Q4 2017 Phoenix & Tucson Multifamily Report

Research & Forecast Report

GREATER PHOENIX | MULTIFAMILY Q4 2017

Rents Continue on an Upward Trajectory Key Takeaways > The fourth quarter closed out a very strong 2017 in the Greater Phoenix multifamily market. There has proven to be sufficient renter demand in the market to absorb the new inventory coming online. With vacancy levels remaining low, rents are posting healthy gains. > Vacancy ticked up 20 basis points during the fourth quarter, reaching 5.9 percent. Despite the modest rise in the final few months of 2017, vacancy is 10 basis points lower than one year ago.

Market Indicators Relative to prior period

Market Q4 2017

Market Q4 2016

Vacancy Rents Transaction Activity Price Per Unit Cap Rates

> Asking rents rose 6.8 percent in 2017, ending the year at $994 per month. This marked the third straight year where asking rent gains exceeded 6 percent. > With rents on an extended upswing, multifamily prices are pushing higher. The median price rose 6 percent in 2017, topping $110,000 per unit. Cap rates compressed slightly, averaging in the mid- to low-5 percent range for most of the year.

Greater Phoenix Multifamily Market The Greater Phoenix multifamily market closed out another strong year in 2017. Vacancy inched higher in the fourth quarter, but the rate is still lower today than it was one year ago. Vacancy has remained in a very tight range since the second half of 2014, with the rate never ticking above 6.5 percent or below 5.0 percent.

The vacancy rate has remained low even as a wave of new units has come online. Deliveries peaked in 2017 and the pace of new construction will likely slow in the year ahead. While the number of new units forecast to come online in 2018 will mark a dip from the 2017 total, deliveries are being spread across a greater number of submarkets than in recent years. More than half of the submarkets in Greater Phoenix have units currently under construction, with activity picking up in areas such as Peoria, Goodyear and Avondale.

Summary Statistics Vacancy Rate Change from 4Q 2016 (bps)

Asking Rents (per month) Change from 4Q 2016

Median Sales Price (per unit YTD) Average Cap Rate (YTD)

Phoenix Market 5.9% -10 $994 6.8% $110,200 5.5%

Greater Phoenix Multifamily Market (continued) Sales of multifamily buildings were very consistent throughout 2017.

During the fourth quarter, transaction velocity was nearly identical to figures for the first three quarters of the year. The underlying health of the market is driving investor demand, particularly as new projects

get leased up and rents continue to tick higher. Cap rates compressed in 2017, particularly during the second half of the year. Cap rates averaged 5.5 percent during the past 12 months, a modest decline from 2015 and 2016 levels.

SUBMARKET STATISTICS 4Q 2017 Vacancy

4Q 2016 Vacancy

Annual Vacancy Change (BPS)

4Q 2017 Rents

4Q 2016 Rents

E Mesa/Apache Junction

3.4%

4.7%

(130)

$1,000

$926

W Central Phoenix

4.2%

4.9%

(70)

$856

$821

N Mesa

4.6%

5.1%

(50)

$833

$800

Chandler

4.8%

5.9%

(110)

$1,110

$1,043

Gilbert/Superstition Springs

4.9%

5.8%

(90)

$1,040

$982

NW Black Canyon

5.0%

5.9%

(90)

$836

$798

Peoria/Sun City

5.2%

5.8%

(60)

$974

$942

S Scottsdale

5.3%

4.9%

40

$1,306

$1,187

North Mountain

5.3%

6.4%

(110)

$871

$846

Goodyear/Avondale

5.4%

5.8%

(40)

$1,004

$943

N Scottsdale/Fountain Hills

5.5%

5.8%

(30)

$1,264

$1,181

N Paradise Valley

5.5%

5.3%

20

$1,120

$1,046

S Mesa

5.7%

6.3%

(60)

$926

$853

Central City/Sky Harbor

5.8%

5.6%

20

$1,314

$1,271

Deer Valley/N Peoria

5.9%

5.4%

50

$1,017

$974

S Phoenix/Laveen

5.9%

5.6%

30

$906

$851

S Tempe

6.0%

5.9%

10

$1,061

$991

Maryvale/Estrella

6.0%

5.6%

40

$770

$721

S Paradise Valley

6.1%

10.0%

(390)

