Commercial Real Estate & Business News – November 25, 2015

More than 7 in 10 Americans (71 percent) plan to stock up on holiday gifts and merchandise over Thanksgiving weekend (Thursday-Sunday), according to the International Council of Shopping Centers (ICSC) Black FridayShopping Study... Read more »
Generalist investors in the public market are selling their dividend stocks because of fears of interest rate increases, Schaevitz noted. As a result, REITs are likely to continue to trade at a discount to NAV, which Schaevitz said creates a lot of targets for privatizations. Schaevitz added that the discount to NAV is necessary for these go-private transactions to occur because it compensates for the expenses of paying a premium for the shares and transaction costs... Read more »
As the healthcare industry adjusts to a new mode of service delivery, the effects of the Affordable Care Act, and the growth of the 65-plus demographic — traditionally the largest users of healthcare services — the medical office building niche is adjusting as well. As of midyear, $11.9 billion in healthcare real estate easily surpassed 2014’s final total of $9.8 billion, with real estate investment trusts and institutional investors responsible for almost half of the volume, according to Real Capital Analytics. Private equity accounts for about 40 percent of transactions, while owners and occupiers traded about 13 percent of deals... Read more »
Legacy shopping malls turn 60 this year, and if the covered, indoor shopping centers don't change, they face extinction in the new marketplace. That's the consensus of four Valley retail center owners and an economic development leader who say there's a renaissance of regional and local shopping coming. The five experts were part of a Valley Partnership panel discussion on the future of retail shopping centers... Read more »
Bob Parsons (YAM Properties) purchased the "Village Center" community shopping center at the northwest corner of Paradise Village Parkway and Cactus Road on Friday. The cash-only transaction totaled $24.8 million, or $156 per square foot. The asset was sold by a partnership between Walton Street Capital and Phillips Edison & Company... Read more »

Commercial Real Estate & Business News – November 24, 2015

New home permits taken out by home builders for Phoenix-area construction were up almost 77 percent in October compared to a year ago and are up more than 46 percent year-to-date versus 2014. But the volume of new home sales, while up, is not at the same robust pace, according to the latest numbers from the RL Brown Housing Reports... Read more »
The city of Phoenix has picked a condominium development proposal in its latest bid to redevelop the Barrister Place Building in downtown Phoenix. The building was long home to the Jefferson Hotel and was featured in Alfred Hitchcock’s 1960 movie “Psycho"... Read more »
Enviable demographics and a few key amenities have helped south-central Mesa quietly catch the eyes of deep-pocketed developers, prompting a recent surge of investment that will likely top $200 million. Proposed projects range from small-scale infill developments to lavish housing complexes — all welcome in District 2, a sector oft overlooked in favor of downtown's storied history or the Phoenix-Mesa Gateway area's tech-heavy allure...Read more »
LA Fitness announced that it has acquired all 11 of the 24 Hour Fitness clubs in Arizona. LA Fitness has been part of Arizona since 1993, and in an industry often associated with fad and fashion, it has steadily increased its presence by focusing on the one lifelong benefit valued by everyone: good health. All membership agreements acquired, and the related personal training services and other amenities agreements will be honored...Read more »
The Standard, a boutique-style living experience located next to Hotel Valley Ho is Old Town Scottsdale’s newest resident. The 134-unit apartment community will offer eight unique floor plans with one-, two- and three-bedroom apartment and penthouse homes ranging in size from 650 to 1,750 square feet. Dallas-based Trinsic Residential Group is developing The Standard, which will be its first project to be completed in Arizona. P.B. Bell will serve as the property management company... Read more »

Commercial Real Estate & Business News – November 23, 2015

Retail, Office Loans Lead Surge in Originations

Third quarter 2015 commercial and multifamily mortgage loan originations were 12% higher than during the same period last year and 3% higher than the second quarter of 2015, according to the Mortgage Bankers Association. Increases in originations for retail and office properties led the overall increase in commercial/multifamily lending volumes when compared to the third quarter of 2015... Read more »

Foreign Investors View U.S. Industrial Portfolios as Solid Buy

Industrial properties, typically a sector ignored by foreign investors due to comparatively low lease rates and locations far away from urban centers, have now become a desired asset class for such buyers, including foreign pension funds and sovereign wealth funds, experts say... Read more »

Phoenix Wage Growth Tops National Rate

Phoenix area wages grew faster during the summer months than they did in the U.S. as a whole and also topped most major metro areas, federal data shows. That's welcome news for workers after years of subpar growth for wages that typically are below average in the first place. As of September, wages in the Phoenix area grew 2.7 percent compared with the same period a year ago, according to the Employment Cost Index for the U.S. Bureau of Labor Statistics. That gain ranked fourth among the 15 metro areas tracked as part of the index and topped the 2.1 percent increase seen nationally... Read more »

