Their employment contracts pay considerably less and in some ares of the country are more volatile and prone to changes or cancellations.

Just doesn't have that kind of return or volatility.

Not sure if this is an effective risk assessment, but feel like it's safer than chasing the highest cashflows in potentially volatile markets.

I think its going to depend on situation and that rates will be dropping this year, but there will likely be volatility and spikes either way - with only 3 weeks to go, likely pretty smart risk/reward to lock in early - 

Cash value volatility with changes in the value of the securities component.2.

the lesson learnt so far :- Fed volatility has no impact of asset with long term fixed debt financing- Fed volatility create huge impact of asset with short term variable debt financing.it's basic lesson in economy 101 all over again !

As you move up the risk spectrum, the projected returns should be higher, but you need to understand there is more volatility in the ability to achieve that return, meaning: a value-add deal with some vacancy, 3rd-4th generation space, more local tenants, should project a higher return than a new construction, national credit tenant base property, because there is more tenant risk, physical condition and obsolescence risk, vacancy and lease up risk, potentially retail corridor risk, etc.  

Acquire a profound comprehension of navigating economic downturns and unforeseen circumstances, and uncover efficient tactics for adjusting rental pricing to triumph over the trials of a volatile market.

Location is key, as you'll find more demand for rent for Class A, less volatility should the market shift or rates stay high, and better resale if you wish to 1031 later on down the road.

Second, I do not know your market, but I understand Arizona is a very volatile market.