retail - vol & # of sal phoenix investment sales | 2019 ... · july office retail industrial...

Historical Volume vs. Avg PSF and Number of Transactions

The Colliers International Arizona Investment Properties Sales Team

Colliers International | 2390 E Camelback Road, Suite 100 | Phoenix, AZ 85016Main Phone: +1 602 222 5000

colliers.com | www.phoenixinvestment.properties

MINDY KORTH Executive Vice President Direct +1 602 222 5005 [email protected]

JENNY BASSETT Real Estate Analyst Direct +1 602 222 5158 [email protected]

SEAN WESTFALL Senior Associate Direct +1 602 222 5027 [email protected]

KELSEY ROBINSON Client Services Coordinator Direct +1 602 222 5041 [email protected]

PHOENIX INVESTMENT SALES | 2019

2ND QUARTER REPORT3RD QUARTER REPORT

Direct Quarterly Sales (over 20,000 SF & $1 M)

44%

15%

41%

Total $ Spent

Office Retail Industrial

41% 44%

15%Office34%

Retail25%

Industrial41%

# of Sales

Office Retail Industrial

41%

25%

34%

Total $ Spent

# of Sales

Office

Retail

Industrial

• Greater Phoenix continues to remain in the Top 5 metros for job creation in the country, adding 57,800 net new jobs, (2.7 percent growth) year-over-year as of August 2019, with medical jobs increasing 3.7 percent.

• The third quarter 2019 marks the 30th consecutive quarter of positive net absorption of office space with nearly 1 million square feet absorbed.

• This positive trend also continued in the medical office market with vacancy declining to 13.6% overall, a 35.2% decline from the recession peak of 21.0% in 2009.

• New industrial property deliveries remain quite active particularly in the Southeast (1.31 million square feet) and Southwest (4.9 million square feet) portions of the Valley.

• Net absorption of industrial space across all industrial types is more than 3 million through the third quarter. Warehouse, flex and distribution space saw the highest net absorption.Average asking industrial rents in the Southwest Valley are up 5.3% from a year ago at $0.40 per SF/mo.

• The Greater Phoenix retail market continues to perform well with overall vacancy at 7.0 percent, with minimal new retail development.

• Retail vacancy has remained less than 10 percent for 20 consecutive quarters.

• Retail asking rents continue to increase, with a year over year increase of 3.2 percent, at $15.40 per square foot as of the third quarter.

Office

Retail

Volumeby the MillionsTransactions

Dollar VolumePrice PSFTransactions

OFFICE SALES - HISTORICAL VOLUME VS. AVG PSF AND NUMBER OF TRANSACTIONS

$3,232

$1,008

$293 $428

$1,282 $1,288 $1,373

$1,714

$3,004

$1,757 $1,661

$2,532

$1,530

$197$222$125$98$128$137$131$139$173$165$162$182$170

0

25

50

75

100

125

150

175

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2007200820092010201120122013201420152016201720182019(thruSep)

Transactions Volumeby the Millions

Volumeby the Millions


Retail - Vol & # of Sal

$836

$540

$231$142

$684

$1,077

$599

$938$859

$1,234

$740

$1,103

$597

$144$169$117

$81$105$126$126$129$126$164$123$142$161

0

25

50

75

100

125

150

175

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

2007200820092010201120122013201420152016201720182019(thruSep)


$1,661

$2,591

* 2017 sales include State Farm @ Marina Heights which if included totals $2.591 B; 117 sales; $211 PSF and if excluded totals $1.661 B; 116 sales; $162 PSF

*

Industrial



Transactions

INDUSTRIAL SALES - HISTORICAL VOLUME VS. AVG PSF AND NUMBER OF TRANSACTIONS

$1,296

$728

$181

$304

$527

$854

$962$1,078

$1,248$1,307

$1,096

$1,592

$1,048

$72$76$49$46$50$62$62$75$90$69$83$94$103

0

25

50

75

100

125

150

175

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

2007200820092010201120122013201420152016201720182019(thruSep)


Trend SpottingMedical Real Estate Investor Demand is Very HighThe investment climate for medical office properties is very strong, particularly for institutional-quality properties, yet there has been a scarcity of quality medical office sales offerings. This has driven down the cap rates for product purchased by institutional as well as private investors. Cap rates of the highest quality medical office properties are especially low. During the past eight years, sales in metropolitan Phoenix for medical office properties generated between $103 and $266 million each year, and averaged an impressive $275 PSF in 2018. Comparing year-to-date 2019 to 2011 sales, prices across upper-tier properties have risen by 76%; and other tiers have risen by 131%. Starting in 2011, although there are still occasional sales of the more distressed medical office properties, prices for the higher quality medical office properties have fully recovered to pre-recession levels. This trend has strengthened throughout 2019.

