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Leased Buildings Are Hot Commodities in Phoenix

PHOENIX-Investors in search of higher returns are pressuring Phoenix's "for sale" list for long-term leased properties. If the leases fall short of the profile, the asset easily can linger on the market for six months or more.

By Beverly Ford | Updated on September 24, 2002

PHOENIX-Building owners with long-term tenants are finding it easier to sell their properties as investors eager to move out of a sluggish stock market look for higher yields in real estate.

“Buildings that have good tenants are going fast and at low cap rates,” Patrick Feeney, with CB Richard Ellis Inc.’s Phoenix office, tells GlobeSt.com. “It’s hard to buy property right now because good leased property is really being sought after.”

A long-term lease has become key to a quick sale, Feeney said, since it offers a buyer the added assurance of being able to make those mortgage payments even if the economy sours. Buildings with vacancies or short-term leases, however, are languishing on the market for six or more months as buyers hesitate over deals that could mean leasing headaches for them in the future.

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