$1,017

$945

Union Hills/Cave Creek

6.1%

5.8%

30

$977

$916

E Central Phoenix

6.1%

6.1%

-

$918

$856

Glendale

6.1%

6.6%

(50)

$756

$723

N Tempe

6.2%

5.9%

30

$1,159

$1,086

S Gilbert/Queen Creek

6.2%

5.1%

110

$1,167

$1,054

Ahwatukee Foothills

6.4%

6.4%

-

$1,089

$1,013

N Central Phoenix/Alhambra

6.4%

6.9%

(50)

$902

$855

Central Phoenix/Encanto

6.9%

6.1%

80

$1,105

$1,067

Central Black Canyon

7.7%

7.1%

60

$686

$615

Metrocenter

8.2%

8.4%

(20)

$776

$765

NE Central Phoenix

10.5%

7.7%

280

$1,104

$1,077

Submarket Name

2

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Employment:

Year over Year Jobs Added (000s)

> One segment of the market that has been a recent source of expansion has been construction. Employment in the construction sector grew by 7.3 percent in 2017 with the addition of 7,600 new workers. Single-family housing permitting rose by 10 percent in 2017, topping 20,000 units for the year. As more new homes break ground, construction employment will continue to rise.

Employment Overview 75

5%

60

4%

45

3%

30

2%

15

1%

0

> Employment in white-collar sectors of the economy were largely responsible for the slowdown in employment growth.

The professional and business services and the financial activities sectors each added fewer than 4,000 jobs in 2017, after combining to expand by more than 20,000 positions in 2016.

3

Q4 15

Q2 16

Q4 16

Q2 17

Q4 17

0%

Annual Change

Completions 2015-2017

Under Construction

3,500 3,000

Units

2,500 2,000 1,500 1,000 500

0

Quarterly Vacancy Trends

Vacancy:

> The prevailing trend in the Greater Phoenix multifamily market has been one of stable vacancy. More than 75 percent of the submarkets in the market have vacancy rates that are within 100 basis points of their respective vacancy rates one year ago.

Q2 15

4,000

> Multifamily permitting was very consistent during the last three quarters of 2017, averaging approximately 2,300 units per quarter.

Permitting for multifamily units inched up 4 percent from the third quarter to the fourth quarter. For the year, multifamily permitting was down 8 percent from the 2016 total.

8.0% 7.5% 7.0%

Vacancy Rate

> Five of the submarkets in Greater Phoenix have vacancy rates below 5 percent, up from only three submarkets that had rates that low one year ago. Even submarkets such as Chandler and Gilbert/Superstition Springs, which have each received significant amounts of new supply in recent years, have been able to maintain vacancy rates below 5 percent.

Q4 14

Construction Trends: Major Submarkets

> The pace of deliveries is forecast to slow modestly in 2018. At year-end 2017, there were approximately 10,000 units under construction, compared to the more than 12,500 units that were under construction one quarter earlier.

> While construction of new units has been active in recent years, absorption has been strong, and vacancy has remained in a tight range. During the fourth quarter, the rate ticked up 20 basis points to 5.9 percent. Even after accounting for the rise in the final few months of 2017, vacancy in Greater Phoenix is 10 basis points lower than one year ago.

Q2 14

Number of Jobs

Construction: > New apartment development peaked in 2017, with more than 8,800 units coming online. Deliveries were concentrated in Southeast Valley cities including Gilbert and Tempe, as well as in the Central Phoenix/Encanto submarket in Phoenix.

Q4 13

Year-over-Year Employment Change

> The pace of employment growth in Greater Phoenix cooled in 2017, with 37,300 net new jobs added, a 1.9 percent gain.

In 2016, more than 56,000 new positions were created and employers expanded payrolls by an average of more than 53,000 positions per year from 2012-2016.

