Trbo’s Q2 Phoenix Commercial Sales Report

First of all, as average prices per square foot approach replacement costs we will start to see construction activity increase. That activity has not returned yet in the office and retail sector, but we are seeing it return to the industrial warehouse sector, which has seen 2.o million square feet delivered in the second quarter with another 3.5 million square feet under construction at the end of the quarter.

Overall, the Phoenix market and economy continue to improve. Construction has begun on the new $600 million Marina Heights in Tempe, the largest commercial development in Arizona’s history. http://t.co/NSRJbEFKQV The housing market cannot keep pace with demand, lacking the needed construction workers. Nationally the economy also continues to improve with lower unemployment http://t.co/cIcpLLSWXA and record factory orders http://t.co/j2YT5wJ8iE.

For a look at the full CoStar Reports, see the links at the end of this post.

Office

	12 Months Ended June 30, 2013	12 Months Ended June 30, 2012	Change
Cap Rate	7.24%	7.49%	(0.25)
Price per SF	$142.77	$129.16	$13.61
Total Sales (number)	84	64	20
Total Sales (dollars)	$728,724,546	$597,265,398	$131,459,148

Warehouse

	12 Months Ended June 30, 2013	12 Months Ended June 30, 2012	Change
Cap Rate	6.37%	7.04%	(0.67)
Price per SF	$52.71	$45.13	$7.58
Total Sales (number)	140	124	16
Total Sales (dollars)	$361,319,422	$284,278,205	$77,041,217

Phoenix Retail

	12 Months Ended June 30, 2013	12 Months Ended June 30, 2012	Change
Cap Rate	8.11%	7.79%	0.32
Price per SF	$85.70	$79.35	$6.35
Total Sales (number)	104	77	27
Total Sales (dollars)	$405,005,499	$285,279,366	$119,726,133

For a complimentary copy of the CoStar Quarterly Reports for each sector, click on each link: 2013 Q2 Phoenix Office; 2013 Q2 Phoenix Industrial; and 2013 Q2 Phoenix Retail.