COBE Real Estate’s 2017 Highlights and 2018 Projections
It’s hard to believe that its time to start another year already! 2017 brought several incredible successes to COBE Real Estate, we are grateful for these opportunities, and hope to continue to grow and achieve even bigger things in 2018.
At the end of 2016, we looked at some of COBE’s highlights from the year, and mentioned things that had us excited about 2017. ( you can read that article here ) As we close out the year, we thought it might be a good time to reflect on those projections, as well as some additional opportunities 2017 brought us.
2017’s Success and Opportunities
Last year we mentioned the renovations to the Phoenix Warehouse District and how it was primed to once again become a thriving area of the valley. This has proved to be true for not only the Warehouse District, but much of Downtown Phoenix. With developments like Block 23, Downtown’s first urban grocery and mixed use high rise, several residential projects ,and a 25 Million Dollar make-over for the Arizona Center, Downtown Phoenix is a booming market.
A recent closing of COBE Real Estates offers a clear example of the interest in Downtown Phoenix. COBE Real Estate broker TJ Zaharis represented the sale of 136 E Washington, a 4,138 SF building directly across the street from the new Block 23 Development. This property had 9 offers in 1 week, and closed for over $140k over the asking price, after 2 weeks on the market.
We are excited to see the continued growth in Downtown Phoenix as it becomes a hub for business, education, culture and entertainment.
Growth in Queen Creek and San Tan Valley
Predicted to be prime growth areas of the East Valley in 2017, Queen Creek and San Tan Valley met expectations. Pinal Professional Village has continued to grow, COBE Real Estate represented 3 building sales in the development during 2017, and Queen Creek has remained focused on advancing economic development. Queen Creek’s population is projected to reach 44,700 in 2018, an increase of over 10,000 since 2016. The population increase, along with strong demographics such as an average household income of $103,589, has encouraged growth in retail.
COBE Real Estate represented the sale of 8.98 Acres of land in Queen Creek on Ellsworth Rd, which closed after a rezoning to C2. This rezoning will allow for the development of Retail Shops and Pad along Queen Creek’s major thoroughfare.
These areas will continue to be centers of growth in the new year, for medical and professional services, and retail alike.
Retail and Restaurants
With the number of articles and reports we see about retail giants closing stores, and the “Retail Apocalypse” one would assume that 2017 was not a strong year for retail in the valley. The Greater Phoenix retail market gained momentum however. Leading in employment and population growth, the Greater Phoenix Market posted strong performance, with its net absorption rate reaching the highest figure in years.
Restaurants seem to be especially benefiting from the growth. The East Valley welcomed over 27 new restaurants this year and Gilbert has seen a wave of new eateries and bars join its downtown scene.
COBE Real Estate Broker TJ Zaharis helped local Henhouse Café secure their third location at the growing Mesa Riverview outdoor shopping mall, and Linda Miskho represented Buffalo Jump Winery in the leasing of their first Arizona location in Chandler, AZ. The Shops at Agritopia were another hotspot of activity, Backyard Taco was joined by Orange Theory Fitness, Colair Beauty Lounge, Coldfront Cryo and Argo Real Estate. The amount of interest in this location clearly illustrated the growth and demand for retail in this Southeast Market Corridor, which we expect to continue into 2018.
Looking towards 2018
This will continue to attract work forces and businesses, and foster further development.
Tempe is predicted to hold its place as one of the hottest office markets in the country. This area remains desirable due to its walk-ability and an abundance of restaurants and retailers, which help occupiers attract and retain top talent.
There is also increasing interest for development and redevelopment in Mesa. Several large scale mixed-use projects are in the planning stages, focus remains on the Light Rail to create sustainable, transit-oriented development, and promoting Downtown Mesa as the hot area for entrepreneurs, artists, students and businesses stands as a key priority for the City of Mesa.
Additionally, the “Downtown Façade Improvement Program” which is designed to assist property owners and tenants in making improvements to the appearance of their building frontages, is helping bring new life into the area, encouraging the development of a younger, hip arts and culture vibe downtown.
Currently under construction downtown, The Artspace Lofts, will provide 50 units of live/work space for artists and their families. The project will include 1,450 square feet of ground floor commercial space for nonprofit arts organizations and creative businesses as well as 2,900 square feet of community space for events, exhibitions, and educational programs.
Another development, Falcon Field Business Center, a 96,000-square foot speculative industrial facility designed to attract manufacturing and/or distribution users to the Falcon Field District, is expected to complete construction in May. Mayor John Giles believes this will be any excellent addition to Mesa “The decision by EastGroup Properties to bring a new light industrial facility for aerospace and defense companies to the Falcon Field District is a great endorsement of our business-friendly environment.”
We are excited to see this increased interest and growth in the East Valley, and anticipate 2018 will be another year of terrific opportunity for COBE Real Estate and our clients.