September 14, 2016

Trbo’s Investment Sales Report – Fall 2016



Craig Trbovich Commercial Real Estate –

September is more special to Phoenicians than to people living in most other cities. In Phoenix, we are thankful summer is over because 100 degree days are behind us for another year. It’s our spring. And for a Phoenician like me, throw in a little football, and September is like a dream come true!

But enough about me and the weather, Phoenix commercial real estate is becoming a dream market this September and definitely not cooling down. Industrial, Office and Retail sectors are all showing strong volume. Investment activity is filtering out to the suburbs and smaller properties, bringing back more private investors and in a more traditional investment market. And hopefully, November (pay attention Donald and Hillary) will not cool down the market either.  (I don’t believe it will.)

Investment sales numbers for the Phoenix Market have been updated below with trailing 12 month average comparisons and a historical Average Sales Price per Square Foot and Annual Sales Volume chart for each product type.


Industrial Warehouse Investment Sales

Industrial investment sales continue to grow and expand as large distribution facility sales fuel the market.  Strong leasing has pushed vacancies lower and lease rates higher, maintaining investor interest. Amazon’s one million square foot distribution facility sold for $74.8 million ($74/sf) and Home Depot’s 466,418 sf plus additional land for expansion facility sold for $48 million ($103/sf).  Other recent sales include Duke Realty’s $55.9 million ($61/sf), 3 property, 923,908 SF portfolio sale to Exeter Property Group; Presson Corporation’s $16.5 million ($46/sf), 22 property, 362,068 SF purchase from Turken Industrial Properties; and BKM Capital Partner’s $34.5 million ($78/sf), 27 property, 442,173 SF acquisition.




Industrial Warehouse Average Sales Price Per Square Foot

(3 month trailing average)



Industrial Warehouse Annual Sales Volume




Office Investment Sales

Office investment sales have slowed a little off of 2015’s strong finish, but overall are doing well. 2016 will be less dramatic, but still show positive results as demand continues to expand into suburban markets. Recent sales include ViaWest’s sale of the 149,992 SF Raintree Corporate Center, Phase II, leased to Vanguard for $32.1 million, and J.P. Morgan’s sale of the 155,459 SF Scottsdale Financial Center II to Goldman Sash for $40 million 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 Average Sales Price Per Square Foot

(3 month trailing average)



Office Annual Sales Volume




Retail Investment Sales

Retail sales are on track to make 2016 a breakout year. Over the past twelve months price per square foot rose 22% and sales volume increased 64%!  Online sales continue to grow too, making the Retail market difficult to analyze as it continues to evolve.  Recent notable sales include the acquisition of the 579,734 SF Scottsdale 101 by YAM Properties for $81 million ($140/sf); the 277,000 SF Palm Valley Pavilions West by DDR for $60.5 million ($260/sf) and the 37,922 SF Arcadia Village Center at 40th Street and Camelback for $19.65 million ($518/sf) by Crow Holdings Capital.




Retail Average Sales Price Per Square Foot

(3 month trailing average)



Retail Annual Sales Volume


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 or email at to “TrboCharge” your investment real estate today.



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