Periodically, Maps & Facts focuses
on office vacancy. Our last map was a 2Q 2016 Map of the
Month. As shown on this
month’s map and as compared with our 2Q 2016 map, the office market has
improved dramatically. (Though effective rents haven’t increased significantly:
Forty-one (41) new buildings have
been added and about 1,000,000 ft.˛ net have been absorbed. The Valley-wide vacancy rate declined from
16.2% to 13.6%
Central Scottsdale added 7
buildings. Chandler added 6. Tempe’s vacancy improved from 6.57% in 2Q 2016 to
4.3% in 4Q 2018 with 4 additions to inventory. Deer Valley/Airport declined
from 7.8% to 3.4% with 3 buildings added to inventory.
Gateway/Airport/ Loop 202 showed
the biggest percentage increase going from one (1) Class A building in 2Q 2016
to three (3) in 4Q 2018 with only a 5.1% vacancy rate!
In case you missed it, there’s a hot new rental product popping up all over the country. It goes by various names but basically, it’s a gated community of single-family homes that are rented like an apartment project.
This month’s map shows where many of these communities are located here. Christopher Todd Communities and NEXMetro Communities are the largest in Metro Phoenix. There are others we could not readily identify, and, there are more in the pipeline.
Each community has its own pool, fitness center, and parking. Houses have private yards, private entrances, smart-home technology, and even doggy doors! Leased like apartments, a professional property manager is responsible for all maintenance and repairs and rents include real estate taxes, insurance, common area maintenance, etc.
The Phoenix Business Journal
regularly publishes real estate news. The March 29 issue highlighted
the Top 10 office, retail, industrial,
medical office, and multifamily sales for 2018 by sales price according to Real
Capital Analytics as published by the Phoenix Business Journal.
This month’s map shows where the
Top 10 are located. On a price per
square foot basis, Sale #1 @ 2375 E. Camelback Road sold for $330.90 per square
foot. Sale #10, The Scottsdale Forum, at 6263 N. Scottsdale Road, on a ground
lease, sold for $90.87 per square foot.
The prices and volume of 2018
office sales indicates renewed strong office demand; driven primarily by
Do you have data you would like
to map? Just call us.