This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). © 2019. All rights reserved

Quarterly Highlights

JULY OFFICE RETAIL INDUSTRIAL

TOTAL AMOUNT

PER SQUARE FOOT

NUMBER OF TRANSACTIONS

$296,715,192 $66,018,152 $172,555,600 $535,288,944

$196 $127 $142

16 7 9 32

TOTAL

AUGUST OFFICE RETAIL INDUSTRIAL

TOTAL AMOUNT

PER SQUARE FOOT


$282,145,680 $67,874,575 $311,830,247 $661,850,502

$229 $129 $101

17 9 19 45

TOTAL

SEPTEMBER OFFICE RETAIL INDUSTRIAL

TOTAL AMOUNT

PER SQUARE FOOT


$75,143,281 $89,975,904 $126,011,025 $291,130,210

$205 $131 $104

6 13 19 38

3RD QUARTER

TOTAL AMOUNT

PER SQUARE FOOT


$654,004,153 $223,868,631 $610,396,872 $1,488,269,656

$210 $129 $110

39 29 47 115

TOTAL

Monthly Snapshots

Market Makers

21711 N 7th St, Phoenix, AZ Size/Percent Leased: 210,202 SF / 100%Sales Price: $92.2 M ($439 PSF)

FBI REGIONAL HEADQUARTERS

4320-4416 N Miller Rd, 7570 E 6th St, Scottsdale, AZ Size/Percent Leased: 128,585 SF / 89% Sales Price: $33.3 M ($259 PSF)

CAMELBACK & MILLER PLAZA

TOLLESON LOGISTICS CENTER

200 N 99th Ave, Tolleson, AZSize/Percent Leased: 329,400 SF / 100%Sales Price: $34.6 M ($105 PSF)

1130-1150 N Alma School Rd, Mesa, AZ Size/Percent Leased: 426,951 SF / 98%Sales Price: $107.6 M ($252 PSF)

WAYPOINT CAMPUS PORTFOLIO

1005-1205 S Arizona Ave, Chandler, AZ Size/Percent Leased: 123,236 SF / 77% Sales Price: $16.9 M ($137 PSF)

SANTAN GATEWAY NORTH LINCOLN 40 LOGISTICS - NIKE

575 S 143rd Ave, Goodyear, AZSize/Percent Leased: 901,700 SF / 0%Sales Price: $69.8 M ($77 PSF)

5801 N Pima Rd, Scottsdale, AZ Size/Percent Leased: 124,879 SF / 100%Sales Price: $37.7 M ($302 PSF)

MCKESSON CORPORATION

9494 W Northern Ave, Glendale, AZ Size/Percent Leased: 23,058 SF / 100% Sales Price: $8.8 M ($382 PSF)

PEORIA CROSSING AEW / PROLOGIS PORTFOLIO

2405, 2415, 2925 S Roosevelt Rd, Tempe, AZSize/Percent Leased: 276,262 SF / 100%Sales Price: $28.9 M ($105 PSF)

OFFICE RETAIL INDUSTRIAL

JULY

AUGUST

SEPTEMBER

Historical Volume vs. Avg PSF and Number of Transactions

The Colliers International Arizona Investment Properties Sales Team

Colliers International | 2390 E Camelback Road, Suite 100 | Phoenix, AZ 85016Main Phone: +1 602 222 5000

colliers.com | www.phoenixinvestment.properties

MINDY KORTH Executive Vice President Direct +1 602 222 5005 [email protected]

JENNY BASSETT Real Estate Analyst Direct +1 602 222 5158 [email protected]

SEAN WESTFALL Senior Associate Direct +1 602 222 5027 [email protected]

KELSEY ROBINSON Client Services Coordinator Direct +1 602 222 5041 [email protected]

