PHOENIX—The stage is set for an active investment environment in Greater Phoenix as 2015 comes to a close. Operating fundamentals across the various commercial property types are improving and interest rates have yet to tick higher. In addition, new development projects are underway, which could provide added fuel to the investment market in the coming years as these buildings lease up and are ultimately marketed for sale, according to a recent Colliers Phoenix report.

Property fundamentals continue to improve across Greater Phoenix, supporting increased appetite for investment across the four key sectors. Investment activity in Greater Phoenix was generally fairly flat from the second quarter to the third quarter, as fundamentals for most property segments are generally improving.

Sales prices generally inched lower in the third quarter, but year-to-date prices are higher than 2014 levels. The greatest price gains have been recorded in the office segment, where vacancies continue to improve and asking rents are on the rise. Cap rates did not show a clear direction in the third quarter, dipping in both office and shopping centers, but ticking higher among industrial properties. On the whole, cap rates are averaging in the mid-7% range.