"I truly think the certainty is much better than the uncertainty we've seen," Jerry Roberts, senior vice president in Phoenix with Los Angeles' CB Richard Ellis Inc., tells GlobeSt.com. Roberts said quick military action should have no effect on sales in the Valley's market as investors continue to look for places to put their money. "There's still a lot of people looking for a good investment so good properties will always sell," he said.

But Eric Wichterman, with the New York City-headquartered Grubb & Ellis Co.'s investment sales team in Phoenix, predicts that a war with Iraq may make investors hesitant initially. "Investors may be like a deer caught in the headlights--they'll pause," he tells GlobeSt.com, "but I don't think we'll see a large drop in activity. There may be a fear factor because they may want to hold cash, but anything that's a stable property will sell."

Barry Gabel, with Dallas-based Trammell Crow's Phoenix office, thinks the pending military action may cause conservative investors to cull their portfolios, putting more product on the street. But even that could mean more market activity as investors currently facing tight availability quickly buy up the disposed property.

"I don't see the doors shutting, the windows locking and people closing the drapes," Gabel tells GlobeSt.com. "There's still a tremendous amount of capital on the street."

The key to the Valley's market, all three agree, is the 1031 investor who, even in time of war, still needs the tax write-off that accompanies a property exchange.

Instant Insights /

Valley Sales Not Derailed by War Threat

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