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Phoenix Regional ProfileMulti-Model Access to Key Western Markets From PHXUnion Pacific Rail Accessible and 1-10 AccessibleDid you Know Arizona: Ranked #2 For Workforce - CNBC 2014Reno Operating Costs are Approximately 40%Lower Than California Is Home to Powerhouse Firms Like Intel,GoDaddy and PetSmartThe University of Phoenix sold its threebuilding campus headquarters to aUnited Kingdom real estate investor,Epic Apollo, LLC in Q1 2015. The salewas part of a strategy by Apollo to takeadvantage of the continued strengthof Phoenix’s real estate market. The 305 per square foot sale consistedof 599,700 SF for a whopping 183million compared to 2011 when it soldfor 283 per square foot providing a7.6% increase.Winters Arizona, LLC purchased 31553165 S. Price Rd. in Chandler. TysonBreinholt and Shane McCormick ofCPI’s Tempe Office Group representedthe seller, SFGVI Properties LLC, in thistransaction. The 12,800 SF, Class Abuilding is part of a 51,164 SF officecomplex located along the PriceRoad Corridor. The transaction closedat a value of 1.86 million in totalconsideration.635 miles11.00 hours750 miles12.00 hours Ranked #5 For Fastest Growing TechMarket - Fortune Magazine Has an Unemployment Rate of Just 7.4%Salt Lake CityBay AreaDenDenverenverenveveerr920 miles12.25 hoursLas Vegas285 miles5.25 hoursLos AngelesLong Beach350 miles4.75 hoursColtonPhoenixAlbuquerque475 miles6.25 hoursOklahoma CityDallasTucsonTrucking Times & DistanceUnion Pacific Train RoutesPeiterson Keil, LLC purchased the 20,640 SF retail strip center at11541 W Bell Road, which was builtin 1981. Eric Jones commented. “Myclient, Peiterson Keil, LLC looked atseveral markets in the western U.S.,and views Phoenix as a market withgrowth potential. This purchase wasbased on the uniqueness of a multitenant automotive center, the priceper square foot, and value add.” Theproperty at a value of 1.375 million.Frontgate, part of CornerstoneBrands, Inc. (CBI) a 3.3 billiondollar retailer is opening a 32,590SF location in Scottsdale, AZ. Thefirst-to-the-market Frontgate Outletin the Scottsdale Pavillions mall offIndian Bend Road and the Loop 101is slated to open in June of 2015.It will be one of only four brick andmortar locations in the United States.El PasoFT. Worth 1,120 miles15.50 hours440 miles6.00 hoursSan AntonioHoustonH11,185 miles17.50 hoursPrologis sold their 486,241 SF industrialproperty at 5555 W. Lower BuckeyeRoad in Phoenix to Exeter PropertyGroup. Exeter is an investmentmanager with more than 85 million SFof industrial properties across the U.Sand Europe. Exeter actively invests inall primary distribution markets andacquired 5555 W Lower BuckeyeRoad for 24.25 million in Q1 2015.Jeff Hays, Chad Neppl, John G. Soldo,SIOR and Ryan Steele of CPI’s TempeIndustrial Team represented JensenPrecast’s former 33,000 SF propertywith five structures on approximately10.66 acres. Jeff Hays commented.“This former concrete precast facilitysite has a total of 7 cranes rangingfrom 5 tons up to a 30 tons and newlyrefurbished office space.” The newtenant, Modular Power Solutions (MPS)leased the property for nearly 1 millionin total consideration.

Industrial Market ReportPHOENIX METRO1ST QTR. 2015 HELD at 11.6%NET ABSORPTIONPOSITIVE 1,644,484 SF-VACANCYRENTAL RATESUP - Averaging 6.57 CAP RATESDOWN - Averaging 7.57%To view our available properties,please visit our Property Searchpage mercial Properties Incorporated (CPI) completed 242 Industrial transactions for a total of1,116,144 square feet in first quarter 2015. The top Commercial Properties Incorporated Industrialtransactions for the quarter were, a 40,349 square foot sale of 254 W Broadway Rd, for 1.38 millionin Mesa, AZ, and a 12,942 square foot sale of 4055 S Sarival, for 1.6 million in Goodyear, AZ.VACANCY RATE & ABSORPTIONThe Phoenix Industrial market ended first quarter 2015 with a vacancy rate of 11.6%. This isunchanged from the 11.6% reported in fourth quarter 2014. Net absorption ended up at apositive 1,644,484 square feet at the end of first quarter 2015. First quarter 2015 absorption wasup compared to fourth quarter 2014’s net absorption previously reported as 619,372 squarefeet. The vacant sublease space in the Phoenix market ended the first quarter 2015 at 1,512,551square feet. This is a decrease from fourth quarter 2014 which was previously reported at1,752,913 square feet of vacant sublease space. The figures above include buildings that areowner occupied as well, which affects the actual vacancy numbers. Check with your CPI brokerfor an accurate representation of the vacancy rates in the submarket around your properties.RENTAL RATESThe Industrial rental rates for first quarter 2015 averaged out at 6.57, which is a slight increasefrom the 6.56 average previously quoted for fourth quarter 2014. The Flex rental rate averagewas 11.92 with the average Warehouse rental rate at 5.63 for the end of first quarter 2015.CONSTRUCTION2,760,100 square feet were reported as still being under construction at the end of first quarter2015 in the Industrial Sector compared to 3,986,684 square feet under construction in fourthquarter 2014. Some of the biggest projects still under construction were 10 W Logistics Center- Bldg. A, a 659,618 square foot facility which is 0% pre-leased, and 260 E Queen Creek Rd.,a 316,034 square foot facility which is 100% pre-leased.INVENTORYAt the end of first quarter 2015, there was a total of 308,918,480 square feet of industrialinventory for Phoenix. This square footage is broken out into 9,956 buildings that make upthe sector. This is an increase from the 307,235,915 square feet of total Industrial inventorycompared to fourth quarter 2014.

