Center, and Mercy Gilbert Medical Center, as well as new facilities HonorHealth supporting factory operations. Sonoran Medical Center and Banner Health medical center in Chandler. CONSTRUCTION AND DEVELOPMENT

RITZ-CARLTON RESIDENCES PARADISE VALLEY SOUTH MOUNTAIN FREEWAY

$2 billion $1.7 billion Development Project

105-acre 1,400 Construction Jobs Master-Planned Community Supported through 2019

Construction is underway on the $2 billion, 105-acre, Ritz-Carlton Residences, Construction continues on the Arizona Department of Transportation's (ADOT) Paradise Valley resort and residential master-planned community. The project Loop 202 - South Mountain Freeway extension project. This expansion will is the largest undertaking of its kind in a decade and features a mix of lodging, add 22 miles of freeway to the existing Phoenix metropolitan highway system, entertainment, and residential spaces. Upon completion at the end of 2019, the connecting the East and West Valleys while providing traffic relief to the existing community will include a 200-room Ritz-Carlton hotel, a 400-foot swimming Interstate 10 corridor. One of the largest construction projects in Arizona pool, 91 villas, and 45 townhomes. This project will also feature numerous history, the $1.7 billion Loop 202 extension, will support approximately 1,400 ancillary developments. Some of the additional developments include 66 luxury construction jobs until completion in late 2019. An estimated 190,000 vehicles homes and The Palmeraie, a 160,000-square-foot, luxury shopping center are expected to utilize the extension daily by 2035. In the beginning of January that will feature over 60 restaurants and retailers. 2019, the extension was reported as two-thirds of the way complete.

CONSTRUCTION AND DEVELOPMENT

NIKOLA MOTORS CO. EDGECORE DATA CENTER CAMPUS

2,100 $2 billion Jobs Created by 2025 Investment

$1 billion 1.2 million Overall Economic Output Total SF Upon Completion

Nikola Motor Company plans to move its headquarters from Salt Lake City to In March 2018, EdgeCore Internet Real Estate broke ground on a major data Coolidge and open a research and development center. The commercial truck center development in Mesa’s Elliot Road Technology Corridor, home to company is expected to bring a total of nearly 1,800 jobs to Coolidge and Apple’s global command center. The company's full campus build-out will total another 300 to Phoenix by 2025. The company plans to produce over 800 over 1.2 million square feet and reach an estimated $2 billion in investment trucks at the 430-acre site near Interstate 10 and State Route 87. Construction is at their 50-acre site. Phase one is nearing completion and includes a $450 slated to begin in 2020 with operations to start in 2021. The company will invest million, 180,000-square-foot building. The campus will eventually grow to seven $800 million on the plant, generating $278 million in construction wages, and 180,000-square-foot buildings, designed to deliver a total of 225 megawatt of by 2025 creating $1 billion in overall economic output. utility power. CONSTRUCTION AND DEVELOPMENT

DELOITTE U.S. DELIVERY CENTER RIVULON

2,500 $750 million Jobs Created Investment

$95,000 250-acre Average Annual Salary Mixed-Use Development

In June 2018, Deloitte announced it plans to open a 102,000-square-foot A 250-acre master-planned development in Gilbert, named Rivulon, is located, U.S. Delivery Center in Gilbert at The Commons at Rivulon. The company will at the corner of Gilbert Road and the Loop 202. The $750 million investment by develop and implement emerging technology solutions for clients in Arizona Nationwide Realty Investors will eventually be home to 3 million square feet of and across the nation. The development is expected to create 2,500 highly- Class "A" office space, about 100,000 square feet of retail space, and a 250- skilled tech jobs in Greater Phoenix, with an average annual wage of $95,000. room hotel. Tenants include Deloitte, Morgan Stanley Smith Barney Financing The state-of-the-art center will be built in phases, investing $50 million by the LLC, Fairway Independent Mortgage Corporation, Security Title Agency, end of each phase. The initial $34 million building will house 1,500 workers. By Isagenix International, and Miller Financial Group, as well as dealerships Volvo, the end of the third phase, Deloitte will occupy a total of 200,000 square Mercedes-Benz, and Audi Gilbert. feet.

