Growth in Broader CRE Market

For the first time in nearly two years data is showing a larger monthly increase in the broader commercial real estate market compared to the top end of the market. Data from the CoStar Commercial Repeat Sale Indices (CCRSI) report showed an April gain of 1% over the previous month in the equal-weighted index compared to a 2.2% decline in the value-weighted composite index for the same period.

 

This is indicative of a possible shift from recent growth being isolated to higher-end properties to growth in the broader market of smaller and less expensive properties and a sign that investors are prepared to look towards the middle and lower end of the market for value.

 

Even with European investors playing a key role in CRE improvements, with European buyers already tripling their purchases over 2011 levels, the improvement in the overall CRE market is a welcome sign for most commercial real estate investors.

 

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Progress Finally Being Made In Commercial Market

The commercial real estate picture in the Phoenix area is slowing starting to improve according to the Greater Phoenix Real Estate Consensus Panel. The strongest gains can be seen in the industrial market where vacancy rates are expected to dip below 10.5% by the end of 2013. Even with new construction expected to reach 1.2 million square feet this year and almost 3 million square feet in 2013, it is projected to still be well below the level of absorption, which is estimated to be 4.7 million square feet and 6.2 million square feet, respectively.

 

The retail market is showing almost as much life with expected vacancy rates to be around 11.5% by the end of next year. Even with new construction estimated to add 500,000 square feet this year and 800,000 square feet next year, the absorption levels, expected to reach 1.2 million square feet this year and a projected 1.5 million square feet next year, will keep the vacancy rate down.

 

The laggard in the commercial space is clearly the office market. Vacancy rates are expected to remain high, approaching 23% by the end of the year. Even with little to now new space coming into the market demand is and has been weak and overall absorption is projected to remain low to very modest.

With the recent uptick in the overall economic outlook in the US there has been anticipation of a recovery in the commercial real estate market and while this may be true in certain sectors there is still a lot of progress to be made before these markets are at their pre-recession levels.

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Fairmount Place Phoenix, AZ

Central location with courtyard/fountain

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Technology Creates Microdesk Boom In Office Space Market

Shifting Demographics Make Investors Rethink Space Requirements

According to an article published in National Real Estate Investor, technology trends are driving office space requirements smaller and smaller. Work space requirements in the 1970s was three times larger than today, largely due to electronic information shrinking the storage space needed for books and files.

“Every new law firm lease is for one-third less space than its predecessor,” states Gunnar Branson, CEO of the National Association of Real Estate Investment Managers. Echo boomers make up a large demographic of workers who can live and work in smaller spaces. Commercial real estate investors should consider the needs of echo boomers who care more about where they work and live versus the size of the space.

 

To read the full article, click here.

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Property Update: 4001 North Third Street

We are pleased to announce that the Law Office of Jose Bracamonte has leased space at 4001 North Third Street.

 

The Law Office of Jose Bracamonte started in July of 1987 in Phoenix, AZ.   Mr. Bracamonte practices in the area of federal immigration law, with specialization in removal (deportation) defense and family visas.  A portion of their practice also involves appellate representation in the Ninth Circuit Court of Appeals.

 

Mr. Bracamonte received his Juris Doctorate from Norte Dame University and has been practicing law for over 30 years.  He was a former member of the faculty at the University of Houston School of Law and at UCLA Law School.

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Recommend them to anyone who would like to have quality professional services

Verve Commercial Real Estate LLC, and Peggy Maxwell, have been managing our shopping center in Mesa, AZ, for over 5 years. They have done an excellent job for us, as our property manager & leasing agent.

 

I’m pleased to recommend them to anyone who would like to have quality professional services.

 

Norman Rusmussen
Attorney At Law
Long Beach, California

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Welcome to Verve Commercial Real Estate in Phoenix, AZ

Welcome to Verve Commercial Real Estate in Phoenix, AZ

 

Verve Commercial Real Estate is a full service commercial real estate brokerage in Phoenix, AZ specializing in property management. Founded by Peggy Maxwell, Verve is dedicated to the growing the value of commercial real estate assets for it’s investors. Verve provides services that encompass the life cycle of a commercial real estate investment. We use the latest technology to model new acquisition comparisons, estimate the cost of ownership, manage properties and disposition properties.

 

Call Verve today to schedule a free consultation with one of our commercial real estate experts.

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White Star Corporate Center Phoenix, AZ

Excellent distribution Space near Sky Harbor.

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Foothills Vista Tech Center Phoenix, AZ

Excellent location with close proximity to freeways.

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Baseline Foothills Phoenix, AZ

One of a kind property located next to nature preserve.

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