The Phoenix Multi Family market appears to be at 7 O’clock. There are a lot of positive signs that the market has more than bottomed for Multi Family, locally and nationally. Phoenix Office Space, retail and commercial have a ways to go locally. The question is, is it truly the bottom or a false bottom for multifamily? There is intense competition for “A” product multifamily which has pushed a lot of investors to look at “B” class. This increase in competition at the “B” level has now even pushed down into the “C” level product….and now the developers are starting to gear up for new builds. If that is NOT a sign the bottom has passed and we are on the way up. I don’t know what is.
What about the horrific vacancy levels we see in some parts of the valley? Specifically the near west valley, with 20% vacancies. The short answer is….those who work in the Scottsdale Airpark (2nd largest employment area in Metro Phoenix) were never going to live in the West Valley, nor were people who work in the north or east valley. Those are completely different markets. The reason the vacancy rate is 5-6% in north Scottsdale is because of its prime location relative to employment, shopping and recreational amenities.
Commercial Realtor
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