February 23, 2016

Peaking Values – Trbo’s 2015 Investment Sales Report

Craig Trbovich Commercial Real Estate –

Investment sales in Phoenix progressed in 2015 as activity and pricing approached the peak levels of 2006-07.  Industrial sales continued to grow and be a strong sector as tenants steadily absorbed vacant space and improved the rent rolls of investors.  In addition, Office and Retail both made big improvements toward recovery in 2015, staying on the comeback trail that began in 2014.


Looking ahead cautiously, if the economy can stay out of negative territory, 2016 could be a year where Phoenix commercial real estate reaches new highs.  If not, we could be at a peak in the cycle.  But most likely, we are looking at another year of moderate growth, low interest rates and occasional volatility.  We may also see a new increase in selling as investors look to realize profits and raise capital for new opportunities.

Below are the 2015 investment sale numbers with trailing 12 month averages and charts showing Average Sales Price per Square Foot and Annual Sales Volume for each product type.


Industrial Warehouse Investment Sales

Industrial investment sales kept rolling along in Phoenix as both price per square foot, buildings sold and total sales dollars all grew during the year.  Average price per square foot increased 14%, number of properties sold increased 47% and total sales dollars grew 17% in 2015.  Looking at the charts below, average price per square foot in 2015 was the highest since 2007 and sales volume was also the highest since 2007.   Notable sales in 2015 include the 312,539 square foot FedEx facility at Chandler Crossroads which sold for $31.2 million and ParkSkyway Business Park, a 418,651 distribution facility in Surprise which sold as part of a larger portfolio for $18.9 million.


Industrial Table


Industrial Warehouse Average Sales Price Per Square Foot

Industrial psf


Industrial Warehouse Annual Sales Volume

Industrial volume




Office Investment Sales

2015 was a breakout year for office investments as average price per square foot increased 16%, buildings sold rose 20% and sales dollars grew by 76%!  Notable office sales in 2015 include five properties totaling 966,000 square feet at Camelback Esplanade for $279 million, 635,000 square feet at Biltmore Financial Center for $163 million and One North Central Avenue, a 410,000 square foot building sold for $93,750,000.


office table


Office Average Sales Price Per Square Foot

office psf



Office Annual Sales Volume

office volume


Retail Investment Sales

After a bumpy recovery, Retail sales are also showing improvement with a 22% increase in sales price per square foot and total sales dollars increased by 32%.  Notable sales  for 2015 include the 850,000 square foot Christown Spectrum Mall (originally opened in 1961 as Christown Mall) sold for $115.3 million and the 276,189 square foot Scottsdale Promenade – Phase I, which sold as part of a $1.86 billion portfolio.



retail table


Retail Average Sales Price Per Square Foot

retail psf


Retail Annual Sales Volume

retail volume

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


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



In the past four years, we have completed over 5,000 transactions at CPI.  That is an average of over 120 transactions per month!  Valley-wide, no other commercial real estate firm negotiates, prepares, and completes more transactions then CPI.  For a no obligation analysis of your property, please call me at (480) 522-2799 to “TrboCharge” your investment real estate today.


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