Phoenix needs a few simple things to attract new businesses to the region, says Barry Broome, CEO of the Greater Phoenix Economic Council (GPEC). The simple things are:
- Phoenix must change its real estate practices so that we do not ask half-a-million dollars in upfront costs from businesses wanting to set up shop here. No early stage technology company will invest that transaction cost because most of them are venture-backed and wouldn’t want to burn private equity.
- There are no specialized banks either in Phoenix or nationwide that can cater to emerging technology companies.
Despite these simple but crucial things that Phoenix needs to fix, there are at least 19 prospective businesses wanting to set up shop here. This includes two Chinese solar technology firms willing to invest $50 million each in the Phoenix market. With improvements in the housing market, Phoenix is set to buck the national trend in attracting new businesses and job creation.