After office investment plummeted in 2020, the first half of 2021 showed that Phoenix was nearing the volume of office investment the market saw before the pandemic arrived.
According to data from the CBRE team of Barry Gabel, Chris Marchildon and Will Mast, in the first six months of 2021, the Phoenix market saw $947.93 million worth of office sales, compared to $576.92 million in the first half of 2020. The team tracks office sales worth more than $1 million and larger than 20,000 square feet.
While the number of sales and total value were both lower than the same point in 2019, the data points to investor interest returning to Phoenix after a 2020 hiatus during the pandemic. In the first half of 2021, there were 56 office sales in the Valley tracked by the team. In 2020 and 2019, there were 47 and 63, respectively.
Marchildon said another indicator is the investor interest in buildings that are selling in the largest deals. So far in 2021 there have been two office deals over $100 million. At the same point in both 2020 and 2019 there had not been any office sales over $100 million.