Out-of-state developers are bullish on the Phoenix market. In addition to several notable new construction starts, developers from out of the state are calling brokerage offices regularly to find new opportunities in the market. All signs point to increased construction activity—which also means more land transactions—in 2021.

"We are very optimistic when it comes to the Phoenix market in 2021. We currently have a strong pipeline of future projects and we are receiving calls on a weekly basis from new out of state developers looking to come to this market," Mike Sutton, a principal at Lee & Associates, tells GlobeSt.com.

Sutton and his Lee & Associates colleagues recently sold a two-acre development site in Downtown Phoenix. Aspirant Development plans to build two towers on the site totaling 1.8 million square feet. They will be the tallest buildings in the state, and will house apartments, a hotel, office and retail.