ORION Negotiates Family Dollar Anchored Multi-tenant Retail Center for $3.5 Million

PHOENIX, Arizona – Closing for $3.5 million ($194 PSF) Bell Canyon Plaza is anchored by Family Dollar, with a newly extended lease, and occupied by nationally known tenants. Situated on the northwest corner of 24th Street and Roosevelt Street at a signalized intersection, Bell Canyon Plaza benefits from being near two major freeways in Phoenix: Interstate 10 and Loop 202.

Ari Spiro, Derek Buescher, and Jared Williams of ORION Investment Real Estate exclusively represented both Buyer and Seller. Buescher noted, “This property is well-located near Phoenix Sky Harbor International Airport. The property was fully occupied at close of escrow with notable tenants, including Family Dollar, Taco Bell, and MetroPCS.” The Buyer in this transaction was Ramsey Real Estate Group (AZ), INC. The Seller was Ten Fourteen 24th Associates, LLC.




Valvoline Instant Oil Change Enters Arizona Marketplace

Phoenix, Arizona — Velocity Retail Group recently finalized the first two ground leases for Valvoline Instant Oil Change™ (VIOC) as part of their new market expansion into the Phoenix metroplex and the State of Arizona.  The company is the second largest quick lube chain in the U.S. with currently 1,150+ locations in 46 states. Velocity Retail Group is representing Valvoline in their roll-out of ground-up corporate stores throughout the Phoenix metro area.  Dave Cheatham, Darren Pitts, Brian Harpel and Mark Timpani are working with VIOC on the expansion and currently have over a dozen new sites in progress.

One of the new stores will be located at the northwest corner of McDowell Road and Pebble Creek Parkway in Goodyear. Tradecor, LLC is the landlord for the 1.1 acre parcel where VIOC will build their 2,100 square foot prototype building.

Another location will be in Queen Creek at the northeast corner of Queen Creek Road and Ellsworth Road in the Shops at Terravella. Zach Pace with Phoenix Commercial Advisors represented the Landlord, Newquist Commercial Properties on the transaction. The stores are expected to open in the 4th quarter of 2019.

“We are excited to be working with Valvoline on their market expansion throughout Phoenix,” said Darren Pitts, Executive Vice President at Velocity Retail. “Valvoline is one of the world’s most recognized brands and is one of the strongest active credit tenants in the retail marketplace today,” he added.

Headquartered in Phoenix with an office in Tucson, Velocity Retail Group (www.velocityretail.com)  provides a full range of commercial real-estate services including leasing and selling of shopping centers, tenant representation, land advisory, consulting, investment consulting, capital market solutions, development to retail tenants, and redevelopment to owners of retail real estate throughout the West. Velocity Retail Group is a member of X Team Retail Advisors a platform of 400 retail professionals in 38 offices nationwide.  For more information, visit www.xteamretail.com

 




Phoenix Retail Market Posts Healthiest 1st Quarter Absorption in a Decade

Healthy Leasing, Declining Vacancy and Rising Rents Result from Strong Economy

 Phoenix, Arizona – Colliers International of Phoenix is reporting the Greater Phoenix retail market posted an unusually strong first quarter.  The past three months marked the strongest first quarter performance since 2008 as retailers ramped up activity in response to continued economic growth and an accelerating housing industry.

“First quarter is historically the slowest period of the year for retail net absorption, since merchants are often closing underperforming stores after the holiday season,” says Pete O’Neil, research director for Colliers International in Greater Phoenix.  “Despite this trend, net absorption in Phoenix was stronger because of our growing economy.”

Toys R Us announced its demise, which will impact the Greater Phoenix market.  Most of the store closures will take place early in second quarter, impacting statistics for the next report.

Net absorption for the first quarter totaled more than 593,000 square feet.  Vacancy in the metro area dipped 20 basis points in the first quarter of 2018, falling to 8.1 percent.  The vacancy rate has declined five of the past six quarters and now sits at 110 basis points below one year ago.  Vacancy in the East Valley fell to a 10-year low, 7.8 percent during first quarter

Rent growth has varied, but generally is rising.  Asking rents have risen 4.3 percent year-over-year and reached $14.65 per square foot.  Asking rents in North Scottsdale rose more than 14 percent year over year, surging to $22 per square foot during first quarter.

Investment sales of retail centers slowed during the first quarter, lagging behind the pace posted during the same period of 2017. While sales were curtailed, prices spiked and cap rates averaged in the low seven-percent range. The slowdown in sales was felt most significantly in product ranging between $5 and $10 million. The pace of transactions remained steady in smaller properties commanding between $1 and $5 million. The Greater Phoenix retail climate is improving and shopping centers are becoming more popular as an asset class.  The median price rose to $193 per square foot in the first quarter, which is more than a 60 percent increase from the median price of 2017.

The Greater Phoenix retail market is expected to thrive during 2018.  Retail expansion is forecast to continue as population grows and the local housing market improves.  Permitting activity for new homes has increased, which will support retailers.  As shopping centers experience higher demand, rents will grow and demand for these investment properties will rise.  Cap rates will likely remain in the high-six to low-seven percent, but prices will rise because of strong fundamentals.

See full report here 2018-Q1-Retail-GreaterPhoenix-Report-Colliers