Path of growth in Phoenix - Taiwan Semiconductor
Hi all!
Interesting news about Taiwan Semiconductor's expanding investment in N. Phoenix. 1100+ acres purchased to build a $13B factories creating an estimated 1600 jobs when the factory goes on-line 2024. The world's largest semiconductor foundry has also leased 46k square feet of office space in Canyon Corporate Plaza 15-miles from the property purchased, which will be serviced by the light rail extension.
Any thoughts on this or other paths of growth? In a somewhat related post recently Tonopah and Rainbow Valley were called out.
We're exiting the Seattle market for brighter opportunities in the Valley of the Sun. In other words, we're seeking better rent:price ratios and a city council that doesn't vilify landlords/residential RE investors.
Given the rising interest rates and low inventory/supplier, we understand this is likely more of a speculative play (future appreciation) than a cash-flow play. Coming from Seattle we are comfortable with that trade-off, as that has been our reality for 10+ years and it's worked out reasonably well.
Appreciate any nuggets of wisdom from those in the Phoenix know!
Most Popular Reply
Hey Jason,
I have been following the Taiwan Semiconductor news closely, and that was one of the main reasons why I purchased in the northern I-17 corridor this last year for our primary residence, and have plans to do so again this year to rent out the first purchase. It was definitely a speculative play purchasing, but I was able to get a 3/2 for $285k in a quiet neighborhood northwest of the 101/17 freeway interchange that will cashflow about $400/month with how much rents have gone up since the purchase (not accounting for maintenance or vacancy).
There are more expensive newer neighborhoods further north where the plant will be located along the 17 freeway. However, right near the 101/17 is still affordable, close to where the majority of the plant is planned, and also is a safe bet for commuters working for other employers (20-30 minutes to downtown).
I have done and continue to do more research on this, so feel free to message me and we can talk more offline!