Ninety-nine percent of the failures come from people who have the habit of making excuses.
George Washington Carver
Things have been slowing down in metro Phoenix’s commercial real estate sector — as they usually do during the first three months of the year — but the overall landscape is looking much rosier than it did a year ago.
After a bustling last half of 2013, the buying and selling of Valley shopping centers, warehouses and especially offices took a dip between the fourth quarter of 2013 and the first quarter of this year, according to a new report by brokerage Colliers International in Phoenix.
But compared with 12 months ago — when the so-called “fiscal cliff” and other factors put a damper on the investment marketplace — commercial activity and prices Valleywide are up across the board.
“The year has started stronger than it started in 2013 … 2014 overall is going to be a strong year for investment property sales,” said Mindy Korth, executive vice president of Colliers’ Phoenix office.
Take the office sector, for instance.
There were 50 percent more office transactions than a year ago, even despite a 35 percent drop from the fourth quarter, the report said. These office buildings also traded hands at a much higher value — up 24 percent from the median price-per-square-foot for all of 2013.
As for industrial space, transactions dipped 13 percent from the fourth quarter but still were up 25 percent year-over-year, the report said. Industrial was the only sector, however, that saw prices slightly decline from the 2013 average. But Korth explained that industrial is merely recalibrating from a handful of unusually large transactions last year — such as Apple’s new manufacturing facility in Mesa — that pushed the overall price-per-square-foot upward.
Several factors have boosted commercial investor confidence this year, such as somewhat easier access to loans, still-low interest rates and increasing tenant rental rates, Korth said.
A recent Federal Reserve survey found that domestic banks eased some standards for business loans, including commercial real estate, during the first quarter in response to rising demand and competition from other lenders.
“Interest rates are still at all-time lows,” Korth said. “They’re able to take advantage of the low interest rates and pay more for the property.”
The fact that landlords are in a better position to increase rental rates, which puts more cash in their pockets, has been another enticing factor for property investors.
“Now that people understand that rental rates will be rising … there’s the ability to project how the rents will improve as the leases roll, so investors are more confident about how to evaluate their investment,” Korth said.
Kristena Hansen covers residential and commercial real estate.
A little about me and my expertise – video
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Investment Properties in Phoenix.
View my listings and my profile at:
Please go to my web-site and get all the newsflashes and updates in Commercial Investment Real Estate in Phoenix and Commercial Investment Properties in Phoenix daily
Check out my professional profile and connect with me on LinkedIn.
Follow me on Facebook:
Follow me on Twitter:
Follow Me on Google+
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial Investment Real Estate Broker in Arizona now for 20 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial landspecialist in Phoenix and a Landspecialist in Arizona.
WHETHER YOU LEASE OR OWN
NOW IS THE TIME FOR YOU TO EXPAND, UPGRADE OR INVEST.
we are at on the a rise of the cycle in Commercial Real Estate. so there is only one way and it’s called we are going up and now is the time for you to expand, upgrade or invest in Commercial Properties in Phoenix. The prices on deals I may get you will not be around forever.
WAITING TO SELL YOUR LAND ? TIMES CHANGE / IT’S TIME
We barely could give land away the last few years, but times are changing. Even in those meager years, I sold more land across the state than most other brokers. Before the real estate crash I was a land specialist in Arizona with millions of dollars of transactions, but then I had to change and also sell other commercial investment properties, which was fun, but I am a Commercial Landspecialist in Arizonal, a Commercial Land Specialist in Phoenix and love to sell land, one acre to thousands of acres.
If you have any questions about Commercial Investment Properties in Phoenix or Commercial Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion in Commercial Properties in Phoenix or Commercial Properties in Arizona with you.Obviously I am also in this to make money, but it could be a win-win situation for all of us.
Please reply by e-mail email@example.com or call me on my cell 520-975-5207 or Office:480-948-5554
PLEASE NOTE, I CHANGED BROKERAGES BUT CELL PHONE AND E-MAIL STAY THE SAME.
Walter Unger CCIM
Associate Broker, West USA Commercial Real Estate Advisers
7077 E. Marilyn Road, Bldg 4, Suite 130
Scottsdale, AZ 85254
Office : 480-948-5554
View my listings and my profile at:
a little about me and my expertise – video
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
- Investment Real Estate
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.