Q1 JLL Office Report denotes more than 1 million square feet absorbed since first of year

PHOENIX, Arizona – According to JLL’s Q1 Phoenix Office Market Report, metro Phoenix has absorbed more than 1 million square feet of office space since the first of the year – a quarterly high not seen in over 10 years. This is already massively ahead of 2018, which though a notable year for local office space recorded 1.7 million-square-feet in total absorption for the full 12 months.

Of the 1.05 million-square-feet absorbed in the first quarter, JLL served on either the landlord or tenant side of 682,012-square-feet of space – or 64.5 percent of all office transactions to date this year.

“The continued positive absorption numbers and growth in metro Phoenix is obviously very exciting. We are optimistic that more job creation in all types of industries will continue here and are optimistic for a continued strong 2019,” said JLL Senior Managing Director Pat Williams. “We are equally excited to have our JLL team involved in so many of the first quarter transactions that resulted in these positive numbers. It’s a testament to our great clients and the JLL team members here in Phoenix.”

During Q1, 900,000–square-feet in new Phoenix office leases were completed and 78 additional tenants are collectively looking for more than 4.6 million square feet of space. Key first quarter occupancies involving the JLL team include:

• Freedom Financial, leasing a full 150,000 s.f. building at Rio2100 in Tempe.
• Deloitte, leasing 102,737 s.f. in the first of two Class A buildings delivering at Rivulon in Gilbert.
• Benchmark Electronics, leasing 63,000 s.f. at a build-to-suit corporate headquarters at Rio2100.
• Stantech, leasing 55,000 s.f. at the new Chandler Veridian, along the Loop 101/202 in Chandler.
• Serendipity Labs, leasing 31,367 s.f. in the Camelback Corridor’s new Camelback Collective.
• Workuity, leasing 19,787 s.f. at Chandler Viridian, expanding the coworking company into Chandler.

As Q1 absorption figures increased, vacancy dropped by nine basis points in the first quarter, creating the lowest vacancy rate Phoenix has seen since the second quarter of 2008. That creates a good backdrop for the approximately 2 million square feet of new office product under construction and expected to start delivery in the coming quarters.

Year-to-date office sales activity decreased just slightly to approximately $172 million, but with the same wide range of buyers interested in investing in Phoenix’s strong fundamentals.

“Collectively, these fundamentals reflect a still very strong market. We expect that momentum to continue, delivering opportunity to our clients throughout the remainder of 2019,” said Williams.

To access JLL research for Phoenix and across the U.S., visit the company’s research page at https://www.us.jll.com/en/trends-and-insights#research.

See Phoenix Office report here: Office Insight_Q1 2019_Phoenix

TUCSON, Arizona – Dave Gallaher, CCIM, of Tucson Industrial Realty has announced the closing of 4625 South 3dr Avenue in Tucson for $850,000 ($36.80 PSF) for the sellers, James and Patricia Novak to Howard Tran, the buyer.

Seller was motivated since having sold the business ACS International, formerly known as Arizona Cultured Stone, and building had been vacant since August 2018.  Gebrüder Dorfner GmbH & Co. Kaolin- und KristallquarzsandWerke KG, a successful family-owned company headquartered in Hirschau, Germany, aquired Tucson-based, ACS International, on August 8, 2017.

The 23,100-square-foot property, built 1972, includes three buildings, the main 14,700-square-foot building that buyer plans to occupy for a candle manufacturing business while leasing the 8,400-square-foot building and 1,200-square-foot RV storage building.

Carl Schroeder with Realty Exedutives Tucson Elite represented the buyer in the transaction.

For more information, Gallaher should be reached at 520.294.1610 and Schroeder can be contacted at 520.877.4940.

To learn more, see RED Comp #6701.

Cushman & Wakefield Negotiates Sale of 164-Unit Value-Add Apartment Community

PHOENIX,  Arizona – David Fogler and Steven Nicoluzakis of Cushman & Wakefield represented an entity formed by Phoenix-based Clear Sky Capital, LLC in the sale of Tatum Place, located at 16801 N. 49th Street in Scottsdale, Ariz. Tatum Investment Partners, LLC, an entity formed by Chicago-based Rockwell Partners, purchased the property for $26.15 million ($159,450 per unit).

Tatum Place is a 164-unit, Class B apartment community centrally located east of the southeast corner of Tatum B

“Tatum Place is Rockwell Partners’ first acquisition in the Phoenix market.  They were attracted to Tatum Place because of its excellent location and by the potential to add value by upgrading unit interiors and common area amenities,” said Fogler.

The community offers a mix of one- and two-bedroom floor plans at an average size of 814-square-feet. Each apartment features nine-foot ceilings, all-electric kitchens, washer/dryers in units, patios/balconies, wood-style flooring (in updated units) and walk-in closets. In addition, Tatum Place offers its residents a brand new state-of-the-art fitness center, two swimming pools, poolside clubhouse, outdoor barbecue grills, covered parking, gated access, fire pit by main pool and free WiFi.