If you need assistance, please call 480-365-8346

Office investors still interested in Phoenix despite Covid-19, industry experts say

Thursday, May 28, 2020   /   by Juan Grimaldo

Office investors still interested in Phoenix despite Covid-19, industry experts say

Screen Shot 2020-05-28 at 9.21.35 AM.png

Despite the slowdown that came from the novel coronavirus pandemic, the Valley remains well positioned for future office investment, experts from CBRE said.

Barry Gabel, executive vice president of CBRE in Phoenix, said some of the deals he and his team were working with clients on were put on hold during the pandemic, but some continued through the process, including two that are scheduled to close in June.

“Everybody agrees Phoenix will rebound quickly,” Gabel said. “We continue to have incredible net migration and investors are keenly interested in Phoenix.”

The Valley’s sprawl may work to its advantage, with many options for urban areas that are not necessarily in the Central Business District.

Gabel said even during the stay-at-home orders in various states and countries he and his team have had between 50 and 60 Zoom meetings with investors, many of whom are ready to invest or are just waiting for banks and other lenders to loosen up again to have access to capital.

Chris Marchildon, first vice president at CBRE, said that while the overall value of office buildings that have been sold in the Phoenix area in 2020 has been lower than at the same time last year, the number of transactions has been the same.

“We probably will not hit 2019 numbers for total volume, but the pace will pick up,” he said. Six sales closed in the Valley in May, worth a total of $82 million.

Despite many office workers temporarily working from home during the pandemic, investors will continue to want to buy office buildings and tenants will continue to lease space in office buildings, the format might just look a little different, Gabel said.

“People don’t go to the office because they have to, they go because they want to,” he said.

Will Mast, first vice president at CBRE, said he expects companies to have mixes of employees working from the office and working from home coming out of the pandemic.

Some of the biggest investors in the market continue to be foreign investors, which was a trend before the pandemic, and the team expects that to continue through the recovery.

By: Corina Vanek
Keller Williams Realty Elite- The Grimaldo Group
Juan Grimaldo
2403 N Pebble Creek Pkwy #101
Goodyear, AZ 85395

© 2021 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Juan Grimaldo - Keller Williams Realty Professional Partners - The Grimaldo Group (WINBACK) are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. March 6, 2021
This site powered by CINC: www.cincpro.com