Economic Development Update

City Council Work Session | Jan. 23, 2023 |
Economic Development Update

City Council Strategic Framework
In its 2021-23 Strategic Framework, 
City Council provided a roadmap of 
priorities to guide decisions in the 
near-term and beyond.
The vision illustrated in the document 
emphasizes providing:
•
A high quality of life
•
Diverse job opportunities
•
Safe neighborhoods
Strategic Plan
2

Economic Development's Role
•
Economic Development plays a critical role in achieving City Council's 
vision for Chandler. Simply put, it is a set of programs and policies to:
Create and
retain jobs
Develop a 
stable tax base
Wealth
generation
Strategic Plan
3

Economic Development Strategic Plan
•
Programs to help achieve City Council's desired outcomes for Chandler. 
Key components of the City's Economic Development strategy include:
•
Business Attraction
•
Business Climate Enhancement
•
Technology Entrepreneurship
•
Small Business Assistance
•
Infill & Redevelopment
•
Market Threat Assessments
•
Competitive Positioning
•
Tourism
•
Education & Talent
Strategic Plan
4

Competition is Fierce
4
•
Competition for active projects is strong and we also constantly play 
defense against communities trying to recruit our companies away.
195
Countries
19,495
Cities/towns in the U.S.
91
Cities/towns in AZ
Strategic Plan
5

Automotive
Technology
Business Attraction
• Recruitment strategy focused on businesses in targeted industries.
• Look for fit with local industry clusters, growth potential, high wage jobs.
Strategic Plan
Aviation & 
Aerospace
Advanced 
Business Svcs.
High-Tech
Manufacturing
Healthcare
IT & Software
6

3
• Pursue leads that fit the City's target industries/technologies.
• Target companies outside the region experiencing growth.
• Outreach to decision makers, site selectors and brokers.
• Demonstrate the operational advantages of Chandler.
Business Attraction
Strategic Plan
7

Data Source: MAG Employer Database (2021)
Strategic Plan
Employment Base
Target Industry Clusters by Employment
Business 
Services
16,730
Finance, 
Insurance & 
Real Estate
Healthcare
High Tech 
Manufacturing 
& Development
13,590
12,530
23,140
50%
Others
13%
10%
10%
18%
50%
of Total City
Employment
8

Data Sources: MAG Employer Database and Bureau of Labor Statistics. Analysis based on "high-tech industries" per the Bureau of Labor Statistics.
"East Valley" includes Chandler, Gilbert, Mesa and Tempe.
Innovation Economy: % of Workers in High-Tech Industries
27%
Chandler
15%
East Valley
10%
United States
•
Chandler has an innovation mindset and this is reflected in the companies located in 
our community. Ability to adapt to a changing global economy helps ensure long-term 
economic sustainability.
Employment Base
Strategic Plan
9

Data Source: MAG Employer Database (2021)
Strategic Plan
Employment Base
Top Industry Clusters by Employment: Chandler vs. MAG Region
Industry
#Employees in 
Chandler
%Employees in 
Chandler
%Employees in MAG 
Region
Location Quotient
High Tech Manufacturing
23,140
17.7%
4.2%
4.18
Business Services
16,730
12.8%
12.6%
1.01
Consumer Services
13,810
10.5%
11.2%
0.94
Retail
13,650
10.4%
11.7%
0.89
Finance, Insurance, 
& Real Estate
13,590
10.4%
8.6%
1.19
Healthcare
12,530
9.6%
12.2%
0.79
Education
9,460
7.2%
7.3%
1.00
Construction
6,320
4.8%
7.1%
0.68
Transportation & Dist.
6,280
4.8%
6.3%
0.76
10

Strategic Plan
Employment Base
Businesses by 
Number of 
Employees
Business Size Mix
5-19
79%
17% 20-99
2%
100-249
1%
250+
Data Source: MAG Employer Database
11
Business Locations: Circle size proportional to # of employees

