The final quarter of 2014 is generating a lot of excitement in Arizona’s commercial real estate sector, particularly in the Phoenix metro area. Research from Colliers International shows that in Q3 the greater Phoenix office sector posted another quarter of improvement. Vacancies tightened (ending the third quarter at 18 percent), rent continued to rise and investment activity gained momentum. Commercial real estate has seen a significant improvement due to these factors, but the rising cost of rent (increased to $20.93 per square foot) is a big factor in these buy-ups.
A Scottsdale property, which is home to local operations of e-commerce giants’ eBay and Pay Pal, recently sold for just under $35 million, averaging $188.41 per square foot. The property was acquired by an L.A. based company, Regent Properties. The complex is located near Mountain View Road and Loop 101 in Scottsdale. Regent also owns commercial real estate in Phoenix, Chandler and Glendale. Adding the Scottsdale property to their portfolio gives Regent Property a presence in four out of the six cities in the Phoenix metro area.
AMW Packaging Supply increased their warehouse space by 11,000 square feet and moved from 32nd Street and Broadway Road to a new location near 32nd and Southern Avenue. AWM purchased the space for $1.3 million from Voytech Five LLC. The move will allow AWM to add four new employees to their 16-person team.
AWM also owns warehouse space in Australia, China, New Zealand, Florida, California and Texas as well as office space in Las Vegas.
Scottsdale continues to sell square footage in commercial real estate properties for over $120 per square foot. A modest commercial space near Scottsdale Airpark sold for $2.9 million to Desert Palm Management Group. The 23,000 square foot building houses Terri’s Consign and Design’s Scottsdale location.
The property is situated at Hayden and Raintree Drive in north Scottsdale.
Earlier in the year, the Phoenix-based management group purchased an impressive 93,500 square foot industrial building in Chandler for $6.39 million.
This upswing points to a positive first quarter in 2015 for the commercial real estate sector. If you are entering into a transaction for the first time please feel free to consult our knowledgeable team. President, Vicki Etherton has over 30 years of experience managing complex and high profile transactions in Arizona. She is an expert in her field and utilizes a hands-on approach to deliver quality service to her clients.
*Sources: Phoenix Business Journal and Colliers International