Multifamily Market Bolstered by Investors, New Construction

The multifamily market in the Phoenix metropolitan area remains, as it was in 2012, the most popular property sector for investment and new construction. Post-recession job creation, coupled with echo-boomers leaving the nest, has created a leveraged demand for multifamily product. Years of near-zero construction, followed by a rapid increase in demand, has created a landlord’s market throughout most of the valley. Vacancy across the Phoenix metro area is now less than 7 percent. It is …

September 3, 2013Arizona, Market Reports, Western Market Reports

Prices, Demand Climb for Multifamily Properties

After several years with virtually no new construction of multifamily homes, the Metro Phoenix market looks to rebound with a pipeline of projects that could result in 5,000 to 7,000 new units built per year in 2013, 2014 and 2015. That returns our market to construction levels last seen in 2007. In order to see this volume of construction, developers will need to be successful in raising the required equity, which has been a challenge. At the end of 2012, the Valley had 17 projects (of 50 …

March 25, 2013Arizona, Market Reports, Western Market Reports

Retailers Eye Infill, Mixed-Use Locations

Well, 2012 has come to an end, the fiscal cliff has been averted for now and the presidential election is behind us. Despite it all, retail sales in the Arizona market seemed to fair reasonably well last year, albeit with markdowns acting as the trigger point for consumers to make those last-minute holiday purchases. With an active 2012 under our belts, the Phoenix market is hoping to outdo itself this year with leasing activity as retailers gear up for cautious expansions, downsizes and …

March 18, 2013Arizona, Market Reports, Western Market Reports

Employment Gains Spur Office Market

The investment climate for the Phoenix office market is poised to provide compelling acquisition opportunities in 2013. Favorable job growth, improving market fundamentals and assets available at discounts to replacement costs are expected to enhance asset appreciation over the next several years. Phoenix has historically generated strong job growth after recessionary periods. Recent data supports this trend, as Metro Phoenix added 50,700 jobs over the past 12 months, according to the Bureau …

March 4, 2013Arizona, Market Reports, Western Market Reports

Phoenix Industrial Market Shows Healthy Recovery with Diversity of Deals

The Metro Phoenix industrial market has been climbing its way to recovery for the past few years, but the activity of 2012 showed the strongest signs of diversified activity of a healthy marketplace. While overall net leasing was down slightly from 2011, the city benefitted from an abundance of medium and large transactions reflecting many types of industrial users leasing and buying throughout the city. This diversity indicates overall health — and not just in our traditional big box …

February 18, 2013Arizona, Market Reports, Western Market Reports

Despite High Vacancy Rates, The Phoenix Retail Market is Set to Recover

The Pheonix economy is recovering slowly, with accelerating employment growth and rising housing prices outpacing national averages. These drivers have begun to stabilize the local retail market, and with future economic expansion likely going forward, retailers are expected to become more active. In 2013, retailers are forecast to absorb about twice as much space as they did in 2012. While vacancy rates remain above 10 percent in many of the valley’s primary trade areas, the overall …

January 28, 2013Arizona, Market Reports, Western Market Reports

Phoenix Proves Resilient Thanks to Growing Confidence

The Phoenix industrial market continues its convincing march toward recovery by reaching several milestones. As a more resilient sector during the recession, the industrial market was not plagued with as much bad debt and CMBS loan defaults as other sectors. Industry experts concluded the industrial sector would recover faster as favorable economic conditions such as durable goods orders and manufacturing output favored the industrial market early. The sector has posted 10 consecutive quarters …

January 7, 2013Arizona, Market Reports, Western Market Reports

Industrial market rises from the ashes.

It is important to understand that the mid-2000s did not reflect a sustainable level of industrial leasing activity. Real estate in general — and Phoenix in particular — has always been subject to cycles. The past few years have seen a flight to quality with tenants moving from older buildings to newer, more modern facilities. They were able to lease new space at bargain rates that were at or below what they were paying for their older facilities. The initial signs of an …

August 31, 2012Arizona, Market Reports, Western Market Reports

Developers ramp up construction.

Employment and population growth is spurring apartment demand in Phoenix, encouraging developers to ramp up construction. Although Class A rents are above mortgage payments on a median-priced home, many potential homebuyers will be unable to compete against investors that purchase bank-owned houses to operate as rentals. The metro is a target for these well-capitalized buyers, as home prices have dropped nearly 60 percent since the peak, while the local economy is gaining traction. By the …

August 10, 2012Arizona, Market Reports, Western Market Reports

Affordable housing leads to retail growth.

The metropolitan Phoenix market differs from other western cities in terms of its affordability of housing, from first-time buyers to retirees. As the market comes out of this recession, Phoenix is poised with available, affordable residential and commercial properties. Also, there still is plenty of land area in which to expand, unlike our counterparts, who are bounded geographically from growth. Columbus, Ohio-based Glimcher Properties is developing the $270 million Scottsdale Quarter, a …

February 3, 2010Arizona, Market Reports, Western Market Reports