ABSORPTION / NEW DELIVERIES

NEW NET DELIVERIES 8,230 units ABSORPTION 10,603 units through fourth quarter of 2018 through December 2018

Population growth and a thriving economy are key dynamics driving apartment PHOENIX METRO APARTMENT MARKET construction in the Phoenix MSA. In 2017, Maricopa County was the fastest- growing county in the United States, expanding by 1.7% annually or by 12,000 Construction vs. Absorption approximately 74,000 people. Net migration was behind much of this population growth as many of these residents were attracted to the region’s robust economy, which has benefited from corporate expansions. 9,000

In years past, Greater Phoenix’s economy was heavily reliant on consumption- driven industries such as real estate, retail, and leisure and hospitality, so much 6,000 so that the metro was among the most affected during the Great Recession. This trend has changed as the metro economy has diversified in recent years. Backed by business-friendly policies and a highly educated workforce, a plethora of 3,000 companies in the financial services, technology, and health care industries have looked to Greater Phoenix for expansion, including Deloitte, USAA, Mayo Clinic, Uber, and Northern Trust. 0 2013 2014 2015 2016 2017 2018 2019* Construction has largely been focused in the East Valley where affluent renters *PROJECTED Deliveries Absorption and employment growth are driving demand. Metrowide, developers added 8,230 new units into the metro’s apartment inventory through the fourth quarter of 2018, up 37% year over year. New deliveries are slated to add another 8,331 by year-end 2019, equating to the largest number of new deliveries since 2001.

Through December 2018, net move-ins in the Phoenix metro apartment market totaled 10,603 units, which equates to a robust 44% increase from the same time last year and the largest absorption total in this market since 2010. Residents are projected to move into an additional 6,886 units through year-end 2019. RENT / OCCUPANCY

EFFECTIVE $ OCCUPANCY RENT 1,045 RATE 95.4%

in 4Q18, up 5.5% Y-o-Y in 4Q18, up 120 bps annually

Since 2013, tech jobs in metro phoenix have expanded rapidly, ranking among PHOENIX METRO APARTMENT MARKET the top regions for growth in this industry. These jobs have contributed to driving rent increases throughout the metro. Even with the record number of 96% Occupancy & Ask Rent $1,200 new deliveries, demand for multifamily housing still outpaces new supply in the Greater Phoenix apartment market by a large margin, applying upward pressure on rent and occupancy trends in recent years. Such trends are 94% $1,000 expected to continue through 2019 as the total number of new deliveries peaks while economic and population trends are slated to remain promising as residents priced out of expensive metros target the Sun Belt. 92% $800

The average occupancy rate in the Metro Phoenix apartment market expanded 120 basis points annually, reaching 95.4% in December 2018. As new deliveries 90% $600 outpace net absorption through the end of 2019, occupancy is projected to settle at 95.1%, 70 basis points above the market's five-year average. $795 $840 $898 $951 $990 $1,045 $1,089 88% $400 Effective rent reached $1,045 per month in the fourth quarter of 2018, which 2013 2014 2015 2016 2017 2018 2019* equates to a 5.5% increase year over year. By the end of 2019, effective rent *PROJECTED Rent Occupancy is projected to reach $1,089 per month, equating to a 4.2% increase from the year prior. EDUCATION

HIGHER DEGREES & EDUCATION 212,500 CERTIFICATIONS 800+ students metrowide offered at Arizona State University

The Phoenix metro area is home to a variety of higher-educational opportunities that provide a PHOENIX MSA steady flow of new workforce entrants, in addition to continuing education and training for the existing employment base. Overall, more than 203,290 students are enrolled in institutions of HIGHER EDUCATION higher education in Greater Phoenix. Arizona State University 71,830

Grand Canyon University 20,500 Arizona State University (ASU) is among the largest public universities in the nation and operates several campuses throughout the metro area. The university posted an enrollment of 71,830 Mesa Community College 20,390 students in the fall of 2018. ASU also employs approximately 12,720 people, making it one of the Rio Salado College 18,590 metro area’s top employers. Glendale Community College 17,940 The supports 10 campus locations throughout the valley Maricopa Community College District Chandler-Gilbert Community College 14,910 for more than 120,340 students and employs about 10,750 faculty and staff members. Phoenix College 11,430 Grand Canyon University in Phoenix boasts an on-campus enrollment of approximately 20,500 Estrella Mountain Community College 9,790 students, with the campus offering 60 degree programs through eight colleges. The school supports 1,600 faculty and staff members and recently constructed a new 173,447-square-foot Scottsdale Community College 9,460 engineering building, three on-campus apartment buildings, and various athletic facilities. Paradise Valley Community College 8,450

Sources: Phoenix Business Journal; College Navigator LIFESTYLE AND ENTERTAINMENT

CHASE GOLF FIELD 48,519 COURSES 200 stadium capacity locations metrowide

Year-round sunshine provides Greater Phoenix residents ample opportunity to DOWNTOWN PHOENIX enjoy the plethora of lifestyle amenities the region has to offer. From world- class museums to award-winning resorts, The Valley is filled with cultural and entertainment destinations suiting residents of all ages.

