The first three months of the year have been slowing for the commercial real estate sector. Though this is somewhat typical this time of year, it seems the overall commerical landscape in Phoenix is looking better than it did this time in 2013.
According to a recent report by Colliers International, commercial real estate buying and selling dipped between the fourth quarter 2013 and the first quarter of 2014. However, commercial activity and property pricing are up across the board in the Phoenix metro area.
Recent reports suggest that Phoenix’s commercial real estate market has been making great progress on getting rid of foreclosures, bank takeovers and distressed loans from the collapse of the market. After peaking at nearly 15% in 2013, the Valley’s rate of delinquent commercial mortgaged-backed securities has declined.
In fact, the Phoenix-area has transitioned from having the sixth-highest rate in the U.S. in 2013 to the 20th in the country in May.
According to Trepp, LLC, The delinquency rate in May dropped to 8.81 percent (the national average is 6.27%). The rate means that about $693 million of CMBS debt in the Valley (51 loans) was delinquent, out of a total of $7.86 billion (703 loans) outstanding.
This is good news for the Phoenix commercial real estate market, which has seen some downward trends in recent years.
Are you looking to make a commercial real estate purchase or lease? Contact Helix Asset Management for your commercial real estate needs in Phoenix.