The Phoenix industrial market has become a substantial revenue-generating investment in the valley. According to the US Capital Trends, the industrial market brought in $3.2 billion in July transaction volume alone. According to Real Capital Analytics, the Phoenix market is above average compared to other industrial markets across the United States. SVN advisor and newcomer to the Phoenix area, George Transtrum and SVN Investment Advisor, Chip Kloppenburg, CCIM will be focusing on building the industrial team at SVN’s Desert Commercial Advisors in Phoenix.
Transtrum relocated to Phoenix after spending most of career managing his own brokerage in Idaho and Kloppenburg’s east coast real estate dealings will bring the hustle to the southwest. The Phoenix market currently has over 315 million of existing square feet of inventory in the valley. Transtrum stated, “Due to proximity, ease of trucking access and zoning, the Southwest Phoenix metro area is fast becoming the staple for warehouse distribution, development, and industrial investment.” This past August, Home Depot’s distribution center sold for $48M of 465K rentable square-feet. The buyer Cohen Asset Management purchased the property for an investment. The distribution center is still located at the property on a lease-back deal in the city of Tolleson.
Around this time last year, Myron Zimmerman Investment’s portfolio sale of nine buildings to Clarion Partners sold for $80,000,000 or $61.47 per square according to Costar’s mid-year report. “These are good stable investments right now with very low risks and low cap rates,” Kloppenburg said. Food suppliers, large manufacturing companies, and merchandising chains are all occupying the space resulting in low vacancy rates across the valley. For new investors looking to enter the industrial market with limited capital and little required management, SVN just recently listed this long term net leased property on 5 acres in El Mirage. It will provide a stable and dependable income with the upside potential for a future value add divesture. Co-brokers, Neil Johnson and Transtrum will be working on this particular deal together, while Kloppenburg has a line of investors looking for larger multifamily properties and industrial locations both locally and nationally.