Buchanan Street Partners’ recent acquisition of 180,000-square-foot Stapley Corporate Center in Mesa for $32.5 million brought the real estate investment firm’s total assets in Phoenix to 1.4 million square feet. For the Newport Beach-based investment firm, “Phoenix is an attractive place to do business,” shares company president Tim Ballard. “We expect commercial real estate and multi-family will outperform other markets.” Factors include the fact that Phoenix is a recovering market and therefore still has significant vacancy, but is seen as having positive job growth, “which will fill up commercial real estate and, ultimately, have a good impact on rents.” Buchanan Street also expects Arizona to benefit from California transplants. Explains Ballard, “California employers are facing increasing regulations and taxes, and Arizona is an appetizing alternative for relocations, especially manufacturing.”
Naming Denver and Houston as other areas where Buchanan Street is investing, Ballard says Phoenix is “one of four or five markets we expect to outperform.”
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