Phoenix multifamily led secondary market activity in Q2 2017

0 CommentsBy

Optima Kierland

The significant decline of transactions in primary markets has sustained strong liquidity in secondary and even tertiary markets. As a result, secondary markets comprised 44.6 percent of total multifamily transaction volumes at midyear, a record for this indicator if analyzing the past nearly two decades. Phoenix and Denver led secondary market activity during the second quarter of 2017, with each market seeing over $1.1 billion of transactions.

The Phoenix Metro continues to exceed its impressive transaction volume every year. Investors outside of the Phoenix Metro are becoming increasingly interested in the Valley’s strong performance and have begun to buy into the market. Additionally, Phoenix ranks among the top quartile of U.S. metros in terms of rent growth. Despite an active development pipeline and many projects beginning lease-up together, rent growth remains among the strongest in the country. Excellent net migration and employment growth has sustained strong demand for apartment units and is expected to help fill up all of the new properties opening their doors.

Why Phoenix?

Phoenix continues to successfully attract new residents and companies, both big and small. Low business costs and a friendly business environment, coupled with an established and well-educated workforce, has positioned the Metro to entice many new employers to move here. High-paying manufacturing and financial service positions as well as many high level management positions are moving to Phoenix, providing a substantial boost to the economy.

The Phoenix Metro ranks among the top quartile of U.S. metros in terms of rent growth. Despite an active development pipeline and many projects beginning lease-up together, rent growth remains among the strongest in the country. Excellent net migration and employment growth has sustained strong demand for apartment units and is expected to help fill up all of the new properties opening their doors. The Phoenix Metro is quickly approaching its development peak this cycle and is expected to begin to taper off over the forecast horizon.

With all of the strong activity in the market, Phoenix Metro is quickly approaching its development peak this cycle and is expected to begin to taper off over the forecast horizon. For more information on multifamily trends in Phoenix and throughout the United States, download our H1 2017 U.S. Multifamily Investment Outlook or contact us:

John CunninghamJohn P Cunningham is an Executive Vice President for JLL’s Capital Markets Group. Based in Phoenix, Arizona, John focuses on multifamily transactions throughout the Southwest and oversees a broad range of investment sales and equity procurement for multifamily developers. He is currently engaged in multifamily transactions in Arizona, Nevada, and New Mexico.
+1 602 282 6314 Email John

 

Charles Steele is an Executive Vice President for JLL’s Capital Markets Group based in Phoenix focusing on multifamily investment sales and equity procurement for multifamily developers throughout the Southwestern United States. He is currently engaged in transactions in Arizona, Nevada, and New Mexico.
+1 602 282 6314 Email Charles

 

Leave a Reply

Your email address will not be published. Required fields are marked *