Read the original article here by Corina Vanek, Phoenix Business Journal.
Some of the Valley’s hottest office submarkets were the focal point for the biggest office deals of the year.
The majority of the biggest sales — four of the top 15 — were in Tempe, the submarket with the fourth-highest rent growth in the country, according to areport from CBRE. Tempe has the lowest office vacancy rate of any submarket in the Valley, with 4.7 percent vacancy for office space. Click on the photo gallery above to see the biggest office deals of the year.
Midtown Phoenix and Scottsdale also landed some major deals this year, with three apiece of the 15 most expensive office sales of the year so far, according to Cushman & Wakefield research.
In September, Chris Marchildon, a vice president with CBRE Capital Markets, said the Phoenix area was on track to see $3.1 billion worth of office investment transactions in 2018, which would keep the Valley on pace with the previous three years. Marchildon tracks sales worth $15 million or more.
Marchildon cited a diversifying economy and strong workforce for investor interest in Phoenix. Investors may also be more attracted to Phoenix because of lower prices than in high cost markets like New York City and San Francisco, so investors in Phoenix can get a larger return on investment without spending as much to buy the building.