PHOENIX-There is little doubt the Phoenix area been one of the ground zero locations during the recent economic collapse due to the collapse in its single-family housing market. Regional reports continue hyping the gloom-and-doom theme.

But experts tell GlobeSt.com that the reality is far different. “What people perceive of the market right now is six-month old data,” explains Mark Singerman, assistant vice president and regional director-Arizona for the Rockefeller Group Development Corp. “What’s happening on the ground today is different from what’s being reported.”

Singerman points out a couple of salient facts: First, larger companies are looking for office and industrial space to lease. And second, “we’re seeing a lot of companies coming over here from California, because they’re tired of the cost of doing business there,” Singerman comments.

As s result, the larger blocks of space are steadily dwindling. “The larger tenants come into the market looking for buildings that can accommodate up to 1 million square feet,” explains Craig Henig, CB Richard Ellis’ managing director, Arizona market. “But all of them are spoken for at this time.”

Henig says another reason for increased demand in space is because Phoenix is moving from a construction-oriented economy to a more diversified one that features fulfillment and technology. Companies unable to find space to lease are building their own.

But Singerman cautions that the region isn’t going to suddenly see a glut of new speculative development any time soon. “Today we’re seeing mostly build-to-suit,” he comments. “Certainly there will come a time when it makes sense to build on spec again, but I don’t think we’re quite there yet.”

Henig agrees, pointing out that real estate growth in the region will be a long-term activity.  “Lots of companies understand the fundamentals and population growth we’ve experienced in the past and that we’ll experience again,” Henig adds. “Looking down the road, they know growth will return. Not immediately, but it will return.”