Some 941,913 square feet of office space traded across Greater Phoenix in February, according to CommercialEdge. The value indicates a 62.8 percent increase month-over-month, as January’s transactions totaled 578,713 square feet. On a year-over-year basis, the traded square footage was 80.5 percent higher than the one of February 2021, when 521,693 square feet changed hands.
The Valley’s office deals year-to-date added up to nearly $257 million at an average price of $228 per square foot, 24.6 percent lower than the national $284 per square foot. The figures show solid improvement year-over-year, as sales totaled $198 million at an average $208 per square foot in the first two months of 2021.
Most transactions involved Class B and C properties, with only one Class A asset in the sales mix. Also, 90 percent of deals involved traditional office space. Of the total, 393,610 square feet changed hands in urban submarkets.
The month’s largest sale in terms of square footage involved a property located in the Phoenix-North Mountain submarket. Idaho-based Stafford Holdings paid $23 million for Concorde Commerce Center, a Class B asset totaling 138,700 square feet. The seller was a joint venture between ViaWest Group and Taconic Capital Advisors. The buyer financed the purchase with a $16 million note from StanCorp Financial Group.
The second largest property to trade in February was a 130,000-square-foot medical office building in Gilbert. Dallas-based Altera Fund Advisors acquired Rome Towers in a four-asset, $75 million portfolio transaction, thus making its entry into the Greater Phoenix medical office market. Woodside Health sold the Class A asset together with two medical facilities in Middleburg Heights, Ohio, and one in San Antonio.