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Washington Developer Buys Goodyear Land for Multifamily Project

Estrella Commons Property Sells for $3.8+ Million

Phoenix, Arizona –  IDM Companies, a Vancouver, Washington-based real estate company, has purchased 14.72 acres near the southeast corner of Interstate 10 and Estrella Parkway in Goodyear.  The company paid $3,848,186 for the land and plans to develop 352 apartment units on the site called Acero Estrella Commons.

“This property provides a terrific, live-work-play environment for multifamily development,” says Ramey Peru with Colliers International in Greater Phoenix. “It is situated next to a Walmart Super Center and walking distance to Safeway, Walgreens and nearby restaurants.  Job growth in the area has been robust, which enables future residents to enjoy a complete lifestyle without long commutes.”

 

IDM Companies intends to break ground on its Acero Estrella Commons multifamily project in January 2019 with expected completion in mid-2020 . The Estrella Commons land features 700 feet of frontage along Estrella Parkway.  The property is located just one-third of a mile from a full diamond interchange of Interstate 10.  The neighborhood is home to a sizable Fulton Homes development of single-family dwellings, as well as a Christopher Todd community of single-family rental homes.

IDM Companies purchased the property from Evergreen Devco of Phoenix.  Peru, Chaz Smith and John Finnegan of Colliers International in Greater Phoenix represented Evergreen in the sale transaction.  Torrey Briegel of Phoenix Commercial Advisors represented IDM Companies.

IDM Companies was founded in 1993 and began developing in the Portland, OR area.  The company now operates throughout the Pacific Northwest and Southwest regions.

Evergreen Devco is a national, fully diversified real estate company specializing in retail, commercial and multifamily development, asset management, property management and leasing.  The company has completed more than 500 development projects in more than 175 municipalities throughout the United States.




Luke Denmon Named Senior Vice President in Technology Solutions

Luke Denmon, Sr VP of Technology Solutions, Colliers International

Leading Specialist in Technology and Commercial Real Estate Joins Colliers

Phoenix, Arizona  – Luke Denmon has been named senior vice president of the Technology Solutions practice at Colliers International in Greater Phoenix.  Denmon brings to the firm the skills required to bridge the gap between occupiers and investors of real property and the vast world of emerging technologies.

His work has addressed a variety of technology related challenges ranging from telecom expense management for property owners to data center brokerage and network procurement for tenants. Denmon’s multi-faceted practice covers data center consulting and advisory services including valuation and disposition; portfolio telecom expense management and network consulting; and international data center and network services.

“Technological advancements have become a primary focus for both tenants and landlords,” says Bob Mulhern, senior managing director of Colliers International in Greater Phoenix.  “Providing the ideal networking and technology access for a client can make or break a real estate transaction.  The expertise that Luke brings to Colliers reflects our ongoing commitment to provide state-of-the-art service.”

Denmon previously served as the market leader in Data Center Solutions for a competing firm.  He was a founding Board member of the Arizona Data Center Coalition and is a regular speaker at events such as Data Center Dynamics, the Data Center Summit Series and the Telecom Exchange.  His clients have included Bank of America, GoDaddy, Groupon, Nestle USA, Safeway Inc., Symmetry Corporation, Toyota Motor Sales and Global ASML.




Investors Paying Top Dollar for Phoenix Industrial Properties

Leasing Slowed During 3rd Quarter as Sales Prices Rose

Phoenix, Arizona  – Colliers International is reporting the Greater Phoenix industrial market experienced a rise in sales prices as the market cooled in the third quarter. The median price for an industrial building sold in third quarter reached $106 per square foot, up from $97 in second quarter. One of the most noteworthy sales this past quarter was the $98.3 million purchase of an Amazon fulfillment center.

Absorption remained positive during third quarter, but at a much lower level than during the first half of the year. Net absorption totaled approximately 880,000 square feet in third quarter, which was a stark decline from more than 2.5 million square feet absorbed during second quarter. Year-to-date, net absorption totals nearly 4.7 million square feet.

Vacancy rose for the first time in more than a year with decreased net absorption and new projects coming online. Industrial vacancy rose 20 basis points during third quarter, but the current rate remains lower than 12 months ago. Vacancy sits at 7.4 percent, which is a noteworthy improvement over double-digit rates experienced as recently as 2015.

Construction of new industrial properties remains active with quite a few projects scheduled to come online in the final three months of this year. The new construction is putting pressure on the industrial vacancy rate, but demand may absorb that new inventory quickly in 2019. Approximately 7.5 million square feet is expected to be added to our industrial inventory during 2018. Approximately five million square feet of space is currently under construction. Continued demand from tenants will fuel the construction of more projects in upcoming quarters.

Rental rates rose slightly in third quarter, with asking rates reaching average of $0.58 per square foot per month. Asking rents have increased 2.8 percent in the past 12 months. Big box distribution buildings have led the market in rate increases, posting a 5.9 percent increase in asking rental rates during the past 12 months.

Fewer industrial properties sold in third quarter, but they retrieved higher prices. The median price for sales during third quarter was $106 per square foot, up from $97 per square foot during second quarter. The median price year-to-date for industrial properties is $100 per square foot. If we maintain a median price of $100 for the remainder of 2018, this will be the first time the city will have done that since 2007. Cap rates ticked lower during third quarter, averaging 6.5 percent. Year-to-date cap rates have averaged 6.75 percent, lower than the 2017 average of seven percent. The pace of industrial building sales for 2018 remains nearly identical to the same time period of 2017.

A handful of large spec projects are slated to be completed in the fourth quarter, which will likely push the vacancy rate to approximately 7.8 percent at year-end. Net absorption is expected to reach approximately 6.5 million square feet in 2018, which is a bit lower than the amount of new construction that will come online this year. The new availability of space could create a surge in net absorption for 2019. Rental rates will continue elevating as tenants lease newer, more expensive space as it comes online. The market outlook remains strong as the infrastructure for our industrial base expands. The Loop 202 extension connecting the Southeast Valley to the West Valley will dramatically improve transportation of goods throughout the city.

For full report click here: 2018-Q3-Industrial-GreaterPhoenix-Report-Colliers

Snap shot of Q3 Industrial Phoenix Market