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.² 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 institutional investors.
Do you have data you would like to map? Just call us.
For 50+ years Phoenix, now the 5th largest city in the US, has (almost) always been one of the top 3 growth cities in the US. On May 23, the US Census Bureau released the latest statistics for July 1, 2007 through July 1, 2018 and, for the third year in a row, Phoenix had the highest numeric population growth in the US adding 25,288 residents (including births over deaths).
Below is this month’s map comparing Phoenix’s numeric growth with our 14 nearest competitors.
Another metric also released was percentage growth; also, for cities over 50,000. Buckeye was # 1 with a growth rate of 8.5%; as compared with Phoenix at 1.5%.
Maricopa City (Pinal County) was one of 10 Census Bureau “places” that first exceeded 50,000 in population as of July 1, 2018
Take your pick. Either way, Phoenix and its Metropolitan Statistical Area (MSA) which includes Pinal County, are still setting records!
Once again, Phoenix has become the #1 Metropolitan growth
area attracting people and jobs. Each cycle seems to add density, height, and
“world-class” aspirations mimicking cities such as New York and San Francisco.
We like to remind our followers that Phoenix is not New York
City or San Francisco. This month’s updated map layers New York City
(Manhattan) and San Francisco over Phoenix. As shown, New York City (population
1,665,934) “fits” between I - 17 and SR 51. San Francisco (population 884,363) “fits”
between SR 101 and I- I7!