Downtown Phoenix is the epicenter of the Phoenix metro area and is Arizona’s focal point for culture, sports, and entertainment, welcoming more than 10 million people to its many venues each year. Talking Stick Resort Arena is home to the NBA’s Phoenix Suns, WNBA’s Phoenix Mercury, and AFL’s Arizona Rattlers, while Chase Field hosts Major League Baseball’s Arizona Diamondbacks. Downtown Phoenix’s museums, art galleries and theatres provide a unique and vibrant culture and include the world-renowned Heard Museum, historic Orpheum Theatre, Comerica Theater, Herberger Theater, Symphony Hall, Phoenix Art Museum, Arizona Science Center, and the Children’s Museum of Phoenix.

The affluent city ofS cottsdale is home to an array of shopping, dining, and entertainment options. Residents can find an eclectic mix of trendy boutiques and name-brand retailers throughout the city's numerous shopping centers and districts, including the 5th Avenue Shopping District, Scottsdale Fashion Square, Kierland Commons, Scottsdale Quarter, and High Street in nearby North Phoenix. Culinary destinations are plentiful as the city is home to an excess of upscale dining chains, ethnic eateries, restaurants, bars, and outdoor cafes. Metro Phoenix is home to over 40 resort properties including several in the Scottsdale area that have Five Star distinctions, such as the Royal Palms Resort and Spa, The Phoenician, and the Fairmont Scottsdale Princess.

TRANSPORTATION

PHX VALLEY AIRPORT 43.9m METRO 66.8m annual passengers annual passengers

Metro Phoenix is served by an extensive urban freeway network, which includes PHOENIX SKY HARBOR INTERNATIONAL AIRPORT Interstates 8, 10, and 17, U.S. Route 60, and State Routes 51, 101, 143, 202, and 303.

Regional bus and light-rail public transportation is provided by Valley Metro, which served approximately 66.8 million passengers in 2018. The 26.3-mile Phoenix light rail currently runs from Northwest Phoenix through Tempe to east Mesa, and is slated to span 57 miles by 2031. An extension to South Central Phoenix is slated to begin construction by early 2020, creating 700 jobs, and opening in 2023.

Phoenix Sky Harbor International Airport (PHX) serves more than 43.9 million passengers per year, making it the one of the busiest airports in the U.S. and the world. The airport has a total economic impact of $38 billion and is currently in the second phase of a three-phase, $590 million, modernization plan. Phoenix-Mesa Gateway Airport in east Mesa serves 35 destinations nationwide and has an annual economic impact of $1.3 billion statewide.

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Fortune / Money.CNN.com; Forbes; Moody’s; Wikipedia; Axiometrics; Phoenix Business Journal; The Arizona Republic; Arizona Department of Commerce; Arizona State University; Maricopa County Community Colleges; Sky Harbor Airport; Valley Metro; Greater Phoenix Convention & Visitors Bureau; Commercial Property Executive; AZ Big Media; The Grand at Papago Park Center; AZCentral.com; Ahwatukee Foothills News; Rivulon; East Valley Tribune; ASU W P Carey School of Business; ARMLS; Ahwatukee Foothills News; Maricopa Association of Governments; Northern Trust; Business Insider; Zillow; StartClass.com; FierceBiotech; Ricor; U.S. News & World Report; Wallethub; Intel; Visit Phoenix; Arizona Office of Tourism; Greater Phoenix Economic Council; CompTIA; Flinn Foundation; Arizona Regional Multiple Listing Service Inc. BY THE NUMBERS

TOTAL POPULATION MEDIAN AGE 2010 4,192,887 2010 35.2 2018* 4,754,384 2018* 36.6 2023* 5,289,294 2023* 37.5

Growth Rate (2018 - 2023) 11.3%

TOTAL HOUSEHOLDS MEDIAN HOME PRICE 2010 1,537,173 November - 2017 $245,000 2018* 1,741,475 November - 2018 $262,000

2023* 1,935,139 Growth Rate Y-o-Y 6.9% Growth Rate (2018 - 2023) 11.1%

MEDIAN INCOME EMPLOYMENT GROWTH 2010 $51,787 November - 2017 2,086,300 2018* $57,172 November - 2018 2,173,100

2023* $63,389 Growth Rate Y-o-Y 4.2% Growth Rate (2018 - 2023) 10.9%

RENT SHARE OF WALLET RENT VS. OWN National - 2018 25.3% Average Mortgage Payment** $1,389 Phoenix Metro - 2018 21.9% Effective Rent $1,045

National - 2023* 27.1% Difference $344 Phoenix Metro - 2023* 23.9% *Projected *Projected **30-yr fixed; 20% down; 5.1% interest rate; 0.77% AZ property taxes; Annual Rent / Median Household Income $1,000 annual homeowner’s insurance