Commercial real estate values in Phoenix have plummeted along with home values. Vacancy rates are high and falling rental rates are taking their toll on office, retail and industrial property owners.
But it isn’t only sellers and lenders that are being somewhat inflexible. “Buyers are going to have to take some risk,” comments Orion Investment president Ari Spiro. “Most buyers are currently looking for a great return, based on the most pessimistic assumptions.”
“As a small firm, we have the flexibility to adapt to this ever changing commercial real estate environment and will continue incorporating new technologies and marketing tools.” -Ari Spiro
What’s a company to do in this limbo-like scenario? Spiro says the only thing to do is to broaden the vision instead of looking short-term. “Our vision at ORION is three-to-five years out, not three-to-five months out,” he says. And given current economic conditions, he anticipates that more than 50% of the inventory in town will change hands during that period.