350-001 70-411 MB2-700 400-101 MB2-702 70-410 MB2-703 200-120 70-461 C_TADM51_731 70-462 EX300 VCP-550 70-480 C_TAW12_731 70-484 70-498 70-646 98-361 98-366 A30-327 C_BOE_30 C_TSCM42_66 C2010-597 C2020-632 C2020-701 C2020-703 C2040-408 C2040-988 C2070-581 C2150-195 C2160-667 C2180-274 C4040-226 C4090-453 CAS-001 CSSLP C-TERP10-60 E20-018 E20-918 JN0-360 MSC-321 P2080-088 PC0-001 PEGACSA-v6.2 3I0-012 500-051 640-875 640-916 642-427 642-647 642-691 650-663 700-037 70-247

Industrial Trends and Investments on the Rise in the Phoenix Market

Phoenix, Arizona – October 6, 2016 – The Phoenix industrial market has become a substantial revenue-generating investment in the valley.  According to the US Capital Trends, the industrial market brought in $3.2 billion in July transaction volume alone. According to Real Capital Analytics, the Phoenix market is above average compared to other industrial markets across the United States.  SVN advisor and newcomer to the Phoenix area, George Transtrum and SVN Investment Advisor, Chip Kloppenburg, CCIM will be focusing on building the industrial team at SVN’s Desert Commercial Advisors in Phoenix.

Transtrum relocated to Phoenix after spending most of career managing his own brokerage in Idaho and Kloppenburg’s east coast real estate dealings will bring the hustle to the southwest.  The Phoenix market currently has over 315 million of existing square feet of inventory in the valley. Transtrum stated, “Due to proximity, ease of trucking access and zoning, the Southwest Phoenix metro area is fast becoming the staple for warehouse distribution, development, and industrial investment.” This past August, Home Depot’s distribution center sold for $48M of 465K rentable square-feet. The buyer Cohen Asset Management purchased the property for an investment. The distribution center is still located at the property on a lease-back deal in the city of Tolleson.

Around this time last year, Myron Zimmerman Investment’s portfolio sale of nine buildings to Clarion Partners sold for $80,000,000 or $61.47 per square according to Costar’s mid-year report.  “These are good stable investments right now with very low risks and low cap rates,” Kloppenburg said.  Food suppliers, large manufacturing companies, and merchandising chains are all occupying the space resulting in low vacancy rates across the valley.  For new investors looking to enter the industrial market with limited capital and little required management, SVN just recently listed this long term net leased property on 5 acres in El Mirage. It will provide a stable and dependable income with the upside potential for a future value add divesture. Co-brokers, Neil Johnson and Transtrum will be working on this particular deal together, while Kloppenburg has a line of investors looking for larger multifamily properties and industrial locations both locally and nationally.

 

SVN | Desert Commercial Advisors is a full-service commercial real estate services firm providing comprehensive expertise in investment brokerage, leasing, landlord/tenant representation, analysis/valuation and market research. We specialize in multifamily, retail, office, medical/dental, and restaurant property types. Visit our website at www.svndesertcommercial.com for more information.

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Media Contact: Melissa Swader
melissa.swader@svn.com

Melissa Swader

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