2013 Industrial Commercial Real Estate Outlook For Phoenix

2013 Industrial Commercial Real Estate Outlook For Phoenix – By John G. Soldo, SIOR – Vice President – Industrial Group

The 2013 Phoenix Industrial Market is poised to make modest gains over an improved, yet bumpy, 2012. First quarter 2012 saw the market post negative absorption numbers after a strong 2011. Thankfully, the market posted a 2.5 million square feet of positive absorption in second quarter 2012 and nearly 2 million square feet in fourth quarter 2012 after modest gains in the third quarter 2012.

Most owners, asset managers, and brokers alike, are seeing an increase in activity in our portfolios and marketplace. As our overall vacancy continues to decline, currently at 12.4%, the availability of most product types are seeing the same decline.

As the economy slowly improves in most business sectors, we all should expect this positive absorption to continue throughout 2013. While we are still in a “Tenant/Buyer” market, it will not be very long before that pendulum swings into a “Landlord/Seller” market. Expect that to happen as we enter into 2014.

Outside factors to our economy/market would include national and international political issues, California tax issues, and corporate earnings, which will help us out locally, as we are seeing the beginning of Canadian investors, California-based companies, and large Fortune 500 companies looking at our market as a viable alternative to their local markets.

In summary, it may take a year or two before we see the full impact of these outside factors but I believe better days for the Phoenix Industrial Market are ahead of us and not behind us. It will be slow growth but we are heading in the right direction.

John G. Soldo, SIOR, Vice President – Industrial Group
jsoldo@cpiaz.com | 480-966-2301

About Commercial Properties Inc./CORFAC International
CPI is a CORFAC International affiliate, full-service Brokerage and Property Management firm for all product types. Headquartered in Tempe, the company has over 50 brokers and occupies two offices locally. Currently, CPI’s listings include more than 55.5 million square feet for sale/lease, and over 120 projects under property management, approaching 4.5 million square feet. Please visit our website at www.cpiaz.com.