Retail real estate investment sales have increased dramatically in the past year, according to a report released by Orion Investment Real Estate Solutions. There were 25 sales totaling $131.4 million in the second quarter 2011.
“Gilbert Tuscany Village was initially 57 percent preleased during construction, demonstrating the tenant demand generated as the developers spared no expense in construction…and their magnificent architectural design,” said James Mastandrea, chairman and CEO of Whitestone. Ari Spiro and Sean Stutzman of ORION handled the transaction.
The Barcelona Center at 15444 N. Greenway-Hayden Loop in Scottsdale was sold for $2.4 million by Scottsdale Place LLC to Capital Creek Gold LLC. Both are Scottsdale-based entities. Brokerage Orion Investment Real Estate Solutions in Scottsdale handled both sides of the deal.
Orion Investment Real Estate, a commercial real estate investment firm, sent the Phoenix Business Journal some interesting second-quarter data proving commercial real estate isn’t dead in the water.
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.