By Corina Vanek | Phoenix Business Journal
Despite a surge in the fourth quarter, the COVID-19 pandemic caused a significant decline in real estate investment in the Phoenix metro in 2020, which saw a 20% decline from the previous year.
In total, investment reached $9 billion in 2020, with the lion’s share of the money, $4.4 billion, spent on multifamily properties, according to CBRE Group Inc. research.
Only one asset class, industrial, saw higher investment volume in 2020 than in 2019 in Phoenix, according to CBRE. In 2020, $1.9 billion worth of industrial assets in Phoenix sold, a 45% increase from the 2019 volume. Industrial deals made up 20% of the Valley’s commercial real estate transactions, up from 12% in 2019.
Geoff Turbow, senior vice president with CBRE who works with a team in California, Nevada and Arizona, said even despite the pandemic, Arizona did well in the capital markets, especially as investors from California buy real estate in Arizona.
“About 70% of our deals come from California,” Turbow said.
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Related: Phoenix Multifamily Investment Activity Turned Around in Q3, Q4