What does Taiwan Semiconductor growth mean for Arizona Real Estate?

It was recently announced that Taiwan semiconductor was investing an additional $100 billion in semiconductor fabrication at the Phoenix facility, bringing their total investment to over $300 billion to date. This is expected to bring tens of thousands of additional jobs from the 60,000 already projected. Located North Phoenix around interstate 17 and the 303 freeway, passer buys can’t help but notice a wide range of cranes and construction taking place not just for TSMC, but for ancillary businesses associated with the company's massive development. This begs the question “how can I get in on this growth?”

There are a few things to keep an eye on while speculating on real estate surrounding TSMC.

First of all, it will take several years until all employment is solidified, beyond contracted construction workers who are already living and working in the Phoenix area. Yes, TSMC workers need a place to live, a place to shop, eat, and entertain themselves without having to drive several miles to other parts of the valley - as do the people delivering such products and services. There has already been a wide range of residential, commercial, and industrial development around the area speculating for such demand; however, it will take some time for the plethora of new development to get absorbed.

Another factor to keep in mind is that not everyone working for TSMC will want to live within a stones throw from their job. The Phoenix area is a heavily car dependent metropolitan ecosystem in which many people commute greater than 15 minutes to work or school based on affordability, value proposition, or social/familial attractions. For instance, a future TSMC worker might move to Phoenix and have a relative in Peoria, making Peoria they’re chosen place of residence as they may have visited there before and have a sense of familiarity and community. Perhaps some of the relocating workers have a spouse who has received a job at the far opposite end of town, making the location of their new home an equilibrium between both places of work. There are many additional unique factors that play that may or may not guarantee that a good portion of newly arrived residence influenced by TSMC will need to live, work, and spend money all in one neighborhood. An example of this can be found from a recent lease up we oversaw for a client in which recently Korean workers moving to Arizona to work at Queen Creek's LG Battery Plant were selecting housing options in Chandler or Mesa to be closer to Korean grocery stores, restaurants and community members despite having a longer commute to work.

In search of opportunity, it would be wise to track what other companies are coming to town and where they might make a physical impact similar to TSMC, but perhaps not on the same scale. AMKOR in Peoria, LG in Queen Creek, Intel in Chandler, Kohler in Pinal County are among several other notable large employers, with more companies relocating not just in technology but in construction, mining, hospitality and entertainment, as well as manufacturing. The best real estate to evalue are properties with room for growth and value, as well as in well centralized areas that will not be relegated to a boom or bust outcome. Sure, taking advantage of an economic boom can be very lucrative, although that is a high risk, high reward game meant for seasoned investment leadership.

If you were wondering how to take advantage of all of these exciting economic trends, WALL2WALL Consultancy can guide you through every step of the way at a pace and level of involvement that works for you.