47%
Chandler
32%
Arizona
35%
United States
Data Source: ESRI Business Analyst (2022)
Note: %Bachelor's Degree or Higher is for the population ages 25+
$105K
United States
$126K
Chandler
$97K
Arizona
%Bachelor's Degree or Higher
Avg. Household Income
Employment Base
Strategic Plan
12

3
Business Climate Enhancement 
•
Goal: Foster a business climate that supports economic vitality. 
•
Existing businesses account for about 60% of new jobs nationally.
Note: statistic on existing businesses' share of new jobs is from the U.S. Small Business Administration.
Build 
Relationships
Assist with 
Expansions
Resolve
Issues
Connect to 
Resources
Strategic Plan
13

3
Business Climate Enhancement 
•
Proactive with key employers and those considered a flight risk.
•
Serve as a point of contact for information on doing business in Chandler.
Strategic Plan
14
41
40
77
FY 2019-20
FY 2020-21
FY 2021-22
Data Sources: Economic Development Division
Meetings by Fiscal Year
Ombudsman Calls by Fiscal Year
FY 2021-22
FY 2020-21
FY 2019-20
2,122
3,616
2,623

3
•
Goal: Build an entrepreneurial ecosystem that attracts startups, 
encourages spin-offs, and helps companies scale in Chandler.
Technology Entrepreneurship
Strategic Plan
15

3
• Provide training and mentoring through Chandler Innovations incubator.
• Collaborate with ASU at the Chandler Innovation Center.
• Facilitate and increase access to early-stage funding for startups. 
• Serve as a research tool for entrepreneurs evaluating Chandler.
• Position Chandler as the epicenter of tech-based entrepreneurship.
Technology Entrepreneurship
Strategic Plan
16

3
Small Business Assistance
•
Goal: Create and manage programs that support local entrepreneurship 
and small business growth.
Strategic Plan
17

3
• Publish Small Business Guide in English and Spanish each year.
• Encourage residents to shop local through I Choose Chandler campaign.
• Provide site selection services: customized demographics, identify 
building options, and coordinate Business Location Team meetings.
• Co-sponsor small business workshops and events.
• Serve as a point of contact for questions regarding City processes.
Small Business Assistance
Strategic Plan
18

3
Infill & Redevelopment
•
Goal: Revitalization and reuse of underutilized properties to support 
economic growth and neighborhood vitality.
• Facilitate conversion of underutilized properties.
• Engage capable development partners.
• Promote Adaptive Reuse Overlay District benefits. 
• Advocate for state legislation to support 
redevelopment projects that create new housing. 
Strategic Plan
19

3
•
Goal: Position Chandler as a top-of-mind location for targeted audiences. 
Competitive Positioning
Strategic Plan
20

3
• Develop paid digital campaigns to highlight Chandler’s key industries, 
community assets, and overall business climate.
• Develop a content calendar to provide timely informational on Chandler’s 
advantages for doing business (e.g., manufacturing theme during National 
Manufacturing Month).
• Scale economic development newsletter with targeted lists and 
implementation of drip campaigns.
• Optimize and update economic development specific content/webpages 
on chandleraz.gov.
Paid & Owned Media Strategies 
Strategic Plan
21

Strategic Plan
22
Data Sources: MAG Employer Database (2021), ESRI Business Analyst (2021)
Data Source: LinkedIn, Twitter, Site Improve, and Constant Contact
Paid & Owned Media Strategies 
•
Economic Development does not broadcast to a general audience. 
•
Our messaging is designed to reach business decision makers, site 
selectors, developers, and others who bring projects to Chandler.
Social Media Audience
Total
5,264
3,083
2,181
Website Traffic
13,194 
Visits
24,251 
Page Views
Newsletter
847 
Subscribers
47%
Open Rate
Digital Marketing Data (CY 2022)

3
Tourism
•
Goal: Implement the Tourism Strategic Plan to increase visitor spending, 
recruit new meetings, and enhance Chandler’s brand.
Strategic Plan
23

