Phoenix created more new jobs in the last year than all but 3 states!

That’s super bullish for Phoenix commercial real estate.

(See more on Arizona job growth here.)

The consensus is that rents in all sectors will grow, vacancies will remain low – even as many more buildings go up – and institutional investors will continue pouring money into the area.

The optimism just keeps on coming in this article in the Arizona Republic.

– “There’s nothing right now putting the brakes on it”

– “Cost constraints and business regulations have push some distribution companies that would typically set up or expand in California into more business-friendly Arizona.”

– “Vacancy rates on apartments dropped to 5 percent, from 8 percent, in the last year. Those vacancy rates are likely to stay at the 5 to 6 percent level.”

– “Rents also were able to inch up 4 to 6 percent this year, the highest movement since 1994, Crews said. He anticipates rents could grow 8 percent in 2007.”

Lower vacancies and higher rents. A nice combo for landlords.

Read it all.