Valley's Commercial Buildings Sold Well in 2006

Valley's buildings sold well in 2006 from the Arizona Republic, reports that while the housing market went through a significant stall in 2006, commercial real estate gained momentum. The year was one of low vacancies and increasing rents and plenty of deals. "Overall, 2006 was stronger that 2005 in deal volume," said Mike Coover with Grubb & Ellis. And even more deals would have been likely, he said, if only there was more space to show in the Phoenix market. Notable deals included two sales at more than $100 million each, several companies moving into larger than average industrial buildings, a big land sale, and corporations investing in headquarter or regional offices in Phoenix, The big land deal noted was DMB's purchase of 3,200-acres in the Williams Gateway area that was part of the GM Proving Grounds.

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Business Real Estate Outlook Sunny for '07 from the Arizona Republic, reports that most real estate experts expect commercial real estate in the Valley to have a very merry 2007. The consensus is that rents in all sectors will grow, vacancies will remain low, and institutional investors will continue pouring money into the area. The Valley is expected to be the choice location for companies that have traditionally looked to Southern California, Dallas, Denver and Atlanta to set up warehouses and office support. Economists are expecting that supply and demand for commercial real estate will be in balance in 2007, said Lee McPheters, director of the JP Morgan Chase Economic Outlook Center at ASU. "There's nothing right now putting the brakes on it," said Mc Pheters. The article gives individual forecasts for the industrial, office, retail and multi-family sectors. Very positive!

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