Palisades Capital Realty Advisors is another firm hot on the 'burbs. It recently snapped up Chandler Corporate Center I for $14M, another buy in which replacement cost was a factor, according to Joaquin de Monet. The 68k SF office property in (where else) Chandler hit $207/SF, a huge number for suburban office. It was brokered by JLL's Dennis Desmond for the seller, Held Properties.

It was also significantly below pricing Joaquin's seen for projects on Ray Road and the 101. This is Palisades' first buy into the Phoenix market, but Joaquin says it won't be the last. “We're exploring some adjacent properties and touring at least one more in the next couple of weeks,” he says. He adds that Palisades likes Phoenix because of the fundamentals, especially the growth in technology, healthcare, and education. Plus, he adds, there's a very educated labor pool and the city's affordable. (The Super Bowl will be here soon, to boot.)