Strategic Plan
Fiscal Year
Total Rooms 
Sold
(Demand)
Total Rooms 
Available
(Supply)
Occupancy 
Rate
Average 
Daily Rate
Revenue Per 
Available 
Room
FY 2018-19
906,332
1,370,575
66.10%
$110.17
$72.85
FY 2019-20
849,911
1,434,722
59.20%
$106.18
$62.90
FY 2020-21
846,684
1,478,950
57.20%
$90.78
$51.97
FY 2021-22
1,010,745
1,422,480
71.10%
$123.24
$87.57
24
•
COVID had a significant impact on tourism in FY 2019-20 and FY 2020-21.
•
Tourism market fully recovered in FY 2021-22, posting record numbers.
Data Source: STR
Tourism

3
Education & Talent
•
Goal: Collaborate with educational partners to build the local talent 
pipeline. 
•
UA programming in Chandler
•
ASU at Chandler Innovation Center
•
CGCC job training programs
•
P-20 initiatives (e.g., cybersecurity)
•
CUSD
Strategic Plan
25

Sources: ESRI Business Analyst (2019)
Manufacturing
55,000 SF
100+ jobs
IT Innovation 
Center expansion 
200 jobs
Manufacturing
75,000 SF
100 jobs
Corporate HQ
29,500 SF
100+ jobs
HQ/Manufacturing
119,000 SF
230 jobs
The Impacts
Strategic Plan
26
Corporate HQ 
26,000 SF
30 jobs
Manufacturing
123,000 SF facility
100 jobs
Manufacturing
200,000 SF
200 jobs
Data Sources: Economic Development Division (Only includes projects publicly announced in calendar year 2022)

Strategic Plan
Fiscal Year
Locates
Job Creation
(By Year 3)
Square Feet 
Absorbed
Capital 
Investment
Average
Wage
FY 2019-20
21
5,836
1,522,900
$172,825,000
$72,764
FY 2020-21
23
3,001
1,424,600
$435,757,609
$72,280
FY 2021-22
27
4,219
1,850,700
$337,905,000
$71,232
TOTAL
71
13,056
4,798,200
$946,487,609
$72,089
27
•
Business locates over the past three fiscal years and expected impacts:
Data Sources: Economic Development Division (Based on numbers reported by companies)
The Impacts

Strategic Plan
28
The Impacts
Projects Initiated During Last 3 Fiscal Years
•
Winning projects is a numbers game:
135
173
136
33
67
73
53
47
26
4
1
2
24
31
15
21
27
20
0
20
40
60
80
100
120
140
160
180
200
FY 2019-20
FY 2020-21
FY 2021-22
Total Projects
Lead
Prospect
Cancelled
Lost
Locate - Chandler
Data Sources: Economic Development Division
Note: Projects initiated in one fiscal year may become a locate in a later fiscal year.

Strategic Plan
Current 
Project Status
Projects in 
Pipeline
Combined Potential Impacts
Jobs
Square Feet
Capital Investment
Leads
218
23,381
14.5 million
$6.4 billion
Prospects
149
12,779
7.2 million
$10.2 billion
PIPELINE 
TOTALS
367
36,160
21.7 million
16.7 billion
29
•
There are hundreds of potential projects in the pipeline.
•
Lead = evaluating many locations with no specific interest in Chandler.
•
Prospect = shortlisted Chandler among a group of location options.
Data Sources: Economic Development Division (Based on company-supplied data for projects initiated from FY 2019-20 through FY 2022-23 YTD)
The Impacts

Commercial Real Estate
Type
Existing Space
12 Mo. Deliveries (SF)
Under Construction (SF)
Retail
16.8M
40K
13K
Office
11.9M
14K
--
Industrial
27.4M
1.6M
1.4M
Source: CoStar (1/2/2023)
30
Strategic Plan
30

Retail Real Estate Stats
Metric
Current Rate
5-Year Average
Market Rent Per Square Foot
$24.22
$21.95
Vacancy Rate
4.8%
6.8%
Sales Price Per Square Foot
$231
$205
Vacancy Rate
Vacant & Available SF
Source: CoStar (1/2/2023)
31
Strategic Plan
31

