Craig Trbovich Commercial Real Estate –
The Deer Valley Industrial Market continued to strengthen in the first half of 2014. Lease Rates kept pushing upward from previous lows while vacancy rates were down to 5.3% during the first quarter, its lowest point since the Great Recession. Sales volume appears to be on track to make 2014 a banner year, and the average sales price per square foot has also increased to its highest level in recent years at $97.
All good news for the Deer Valley commercial submarket as businesses are once again optimistic about the future. With that optimism, record low interest rates, and values on the rise, businesses recognize that now is a great time to buy and are returning to the market.
For example, Bob Deininger and I are proud to have represented two local businesses in recent acquisitions: JB’s Precision purchased the land and is building a new 15,000 sf machine shop at 2320 West Parkside Lane with LGE as the design builder; and Carlson Glass recently closed on 302 West Lone Cactus, a 7,400 sf office-warehouse property for their business.
Looking closer at the leasing charts below, there was a slight increase in vacancy rates after reaching post-recession lows and a negative net absorption in the second quarter. However, these unfavorable statistics were primarily due to two positive factors: 1) more buyers entered the market, as 150,000 square feet of owner-user sales closed in the first halve of the year; and 2) over 230,000 square feet of new space for lease was delivered in the second quarter (see “New Projects” below).
Overall the Deer Valley submarket continues to improve in 2014 and remains one of the stronger submarkets for industrial activity in Phoenix. Click below for the complete report with charts and tables highlighting Deer Valley activity and for a no obligation analysis of your property or lease, please call me at (480) 522-2799 to “TrboCharge” your commercial real estate today.