6.5% 6.0% 5.5%

5.0% 4.5% 4.0%

Q4 13

Q2 14

Q4 14

Q2 15

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Q4 15

Q2 16

Q4 16

Q2 17

Q4 17

Rents:

Quarterly Rent Trends

> Asking rents in the Greater Phoenix multifamily market continued to rise in the fourth quarter, although the pace of growth slowed a bit. Asking rents inched up 0.7 percent during the fourth quarter, reaching $994 per month. Asking rents rose 6.8 percent in 2017, building on a nearly identical gain in 2016.

$1.25

$1,000

$1.20

$975 $1.15

$950 Asking Rent per Month

> Asking rents in the Class A segment trended higher in 2017, ending the year at $1,631 per month. The rents that Class A buildings are achieving are playing a significant role in the pace of new development.

Per SF

$1.10

$925 $900

$1.05

$875 $1.00

$850

$0.95

$825 $800

$0.90

$775 $0.85

$750

Investment Trends:

$725

> Sales of apartment properties inched down by 3 percent from the third quarter to the fourth quarter, continuing a trend of minimal volatility in the number of properties changing hands. Transaction activity was very consistent from quarter-to-quarter in 2017. For the full year, the number of properties sold lagged the 2016 total by approximately 5 percent.

Q2 14

Q4 14

Q2 15

Q4 15

Q2 16

Q4 16

Q2 17

Q4 17

$120

10%

$100

9%

$80

8%

$60

7%

$40

6%

$20

5%

$0

06

07

08

09

10

11

12

Price per Unit

13

14

15

16 YTD 17

Cap Rate

Recent Transactions in the Market MULTIFAMILY SALES ACTIVITY Property Name

Street Address

Lakeview at Superstition Springs

Units

Sales Price

Price per Unit

1849 S Power Rd., Mesa

676

$101,000,000

$149,408

The Highland

1601 E Highland Ave., Phoenix

350

$75,250,000

$215,000

Solano Village

5220 W Northern Ave., Glendale

260

$24,000,000

$92,308

4

$0.80

Investment Trends

Median Price per Unit (000s)

> Cap rates dipped slightly during the fourth quarter, reflecting the continued investor demand for multifamily properties in the local market. Cap rates averaged 5.3 percent in sales during the fourth quarter, and the average for all of 2017 was 5.5 percent.

Q4 13

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4%

Average Cap Rate

> After rising in the middle of the year, the median price ticked a bit lower in the final few month of 2017. The median price during the fourth quarter was $117,100 per unit, 7 percent lower than the median price from the third quarter. The median sales price in 2017 was $110,200 per unit, up 6 percent from the 2016 median price.

Asking Rent per SF

> More than half of the submarkets in Greater Phoenix have average asking rents above the $1,000 per month threshold. One year ago, only onethird of submarkets had rental rates topping $1,000 per month.

Per Month $1,025

Outlook: The Greater Phoenix multifamily market is positioned for another year of strong performance in 2018. Vacancy has declined in four of the past five years, even as more than 32,000 new units have been delivered to the market during this time. Persistent renter demand for apartments has more than offset the impact of new inventory, driving vacancies lower and pushing rents higher. Looking forward to 2018, vacancy may inch higher—an annual increase of approximately 50 basis points is likely—but rents should continue to advance at a healthy pace. Metrowide average asking rents will top $1,000 per month as early as the first quarter of 2018.

Rent Forecast

Employment Forecast

$1,100

60,000

3.5%

$1,050

3.0%

$1,000

50,000

2.5%

40,000

2.0% 30,000

1.5%

20,000 10,000 0

2010

2011

2012

2013

2014

Jobs Gained/Lost

2015

2016

2017

2018*

Average Asking Rent

4.0%

10% 8% 6%

$950

4%

$900 $850

1.0%

$800

0.5%

$750

0.0%

$700

2% 0%

2010

2011

2012

Annual Change

2013

2014

Asking Rents

* Year End Forecast

Year-over-Year Rent Change

70,000

Year-over-Year Change

Net Employment Change

With property revenues on the rise, the local investment market should remain strong in the year ahead. Property sales have followed a consistent arc over the past 18 months, with little quarterly fluctuation in sales velocity. Pricing has trended steadily higher and cap rates have compressed slightly, even as interest rates have ticked up a bit. The Federal Reserve will likely increase interest rates a few times in 2018, and there are some additional market pressures that could push lending rates higher. To this point in the cycle, the market has shown an ability to absorb interest rate hikes without slowing transaction activity, a trend that is likely to continue due to the strong investor demand for local multifamily properties.

