Over the past three years, the Phoenix metro saw about $1.16 billion worth of foreign investment in office properties, showing a major increase in interest from international buyers in the Phoenix market.
The $1.16 billion spent from foreign investors from 2019 to 2021 is almost equal to the total spent by foreign investors in the market over the previous 10-year period, Chris Marchildon, first vice president for CBRE Group Inc. in Phoenix, said.
“Phoenix is on the map in a very big way for foreign investors,” he said.
Many of the office buildings purchased by foreign investors are brand new or nearly new and are located in desirable submarkets. Singapore-based Manulife bought Allred Park Place in Chandler and Diablo Technology Park in Tempe for a combined total of $167.75 million. Downtown Phoenix’s newest office tower, Block 23, was purchased by Canada-based City Office REIT for $150 million.
Marchildon said many foreign investors are interested in larger office transactions, worth $100 million or more. Between foreign and domestic buyers, Phoenix saw seven office transactions worth $100 million or more in 2021, up from only one in 2020.