PHOENIX INVESTMENT SALES | 2019

2ND QUARTER REPORT 3RD QUARTER REPORT

Direct Quarterly Sales (over 20,000 SF & $1 M)

44%

15%

41%

Total $ Spent

OfficeRetailIndustrial

41%44%

15%Office34%

Retail25%

Industrial41%

# of Sales

OfficeRetailIndustrial

41%

25%

34%

Total $ Spent

# of Sales

Office

Retail

Industrial

• Greater Phoenix continues to remain in the Top 5 metros for job creation in the country, adding 57,800 net new jobs, (2.7 percent growth) year-over-year as of August 2019, with medical jobs increasing 3.7 percent.

• The third quarter 2019 marks the 30th consecutive quarter of positive net absorption of office space with nearly 1 million square feet absorbed.

• This positive trend also continued in the medical office market with vacancy declining to 13.6% overall, a 35.2% decline from the recession peak of 21.0% in 2009.

• New industrial property deliveries remain quite active particularly in the Southeast (1.31 million square feet) and Southwest (4.9 million square feet) portions of the Valley.

• Net absorption of industrial space across all industrial types is more than 3 million through the third quarter. Warehouse, flex and distribution space saw the highest net absorption.Average asking industrial rents in the Southwest Valley are up 5.3% from a year ago at $0.40 per SF/mo.

• The Greater Phoenix retail market continues to perform well with overall vacancy at 7.0 percent, with minimal new retail development.

• Retail vacancy has remained less than 10 percent for 20 consecutive quarters.

• Retail asking rents continue to increase, with a year over year increase of 3.2 percent, at $15.40 per square foot as of the third quarter.

Office

Reta

il

Volumeby the Millions Transactions

Dollar Volume Price PSF Transactions

OFFICE SALES - HISTORICAL VOLUME VS. AVG PSF AND NUMBER OF TRANSACTIONS

$3,232

$1,008

$293 $428

$1,282 $1,288 $1,373

$1,714

$3,004

$1,757 $1,661

$2,532

$1,530

$197 $222$125 $98 $128 $137 $131 $139 $173 $165 $162 $182 $170

0

25

50

75

100

125

150

175

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(thruSep)

TransactionsVolumeby the Millions



Retail - Vol & # of Sal

Page 1

$836

$540

$231$142

$684

$1,077

$599

$938$859

$1,234

$740

$1,103

$597

$144 $169$117

$81 $105 $126 $126 $129 $126 $164 $123 $142 $161

0

25

50

75

100

125

150

175

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(thruSep)

TransactionsVolumeby the Millions

$1,661

$2,591

* 2017 sales include State Farm @ Marina Heights which if included totals $2.591 B; 117 sales; $211 PSF and if excluded totals $1.661 B; 116 sales; $162 PSF

*

Indu

stria

l



Transactions

INDUSTRIAL SALES - HISTORICAL VOLUME VS. AVG PSF AND NUMBER OF TRANSACTIONS

$1,296

$728

$181

$304

$527

$854

$962$1,078

$1,248$1,307

$1,096

$1,592

$1,048

$72 $76 $49 $46 $50 $62 $62 $75 $90 $69 $83 $94 $103

0

25

50

75

100

125

150

175

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(thruSep)

TransactionsVolumeby the Millions Trend Spotting

Medical Real Estate Investor Demand is Very HighThe investment climate for medical office properties is very strong, particularly for institutional-quality properties, yet there has been a scarcity of quality medical office sales offerings. This has driven down the cap rates for product purchased by institutional as well as private investors. Cap rates of the highest quality medical office properties are especially low. During the past eight years, sales in metropolitan Phoenix for medical office properties generated between $103 and $266 million each year, and averaged an impressive $275 PSF in 2018. Comparing year-to-date 2019 to 2011 sales, prices across upper-tier properties have risen by 76%; and other tiers have risen by 131%. Starting in 2011, although there are still occasional sales of the more distressed medical office properties, prices for the higher quality medical office properties have fully recovered to pre-recession levels. This trend has strengthened throughout 2019.

This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). © 2019. All rights reserved

Quarterly Highlights

retail - vol & # of sal phoenix investment sales | 2019 ... · july office retail industrial...

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