At Landmark Title Assurance Agency we deliver clients expertise derived from over four decades of experience in commercial real estate.
In order to keep delivering exceptional service, we believe it is essential that we stay abreast of industry trends, and have a clear understanding of the 2015 outlook. According to the Emerging Trends in Real Estate 2015 report, Phoenix ranked #26 in offering good investment potential in 2015. The report, which was released last December shows Texas, California and Colorado currently leading the pack as markets to watch, according to the Urban Land Institute.
Phoenix’s office market saw some notable success in 2014, according to many Arizona brokerage experts, and it was a banner year for us at Landmark Title. As things stand currently, office space vacancy rates are at 22 percent, which is a significant improvement from 2009, when the rate was roughly 27 percent. Notably, SkySong 3 was 95 percent pre-leased in August 2014. As a result, rents are projected to rise, particularly in the downtown Phoenix area. Experts are estimating that commercial rental rates will increase between two and four percent by the end of 2015.
In an interview with AZRE Magazine, Craig Henig, senior managing director and market leader at CBRE, says Arizona’s pace is actually going to work to the state’s advantage. “For commercial real estate investment purposes, the fact that the employment recovery in the local market has lagged behind the national recovery is a positive because it means that Phoenix has a longer runway compared with markets whose economic recoveries took form earlier,” states Henig.
Economists are reporting that Arizona is about 35 percent behind the country overall in reclaiming its pre-recession job levels but will make a full recovery by 2017. However, the Phoenix Employment Update by JLL shows that 2014 ended on a very positive note, stating that more than 49,000 jobs were created in the Valley.
Based on the stats we are seeing, it is prime time to make a move, if you are considering purchasing, leasing or developing a commercial space in Phoenix metro areas. The indicators provide the green light for go.
To open an escrow or inquire about our commercial escrow services, contact a member of our team today.