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Valley Posts $684M in Office Sales By Midyear

PHOENIX-Research shows office properties are trading at higher prices, pushing the volume of overall deals to $684 million to date this year and shoring up the Valley's position as the Southwest's leader of investment sales activity.

By Jennifer D. Duell | Updated on July 14, 2005

PHOENIX-Investment sales activity in the Valley office sector nearly doubled in the first half of this year in comparison to 2004′s midyear analysis. To date this year, $684 million of office assets changed hands, according to Transwestern Commercial Services and Delta Associates.

Researchers say sale prices spiked to $200 per sf, a $67 increase from last year. For three consecutive quarters, office sale prices increased about 20% due to stronger market fundamentals, says Scott Price, national director of research for Delta Associates. “Increasing sales prices are a phenomenon across the country, but Phoenix is slightly higher than other markets,” he says.

Top of the market deals to date include Los Angeles-based Maguire Properties Inc.’s sale of One Renaissance Square for $118 million or $244 per sf to the Pauls Corp. of Denver. Also selling in the first six months were Camelback Esplanade I and II, which garnered $311 per sf or $162 million from Metropolitan Life Insurance Co.

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