CBRE Completes $15.9 Million Sale of Scottsdale Professional Building in Arizona

SCOTTSDALE, ARIZONA — CBRE announced the sale of Scottsdale Professional Building, a 76,996-square-foot, Class A office property in Scottsdale, Ariz., to a private investor for $15.9 million.

CBRE’s Barry Gabel and Chris Marchildon represented the seller, Double Anchor Investments. The buyer was represented by Jason Reddington with LevRose Commercial Real Estate.

Scottsdale Professional Building is a three-story, multi-tenant office property located at 14301 N. 87th Street. The building offers frontage and visibility along the Loop 101, with freeway access at Raintree Drive. The building was 62 percent leased at the time of sale to 55 tenants and has maintained an 88 percent average occupancy over 10 years.

Suites at the property feature HVAC units that are individually metered for electricity. The interior courtyard is professionally landscaped with an expansive rock water feature and multiple outdoor seating areas.

“Scottsdale Professional Building is a Class A property that offers its tenants the ability to control their health and wellness in a self-contained, exterior loaded office environment in one of the premier office submarkets across the country,” said CBRE’s Gabel. “The area surrounding the property offers a myriad of retail and restaurant options and is rapidly becoming a strategic infill location with the development of new multifamily and office within proximity to the building.”

The property is situated within the Scottsdale Airpark submarket, which recorded 277,521 sq. ft. of positive net absorption through the third quarter, the most of any other submarket in metro Phoenix area, according to CBRE Research

A recent survey of commercial real estate investors ranked Phoenix as a top-10 target among Americas metros. The Sun Belt market jumped five spots to #4 in CBRE’s 2021 Americas Investor Intentions Survey.



The Arizona Economy Monday Morning Quarterback

By: Elliott Pollack

The Decision is in: The Fed Will Take on Inflation

At its December meeting, the Federal Reserve announced they will address booming inflation by accelerating the reduction in their monthly bond purchases and likely raise interest rates three times in 2022. The move now signals that the Fed is concerned about rising prices and the risk that they become entrenched in the economy. No longer is the current inflationary trend thought of as transitory. This shifts the focus of the bank’s policy which, up until now, has been on stimulating the economy and getting Americans back to work.
The Fed now indicates it will end its bond purchases by the middle March instead of June. That move clears the way for an interest rate increase in the first half of next year. A majority of the Federal Open Market Committee’s 18 members expect three quarter-percentage point hikes next year followed by three more in 2023 and possibly two in 2024. Expectations are that the inflation rate will decline to 2.6% by the end of next year.
There is quite a bit of risk with the Fed’s policy. There is a fine balance to attacking inflation while not derailing continued economic growth. The Fed also noted that surges in COVID-19 infections and the emergence of new variants continue to complicate the economic outlook. Fed Chairman Jerome Powell emphasized that while they are addressing inflation, there is still work to be done on the employment side, particularly in boosting labor force participation.
What does all this mean for the housing market? The National Association of Realtors believes mortgage rates will drift higher due to the Fed’s actions and will likely hit 3.7% by the year-end 2022. Home sales may decline slightly due to the higher mortgage rates but will not crash thanks to job gains and the work-from-home reshuffle in residential location choice. Softer housing demand combined with more supply is expected to calm home price growth.
U.S. Snapshot:
  • Advanced retail sales grew 0.3% in November but are still down from the 1.8% seen in October. Consumer demand continues to be strong, as last month’s level was 17.9% above last year’s. Consumers also continue to face inflation and supply shortages.
  • Permits and starts rose in November, according to the U.S. Census. Both single family and multi-family permits rose by double digits, 11.8% and 11.3% respectively. Total permits reached a seasonally adjusted annual rate of 1.712 million, up 3.6% from October and 0.9% from a year ago. Single family permits were up 2.7% for the month but down 4.5% from last year’s rate. The permitting activity is another sign that homebuilders remain optimistic despite price increases.
  • The National Association of Home Builders/Wells Fargo Housing Market Index surprisingly increased to 84 from 83 in December. This time of year tends to be slower, but homebuilders remain confident and resilient despite labor shortages, material delays and the increasing difficulty in predicting pricing.
Arizona Snapshot:
  • The highlight of November’s employment data was that Arizona has finally recovered all the jobs lost during the pandemic. During the recession and total of 331,500 jobs were lost and as of November 2021 a total of 336,400 jobs have been created. The majority of the job growth has been in Greater Phoenix, which accounted for 264,500 or 78.6% of jobs created in the State. A total of 33,100 jobs have been created in Greater Tucson during the same time period.
  • Six out of the eleven supersectors have fully recovered (see chart below). Of the recovered supersectors, Trade, Transportation, and Utilities had the best recovery by adding an additional 41,300 jobs above the 45,800 jobs it lost during the recession. The largest job creation occurred in the Leisure and Hospitality supersector with 127,100 jobs created but remains 19,500 jobs below the February 2020 level. Government was the only supersector to suffer additional losses from April-2020, the trough of the pandemic.
  • Retail sales continued to grow, albeit at a slower rate than in September. Total taxable sales in Arizona were up 3.0% from September and 22.5% from a year ago. Retail sales were up 0.5%, down from the 3.1% growth seen in September. Maricopa County saw the same trend, with total taxable sales being up 2.9% and retail sales being up 0.4%.


Kidder Mathews healthcare team bolsters its market expertise with addition of Perry Gabuzzi

PHOENIX, ARIZONA – With the addition of industry veteran Perry A. Gabuzzi, CCIM, the Phoenix Kidder Mathews healthcare real estate team bolsters its market expertise and boasts an expansive portfolio of medical office listings in the Valley.

Gabuzzi, a Senior Vice President, joins the team of Senior Vice Presidents Michael Dupuy and Fletcher Perry, and Vice President Rachael Thompson. The team represents clients in the leasing, acquisition, and disposition of healthcare real estate.

Its platform of services includes new lease negotiations, lease renewal and renegotiation, lease vs. own scenarios, occupancy and operational cost analysis, site evaluation, demographic and market analysis, space planning, and negotiating tenant improvement allowance.

“Perry has been a friend since our first chemistry class together in high school. Over the past 20 plus years I’ve known Perry to be honest and hard working. He fits really well with the culture we have established,” Dupuy said. “We’re excited about the market force he brings to the table. Our clients will unquestionably benefit from this addition.”

Perry possesses a broad range of experience in both tenant and landlord representation for office and medical transactions. He is recognized in the industry for his market knowledge, ability to manage and uncover the complexities of transactions, and for providing excellent service while adding maximum value to his clients.

Gabuzzi joins Kidder Mathews after an 8-year stint as Director, Brokerage Services, at The Plaza Companies. His experience also includes Senior Associate at Transwestern for 5 years.

A Phoenix native, Gabuzzi is a board member with the CCIM Central Arizona Chapter. He is also a member of NAIOP Arizona and the National Association of Realtors (NAR).

“I’m thrilled to be part of such a fantastic group at Kidder Mathews. I believe this move unquestionably allows us to create the most dynamic, knowledgeable, and skilled healthcare real estate team in the Valley,” Gabuzzi said. “This merge gives us the ability to provide the highest level of quality services for our clients moving forward.”

Gabuzzi earned a BS in marketing with a minor in psychology from Arizona State University. Gabuzzi and his wife Christine are the parents of five boys ages 22, 18, 16, 4, and 2. He is involved in coaching football, basketball, and baseball teams over the years. Away from the office he enjoys working out and spending time with his family.

Gabuzzi has volunteered countless hours working with the youth and the community through various organizations including Andre House of Arizona, The Salvation Army, National Youth Sports, and numerous others.