July 30, 2014

Trbo’s 2014 Mid-Year Investment Sales Report

Craig Trbovich Commercial Real Estate –

Investment sale numbers for the Phoenix Market have been updated below with trailing 12 month average comparisons and a historical chart for each product type.

The complete Mid-Year CoStar Reports are also out with complimentary copies available at the following links:  Phoenix Industrial; Phoenix OfficePhoenix Retail.

 

Industrial Warehouse Investment Sales

Industrial warehouse investment sales show a slight slowdown in Total Sales and Average Price per SF below. However, this table does not accurately depict the strength of the industrial market.  While the leasing market has been very active as occupancy and rates steadily increase (also see Trbo’s Leasing Report), there has been a lack of investment product available for sale, stalling investment activity.  The Industrial Square Feet for Sale by Quarter chart below shows how the available square feet for sale has declined by 80% since 2009!  Two primary reasons for the lack of available properties for sale are the fact many investors are waiting to sell at a later date as the market improves and a lack of new development since the downturn began.

 

2014-07-29_19-23-33

 

 Industrial Warehouse Investment Square Feet for Sale by Quarter

2014-07-29_19-27-11

 

 

 

 Office Investment Sales

Office investment sales show mixed results and no strong trends.  There was a healthy increase in Total Sales, a decrease in Average Price Per SF and a small decrease in Average Cap Rate.   Overall, the office market continues its slow recovery on the sales and leasing sides.

 

2014-07-29_19-27-54

 

Annual Office Investment Sales (2014 Year to Date)

2014-07-29_19-28-26

 

 

Retail Investment Sales

The retail investment sales activity is an almost carbon copy of previous year.  Similar to the industrial market, retail has shown steady improvement but properties available for sale have declined dramatically as shown in the Retail Square Feet for Sale chart below.

 

2014-07-29_19-29-00

 

 Retail Investment Square Feet for Sale by Quarter

2014-07-29_19-29-39

Source:  CoStar Analytics, Investment Sales (non-distressed) Over 15,000 sf.

 

For a no obligation analysis of your property, please call me at (408) 522-2799 to “TrboCharge” your investment real estate today.

 

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