New ‘Row’ Project Promises a More Vibrant Downtown

Chandler’s burgeoning downtown is about to get another eye-popping addition to its environs: a project its planners envision as becoming “the heart and soul” of a mixed-use development already approved for the area. The Row, as it will be known, is scheduled for construction to get underway later this year. Led by Vintage Partners, a Phoenix-based commercial real estate development and investment company, the project will be undertaken in partnership with the city of Chandler, which sees the project as being a major draw to the city’s downtown entertainment district... Read more »

Paradise Valley Corporate Center Conveys for over $37 Million

The four-story Paradise Valley Corporate Center office complex sold Tuesday to an investment entity managed by Buchanan Street Partners. The sale totaled $37.4 million, or $188 per square foot. This was a cash-only transaction... Read more »

Commercial Real Estate & Business News – November 20, 2015

Despite Another Strong Quarter, Questions Ahead for Some REITs

So far, 2015 has been a noteworthy year for the apartment REITs. Two longtime public companies, Home Properties and Associated Estates, were sold. And Equity Residential announced it was selling 23,262 apartment units to Starwood. With those transactions in the background, dispositions were obviously at the forefront of the recent earnings calls. But that wasn’t the only theme. Here’s a look at the main trends coming out of third-quarter earnings.. Read more »

Foodie Culture Influences Restaurant Tenant Mix at Retail Centers

Many countries are known for their sophisticated palates—France, Italy, Spain—but the United States has never been one of them...until now. Finally, the food culture in America has evolved to the point that foodies have significant influence over the tenant mix at most shopping centers... Read more »

Brisk Job Growth Drops Arizona Unemployment Rate

Retail employers led brisk job growth in Arizona in October, helping bring down the unemployment rate and move the Phoenix area nearly back to pre-recession workforce levels. The state gained a net 33,800 jobs last month, well ahead of the nearly 24,000 it has averaged in October since the Great Recession ended in 2009. The hiring boost dropped Arizona's unemployment rate to 6.1 percent from 6.3 percent . Even so, the state remains well behind the nation's 5 percent... Read more »

Why Shopping Centers Promote Lifestyle Events to Compete (or Collaborate) with Online Retailers

According to a survey from the National Retail Federation, almost 60 percent of those who celebrate holidays have already begun their shopping in early November. But brick-and-mortar shops have had serious competition for the last decade from online retailers, namely Amazon, who is now one of the world's 10 largest companies by stock market value, since shares have doubled in 2015... Read more »

Condo Comeback? New Projects Start Up in Ahwatukee, Midtown, Scottsdale

The condo market got creamed in the last real estate crash. But now there are a number of new projects hitting the market or under construction as developers, financiers and even a prominent home builder look to the multifamily market... Read more »

Commercial Real Estate & Business News – November 19, 2015

Why Forbes Projects Arizona to Lead U.S. in Job Growth

Forbes Magazine has named Arizona the best state for future job growth, but one local economic expert said the distinction does come with some caveats. The magazine in October used forecasts from Moody’s Analytics to call Arizona one of the “brighter spots in a slumbering U.S. economy thanks in part to renewed migration.” The Moody’s report projected a job growth rate of 3.1 percent through 2019... Read more »

Dignity Health, Kindred Break Ground on $25M Rehab Hospital in Chandler

Dignity Health and Kindred Healthcare Inc. broke ground today on a $25 million rehabilitation hospital in Chandler. The 58,000-square-foot hospital — to be called Dignity Health East Valley Rehabilitation Hospital — is scheduled to open in 2016 at 1515 W. Chandler Blvd... Read more »

New Projects Add Fuel to Investment Market

Property fundamentals continue to improve across Greater Phoenix, supporting increased appetite for investment across the four key sectors. Investment activity in Greater Phoenix was generally fairly flat from the second quarter to the third quarter, as fundamentals for most property segments are generally improving... Read more »

Student Housing Continues to Be a Strong Player in Multifamily

Old-school, standard dorm-style living no longer makes the cut for today’s university students. Millennials, by nature, are social and tech-savvy creatures, but when you add a strong focus on academics and a looming competitive job market into the mix, student housing becomes a unique and targeted sector of the multifamily industry, and one that's quickly gaining momentum. Emerging only two decades ago as a market that was lacking attention, today’s student housing has transformed into a core real estate asset that answers the very specific needs of a niche rentership through well-designed projects... Read more »

Will Property Prices Bull or Bear in 2016?

Optimism regarding commercial property values has been entirely warranted over the past six years. Amid a backdrop of solid fundamentals, minimal supply concerns, very low interest rates and a flood of capital into U.S. property markets, values have doubled since the recovery commenced in 2009... Read more »

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