Restaurants and hotels in Greater Phoenix have taken a major hit from the coronavirus pandemic in revenues, closures, and unemployment. With the removal of restrictions, the focus turns to health, safety, and creativity—and for those properties that cannot survive, it may be a matter of conversion to alternative uses…
You can read all the details in the attached R.O.I. Properties “Real State – Commercial” newsletter, with additional statistics, market trends and information.
IMPORTANT: The outlooks for the following sectors may change rapidly. For the up-to-date information and analysis, please follow R.O.I. Properties on LinkedIn: https://www.linkedin.com/company/r-o-i-properties
- Office sector: More than $545M of office product traded so far in 2020, a significant decrease from the $1B reported the same time last year, according to CoStar. The average price per SF is reported at $206/SF, up from the $196/SF reported in 2019. Cap rates remain steady at 7.2%.
- Industrial sector: The industrial sector is still liquid right now, with over $1B sold year to date, this is up from $705M sold this time last year. CoStar reports the price per SF at $118/SF, up from $107/SF in 2019, and cap rates at around 6.3% for the year.
- Retail sector: About $501M of retail space traded year to date. This is down from the $886M reported the same time in 2019. CoStar data indicates that the price per SF is $195/SF, which is up slightly from the $189/SF reported last year.
- Multifamily sector: The average price per unit for multifamily housing is $170,448/unit, a cyclical high for the Phoenix market, according to CoStar’s most recent figures. (For comparison, 2019 reported an average price per unit at $155,541/unit.) Cap rates continue to drop, to a reported average of 5%. Year to date, $1.65B sold, down from $3.8B reported at this time last year.