By Chris Keeley
Phoenix Commercial Brokers
Commercial real estate in the Deer Valley Airpark has been on fire over the last year. There has been over $370 million in sales in the Deer Valley Airpark commercial market over the last 12 months. Over 3.8 million square feet have changed hands in our submarket. We’ve had over 170 commercial sales in that time. Office, Flex, Retail and Industrial has all seen increased sales over the last year. We are currently fully entrenched in a sellers market in Deer Valley Airpark.
Here are some of the largest sales in the last Year:
• The Crossroads Apartments sold in January 2019 for $33,500,000
• The Corridors Industrial Project sold in August 2018 for $29,550,000
• National Mallfront sold in May 2018 for $11,000,000
• 1 Deer Valley Project sold in December 2018 for $5,350,000
• 1637 W. Knudsen hanger building sold in January 2019 for $4,230,00
• 28.81 Acres at Happy Valley and 19th Ave sold on February 2019 for $10,817,589
• 17.15 acres of the 28.8-acre parcel resold for future multifamily development
• 18.67 Acres at Pinnacle Peak and 7th Street sold April 2019 for $6,100,000
USAA opened their new 140,000 square foot office in May with plans to add up to a thousand new employees in their Deer Valley project. The MACK Company has broken ground on Pinnacle 7 Phase II that will be about 170,000 square feet in two new multitenant buildings. Cobblestone Auto Spa has broken ground for their new 1 plus acre car wash just east of the SEC of Happy Valley and 19th Avenue. The Bungalows on Jomax broke ground on their 141 single-family, detached houses on the east side of I-17 North of Jomax. NexMetro has plans to build approximately 200 similar units just North of The Bungalows project. These are just some of the projects currently happening in our sub-market. We can expect to see much more building over the next few years.
Commercial inventory has decreased significantly over the last year, mostly from all the sales activity. Currently there is less than half the amount of square footage available for sale than this time last year. We have about 3 million total square feet available on the market. Compare that to the 3.8 million square feet sold over the last year and you can understand why this is a strong sellers market.
It was a Buyer’s market for so long, that it’s nice to see we’re in such a strong economic surge today. With it being such a strong market, it has been difficult for developers to keep up with the cost of construction. I would say that has been the biggest hesitation we’ve seen from some developers. With inventory so low and the current demand in the Deer Valley market so high, we expect to see a huge jump in new construction in the near future.
Our prognosis looks very bright heading into the summer of 2019 for Deer Valley Airpark commercial real estate market. Have a great summer all!