Commercial real estate investment in Phoenix metro dropped in 2020

PHOENIX – Despite a spike in the fourth quarter, the COVID-19 pandemic caused a significant drop in real estate investments in the Phoenix subway in 2020, down 20% year over year.

Overall, investments totaled $ 9 billion in 2020, with the lion’s share of the money, $ 4.4 billion, being spent on apartment buildings, according to research by CBRE Group Inc.

Only one asset class, industry, saw a higher investment volume in 2020 than in Phoenix in 2019, according to CBRE. In 2020 Phoenix industrial assets were sold for $ 1.9 billion, a 45% increase over 2019. Industrial deals accounted for 20% of commercial real estate transactions in the valley, up from 12% in 2019.

Geoff Turbow, senior vice president at CBRE who works with a team in California, Nevada, and Arizona, said Arizona is doing well in the capital markets despite the pandemic, especially as California investors buy real estate in Arizona.

Read the full article in the Phoenix Business Journal.