2015

2016

2017

2018*

-2%

Annual Change

* Year End Forecast

Construction and Permitting Forecast

Vacancy Forecast 12%

11,000 10,000

10%

9,000

8%

7,000

Vacancy Rate

Permits/Units

8,000

6,000 5,000 4,000

6%

4%

3,000 2,000

2%

1,000

0

2010

2011

2012

2013

MF Permits

2014

2015

2016

2017

2018*

Completions

* Year End Forecast

0%

2010

2011

2012

2013

2014

2015

2016

2017

2018*

* Year End Forecast

FOR MORE MORE INFORMATION INFORMATION Bob Mulhern Jim Keeley SIOR Pete O’Neil Cindy H. Cooke Brad Cooke Managing Vice Director | Greater Phoenix Founding Partner | Scottsdale Research Director | Greater Phoenix Senior Executive President | Greater Phoenix Executive Vice President Office | Greater Phoenix 222 3880 5038 +1 480+1655 +1 602 222 5029 +1 602 448 4803300 748 7648 Bob.Mulhern@colliers.com Jim.Keeley@colliers.com Pete.ONeil@colliers.com Cindy.cooke@colliers.com Brad.cooke@colliers.com

Copyright © © 2017 2018 Colliers Colliers International.

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Research & Forecast Report

TUCSON METRO AREA | MULTIFAMILY Q4 2017

Rents Post Strong Gains in 2017 Key Takeaways > The Tucson multifamily market closed out 2017 with a strong fourth quarter. Vacancy trended lower and rents rose. Some of the strengthening in the market has been supported by a slowdown in new supply growth. > Vacancy in the Tucson metro area declined 20 basis points during the fourth quarter, dipping to 6.3 percent. The rate fell 60 basis points for the year, and this was the fifth consecutive year where the rate declined.

Market Indicators Relative to prior period

Market Q4 2017

Market Q4 2016

Vacancy Rents Transaction Activity Price Per Unit Cap Rates

> Rents posted their strongest annual gains in more than a decade.

Asking rents rose 6 percent in 2017, ending the year at $729 per month. > Sales of multifamily buildings slowed during the fourth quarter, following a very strong first nine months of the year. The median price for the year was $48,000 per unit, up 14 percent from 2016.

Cap rates compressed to an average of 6.3 percent.

Tucson Metro Area Multifamily Market The Tucson multifamily market had a very healthy 2017, with vacancy tightening to its lowest level in more than a decade and the pace of rent growth accelerating. The dip in vacancy was fueled by a consistent pace of net absorption, coupled with a steep decline in the delivery of new units. Looking ahead to 2018, the pace of net absorption should remain fairly consistent, particularly with the local economy gaining momentum. Development of new rental units is scheduled to bounce off of 2017 lows, but deliveries will lag levels recorded from 2012-2016. These trends should allow for vacancy to inch a bit lower and fuel additional upward growth in rents.

Summary Statistics Vacancy Rate Change from Q4 2016 (bps)

Asking Rents Per Month

Change from Q4 2016

Median Sales Price Per Unit (YTD)

Average Cap Rate

Tucson Market

6.3% -60 $729 6.0% $48,000 6.3%

Tucson Metro Area Multifamily Market (continued) Sales volume of apartments in Tucson slowed during the fourth quarter, following a robust period of activity in the first nine months of the year. Even after accounting for the slowdown in the fourth quarter, transaction activity in 2017 was higher than in any year since 2006, with projects totaling nearly 10,000 units changing hands. Pricing

dipped a bit in the fourth quarter, but the median price advanced by nearly 15 percent from 2016 to 2017. Cap rates are generally trending lower in Tucson, averaging in the low-6 percent range in 2017. With property fundamentals likely to continue to improve, cap rates could compress again in the year ahead.

