Record Office Building Sale, Valley Market Thriving!
The Arizona Republic reports that Jim Fajan, the CB Richard Ellis broker who handled the sale of two Camelback Esplanade office buildings to Metropolitan Life Insurance Company for $155 million ($355 a sq, ft.) says the office market in midtown and beyond is looking rosy this year, with dropping vacancy rates and rising demand.
He states that the demand for residential condo projects has set up a situation where office developers are getting outbid for land from the residential condo developers. High-end residential condos are selling for more than $500 per square foot, where prime class A office space tops out in the mid $300's per square foot. The Class A office vacancy rate is 14.47 percent now, down from 16.37 percent at the beginning of the year.
He predicts that downtown Phoenix will be the next office hot spot, citing the new ASU campus and lots of amenities. More...