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NEWS

 

 

PHOENIX OFFICE MARKET HANGS ON TIGHT

Local Businesses Take Advantage of Increased Space and Lower Rents  

 

Scottsdale , Arizona -- Apr 10, 2008 - In its highly anticipated first quarter 2008 report, Prudential CRES Commercial Real Estate's Arizona operation reports lower demand due to slower job creation, higher vacancy and a favorable market for tenants.

 

In the face of a softer office market, Phoenix buyers and tenants reassess business expectations and economic conditions at the start of 2008.   Slowing rent growth will allow tenants to obtain additional space, which will alleviate increasing vacancy throughout the Valley, most specifically in the suburban submarkets. Opportunities are available to tenants seeking expansion in the Phoenix metro office market.

 

In Prudential CRES Commercial Real Estate's first-quarter report, vacancy was calculated at 15.2%.   1,050,000 square feet of office space was delivered in the first quarter and the Valley has over 5 million square feet in the planning stage. Net absorption totaled an approximate negative 50,000 square feet. New space will increase by over 4 million square feet in 2008.

 

Prudential CRES forecasts that vacancy will continue to increase this year, however it can be expected to moderate by year-end into 2009.   Office condo sales are expected to grow as businesses reassess the advantages of owning versus leasing. Building owners have been re-pricing to meet on-going demand.

 

"Throughout 2008, vacancy will rise modestly before leveling out," says David Illsley, managing director/designated broker of the Prudential CRES Commercial Real Estate's Arizona operation. "The long-term economic outlook remains favorable for Arizona with the Phoenix metro office market being a cost-effective location for many businesses."

   

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Prudential CRES Commercial Real Estate

Appoints Lisa Lyons as Managing Director in Nevada

 

LAS VEGAS, Nev. -- Apr 10, 2008 - Prudential CRES Commercial Real Estate has named Lisa Lyons managing director in Nevada.   Lyons will manage the company's efforts throughout the state including the Las Vegas office, which handled more than $200 million in transactions last year.

 

Lyons will be responsible for managing ongoing client transactional assignments, analysis of local market conditions, and maintaining a strong awareness of local office inventory through engagement of the brokerage community.

 

Lyons comes to Prudential CRES with more than 15 years' professional experience in commercial real estate.   Prior to joining Prudential CRES, Lyons was at Commercial Partners of Nevada where they specialized in leasing, subleasing and sales of office properties and land in Reno and the surrounding area.

 

Earlier in her career, Lyons was the director of corporate resources for Handspring where she was instrumental in the company's phenomenal growth.   Being one of the first 8 employees, she helped grow the company from a small start-up to more than 450 employees in three countries in just five years.   She started her career in Santa Clara, Calif., in commercial real estate.

 

"Lisa is joining us at a time when we are making an aggressive move in the Nevada marketplace to grow and increase our presence," says Art Carll, regional vice president of Prudential CRES.    "Lisa's experience in managing growth and driving sales will help promote the successful implementation of our strategic expansion plan."

 

A native of southern California, Lyons is a third-generation Realtor.   She is active in CREW (Commercial Real Estate Women) and is a member of the National Association of Realtors and supports NAIOP and SIOR.   In her spare time, Lyons volunteers at a historical school in Virginia City, Nev., where she works to preserve Nevada's history.   She is also a volunteer facilitator at The Solace Tree, a center for children and teens who have lost loved ones.

 

Prudential CRES Commercial Real Estate is an affiliate of Prudential CRES, a global system of commercial real estate industry leaders.   Prudential CRES Commercial Real Estate's local market knowledge of Arizona and Nevada, combined with its international presence through other Prudential CRES affiliates, makes it uniquely qualified to provide the highest level of commercial real estate services.   Prudential CRES Commercial Real Estate specializes in all commercial disciplines including office, industrial, multi-family, medical, retail and investment services.  

 

Prudential CRES Commercial Real Estate is located at 14287 N. 87th Street, Su ite 220, in Scottsdale, and at 127 E. Warm Springs Road, Suite A, in Las Vegas. For more information contact Marnie Settle in Las Vegas at (702) 363-8400 or visit the company website at www.prucres.com .



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  Phoenix Office Remained Buoyant Throughout 2007 

 

Scottsdale , Ariz., -- Jan 23 , 2008 - In its highly anticipated fourth quarter 2007 report, Prudential CRES Commercial Real Estate's Arizona operation reports increased sales activity, completions and low absorption.  Despite the volatility of the single-family home market the commercial market sustained strength throughout 2007.  

 

Prudential CRES Commercial Real Estate forecasts that over 34,000 new jobs will be added by the end of 2008, which is a 1.7 percent increase over 2007, and more than 10,000 of these jobs will be office-using positions.  In response to this job creation, office space increased by over one million square feet in the fourth quarter and over 3.8 million square feet in 2007.   New development is expected to increase by 3.5 million square feet in 2008.

 

Demand for commercial assets remained strong throughout 2007.   Office sales (including office condos) skyrocketed reporting over 700 sales and a total sales volume of $3.7 billion.   Small business took advantage of a large pool of new office condos, claiming 11.2 percent of sales volume and almost 50 percent of overall office sales in 2007.   Speculative office development rose swiftly placing upward pressure on vacancy.   Additionally, sublease space flooded the market this year due to the subprime fallout.

 

"In the first half of 2008, we estimate sales activity to level-out.   Building owners will try to move office assets by repricing," says David Illsley, managing director/designated broker of the Prudential CRES Commercial Real Estate's Arizona operation.  "With spec office space rising in 2007, developers are urged to pre-lease before construction can begin in 2008."

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