Industrial Real Estate Stats
Vacancy Rate
Metric
Current Rate
5-Year Average
Market Rent Per Square Foot
$14.00
$10.90
Vacancy Rate
2.7%
4.1%
Sales Price Per Square Foot
$220
$162
Vacant & Available SF
Source: CoStar (1/2/2023)
32
Strategic Plan
32

Office Real Estate Stats
Vacancy Rate
Metric
Current Rate
5-Year Average
Market Rent Per Square Foot
$28.19
$26.61
Vacancy Rate
17.0%
11.7%
Sales Price Per Square Foot
$245
$227
Vacant & Available SF
Source: CoStar (1/2/2023)
33
Strategic Plan
33

• Chandler Airpark 202
• Industrial
• 397,177 SF (4 Buildings)
• Germann Rd 
& Northrop Bl
• Midway Commerce 
Center
• Industrial
• 301,994 SF (3 Buildings)
• Germann Rd
& Hamilton St
• Chandler Airpark 
Technology Center
• Industrial
• 219,440 SF (2 Buildings)
• Gilbert Rd &
Insight Way
• Chandler Connection
• Industrial
• 201,221 SF
• Germann Rd, 
East of Cooper Rd
•
Product wins projects
The Impacts
Strategic Plan
34

The Impacts
Strategic Plan
35
Data Sources: MAG Employer Database (2021), ESRI Business Analyst (2021)
Data Sources: MAG Employer Database (2021), ESRI Business Analyst (2021)
110K
114K
117K
125K
127K
131K
94K
98K
101K
102K
103K
104K
2016
2017
2018
2019
2020
2021
Jobs
Households
1.17
1.17
1.16
1.23
1.23
1.25
2016
2017
2018
2019
2020
2021
Jobs vs. Households
Jobs per Household
•
Balance: Chandler continues to add jobs as its population grows.

The Impacts
Strategic Plan
36
•
Chandler has maintained a very low unemployment rate.
•
Unemployment rate stayed lower than county and state averages 
during COVID and rebounded to lowest rate in more than 10 years.
Data Sources: MAG Employer Database (2021), ESRI Business Analyst (2021)
Data Source: Arizona Office of Economic Opportunity (Average Annual Unemployment Rate, Not Seasonally Adjusted)
3.7%
3.7%
6.5%
3.8%
2.8%
4.1%
4.2%
7.2%
4.5%
3.1%
4.8%
4.8%
7.7%
4.9%
3.7%
2018
2019
2020
2021
2022
Chandler
Maricopa County
Arizona
Unemployment Rate

3
The Impacts
Strategic Plan
37
6th
Best City for 
Income Equality
-City Monitor (2022)
6th
Most 
Livable City
-SmartAsset (2020)
1st
Best Place to
Become Wealthy
-SmartAsset (2019)
2nd
Most Prosperous
Large City
-EIG (2020)
4th
Best City 
for Families
-Opendoor (2022)
5th
Best City for 
Women in Tech
-SmartAsset (2022)
5th
Best City to Start 
a Side Hustle
-LLC.org (2023)
8th
Best Untapped
City for Startups
-Fundera (2020)
15th
Best for Women 
Entrepreneurs
-Fundera (2020)
16th
Best Place
to Find a Job
-WalletHub (2022)
•
Recognition: Chandler ranks among the top cities in the U.S.

3
•
For Chandler business news and announcements, be sure to...
Read our monthly e-Newsletter
Follow us on LinkedIn/Twitter @chandlerecondev
Follow News & Events page, Economic Development blog and 
Council Memo Reports
Stay Informed & Engaged 
Strategic Plan
38

3
Strategic Direction
Strategic Plan
39
Workforce Development Partnerships
Enhanced Marketing & Web Optimization
Office Lead Generation and Occupancy
Capital formation for early-stage technology companies
Redevelopment

3
City Council’s Role
Strategic Plan
40
Pro-Business
Attitude
Strategic
Direction
Advocacy
Political
Stability
Fiscal 
Policy

Questions?