May 17, 2016

Trbo’s Spring 2016 Investment Report – Celebrate!

Craig Trbovich Commercial Real Estate –
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As the Phoenix leasing market and economy gradually improve and gain strength, so does commercial real estate investment. The industrial sector remains active, continuing an expansion phase started in 2013-2014, ahead of the office and retail sectors, which have transitioned out of recovery more recently. Barring any major negative world events, we should continue celebrating good times over the next 24 months.


Take a look below at investment sale numbers for Phoenix with trailing 12 month average comparisons, historical Average Sales Price and Annual Sales Volume charts for each product type.


Industrial Warehouse Investment Sales

Industrial investment sales continue to grow and expand as strong leasing has pushed vacancies lower and lease rates higher, maintaining investor interest.  Recent sales include Duke Realty’s 923,908 SF sale to Exeter Property Group for $55.9 million ($61/sf), Presson Corporation purchased a 22 property, 362,068 SF portfolio from Turken Industrial Properties for $16.5 million ($46/sf), and BKM Capital Partner’s 442,173 SF acquisition four industrial parks for $34.5 million ($78/sf).


Industrial Table


Industrial Warehouse Average Sales Price Per Square Foot

Investment Industrial PSF


Industrial Warehouse Annual Sales Volume

Investment Industrial Volume


Office Investment Sales

Office investment sales made strong comeback in 2015 with total sales volume increasing 76% and average price per square foot increasing 16% over 2014 numbers.  Advances in 2016 will likely be less dramatic, but still show positive results as demand continues to expand into suburban markets.  Recent sales include the purchase of the 146,770 SF Gainey Center II by Lincoln Property Company for $35.25 million ($240/sf) from Invesco Advisors; and Miller Global Properties purchase of the 144,959 SF Pima Northgate from ASB Capital for $28.1 million ($194/sf).


Office Table


Office Average Sales Price Per Square Foot

Investment Office PSF


Office Annual Sales Volume

Investment Office Volume



Retail Investment Sales

Retail sales improved greatly over the past twelve months as price per square foot rose 27% and sales volume increased 72%!  Online sales continue to grow, making the retail market difficult to analyze as it continues to evolve.  Recent notable sales include the acquisition of the 277,000 SF Palm Valley Pavilions West by DDR for $60.5 million ($260/sf); and the 37,922 SF acquisition of Arcadia Village Center at 40th Street and Camelback for $19.65 million ($518/sf) by Crow Holdings Capital.


Retail Table


Retail Average Sales Price Per Square Foot

Investment Retail PSF


Retail Annual Sales Volume

Investment 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.


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


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