Recent Transactions in the Market MULTIFAMILY SALES ACTIVITY Property Name

Street Address

Units

Sales Price

Price per Unit

Avilla Marana

4050-4115 W Aerie Dr., Tucson

284

$45,530,000

$160,317

Ledges at West Campus

2162 W Speedway Blvd., Tucson

205

$23,000,000

$112,195

3201 E Seneca St., Tucson

176

$7,610,000

$43,239

Bella Vista

SUBMARKET STATISTICS Submarket Name

4Q 2017 Vacancy

4Q 2016 Vacancy

4Q 2017 Asking Rents

4Q 2016 Asking Rents

Annual Rent Change (%)

Northeast Tucson

4.7%

5.2%

$891

$887

0.5%

Catalina Foothills

4.9%

5.1%

$809

$724

11.7%

Flowing Wells

5.0%

5.3%

$614

$591

3.9%

University

5.4%

7.0%

$842

$745

13.0%

Northwest Tucson

5.9%

6.4%

$910

$840

8.3%

North Central Tucson

6.0%

7.8%

$649

$624

4.0%

East Tucson

6.6%

5.8%

$693

$662

4.7%

Southwest Tucson

6.7%

6.5%

$671

$630

6.5%

Tucson Mountain Foothills

6.8%

7.8%

$825

$787

4.8%

South Tucson/Airport

6.9%

8.9%

$565

$544

3.9%

Pantano/Lakeside

7.7%

6.3%

$672

$635

5.8%

South Central Tucson

7.8%

9.6%

$623

$602

3.5%

Oro Valley/Catalina

8.1%

8.3%

$992

$949

4.5%

Southeast Tucson

8.6%

19.4%

$545

$528

3.2%

2

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> Employment in the Tucson metro area rose 0.5 percent in 2017, as employers added 2,000 jobs. Since 2011, job growth has averaged 3,200 new positions per year.

> Employment in the education and health services sector leveled off in 2017, but will likely receive a boost in the year ahead. Mainstreet Health announced plans to open a post-acute rehabilitation facility in the North Central Tucson submarket. The move will result in approximately 200 new jobs in the area.

8

4.0%

7

3.5%

6

3.0%

5

2.5%

4

2.0%

3

1.5%

2

1.0%

1

0.5%

0

0.0%

-1

-0.5%

-2

-1.0%

-3

-1.5%

-4

Q4 13

Q2 14

Q4 14

Q2 15

Q4 15

Q2 16

Number of Jobs

Q4 16

Q2 17

Q4 17

Year-over-Year Employment Change

> White-collar sectors accounted for more than half of the new jobs created in Tucson in 2017. The professional and business services sector added 600 new positions during the past year, while the financial activities sector expanded by nearly 3 percent with the addition of 500 new jobs.

Employment Overview

Year-over-Year Jobs Added (000s)

Employment:

-2.0%

Annual Change

Construction and Permitting:

> After dropping off in 2017, construction will accelerate going forward. More than 800 units are currently under construction, with deliveries scheduled for the next 24 months. > Multifamily permitting activity slowed in 2017, particularly in the second half of the year. Permits for approximately 350 multifamily units were pulled in 2017, down 14 percent from the 2016 total.

Construction Trends: By Submarket Completions 2014-present

Under Construction

1,000 900 800 700 600 Units

> Multifamily constriction slowed in 2017, with projects totaling fewer than 50 market-rate units coming online. This was a stark contrast from the past few years, where developers brought an average of more than 950 units per year to the market from 2012-2016.

500 400 300

200 100

-

Vacancy: > The vacancy rate in the Tucson metro area dipped 20 basis points during the fourth quarter, ending the year at 6.3 percent.

This marked the eighth consecutive quarter where the rate was between 6.3 percent and 6.9 percent.

Quarterly Vacancy Trends

> Vacancy declined 60 basis points in 2017, following a 90 basis point drop in 2016. Vacancy has improved in each of the past five years; vacancy declines have averaged 70 basis points per year in that time.

