arizona commercial mortgage lenders association
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Arizona Commercial Mortgage Lenders Association
Presented by:
Kevin LangeAssociate
and
Kim Soulé Vice President
Phoenix Office Market:The Good, the Bad, and the Ugly
Number of Transactions
All Transactions are reflective of buildings 20,000 square feet and up
* Source: CoStar www.costar.com
Notable Transactions:
Address Sale Date Size Sale Price Profit
444 N. 44th Street 12/30/04 138,240 $ 20,500,00006/08/06 $ 27,200,000 32%
14300 N. Northsight Blvd 04/11/05 71,462 $ 16,350,00008/31/07 $ 22,375,000 36%
1 N. 1st Street 09/30/04 127,313 $ 5,900,00011/08/06 $ 10,300,000 75%
111 W. Monroe 04/25/05 244,651 $ 20,000,00001/23/07 $ 40,000,000 100%
14350 N. 87th 12/15/04 135,000 $ 19,000,00006/13/06 $ 39,001,072 105%
* Source: CoStar www.costar.com
Notable Transactions (cont.):
Address Sale Date Size Sale Price Profit
3707 N. 7th Street 03/28/06 53,139 $ 3,385,00008/29/07 $ 7,600,000 124%
714 E. Van Buren 07/21/04 30,183 $ 3,000,00007/31/07 $ 8,932,680 197%
5353 W. Bell 05/24/05 206,155 $ 9,950,00002/01/08 $ 44,800,000 350%
201 N. Central Avenue 10/06/06 723,922 $103,048,05003/22/07 $166,930,000 62%
* Source: CoStar www.costar.com
Future Predictions 2009-2010
•Transactions will increase over 2008 figures by 150% due to foreclosures and bank sales(48 transactions were completed in 2008)
•Market rents will decrease by 25%(Average market rents for 2008 was $26.00/full service-direct leases only)
•Price per square foot will level around $170($230.24 per square foot average 2008)
•Cap rates will climb to 9.5%-10.5%(7.0% in 2008)
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