Valley Office Condos

Office condominiums that offer tenants ownership and tax advantages continue to grow in popularity, especially in the suburbs. Office condo's are popular with businesses such as doctors offices, law firms and real estate companies that stick around for years and don't normally expand. Colleen McPherson with CB-Richard-Ellis said that investors are also jumping on the office condo bandwagon. "The Southeast Valley (Ahwatukee Foothills, Chandler, Gilbert and Mesa) is a very hot condo market", McPherson said.

In the fourth quarter of 2004, there were 56 office condo complexes in the Southeast Valley, with 20 more in the works and five under construction. However, Bob Kammrath, owner of Kammrath-Associates, said the Valley may be on the verge of overbuilding office condos. "There's an awful lot of these being built in a short period of time", Kammrath said. "The resale market for these types of properties is untested."