We saw a definite slow down over these summer months in the Deer Valley Airpark commercial real estate market this year. It certainly felt like people went on vacation again. That hasn’t always been the case over the last ten years. When the market was hot, a decade ago, real estate brokers expected a quiet summer because people had money and went on vacation. This was a normal pattern when the real estate market was healthy in Phoenix. But when the market crashed and things got tight, and even though everything slowed down, we didn’t see an appreciable difference in deal flow over the summer months compared to the rest of the year. Those were some tough years and people tightened their belts and saved their pennies. This resurgence of a summer slowdown is actually a good indicator that we are in a good market right now. In fact with the kids returning to school this week we are seeing a huge increase in our activity across the board in this Deer Valley Airpark market.
I am not suggesting there has been any slow down in the development of new product in this area. Deer Valley Airpark is currently seeing a mini explosion of new construction not seen since 2007. The market is strong today and developers are pushing forward with new product. Our summer slow down comes from the operators, buyers, consumers, and tenants. It’s the middle class, small businesses that are having enough success to move up, grow bigger, expand their locations, where much of our business comes from. These are the groups that feel enough progress, upturn in their market, to actually take a vacation this summer again. It’s a return to normalcy. It’s great to see.
I anticipate a very strong commercial real market through the fall and winter months in the Deer Valley Airpark. Christmas in July is only a forecast of a dynamic year moving forward.