Collaboration is More Vital Than Ever to Keep Construction Schedules on Track

With commercial construction activity up by double digits in 2016 and projected to increase another 5 percent in 2017, the industry continues to keep a keen eye on labor shortages and construction costs. This rings even more true in the face of today’s increasingly stringent financing requirements — a critical project element that can push construction schedules out by months and, in the process, create challenges with accurate pro forma data, true labor schedules and pricing. [caption …

March 28, 2017Arizona, Market Reports, Mixed-Use, Western, Western Market Reports

Demand, Product Coming to Phoenix’s Multifamily Market

With record-low cap rates dipping as far as 2.9 percent, the nation’s top multifamily markets have become expensive. In response, investors have turned to secondary markets like Phoenix, where upside potential is still strong, pricing is manageable and cap rates are hovering in the high 4 percent to mid-5 percent range. Although multifamily sales have maintained their accelerated pace nationwide, that pace is being driven by secondary markets — particularly in the West. [caption …

March 14, 2017Arizona, Market Reports, Multifamily, Western, Western Market Reports

Tech Takes Hold in Phoenix

One of the newest trends in Phoenix office leasing is the spur in technology and creative space requirements, especially for tenants moving in from Northern and Southern California. These companies are searching for a more favorable market — one with lower labor costs and rental rates, more affordable housing, an educated workforce from which to draw, less traffic and an overall higher quality of life — and the Phoenix area fares well comparatively. I expect this trend to continue, …

October 25, 2016Arizona, Market Reports, Office, Western, Western Market Reports

Retail Occupancy Rises in Phoenix

As we approach the fourth quarter of 2016, the Phoenix retail market is experiencing its lowest vacancy rates since 2008. Vacancy has dropped to just under 9 percent, a slight improvement from the start of 2015, while rental rates have climbed 0.8 percent to $14.53 per square foot. Positive economic indicators such as population growth, a favorable job market, and new-home construction are all contributing toward a healthy retail market in Phoenix. [caption id="attachment_184070" …

October 18, 2016Arizona, Market Reports, Retail, Western, Western Market Reports

Industrial Owners Delight in Phoenix’s Thriving Market

The Phoenix industrial market is thriving, despite more than 5.6 million square feet of new construction set to deliver this year. There is enough demand in this market to keep the average vacancy rate at a near eight-year low of 9.7 percent, while absorption is on pace to exceed 6 million square feet for the third year in a row. [caption id="attachment_184066" align="alignright" width="100"] Steve Larsen, JLL[/caption] Tenants have more choices than ever thanks to all this new inventory. …

October 11, 2016Arizona, Industrial, Market Reports, Western, Western Market Reports

Renter, Investor Demand on the Rise in Phoenix’s Multifamily Market

The Greater Phoenix multifamily market continues to thrive in a high-demand environment, driven by strong tenant volume and investor interest. As the local economy expands, employers are adding workers at a steady pace while demand for housing is on the rise. Apartments remain the preferred choice for many, pushing multifamily vacancy rates low even as new units are added to inventory. We fully anticipate these conditions to continue in the year ahead. [caption id="attachment_184062" …

October 4, 2016Arizona, Market Reports, Multifamily, Western, Western Market Reports

Phoenix’s Industrial Market Offers Opportunity

[caption id="attachment_138377" align="alignright" width="150"] Anthony Lydon, JLL[/caption] Owners, investors and developers are bullish about the Phoenix industrial market – and for good reason. We occupy one of the most strategic supply chain locations in the West – a sweet spot between West Coast ports, manufacturing in Mexico, and alongside truck and rail routes leading product into the heart of the nation. Add to this Governor Ducey’s mandate to grow Arizona’s trade volume …

August 25, 2015Arizona, Industrial, Market Reports, Western, Western Market Reports

Phoenix’s Office Market Encounters Slow, Steady Recovery

[caption id="attachment_136936" align="alignright" width="150"] Tyson Breinholt, Commercial Properties Inc./CORFAC International [/caption] After muddling through the post-recession with office vacancy rates stuck around 20 percent for the overall Phoenix office market, the office sector has begun to show elements of stabilization in the Valley of the Sun. The unemployment rate in Phoenix plummeted to 5 percent in April this year, down from more than 11 percent near the end of 2009. The …

August 4, 2015Arizona, Market Reports, Office, Western, Western Market Reports

E-Commerce Bolsters Phoenix’s Industrial Market

[caption id="attachment_126266" align="alignright" width="150"] Isy Sonabend, NAI Horizon[/caption] Before raising the curtain on 2015, it is important to understand how the stage has been set. The Phoenix industrial sector continues to build for changes in the market. Local and national developers delivered 6.3 million square feet of speculative industrial warehousing in the market last year, primarily due to big box projects. While most of these projects were in the Southwest Phoenix …

February 24, 2015Arizona, Industrial, Market Reports, Western, Western Market Reports

Phoenix Retail Market on the Slow Climb to Recovery

[caption id="attachment_125848" align="alignright" width="150"] Mike Duffy, SRS Real Estate[/caption] The Phoenix retail market ended 2014 on a promising note, with vacancy rates dipping below 10 percent for the first time since the Great Recession ended. It also experienced net absorption of more than 2 million square feet of retail space. Expectations for 2015 are positive, and continued improvement is anticipated, albeit slower than we might have hoped. While many segments of the market …

February 17, 2015Arizona, Market Reports, Retail, Western, Western Market Reports