Category Archives: Market Trends

Phoenix 1Q14 Retail Snapshot

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The first quarter of 2014 showed continued improvement in nearly every market category, verifying that the retail market is building on the strength of 2013. Retail rents progressed and rose almost a percentage and a half from the end of 2013, averaging $14.09 throughout the first quarter of 2014, up from $13.91 at the end of 2013. Construction statistics also continued to make significant gains, which indicates that the demand for space is there, which should also help retail rates continue to rise.

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The market continues to gain in transactions in all submarkets. Overall sales and lease numbers continued to grow, and the amount of overall transactions in the retail market were a direct reflection of that. We saw a first quarter trend of move-in leases of numerous spaces of 140,000 SF and over, and saw nearly 30% of the sales transactions gather $150 per square foot. The  improving supply of quality retail space, coupled with Phoenix’s progressing economy, continue to drive lease rates upward.

Read more by downloading the full report.

Commercial Executive: NAI Horizon Sells Islands Village Shopping Center in Gilbert for $7.5M

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The Islands Village Shopping Center, located at 1422-1560 W. Warner Rd in Gilbert, Arizona just sold for $7.5M or $72.75 per square foot.  The 103,082 square foot retail anchored center is a multi-tenant property located at the heavily travelled intersection of Warner & McQueen. Gilbert is the fastest growing community in Arizona.  Voted 2nd Safest City and 8th Most Thriving City in the U.S., Gilbert boasts an impressive economic climate.  With 38.3% of residents holding a bachelor’s degree or higher and a median income of $76,574, Gilbert is home to rising technology companies growing and relocating within its borders.

The seller was represented by Barbara Lloyd and Lane Neville with NAI Horizon’s Investment Services Group.  This was an REO sale; the loan on the property was a commercial mortgage backed security (CMBS) loan.  The property had experienced distress due to the real estate recession and was foreclosed upon by the lender.  The property was purchased by BH Properties which marks the third commercial transaction in the Valley with NAI Horizon in the past two years.

To read more see the full report on Commercial Executive

Phoenix 1Q14 Industrial Snapshot

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After an impressive end to 2013, the industrial sector slowed slightly this quarter; both leasing activity and sales volume decreased. Rental rates inched upwards in Q1, continuing the long term trend of increasing rates. Despite positive first quarter absorption, vacancy rates saw a small increase in Q1. However, long-term vacancy trends continue to decline in all industrial property types, except for big box inventory.

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In Q4 of 2013, net absorption totalled 2,669,041 SF, making up for a slow Q2 and Q3 that posted negative numbers. 2014 was vibrant with activity in the first couple months, but fizzled into a net absorption of only 479,422 SF. This decrease was reflected in leasing activity as well; last quarter 4.3 million SF was leased in the Phoenix Metro industrial market, while just 2.2 million SF was leased in the first quarter of 2014. Sales Volume also fell this quarter, coming in at $176 million, down from the $331 million seen at the end of 2013.

Read more by downloading the full report.