This document is a real estate report from Ian P. Turner of Cutler Commercial that summarizes industrial real estate market trends in Deer Valley, Phoenix in the first half of 2016. It finds that the Deer Valley submarket continues to have lower vacancy and higher rental rates compared to the overall Phoenix market. While transaction velocity increased in the second quarter, average sale prices dropped due to larger portfolio sales. The report also notes upcoming factors like the US presidential election, expected interest rate hikes, and the maturity of the current economic cycle that could impact the market.

1. CUTLER COMMERCIAL
2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including the rate and manner of payment of commissions
for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
Ian P. Turner
DIRECT:
602 386 1245
CELL:
602 324 9111
EMAIL:
Iturner@
Cutler Commercial.com
Ian P. Turner
EDUCATE | ADVISE | GUIDE
DEER VALLEY BY THE NUMBERS
Q2 2016
1ST HALF
2016

2. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
Dear Reader
My TAG Line is EDUCATE | ADVISE | GUIDE.
The first part of assisting either a Tenant, Investor, or Owner/User is to EDUCATE them on the
market. A key part of this process is to look at the overall historical perspective and to see where
we are in the market cycle.That is the reason I follow and share Deer Valley by the Numbers
insights into the submarket since January of 2015.
While I believe my data, insights, and opinions are accurate, they are just one man’s opinion.
THE INFORMATION AND OPINIONS SHARED IN THIS REPORT ARE MY OWN AND
DO NOT REFLECT OR REPRESENT THE OPINIONS OF CUTLER COMMERCIAL.
Please feel free to contact me for more information or to specifically get an opinion on your
property.
Ian
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 2

3. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
As of this writing in early September of 2016, several issues that may affect the Commercial Real Estate Market come to mind. They are the
Presidential Elections, the imminent hike in interest rates that is inevitable, and the fact that we are in a Bull Market for the last 8 years.
The first is the U.S. Presidential Election, now in full swing, and the nation is essentially in a holding pattern. Without getting into a political
discussion, it is safe to say that the majority of the electorate, the common man, has little inspiration from the choice of candidates presented. How
does this trickle down to Commercial Real Estate, specifically in Deer Valley? That is anyone’s guess….but the small business owners who are the
tenants and owners of those same small businesses are also wondering what the future holds.
The second issue is interest rates. If I am reading the tea leaves correctly, due to improving economic factors, the U.S. will almost surely see interest
rates go up by years end. This should make CAP Rates rise and subsequent values decline on the investor side. It will also change the Lease Vs. Buy
dynamic. As the interest goes up, so does the payment. This could potentially eliminate potential Owner/User purchases.
Lastly, we are almost into 2017 and arguably into a recovery since 2008 for over 8 years, depending on who you ask. Market cycles are usually 7-
10 years, so we may be due for another recession shortly. Evan the weatherman who constantly predicts rain is eventually right!
Deer Valley Metrics
The Deer Valley Industrial market continues to be a bright spot in the Valley. The average vacancy rate in the Valley Industrial market was 10.4%
with Deer Valley showing an overall vacancy of 7.7%. Rental rates throughout the Valley were $6.80 ($.57) PSF, while in Deer Valley they are
$9.03 ($.75). Velocity of sales picked up dramatically in Q2 of 2016 after a very slow start in the first quarter. The weighted average price per square
foot dropped from $103 PSF to $89 PSF as influenced by the sale of several larger portfolio transactions of multi-tenant investment buildings. The
average building in the Deer Valley Comparables traded in 2016 was $101 PSF, with a high of $145 PSF and a low of $49 PSF. (See pages 10/11
for details.) The average land value PSF was $6.25 with a high of $14.17 PSF and a low of $2.54. (See pages 12/13 for details.)
The next chapter in the cycle is that new buildings that have been built and leased are being brought to market as investment sales. Other developers
have jumped in the game and there are 3-7 new projects with new industrial space being announced. The industrial market is strong, but if I was
asked to guess I would say we are in the 7the inning in this ball game. Stay tuned for more next quarter!
Ian
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 3

4. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
PHOENIX INDUSTRIAL MARKET
PERSPECTIVE
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 4

5. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
PHOENIX INDUSTRIAL MARKET
PERSPECTIVE
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 5

6. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
NORTHWEST SUBMARKET
INDUSTRIAL
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 6

7. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
NORTHWEST SUBMARKET
INDUSTRIAL
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 7

8. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
DEER VALLEY INDUSTRIAL
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 8

9. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
DEER VALLEY INDUSTRIAL
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 9

10. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
DEER VALLEY INDUSTRIAL
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 10

11. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
DEER VALLEY INDUSTRIAL
BUILDINGS SOLD FIRST HALF 2016
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 11

12. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
DEER VALLEY INDUSTRIAL
BUILDINGS SOLD FIRST HALF 2016
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 12
# Sale Status Sale Date Quarter Property Address Sale Price Price Per SF Size
1 Sold 1/6/2016 1 21615 N 7th Ave $3,575,000 $101 35,318
2 Sold 1/29/2016 1 2340 W Parkside Ln, H-113/1st Floor (Part of Multi-Condo Sale)$443,175 $75 5,909
3 Sold 1/29/2016 1 23042 N 16th Ln $1,150,000 $107 10,792
4 Sold 2/1/2016 1 1070 E Lone Cactus Dr $1,537,560 $120 12,813
5 Sold 3/8/2016 2 24480 N 20th Dr $1,710,000 $145 11,782
6 Sold 4/1/2016 2 20813 N 19th Ave (Part of Portfolio) $12,940,000 $82 157,101
7 Sold 4/5/2016 2 23027 N 15th Ln, A/1st Floor $500,000 $111 4,500
8 Sold 4/18/2016 2 1515 W Deer Valley Rd, A-107/1st Floor $270,725 $101 2,690
9 Sold 4/25/2016 2 17453 N 25th Ave $1,715,000 $65 26,260
10 Sold 4/29/2016 2 2215 W Melinda Ln $1,045,000 $98 10,637
11 Sold 5/3/2016 2 22415 N 18th Dr $1,300,000 $106 12,243
12 Sold 5/11/2016 2 4235 W Opportunity Way, 104/1st Floor $405,000 $96 4,210
13 Sold 5/16/2016 2 2340 W Parkside Ln, H101-103/1st Floor $1,200,000 $119 10,095
14 Sold 5/20/2016 2 1950 E Deer Valley Rd $450,000 $49 9,200
15 Sold 5/24/2016 2 2010 W Parkside Ln $325,000 $116 2,812
16 Sold 5/26/2016 2 17855 N Black Canyon Hwy $2,000,000 $111 17,985
17 Sold 5/31/2016 2 1635 W Parkview Ln $850,000 $112 7,556
Sale Price Price Per SF Size
AVERAGE $1,848,027 $101 20,112
HIGH $12,940,000 $145 157,101
LOW $270,725 $49 2,690

13. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
DEER VALLEY INDUSTRIAL LAND
SOLD FIRST HALF OF 2016
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 13

14. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
DEER VALLEY INDUSTRIAL LAND
SOLD FIRST HALF OF 2016
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 14
# Sale Date Property Address Property City Zoning PSF Price Per AC Land Sale Price Land Area SF
1 1/29/2016 1402 W Victory Ln (Part of Multi-Property Sale)Phoenix CP/GCP 4.29$ 186,982$ 210,000$ 48,922
2 1/29/2016 1410 W Victory Ln (Part of Multi-Property Sale)Phoenix CP/ GCP 4.65$ 202,755$ 290,000$ 62,303
3 2/23/2016 1739 W Parkview Ln Phoenix R-43 5.05$ 219,971$ 1,075,000$ 212,877
4 3/15/2016 W Happy Valley Rd Phoenix C-2 14.17$ 617,284$ 500,000$ 35,283
5 3/31/2016 18 W Camino Del Rio Phoenix I-1 5.45$ 237,600$ 240,000$ 43,999
6 3/31/2016 500-650 E Pinnacle Peak Rd Phoenix I-1 5.50$ 239,643$ 2,950,000$ 536,223
7 3/31/2016 23742 N Central Ave Phoenix A-1/SP 2.54$ 110,512$ 4,100,000$ 1,616,076
8 4/27/2016 715 E Covey Ln Phoenix I-1 6.87$ 299,341$ 300,000$ 43,655
9 6/8/2016 SE 23rd Ave & Alameda Rd Phoenix A-1 7.30$ 318,182$ 7,000,000$ 958,320
10 6/24/2016 2147 W Adobe Dr Phoenix A-1 6.13$ 267,211$ 550,000$ 89,659
11 7/21/2016 23439 N 35th Dr Phoenix CP BP 5.49$ 239,156$ 290,000$ 52,820
12 7/27/2016 7th St Phoenix A-1 7.65$ 333,184$ 450,532$ 58,901
PSF Price Per AC Land Sale Price Land Area SF
AVERAGE 6.26$ 272,652$ 1,496,294$ 313,253
HIGH 14.17$ 617,284$ 7,000,000$ 1,616,076
LOW 2.54$ 110,512$ 210,000$ 35,283

15. 2150 East Highland Ave. #207
Phoenix, 85016
602-955 3500
WWW.CutlerCommercial.com
All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice and to any special listings conditions, including
the rate and manner of payment of commissions for particular offerings imposed by principals or agreed to by the company, the terms of which are available to interested principals or brokers. All dimensions are approximate. Owner and/or Broker
make no representations expressed or implied as to the accuracy of floor plan/site plan dimensions.
Prepared By:
Ian P. Turner, MRED
Associate Broker, Cutler Commercial
CONTACT INFO
EMAIL:
Iturner@CultlerCommercial.com
Cell Phone: 602 324 9111
Direct: 602 386 1245
Website:
WWW.IanPTurner.com
FOCUSES ON:
*Tenant Representation
*Buyer Representation
*Landlord
Representation
DEER VALLEY BY THE NUMBERS MID-YEAR 2016 15
Methodology and Source
All information is downloaded from CoStar. It is then
filtered, sorted, manipulated and analyzed in Excel.
The goal is to provide a quarterly perspective of how
the Deer Valley Industrial Market is performing.
If you have questions or comments or want the
latest info, please call Ian: