PHOENIX, ARIZONA — Greater Phoenix had a banner 2018. During the 12-month period ending in December, preliminary estimates show that employers added nearly 79,700 net new jobs, an increase of 3.9 percent, which marks the fastest growth in over a decade. This places Phoenix 4^th among the top-36 major employment markets in the country for new job growth, up from 5^th in 2017.

Overall the Greater Phoenix office market had a strong 2018, although net absorption declined in 4Q from more robust levels recorded earlier in the year, over the year absorption hit 3.53 million square feet, an increase of 106 percent from 2017. Employers continue to add workers at a very active pace, fueling tenant demand for office space and fueling new development.

While net absorption moderated in the fourth quarter, tenant move-ins still far outpaced new construction which drove vacancy down to 13.9 percent, 200 basis points lower than one year ago. Continued vacancy declines are supporting rent growth, although gains in 2018 have been more modest than in earlier years. Asking rents ended the fourth quarter at $24.81 per square foot, up 2.6 percent from one year ago.

Investment sales volume posted a minimal five percent year-over-year decline to 2018’s $2.47 billion. The median price per SF for 2018 was up 17 percent to $176 with cap rates at 6.9 percent.

For full report: https://www2.colliers.com/en/Research/Phoenix/2018-Q4-Greater-Phoenix-Office-Market-Report

MARANA, ARIZONA – Revere Investments of Mesa (Robert Campbell, manager) purchased 27,000-square-feet of land in Marana for $515,000 ($19 PSF) for construction of a Jack-in-the-Box Restaurant.

Located across from McDonalds near Circle K, south of Marana Road on Sandario near the new roundabout. The buyer dedicated a portion of the property (21,000 SF) to the Town of Marana for road work, leaving 27,000-square-feet for construction of a 2,700 to 3,000-square-foot Jack-in-the-Box.

Will White and John Carroll of Land Advisors Organization-Tucson represented the seller, S. Chu Times Three, LLC (Susan Ong, manager). White and Carroll are the contacts for the balance of the Ong Family holdings in Marana.

“The Sandario Road area near the new roundabout is getting a lot of attention. The surge of new home activity in north Marana is fueling new demand for supporting uses,” said White. “The area is underserved from a commercial standpoint and we expect to see a lot of activity up there to fill that void.”

David Lee of David Lee Real Estate Company in Tucson represented the buyer, Revere Investments and continues to seek other development opportunities the area.

For more information, White and Carroll can be reached at 520.514.7454 and Lee should be contacted at 520.795.3199.

To learn more, see RED Comp #6525.

JLL Capital Markets completes $31.8 million sale of Sanctuary on 22nd in Phoenix

PHOENIX, Ariz. – JLL’s Capital Markets experts have completed the $31,827,500 ($119,652 per unit) sale of Sanctuary on 22nd, a 266-unit apartment community at 8530 N. 22^nd Ave., in the heart of Phoenix.

Managing Directors John Cunningham and Charles Steele led the Multifamily Capital Markets team handling the sale on behalf of the seller, Laguna Point Properties. The buyer was a private investor.

“Sanctuary on 22nd is a significant value-add opportunity in an area with high demand and minimal new multifamily construction,” said Steele. “That, combined with its close proximity to I-17 and Light Rail, make Sanctuary on 22nd a very well-positioned asset in one of the healthiest local apartment markets in the country.”

Built in 1985, Sanctuary on 22nd totals 266 apartment homes with mix of one and two bedrooms, and an average unit size of 788 square feet. Each unit features an oversized patio and full-size washer and dryer. Select units offer a fireplace option. On-site amenities include two pools, a modern fitness center, clubhouse and business center. The community sits on 10.14 acres between Dunlap and Northern Avenues, less than one-half mile from Interstate 17 and a METRO Light Rail station, providing quick connectivity to all parts of the Valley.

JLL delivers multifamily investors a full range of solutions through one diverse, integrated platform. The division employs over 200 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multifamily and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities.

For more, please visit The Investor, an online and mobile app news source providing real-time commercial real estate news to asset buyers and sellers around the world.

For more content, including videos and research resources on JLL, please visit the firm’s U.S. media center Web page: https://bit.ly/18P2tkv.