Land prices in the Buckeye area of Phoenix, AZ are rising rapidly. In a recent example, Arizona Land Consulting brokered the purchase of 36 acres in a Buckeye opportunity zone for $ 7.1 million on behalf of a 1031 stock exchange buyer. Within 24 hours, the buyer received several offers from multi-family developers to buy the back of the website above the buyer’s purchase price.
“The price of commercial space is increasing exponentially. Properties that sold for $ 2 per foot in Buckeye earlier this year are now on sale for $ 12 per foot. Demand is very strong and viable land options are limited, and we’re seeing a lot of demand from developers and construction companies outside of the state, ”Anita Verma-Lallian, founder of Arizona Land Consulting, told GlobeSt.com.
As with the other trends in Phoenix, population growth is behind the appreciation of the country. “Immigration from other cities to Phoenix leads to a high demand for commercial space. The existing home inventory is low and the home supply chain is very slow, ”says Verma-Lallian. “Only 17% of the land in Arizona is private, so there isn’t a lot of commercial space, especially since there is a lack of locations with infrastructure. The low interest rates are also boosting demand. “
The buyer of the property plans to develop a commercial property on 16 hectares and has signed a contract with a petrol station to operate an area on the property. This particular location has a zoning that would require multiple uses, making it both valuable and rare. “The Buckeye property, which Arizona Land Consulting recently closed, has existing infrastructure and the desired zoning for multi-family projects – a rare combination,” says Verma-Lallian. “Sites like this are getting harder and harder to find because they are quickly acquired. Arizona Land Consulting helps developers and builders stay one step ahead and find websites that work. “
According to Verma-Lallian, due to the high demand for land, most transactions take place over the counter. “I reached out to a couple of multi-family realtors in the area. The demand for commercial real estate is so great that we were able to generate several offers, the prices of which kept rising, ”she says. “We used to have to bring real estate to market, but since the market changes so quickly, we don’t have to do that anymore because the demand is so great.”
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