Industrial Values Up for Seventh Consecutive Year

PHOENIX-The streak continues for the recovery of the industrial market, according to a new survey. The average price paid for industrial buildings in the Valley rose last year for the seventh consecutive time, according to Bob Kammrath, head of Kammrath & Associates, a commercial real estate analysis firm. “While the rebound in values has been universal among all Phoenix real estate, the industrial market, comprised of several segments, has posted more impressive gains in some segments that others,” he says.

In 2000, the market value of industrial space hit a historical high of $50.58 per sf. In 1999, values had been $48.92 per sf. Values have been on a steady climb since 1993, when it was $22.34 per sf.

As with other sectors of the real estate market, the number of sales in industrial are off. There were 239 sales of industrial buildings in 2000, down from 351 the prior year.