Following the Office Panel was Pete TeKampe of Marcus & Millichap to discuss the apartment market in Phoenix Metro. He has a very interesting way of following the market by looking at the eviction rate of apartments to predict the next rental increase cycle. He reviewed a couple of case studies that he had worked on showing how following the eviction rate helped him identify certain properties that were purchased and then had the rents increased to help realize value.
Following Pete, was the Retail Panel to finish the day. Michael Pollack brought a good sense of humor to the panel and real operator perspective that is hard to obtain from other retail property owners.
The good news is that our market has absorbed approximately 47 vacant big boxes. The bad news is we still have about 278 more to go! This was a great lead into the conversation of the changing consumer demands and how we shop. Traditional big box anchors are shrinking their foot print and going to a more “show rooming” model.
Morey Fischel from DeRito, who focuses on tenant rep for restaurants, discussed the every expanding restaurants that are coming to this market from outside of our market. Restaurant space has been leasing up and demand is still high for these types of properties, especially in very good locations with good demographics.
This was a great event and something to always look forward to every year. If you would like to hear more specifics about my notes, let me know!