One of Arizona's largest commercial developers, Opus West, announced today that it will be filing bankruptcy within the next two weeks. Opus South and Opus East - two of its five regional affiliates - have already filed for bankruptcy. As the bottom falls out of the Arizona commercial real estate market in the second half of this year, I would expect more big names to fall.
Fortunately, there are some very large players sitting on the sidelines with opportunity funds ready to scoop up prime commercial properties at distressed prices. This should eventually help form a bottom to falling commercial real estate prices. But the real bottom will only come when enough new businesses enter the market to fill the large overhang of available commercial space in the market today. And right now, it is hard to see where those businesses are going to come from in Arizona.
Fortunately, there are some very large players sitting on the sidelines with opportunity funds ready to scoop up prime commercial properties at distressed prices. This should eventually help form a bottom to falling commercial real estate prices. But the real bottom will only come when enough new businesses enter the market to fill the large overhang of available commercial space in the market today. And right now, it is hard to see where those businesses are going to come from in Arizona.
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