9.5% 9.0% 8.5% Vacancy Rate

> Vacancy improvements have been occurring throughout the Tucson metro area. In 2017, vacancy declined in 11 of the 14 submarkets tracked. A handful of submarkets recorded vacancy dips in excess of 100 basis points.

10.0%

8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0%

Q4 13

Q2 14

Q4 14

Q2 15

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Q4 15

Q2 16

Q4 16

Q2 17

Q4 17

Quarterly Rent Trends

> Asking rents have increased in each of the past five years, including accelerating growth since 2015. Asking rents spiked by 6 percent in 2017, building on a 4.7 percent gain in 2016. > Rents rose across all of the submarkets in the Tucson area in 2017, with the strongest gains recorded in the University submarket. Asking rents in the University submarket have been on the rise due to some of the high-end student housing projects that have been delivered in recent years. Average asking rents in the submarket rose 13 percent in 2017, ending the year at $842 per month.

Asking Rent per Month

> Asking rents recorded a third consecutive period of strong growth in the fourth quarter, reaching $729 per month. Rents advanced 1.5 percent during the fourth quarter, following a 1.3 percent spike in the third quarter.

$740

$1.00

$720

$0.98

$700

$0.96

$680

$0.94

$660

$0.92

$640

$0.90

$620

$0.88

$600

$0.86

$580

Q4 13

Q2 14

Q4 14

Q2 15

Q4 15

Q2 16

Q4 16

Q2 17

Q4 17

Asking Rent per SF

Rents:

$0.84

Investment Trends:

> Cap rates remained steady during the fourth quarter, averaging 6.3 percent. This matched the average cap rate for the full year.

Cap rates declined approximately 30 basis points from the 2016 average.

$60

10%

$50

9%

$40

8%

$30

7%

$20

6%

$10

5%

$0

05

06

07

08

09

10

11

Price per Unit

4

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12

13

14

Cap Rate

15

16

17

4%

Average Cap Rate

> The median price in the fourth quarter was $46,300 per unit, bringing the median price for the full year to $48,000 per unit.

The median price rose 14 percent from 2016 to 2017.

Investment Trends

Median Price per Unit (000s)

> After a very active first three quarters of the year, sales velocity dropped by more than 50 percent during the fourth quarter. Despite the slowdown during the final few months of the year, annual transaction activity spiked by more than 25 percent from 2016 to 2017.

Outlook: The outlook for the Tucson multifamily market is favorable. Conditions have been improving for the past several years, and the momentum in the market is building. Vacancy has tightened, supporting rent gains that were two-times the region’s long-term average during 2017. While that pace of rent growth is unlikely to repeat in 2018, rents are forecast to rise by more than 4 percent and vacancies are expected to tick lower once again. The local labor market will be worth monitoring. To this point in the improvement cycle, job growth has been modest, but some prominent local employers are planning healthy expansions, which is anticipated to spark more aggressive hiring in the year ahead.

Rent Forecast

Employment Forecast

Net Employment Change

0.5%

1,500

2011

2012

2013

2014

2015

Jobs Gained/Lost

2016

2017

2018*

0.0%

$780

8%

$760

7%

$740

6%

$720

5%

$700

4%

$680

3%

$660

2%

$640

1%

$620

0%

$600

2012

Annual Change

2013

2014

2015

Asking Rents

2016

2017

2018

-1%

Annual Change

* Year End Forecast

* Year End Forecast

Construction and Permitting Forecast

Vacancy Forecast

1,400

11%

1,200

10%

1,000

9%

Vacancy Rate

Permits/Units

2011

Year-over-Year Rent Change

1.0%

3,000

Year-over-Year Change

1.5%

4,500

Average Aksing Rent

2.0%

6,000

0

Investment activity for Tucson multifamily properties surged in 2017, even with a dip in velocity during the fourth quarter. Investors are responding to the area’s healthy operating fundamentals, including a three-year run where rents have increased by nearly $100 per month.

