SCOTTSDALE, AZ—Remarkable population growth has resulted in a positive job market, making the Phoenix retail market a strong candidate for sales activity. Vigorous leasing has resulted in boosted absorption, declining vacancy and an anticipated rise in rental rates. Much of the leasing activity is due to small shop space below 10,000 square feet, a positive sign that small businesses are gaining confidence and expanding or opening additional locations.
Ryan Amato of the Eisenberg Company tells GlobeSt.com: “A favorable job forecast, remarkable population growth and a rebound in new home construction have positively affected the Phoenix retail market.”
As demand for retail space continues to strengthen, high-end, well-located projects with desirable trade areas are poised to benefit. One such project is Silverstone Marketplace, a newly constructed grocery-anchored neighborhood shopping center located at the southeast corner of Scottsdale and Pinnacle Roads. It has recently sold for $47 million to Chicago-based LaSalle Investment Management, according to the Eisenberg Company.
Amato tells GlobeSt.com: “We attribute our sale price, which equates to just over $600 per square foot, to the fact that we delivered to market a top-tier Sprouts Farmers Market-anchored center in the North Scottsdale submarket that is highly desirable, well positioned and a project which consists of a diverse, mainly national tenant mix.”
LaSalle Investment Management, based in Chicago, bought the neighborhood shopping center in north Scottsdale at $602 per square foot. Eisenberg Company developed, leased and managed the project through a joint venture formed by Valley businessmen Larry Van Tuyl and Craig Eisenberg.
Built in 2015, Silverstone Marketplace is located at the southeast corner of Scottsdale Road and Pinnacle Road and contains 78,000 square feet of retail space. Anchored by Sprouts Farmers Market, the neighborhood shopping center at the time of the sale was 100% occupied by a diverse tenant roster including Einstein Bagels, Verizon, Mattress Firm, 1st Bank, Tenet Urgent Care, Massage Green, Eddie Merlot's Steakhouse, Firehouse Subs and Pacific Dental. The property spans 12 acres and offers excellent frontage and visibility on Scottsdale Road, considered to be one of the best in the Valley.
“Silverstone Marketplace was the culmination of many years of site planning, development, leasing and project management. We were excited to offer LaSalle the rare opportunity to acquire a newly developed trophy retail center in the prestigious North Scottsdale area anchored by a top-tier Sprouts Farmer's Market,” says Amato.
Cushman & Wakefield executive managing directors Ryan Schubert and Michael Hackett represented the buyer. Amato and Jason Eisenberg of the Eisenberg Company of Phoenix represented the sellers.
The Phoenix retail market is comprised of 151.6 million square feet including 91.5 million square feet in neighborhood centers. Silverstone Marketplace is part of the 16.3 million square feet Scottsdale retail submarket. Leasing activity generated 2.8 million square feet in positive net absorption in the past four quarters. After absorbing 489,091 square feet and delivering 197,248 square feet in the current quarter, the shopping center market in Phoenix metro has steadily reduced vacancy from 13.1% in first quarter 2016 to 12.8% in second quarter. With an expanding economy and limited inventory under construction, vacant space is projected to continue dissipating. During the past four quarters, a total of nearly 1.4 square feet of new retail developments were delivered to the market. Construction activity for small retail space is expected to increase in the next 12 to 18 months.
In first quarter 2016, 34 transactions closed, totaling more than 2.4 million square feet for an average per square foot price of $137.71.
SCOTTSDALE, AZ—Remarkable population growth has resulted in a positive job market, making the Phoenix retail market a strong candidate for sales activity. Vigorous leasing has resulted in boosted absorption, declining vacancy and an anticipated rise in rental rates. Much of the leasing activity is due to small shop space below 10,000 square feet, a positive sign that small businesses are gaining confidence and expanding or opening additional locations.
Ryan Amato of the Eisenberg Company tells GlobeSt.com: “A favorable job forecast, remarkable population growth and a rebound in new home construction have positively affected the Phoenix retail market.”
As demand for retail space continues to strengthen, high-end, well-located projects with desirable trade areas are poised to benefit. One such project is Silverstone Marketplace, a newly constructed grocery-anchored neighborhood shopping center located at the southeast corner of Scottsdale and Pinnacle Roads. It has recently sold for $47 million to Chicago-based LaSalle Investment Management, according to the Eisenberg Company.
Amato tells GlobeSt.com: “We attribute our sale price, which equates to just over $600 per square foot, to the fact that we delivered to market a top-tier Sprouts Farmers Market-anchored center in the North Scottsdale submarket that is highly desirable, well positioned and a project which consists of a diverse, mainly national tenant mix.”
LaSalle Investment Management, based in Chicago, bought the neighborhood shopping center in north Scottsdale at $602 per square foot. Eisenberg Company developed, leased and managed the project through a joint venture formed by Valley businessmen Larry Van Tuyl and Craig Eisenberg.
Built in 2015, Silverstone Marketplace is located at the southeast corner of Scottsdale Road and Pinnacle Road and contains 78,000 square feet of retail space. Anchored by Sprouts Farmers Market, the neighborhood shopping center at the time of the sale was 100% occupied by a diverse tenant roster including Einstein Bagels, Verizon, Mattress Firm, 1st Bank, Tenet Urgent Care, Massage Green, Eddie Merlot's Steakhouse, Firehouse Subs and Pacific Dental. The property spans 12 acres and offers excellent frontage and visibility on Scottsdale Road, considered to be one of the best in the Valley.
“Silverstone Marketplace was the culmination of many years of site planning, development, leasing and project management. We were excited to offer LaSalle the rare opportunity to acquire a newly developed trophy retail center in the prestigious North Scottsdale area anchored by a top-tier Sprouts Farmer's Market,” says Amato.
Cushman & Wakefield executive managing directors Ryan Schubert and Michael Hackett represented the buyer. Amato and Jason Eisenberg of the Eisenberg Company of Phoenix represented the sellers.
The Phoenix retail market is comprised of 151.6 million square feet including 91.5 million square feet in neighborhood centers. Silverstone Marketplace is part of the 16.3 million square feet Scottsdale retail submarket. Leasing activity generated 2.8 million square feet in positive net absorption in the past four quarters. After absorbing 489,091 square feet and delivering 197,248 square feet in the current quarter, the shopping center market in Phoenix metro has steadily reduced vacancy from 13.1% in first quarter 2016 to 12.8% in second quarter. With an expanding economy and limited inventory under construction, vacant space is projected to continue dissipating. During the past four quarters, a total of nearly 1.4 square feet of new retail developments were delivered to the market. Construction activity for small retail space is expected to increase in the next 12 to 18 months.
In first quarter 2016, 34 transactions closed, totaling more than 2.4 million square feet for an average per square foot price of $137.71.
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