Experts agree – the Phoenix area real estate marketing is certainly making a major comeback after the some rough patches over the last eight years. We’ve spent some time looking at how the real estate market looks for residential AZ golf homes, but how is Phoenix commercial real estate doing?
Arizona State University’s W.P. Carey School of Business recently completed a survey of commercial real estate brokers and the results are promising. Most brokers feel the market is “on solid ground” and are optimistic about our future, especially over the next six months when the market is expected to continue rise.
The detailed survey focused on the October 2016 through March 2017 time period. It included 116 Phoenix commercial real estate brokers with representatives in the multi-family housing, retail, industrial, land, investment and office segments of the market. A main question: in what direction is the metro Phoenix market moving? While 88% of the participants believe the market is continuing its slow but steady incline, compare that with 100% positive responses in the last two years and we’re left with a little hesitancy.
So in the steady incline of Phoenix commercial real estate, which segments lead the way? It’s been a big few year for multi-family housing like apartment buildings after a long hiatus following the 2008 bubble. The Phoenix Business Journal reports $4.5 billion in apartment complex sales in 2016 alone (not even counting December) – a record number that certainly shows strength. However, the anticipated interest rate rise next year could put a damper of some of those apartment demands.
On the other end of the spectrum, retail real estate is struggling. Much of this has to do with consumers not jumping back quite so quickly after 2008, but also the beefed up online presence of companies like Amazon. Failing brick and mortar stores are contributing to the nearly 10% retail vacancy rate in Q3 of 2016. Bankruptcies like those of Sports Authority and The RoomStore not only spark the vacancy rate, but they also help pave the way for a changing retail environment.
All things considered, the Phoenix commercial real estate market is in a good place and we can expect things to continue moving forward and upward, at least in the short term. And a good commercial real estate market is good for the economy and the residential real estate market. We’ll stay on top of both markets and report on any changes in the new year. But for now, enjoy that home on the greens in your Arizona golf course community!
Don Matheson
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
480-405-4228
don@azgolfhomes.com
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Phoenix commercial real estate looking just as strong as residential real estate
