Commercial real estate sales volume, rising steadily over the last four years, reached nearly $64 billion in 2012, a 22% increase from 2011 and the highest annual total since 2004 according to CoStar.
CoStar also reported that distressed sales made up only 11.5% of observed trades in December 2012, which was the lowest level since the end of 2008. This reduction in distressed deal volume has been driving higher, more consistent pricing.
While both commercial real estate and housing in Arizona clearly have been picking up steam, many local experts believe that until improvements in the nation’s overall economy and employment shift from subpar to above average, another market boom still is several years away.
The nation’s debt, jobs, consumer confidence and gross domestic product have improved, but the progress hasn’t been nearly enough to take a real bite out of the still-lingering economic woes. Metro Phoenix,for example, has only gained about 40 percent of the 234,000 jobs it lost from peak.
Arizona has reason to be optimistic. After plunging from second to 49th in terms of job growth between 2006 and 2009, Arizona climbed back to the No. 5 spot last year,
This has helped reignite the local housing market and the commercial sector has been trailing behind.
As for commercial real estate, recent job growth has prompted big improvements especially with absorption in the office and retail sectors.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared