Colliers International has released its Phoenix investments report for Greater Phoenix Q2 2015, reporting mixed investment activity in the second quarter.
Sales of industrial buildings spiked, and more medical office buildings changed hands. However, activity for traditional office buildings and shopping centers slowed. Generally, investment activity is ahead of last year’s pace.
Prices are generally pushing higher, particularly in the office segment where rents are rising and vacancy is improving. Median prices across the various property segments are up approximately 15 percent from 2014 levels.
Cap rates fluctuated slightly in the second quarter, but did not show a clear direction and were generally flat. These trends are a reflection of some of the mixed property performance trends in the market, as well as the lack of a clear direction on interest rates and alternative investment returns.
The Greater Phoenix commercial real estate investment market remains in an upswing. Property fundamentals are generally improving, which continues to support additional investment. Developers are beginning to ramp up construction activity, which could result in some supply-side pressures in a few submarkets, but could also influence the investment market.
To read the detailed investment report from Colliers click here