Phoenix Market Update: Investment activity is increasing
Phoenix office transaction activity picked up pace in March after a slow February, when only 438,968 square feet changed hands. Data from CommercialEdge shows the subway traded 1,383,345 square feet of office space for $ 152 million, up 215 percent from the previous month. The sale amount was 38.6 percent year-over-year as 675,203 square feet of space was sold for $ 106 million in March 2020.
While all investments were traditional office space, the deals included all types of property classes with class A assets of nearly 987,608 square feet. More than half of the properties traded were in suburban sub-markets.
The largest property traded was the 499,000-square-foot Freeport – McMoRan Center in Phoenix’s central business district. Griffin Capital acquired the iconic skyscraper formerly known as One Central Park East in an undisclosed $ 1.3 billion portfolio transaction that included 4 million square feet of office, industrial, laboratory and retail space in 26 Real estate included.
The largest single transaction concerned a property in the Phoenix Deer Valley submarket. BPM Real Estate Group paid $ 110 million for the three-story PetSmart headquarters covering 365,672 square feet and funded the transaction with a $ 68 million loan from 3650 REIT. The asset sold for $ 300.8 per square foot, above the $ 235 average recorded on the subway since March since March.
CommercialEdge covers more than 8 million properties in the United States. Find the latest report from the CommercialEdge National Monthly Bureau here. We included properties in excess of 25,000 square feet in our research.