By CBRE Research
The spread of COVID-19 and the resulting government restrictions precipitated a pronounced decline in commercial real estate investment activity in the region. Investment volumes for the Phoenix metropolitan area in 2020 totaled $9.0B, a 20 percent decline from 2019 levels.
The decline in investment activity was most pronounced in late spring as investors pressed pause in the face of a rapidly changing macroeconomic landscape. Trading resumed in earnest in the second half of the year, and September, October and December volumes exceeded 2019 levels (by 37 percent, 31 percent, and 6 percent respectively).
Activity throughout the year was driven by capital interest in favored asset classes, especially industrial. An increase in consumer reliance on online shopping made industrial warehouse space invaluable to major e-commerce players – further driving demand and value across the region. Industrial properties generated $1.9B in investment volumes for 2020 – up 45 percent, or $0.6B from the year prior – and faring considerably better compared to other commercial asset classes. Industrial’s share of total activity was 20 percent, up from 12 percent in 2019. (Source)