By Chris Keeley
Industrial sales in the Deer Valley Airpark are on a record breaking pace in the first quarter of 2018. With the most recent sale of the 310,000 square foot portfolio at Parc Pinnacle for $30,300,000 and with many other buildings in escrow, the second quarter looks just as promising.
It looks like the only thing that will slow down this industrial market will be a lack of inventory. We should expect a hefty influx of new construction over the next 18 months just to catch up with demand.
- Almost 350,000 of industrial space have been leased over the last 12 months and the average rental rate is up to $0.75 psf (NNN).
- Asking rents are now typically $0.80 psf (NNN) in Deer Valley.
- The office market has remained sluggish with just about 110,000 square feet leased over the same 12-month period, and with lease rates rising to $12 psf (NNN).
- Office typically follows industrial as far as occupancy rate in this market.
The Deer Valley Airpark remains one of the hottest markets in the Greater Phoenix Area and this next year looks very positive for continued growth.