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August 21, 2014
Industrial Lures La La Land Investors
An LA-based commercial real estate investor is taking a chance on Ryan West Business Park in Southwest Valley. (We expect another deal any minute now, just because they always make sequels.)
Cohen Asset Management just picked up, a 243k SF distribution park in Tolleson for $14.6M from EG Properties. The complex, built in 2001 by Ryan Cos and a former NAIOP Arizona Industrial Building of the Year, still has some upside for Cohen, says Cassidy Turley's Will Strong (here with CT's Mike Beall on a recent fishing trip), who brokered the sale along with CT's Mike Haenel and Andy Markham. The property includes an additional 61,700 SF that Cohen can lease for additional income.
“There's been an uptick in smaller tenant activity, under 200k SF,” Will tells us. Industrial spaces under 200k SF have an 11.1% vacancy rate.
Next up, Will's team will try to ride that strong demand among investors at: 10 West Logistics Center, a planned 1.3M SF DC being developed by Wentworth Property Cos;Palo Verde Distribution Center, a 303k SF warehouse owned by IIT; and 10397 W Van Buren, a 278k SF warehouse owned by IndCor Properties. Phoenix was "No. 1 in the nation for net absorption of industrial property in the second quarter, and that creates a perception of confidence for investors," he says.
Even Small Back-Office Wooing Investors
We just learned that ViaWest Group sold 4832 E McDowell Rd, a 35k SF office building to Sharp Family Revocable Trust for $5.4M. The facility, bought vacant by ViaWest in 2007, is entirely leased to LogisticCare Solutions after a long-term lease expansion, says ViaWest's Danny Swancey. Cassidy Turley's Andy Bogardus, Steve Lindley, Bob Buckley and Tracy Cartledge brokered for ViaWest; NGKF's Erik Marsh and Goodall McCullough brokered for the Sharp Family.
2017 Will Be Your Year
Yes, job growth has been anemic in Phoenix. Okay, maybe consumers' optimistic spirits have dampened due to a slower economic recovery. And, alright, it may be another two years before the state recovers all the jobs lost in the recession. But, NGKF's Pete Bolton is still making a bold prediction for landlords: 2017-2018 will be a good year. Pete spoke at the Arizona Association for Economic Development meeting this month, here with AAED's Joyce Grossman, Elliott D. Pollack & Co's Jim Rounds, and Scottsdale's Danielle Casey. Pete's other predictions: Investors will continue to drive strong demand for Phoenix properties, and leasing will be a “gradual improvement year after year.”
See You in a Week
We're taking next week off to upgrade our technology and recharge our batteries. We pride ourselves on being active members of the commercial real estate community—out at events, in-person interviews—and keeping up with you takes energy. When we return, expect more scoops, more photos, and more moorings (if we're doing a story about a port).
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