Commercial Real Estate & Business News – October 21, 2016


Housing remains a bright spot for the economy in October. It's not a statement you expect to hear as we look at the rising home prices and dwindling inventory, but it's exactly what Freddie Mac stated today in its monthly Outlook for October. Consumer spending will boost a better half in 2016 for gross domestic product leading to an annual growth of 1.6%, according to the report. Growth in 2017 will be slightly better at 1.9%...»

On Thursday, Walls said the state's seasonally adjusted unemployment rate for September was 5.5 percent, back to where it was in April before the rate spiked. Overall, private sector employment last month increased by just 3,800 workers. But the jobless rate declined at least in part because of 28,900 new government workers, mainly employees of state and local colleges and schools returning after the summer recess...»
The basic economic rule of supply and demand is in full effect as experts agree the Phoenix metropolitan housing market continues its steady pace of home valuation increases, new home builds and rising rents. As the Phoenix area continues to join the ranks of American municipalities seeing a significant influx of multifamily housing - from top-tier development to run-of-the-mill housing stock - Realtors, agents and evaluators agree: no new housing bubble is forming...»
A once-shuttered hotel near Roosevelt Row will reopen next week with arts-focused accommodations that developers say will transform the downtown Phoenix corner where the building has sat since the 1970s...»

A fast-casual teriyaki restaurant chain has inked a new franchise deal to expand in the Phoenix market. Denver-based Teriyaki Madness has plans to add 20 restaurants in the Valley as part of its largest-ever franchise agreement...»

Commercial Real Estate & Business News – October 20, 2016

Consumer spending in the U.S. has been growing by about 3 percent year-over-year, which is weak by historical standards when the country is not in a recession. However, the risks going forward are weighted to the upside, says Moody's Senior Director Scott Hoyt...»

Pension funds have been following a clear path of increasing allocations to real estate over the past several years. Despite signs of a maturing market cycle, it appears that most institutions are likely to maintain that same course in 2017...»

Total U.S. housing starts for the 12 months ending in August fell from the levels of one month earlier and were flat compared to one year earlier, according to the U.S. Census Bureau. And, while multifamily starts increased from a year ago, the number of multifamily permits issued decreased, perhaps signaling a slowdown from the peak levels of apartment construction seen over the past two years...»

On the outside, projects such as Westgate, SkySong and Cityscape look like a developer's dream playground; having everything from eateries to hotels to office space and a lot of acreage to work with. Often, however, getting to the end result of a mega development can be a complicated and tangled web woven between the developer, the banks and the future tenants...»

A prominent corner in the Roosevelt Row arts district could be transformed into a multistory office, retail and restaurant complex that would incorporate the area's signature bungalows and a longtime commercial building. Desert Viking Development on Wednesday announced plans for the Blocks of Roosevelt Row on Roosevelt Street between Fifth and Sixth streets. The downtown Phoenix site includes three bungalows from the early 1900s as well the building that houses Flowers Craft Beer and Wine...»

Commercial Real Estate & Business News – October 19, 2016

U.S. commercial real estate prices have reached new highs, but the sector is a much safer place today than it was before the 2008 financial crisis...»
Banks lenders originated more than a third-38 percent-of all permanent apartment loans in the first half of 2016. That's not far behind the share of apartment loans made by agency lenders, including Fannie Mae and Freddie Mac, which have been the dominant source of lending on stabilized apartment properties since 2012...»

On the whole, this data constitutes a bit of modest good news for industrial real estate, especially those properties that handle U.S.-produced goods slated for export. Domestic manufacturing has taken a hit in recent years, particularly as the dollar has grown strong, and demand from markets like China, whose goods move through West Coast industrial markets, has grown weaker...»

Overall, the most important issue for respondents was improving Arizona's economy with an average respondent score of 9. That was followed closely by improving the state's education system, protecting the U.S. from terrorism, reducing the national debt and providing more funding for wounded veterans...»

Another one of the Valley's most successful homegrown software companies is relocating its headquarters from Scottsdale to Downtown Phoenix. Integrate, a leading developer of marketing software has leased the entire 19th floor Penthouse Level of 111 West Monroe, advancing a trend of both established technology companies and entrepreneurial start-ups leasing space in the building...»

Commercial Real Estate & Business News – October 18, 2016

Office occupancy and absorption rates both remained high in the third quarter, as job growth continued to improve and companies took more risks on new leases, according to experts...»

Rental property owners in Phoenix will find a city where the population has grown by about 7.77 percent from 2010 to 2015. The median home value in Phoenix increased by a solid 10.1 percent. Also key for increasing the number of renters: Employment growth in the city is a solid 3.6 percent...»

Residential rents across the United States are forecasted to rise 1.7% over the next year, the same rate of appreciation as the past 12 months, according to the latest real estate analysis report...»

New housing and workplace offerings are in the works as part of the ongoing renovation of Metrocenter Mall in Phoenix. The Walmart Supercenter at Metrocenter Mall is under construction, on its way to a summer 2017 completion, and Carlyle Development Group is already moving forward on the next phase of reinventing Metrocenter Mall...»
The Phoenix area's apartment boom has been very good for Mark-Taylor Inc., the multifamily housing developer/operator that has been No. 1 on the Phoenix Business Journal's Commercial Real Estate Developers list since 2012...»

Commercial Real Estate & Business News – October 17, 2016

Both physical and nonstore retail sales are up for the year, with e-commerce continuing its decade-long pattern of growth. U.S. retail and food services sales for September surged upward for the month by 0.6 percent compared with August, the Census Bureau reported on Friday. Compared with September 2015, sales were up 2.7 percent, and sales for the third quarter of 2016 (July through September) were up 2.4 percent compared with third-quarter 2015...»

Office occupancy and absorption rates both remained high in the third quarter, as job growth continued to improve and companies took more risks on new leases, according to experts...»
LaPour Partners Inc. has teamed up with Holualoa Arizona Inc. to develop a $75 million office-hotel project at the southeast corner of 28th Street and Camelback Road in the Biltmore area of central Phoenix...»
REIS's newly released data on apartment vacancy, absorption, consumption, supply and demand, and rent trends show some softening in the rent market in the third quarter of 2016. High construction levels and weak economic conditions in the beginning of the year have predicated this deceleration, according to REIS economist Barbara Denham...»

A joint venture formed by NexPoint Residential Trust Inc. and BH Equities LLC paid $44.6 million ($107,470 per unit) to buy The Colonnade, a 415-unit apartment project at 1930 E. Camelback Road in Phoenix. The sellers were eight tenant-in-common (TIC) investors headed by MCS Capital Partners LLC...»

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