Office Mar ket R eport PHOENIX METRO1ST QTR. 2015VACANCY UP SLIGHTLY to 17.2%NET ABSORPTION 163,755 SFRENTAL RATES UP - Averaging 21.30CAP RATESUP - Averaging 7.58%Compared to 7.15% in 2014To view our available properties,please visit our Property Searchpage mercial Properties Incorporated completed 80 office transactions for a total of 237,627square feet in first quarter 2015. The top Commercial Properties Incorporated Office transactions forfirst quarter were, a 12,800 SF sale of 3155-3165 S Price Road, for 1.86 million in Chandler, AZ, and a16,333 SF sale of 1234 S Power Road, for 1.19 million in Mesa, AZ.VACANCY RATE & ABSORPTIONThe Phoenix Office market ended first quarter 2015 with a vacancy rate of 17.2%. This is aslight increase from the 17.1% vacancy rate reported in fourth quarter 2014. The first quarter2015 net absorption came in at a positive 163,755 square feet. This is down compared tofourth quarter 2014 when the net absorption was 1,199,018 square feet. The vacant subleasespace in the Phoenix market ended first quarter 2014 at 757,392 square feet. Sublease spaceis up compared to fourth quarter 2014 which was previously reported at 664,578 square feetof vacant sublease space. The figures above include buildings that are owner occupied aswell, which affects the actual vacancy numbers. Check with your CPI broker for an accuraterepresentation the vacancy rates in the submarket around your properties.RENTAL RATESThe average Office rental rates ended first quarter 2015 at 21.30, which is an increaseof 0.614% from the 21.17 per square foot average rental rates quoted back in fourthquarter 2014. Class-A average rental rates for first quarter 2015 were 25.36 , while theClass-B average rates were 20.30. Class-C average rates were reported to be at 15.12.CONSTRUCTION4,250,762 square feet were reported as still under construction at the end of first quarter 2015in the Office Sector. This is up from fourth quarter’s 2,898,337 square feet under constructionfigures. The biggest projects still under construction at the end of first quarter 2015 were the600,000 square foot building at 300 E Rio Salado Pkwy, Bldg B., which is 100% pre-leased, andthe 480,000 SF building at 300 E Rio Salado Pkwy, Bldg E., that is also 100% pre-leased.INVENTORYAt the end of first quarter 2015, there was a total of 162,574,945 square feet of Office inventoryfor Phoenix. This square footage is broken out into the 8,134 buildings that make up the sector.There are approximately 895 owner-occupied properties that make up 16,169,714 square feet ofthe total 162,574,945 square feet in the Phoenix office market.

R etaile ta i l MarMa r ketke t R eporte p o rtPHOENIX METRO1ST QTR. 2015 VACANCYDOWN SLIGHTLY to 9.7%NET ABSORPTION 545,110 SF RENTAL RATESDOWN - Averaging 13.85 CAP RATESDOWN - Averaging 7.95%To view our available properties,please visit our Property Searchpage SCommercial Properties Incorporated completed 32 Retail transactions for a total of 107,244square feet in first quarter 2015. The top Commercial Properties Incorporated Retail transactionsfor the first quarter were a 20,640 square foot sale at 11541 W Bell Road, for 1.375 million inSurprise, AZ, and a 12,613 square foot sale at 4522-4530 N 7th St., for 1.35 million in Phoenix, AZ.VACANCY RATEThe Phoenix Retail market ended first quarter 2015 vacancy rate decreased slightly to 9.7%compared to fourth quarter’s previously reported rate 9.8%. The first quarter 2015 net absorptionwas positive 545,110 square feet. Absorption is down compared to the fourth quarter’s 2014net absorption which was previously a positive 745,818 square feet. The General Retail sector,which is categorized as freestanding retail that is not in a center, had a vacancy rate of 5.9%at the end of first quarter 2014.The total sublease space for first quarter 2015 has decreased in Phoenix as shown by the657,229 square feet currently available, in comparison to the 739,658 square feet of vacantsublease space previously reported for fourth quarter 2014. The figures above include buildingsthat are owner occupied as well, which affects the actual vacancy numbers. Check with yourCPI broker for an accurate representation of the vacancy rates in the submarket around yourproperties.RENTAL RATESAverage Retail rental rates ended the first quarter 2015 down slightly to 13.85 per square foot,from the 13.87 per square foot previously quoted for fourth quarter 2014. This represents a0.144% decrease in the average Retail rental rates.CONSTRUCTION548,729 square feet were reported as still being under construction at the end of first quarter2015 in the Retail sector up from the 427,089 square feet previously reported as underconstruction in fourth quarter 2014.INVENTORYThe Phoenix Retail inventory currently consists of 13,373 buildings, and 1,951 centers thatmake up the 217,289,781 square feet of total Retail inventory in Phoenix at the end of firstquarter 2015.