Investor demand is also being supported by the relative affordability of acquiring assets. Even with prices pushing higher, the bulk of the sales in Tucson still occur at price points under $10 million and fewer than 20 percent of the buildings that changed hands in 2017 topped $100,000 per unit. Buyers who may have been priced out of more expensive neighboring markets will likely find opportunities in Tucson in the year ahead.

800 600

8% 7%

400 6%

200 0

5%

2011

2012

2013 MF Permits

2014

2015

2016

2017

2018*

Completions

2011

2012

2013

2014

2015

2016

2017

2018*

* Year End Forecast

* Year End Forecast

FOR MORE INFORMATION FOR MORE INFORMATION Cindy H. Cooke Brad Cooke Bob Mulhern Jim Keeley SIOR Senior Executive Vice President | Greater Phoenix Executive Vice President | Greater Phoenix Senior Managing Director | Greater Phoenix Founding Partner | Scottsdale Office +1 602 448 3880 +1 480 748 7648 +1Cindy.cooke@colliers.com 602 222 5038 +1 480 655 3300 Brad.cooke@colliers.com Bob.Mulhern@colliers.com Jim.Keeley@colliers.com

Pete O’Neil Research Director | Greater Phoenix +1 602 222 5029 Pete.ONeil@colliers.com

Colliers International | Greater Phoenix 2390 E. Camelback Road, Suite 100 Colliers AZ International | Greater Phoenix Phoenix, 85016 2390 E. Camelback Road, Suite 100 +1 602 222 5000 Copyright © 2017 Colliers International.

Phoenix, AZ 85016 colliers.com/greaterphoenix The information contained herein has been obtained from sources deemed reliable. While +1 602 222 5000 every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No Copyright © 2018 Colliers International. responsibility is assumed for any inaccuracies. Readers are encouraged to consult their colliers.com/greaterphoenix The information contained herein has been obtained from sources deemed reliable.

While professional advisors prior to acting on any of the material contained in this report.

10 North American Forecast Report | Q4 2014 | Office Market Outlook | Colliers International every reasonable effort has been madeResearch to ensure its & accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Leaders in Global Real Estate in 68 countries

Colliers International

• $2.6 billion* USD in annual revenue

Colliers International is the leader in global real estate services, defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our clients, our people and our communities.

• 15,000 professionals and staff

COLLIERS INTERNATIONAL GREATER PHOENIX

• 2 billion square feet under management

Colliers International in Greater Phoenix focuses on accelerating our clients’ success by seamlessly providing a full range of services to owners, investors, occupiers and developers of real estate.

• 72,000 lease/sale transactions • $105 billion* USD in total transaction value * All statistics are for 2016, are in U.S. dollars and include affiliates

With offices in Phoenix and Scottsdale, Colliers in Greater Phoenix has provided integrated services on a local, regional, national and international basis for more than 35 years.

The foundation of our service is the strength and depth of our local specialists, who collaborate to offer market-leading expertise and an innovative approach to our clients’ needs.

COLLIERS INTERNATIONAL Greater Phoenix BOB MULHERN, Managing Director 2390 E. Camelback Rd, Suite 100 Phoenix, AZ 85016 + 1 602 222 5000

Clients can depend on our ability to draw on years of direct experience in the local market.

Whether you are a local firm or a global organization, we provide creative solutions for all your real estate needs..

14080 N. Northsight Blvd.

Scottsdale, AZ 85260 + 1 480 596 9000 www.colliers.com/greaterphoenix

Accelerating success.

COLLIERS CORE SERVICES Our comprehensive portfolio of services includes: > Brokerage > Landlord Representation > Tenant Representation > Capital Markets & Investment Services > Corporate Solutions > Project Management > Property Marketing > Real Estate Management Services > Research Services > Valuation and Advisory Services We offer our core services across a variety of property sectors and specialized industries, including: > Office > Industrial > Retail > Hotel > Multifamily > Mixed-Use > Land

> Data Center > Healthcare > Law > Technical Facilities

Colliers International | Greater Phoenix 2390 E. Camelback Road, Suite 100 Phoenix, AZ 85016 +1 602 222 5000 colliers.com/greaterphoenix