This is part two of a three-part video series that makes up the 2020 AZRE Forum, the annual mid-year market report that looks at the factors that are driving the Phoenix economy and commercial real estate industry.
The AZRE Forum is the annual mid-year market report and in-depth look at what factors are driving the Phoenix economy. The COVID-19 pandemic forced the Forum to go virtual this year, but it did nothing to dampen the lively discussions by three panels of commercial real estate professionals gathered for the event.
Here is how the event is broken down:
Wednesday, August 5: East Valley vs. West Valley
Thursday, August 6: A look at the retail, multifamily, and land sectors
Friday, August 7: A look at the office and industrial sectors
Today’s panel is moderated by Pete Bolton, president of Pete Bolton Company. Bolton is joined by multifamily experts Cindy Cooke, senior executive vice president at Colliers International; and Cliff David, senior managing director of investments at Marcus & Millichap. The retail professionals on the panel are Chris Hollenbeck, executive director for Cushman & Wakefield; and Mike Kumelski, vice president for retail at NAI Horizon. Providing an investor’s view on the panel is Rodney Riley, director of acquisitions and development for Scottsdale-based Caliber Development.
Bolton leads the panel through a discussion about how the activity in the market has changed in the five months since the COVID-19 pandemic arrived and what the market might look like when the pandemic subsides.
The panelists break down the factors that are creating a mixed bag of results for both sectors. Multifamily activity remains well behind the transaction boom in 2019, down nearly 60 percent, but the panelists detail how the market is still a hot zone for buyers. Also, they discuss the availability of capital in the market and how that capital is being kept on the sidelines due to the uncertainty of the pandemic and the lack of product up for sale.
Another discussion covers the potential for disaster when federal, state and local money stops flowing to businesses, and the panel wraps up with bold predictions from all of the participants.