Phoenix made the Top 10 list of the best places to build a commercial project, according to the survey by Washington, DC-based Builder Magazine. Though land supply is tight, the city "enthusiastically welcomes developers," the magazine says.

On the other end of the scale, the Phoenix suburbs of Chandler and Gilbert are ranked among the 10 worst cities in which to build. Cities were graded based on such factors as permitting difficulties, land availability and "stonewalling" by city leaders, says Builder Magazine Editor Blake Evans.

In Chandler and Gilbert, developers complain of lengthy approval processes and requirements that vary widely from project to project and from developer to developer, Evans says. Once sleepy farming communities, the two towns experienced rapid growth throughout the 1990s. Both cities have recently taken steps to curtail runaway growth, such as setting development fees well above those of most other Valley cities.