You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone / Prefer cell: 520-975-5207
Office: 480-948-5554 or email me walterunger@ccim.net. – What is a CCIM.
In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want the me to get you the value of your property.
CLICK HERE TO VIEW ALL MY LISTINGS.
By Angela Gonzales – Senior Reporter, Phoenix Business Journal 08/11/2021
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DEVELOPERS CAN’T KEEP UP WITH HOUSING DEMAND IN METRO PHOENIX
With 137 apartment projects under construction and another 99 planned in metro Phoenix, some are beginning to wonder if the market is in danger of being overbuilt.
Not yet, analysts say.
“At this point, with the shortage of housing, the continued strong net migration and the very low vacancy, the short-term answer is no,” said Jim Kasten, associate broker for Commercial West USA in Scottsdale. “Having said that, with more than 12,000 units forecast to be completed in the last half of this year, we expect an increase in vacancy rates and probably some pressure on rental rates for the higher-end apartments.”
During the first half of this year, there were 5,094 units totaling 26 projects completed and 12,469 units totaling 61 projects forecast for completion in the next six months, according to Commercial West USA’s second quarter market update.
“This would bring the total for 2021 to 17,563 units (among) 89 projects — almost double the amount completed annually for the past three years,” according to the report. “The final total is typically less than forecast, but stsill expect many to meet the anticipated year-end time frame.”
Still bullish on Phoenix
Scottsdale-based Greenlight Communities LLC is bullish on metro Phoenix, investing $450 million to build more than 3,000 units of its Cabana brand apartment communities across Phoenix.
After paying $3.8 million for land in July, plans call for beginning construction this month on a 250-unit just west of the southwest corner of Crismon and Southern avenues in Mesa.
Called Cabana Southern, that property will cost about $42 million to develop and is expected to be open in fall 2022. This is Greenlight’s ninth Cabana project.
With average rents ranging between $1,100 and $1,600, Greenlight Communities has two projects underway in Goodyear. Its Cabana Hayden is ready for move-in and Cabana 99th and Cabana Power are currently leasing for September move-in.
Average effective asking rents — representing all apartment sizes — are at $1,483 a month in Phoenix, about $66 below the U.S. average, according to a new report from RealPage.
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Still trailing demand
Even with all those projects, there’s still not enough units being built to meet demand, especially as tens of thousands of jobs are being created, said Kyle McDonough, principal and co-founder of Tower Capital.
Tower Capital arranged financing for 11 deals in July totaling $126.9 million across metro Phoenix, he said. Of those, $114 million was for multifamily projects and build-to-rent communities in the Valley.
Adam Couch, market analyst for RealPage, said metro Phoenix is experiencing strong capital flow into the apartment sector.
“Current construction levels are nearly three times the volume seen right before the Great Financial Crisis in 2008,” Couch said.
“Even though that might initially sound concerning for owners and operators, remember that demand is the other important side of the equation,” Couch said. “Phoenix has been a popular destination for those looking to relocate from expensive West Coast markets and offers diverse economy, resulting in demand consistently outpacing supply volumes for much of the past decade.”
This has kept apartment performance metrics in great shape, especially rent growth, he said.
“Annual gains are the strongest across the nation and come in above 15% in both the Class A and Class B units, with Class C apartments also yielding solid returns,” Couch said.
With historic low vacancy rates for all class apartments in metro Phoenix, it’s obvious that demand is far greater than supply, said Kasten.
“Apartment demand is always driven by population and population is driven by jobs,” he said. “Not only does our area have many quality jobs, but companies continue to locate and relocate to our area — providing more jobs. As such, our population will continue to boom and the demand on more apartments will continue.”
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Rents climbing
Asking rents grew 3.4% in July, the second largest monthly hike in the nation, according to data released by RealPage today.
That monthly increase took rents up 21.6% year-over-year — the largest annual increase among the nation’s 50 largest apartment markets, according to that study.
By comparison, U.S. rents jumped 2.2% in July and were up 8.3% year-over-year. Annual rent growth hit an all-new record high, surpassing the last record set in 2000 and 2001 during the dot-com boom, according to that RealPage report.
The Phoenix market is in a supply-demand imbalance, where more renters competing for fewer available units, said Peter O’Neil, research director for NorthMarq.
“Vacancy in the second quarter was just 4.1%, the lowest figure on record,” O’Neil said. One year ago, vacancy was 5.7%, and that was lower than the market’s long-term average.”
An accelerating pace of leasing activity has fueled this sharp decline in vacancy rates, O’Neil said.
“In the 12-month period ending in the second quarter, renters moved int a net of more than 15,000 apartment units, more than doubling the average levels since 2015,” he said. “The rapid pace of renter move-ins has increased competition for renters looking for available units, causing rents to soar. Local rents rose more than $100 per month in the second quarter alone. Current average rents are up more than 18% from one year ago.”
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Q2 2021 – Metro Phoenix Apartment Owner’s Newsletter
FROM ME: FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. Now is the time, if you are thinking of selling or purchasing your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County, Pinal County, Arizona / Office / Retail / Industrial / Multi-family / please call me on my cell 520-975-5207 or e-mail me walterunger@ccim.net. Investors and Owner / Users need to really know the market today before making a move. The market has a lot of moving parts. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands your needs. I am marketing my listings on Costar, Loop-net, CCIM, CREXi, Catylist, and various other web sites. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international
What is a CCIM. In Business and in Life you don’t get what you deserve, you get what you Negotiate.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
contact me if you want the me to get you the value of your property.
CCIM DEAL MAKERS FALL 2020 THE BIGGEST DEAL WALTER UNGER, CCIM, WITH WEST USA COMMERCIAL DIVISION IN PHOENIX REPRESENTED GCG HOLDINGS LLC IN ITS $29.43 MILLION SALE OF GOLD CANYON GOLF RESORT AND SPA IN GOLD CANYON, ARIZ., TO GOLD CANYON MJ LLC.
CCIM DEAL MAKERS FALL 2020 THE BIGGEST DEAL / WALTER UNGER, CCIM, WITH WEST USA COMMERCIAL DIVISION IN PHOENIX REPRESENTED GCG HOLDINGS LLC IN ITS $29.43 MILLION SALE OF GOLD CANYON GOLF RESORT TO GOLD CANYON MJ LLC.
Click here to find out what is a CCIM:
CLICK HERE TO VIEW ALL MY LISTINGS.
PRESS RELEASE: Gold Canyon resort sells for $29.4M. Walter Unger CCIM from West USA Commercial Division Brokered the Transaction.
http://walter-unger.com/gold-canyon-resort-sells-for-29-4m/
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
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 Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
CLICK HERE TO VIEW ALL MY LISTINGS.
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. 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 with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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