Phoenix Market Investor Outlook

Just based on where the 10 year Treasury has gone over the last couple of months and where interest rates are, the spread between what buyers are willing to bid and where sellers are willing to sell their deal has grown pretty significantly. We expect interest rates to start coming back down towards the second and third quarter of this year. I think the outlook for sellers in the Phoenix MSA is still incredibly strong. Right now, we’ve had the highest population growth out of any large city in the country over the last decade, actually, we’ve got an incredibly friendly business environment with low taxes, and a really strong cost of living. So those really strong fundamentals should continue to generate a lot of investment activity in the Phoenix MSA and really continue to keep it as a target market for investors from across the country.

So the flow of capital into the Phoenix market has really been nationwide over the last couple of years. We’re still seeing tons of California money pour into the Phoenix market, both based on proximity and stronger cap rates out here. But investors on a nationwide basis have really started to realize both how strong the fundamentals and how many opportunities there are in the Phoenix market, particularly in a time when a lot of other markets are struggling