Colliers International’s Phoenix Land Report Notes Improved Outlook for 2012
•Sales of land parcels accelerated in the second half of 2011 despite a still-soft housing market and elevated vacancies among commercial properties. The renewed activity will likely serve as a catalyst for more volume in 2012.
•The housing market remains weak, with the median single-family home price down to $132,000. The last time prices were this low was 1999–2000. Low housing prices is restricting sales activity of land proposed for residential development.
•Commercial properties are beginning to show signs of stabilizing, and while current development is modest, land sales activity for commercial and industrial uses is gaining momentum in anticipation of future development.
•For the full year, the median price for all land parcels sold in Greater Phoenix was $1.12 per square foot. During the second half of 2011, however, the median price was $1.38 per square foot, and prices for properties zoned for residential, commercial and industrial uses all ticked higher.
•In 2011, the number of acres sold for commercial and industrial uses roughly doubled 2010 levels. Buoyed by a surge in the second half of 2011, the total acreage sold for commercial and industrial uses nearly matched the three-year total recorded from 2008–2010.
•Transaction volume for parcels intended for residential uses provide a stark contrast to the commercial market. Total acreage sold for residential construction fell nearly 30 percent from 2010 to 2011, and the number of transactions declined by more than 25 percent.
To arrange an interview with Pete O’Neil, senior research analyst, please contact Mary Beth Campbell, communications manager, at 602.222.5083 or marybeth.campbell@colliers.com.
About Colliers International
Colliers International is the third-largest commercial real estate services company in the world with 12,500 professionals operating out of more than 500 offices in 61 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International as the top U.S. real estate company and the latest annual survey by the Lipsey Company ranked Colliers International as the second most recognized commercial real estate brand in the world. Colliers International in Greater Phoenix has served clients locally and globally for more than 30 years.
Mary Beth Campbell
Communications Manager
Colliers International | Greater Phoenix
2390 E. Camelback Road
Suite 100
Phoenix, AZ 85016
United States
+ 1 602 222 5083
marybeth.campbell@colliers.com
www.colliers.com/greaterphoenix