Commercial Real Estate & Business News – January 24, 2017

For the consecutive second quarter, apartment conditions as measured by the National Multifamily Housing Council's quarterly survey showed signs of ebbing. All four indexes in the survey remained below the break-even level of 50, and two of those indexes retreated considerably from the previous quarter. ...»
The Greater Phoenix office real estate market finished 2016 with positive momentum, despite year-end reports of slowing job growth. The market vacancy rate dropped to 16 percent, the lowest figure seen since 2008....»

Reeling from a shaky holiday season and slowing mall traffic, U.S. retailers are facing increasing pressure to close stores as more of their business migrates to the internet. More than 10 percent of U.S. retail space, or nearly 1 billion square feet, may need to be closed, converted to other uses or renegotiated for lower rent in coming years...»

A stalled luxury condominium development on one of central Scottsdale's prime corners is being revived with a plan for 500 homes. Meritage Homes is partnering with iStar Inc. to develop the Artesia project on the northeast corner of Scottsdale and Indian Bend roads, the site of the former Radisson Resort...»
Arizona's unemployment rate ended 2016 at 4.8 percent. That is the lowest since the recession. But the state created a less than robust 33,100 private sector jobs between December 2015 and December 2016, according to state economists at the Arizona Department of Administration....»

Commercial Real Estate & Business News – January 23, 2017

Commercial real estate has had an almost uninterrupted run of increasing values since bottoming in the wake of the global financial crisis in 2010. Acquisition yields have persisted at historical lows for several quarters, and many question how long the asset class can remain priced to perfection...»

The American Institute of Architects' Architecture Billings Index (ABI) reflected a sizable and unexpected increase in demand for architects' design services in December, the organization reported this week. The December ABI score was 55.9, compared with 50.9 in November...»


Home prices in the United States ended 2016 up 6.8%, growing at their fastest pace of the year compared with the end of 2015, the latest index shows...»

For the first time in a few years, multifamily wasn't "the belle of the ball." Instead most of the excitement was for the industrial and office markets in the Valley...»

In an acquisition that expands its Valley retail portfolio by almost 250,000 sq. ft., CIRE Partners LLC has acquired the Park West shopping center in Peoria. The 46.025-acre lifestyle center is located just west of the 101 Loop at the northeast corner of 99th and Northern Avenues. The privately-owned investment firm paid $33.45 million ($134.24 per foot) to buy the 249,177-square-foot retail plaza and an 18-acre parcel of land located north and east of the shopping center...»

Commercial Real Estate & Business News – January 20, 2017

The financing market has demonstrated tremendous growth and robust activity this past year. According to a report by the Mortgage Bankers Association, over $500 billion in commercial real estate loans were originated this past year, indicating a strong financial landscape for lending....»
An affiliate of Starwood Capital Group has agreed to buy Milestone Apartments Real Estate Investment Trust (TSX: MST.UN) and its more than 24,000 US apartment units in a cash-for-stock transaction valued at approximately $2.85 billion. The Connecticut-based Starwood headed by noted real estate investor Barry Sternlicht will acquire all of Milestone's subsidiaries...»
This holiday shopping season seemed to be a decent one for the retail sector, with the Thomson Reuters Same-Store Sales Index posting a 2.4 percent increase for December, above expectations. Healthy same-store sales growth notwithstanding, there is a storm passing over the retail sector. Going into the New Year, Macy's, Sears, Kmart and Kohl's among department stores, all announced...»
Interest rates are on the march, or at least the crawl. Rates generally have been rising for the past half year, though not yet in a big way - and from historically low levels. Economic growth isn't robust enough, or inflation warm enough, to justify big rate increases any time soon. Still, the impact from rising rates is starting to be felt. ...»
Younan Properties, Inc., an international commercial real estate investment, and asset management company continued its expansion in Arizona with the acquisition of Warner Crossing in Tempe AZ. Zaya S. Younan, Chairman and CEO of Younan Properties commented on this latest transaction. "Because of our financial resources and reputation as an experienced owner and manager, we can respond quickly to opportunities like Warner Crossing. We have high expectations for the Phoenix metro going forward....»

Commercial Real Estate & Business News – January 19, 2017


The Moody's/RCA national all-property CPPI rose by 1.4 percent in November compared to October, the firms' researchers report. Over a three-month period, the index went up 3.0 percent. Suburban office buildings experienced the most significant month-over-month increase in prices, at 2.6 percent, followed by office properties in general, at 2.1 percent. Retail assets saw the least movement in prices, at 0.1 percent (prices in the sector also fell 0.4 percent over a three-month period)...»

If 2016 taught us anything, it's that nothing is certain. The past year came with its share of surprises-the results of the Brexit vote and the U.S. presidential election, to name just a couple-creating global economic uncertainty across industries. The real estate sector was no exception. Many investors took a more cautious approach, with real estate transaction volume down in each of the first three quarters of 2016, according to Real Capital Analytics Inc., following a record year of deals in 2015...»

This January, Arizona has taken two major steps toward embracing the peer-to-peer "sharing economy". First, on January 1, 2017 a new law took effect which, among other things, prohibits municipalities and cities from banning people from listing short-term rentals on sites like Airbnb and VRBO. Second, the Arizona Department of Revenue began a partnership with Airbnb that will provide for the streamlining of tax payments to the state...»

Sales of new and existing homes totaled 115,837 in 2016, according to RL Brown Housing Reports. The Scottsdale real estate research firm says that is the best year for housing in the roller coaster Phoenix market since 2006...»

7 ideas for 2017: Valley economist Elliott Pollack looks at what President-elect Donald Trump's tax plan may mean for our jobs and wallets.  There are reasons to be hopeful about the jobs and economic growth 2017 may bring.  After years of lackluster recovery from the Great Recession, President-elect Donald Trump's policies may move the needle - if handled well...»

Commercial Real Estate & Business News – January 18, 2017

Where are the best tech jobs? Jason Nazar, an Entrepreneur in Residence for the City of Los Angeles and creator of the upcoming TechFairLA, offers his take on where the best jobs in tech are. His list includes Austin, Texas, Boulder, Colorado, Phoenix and La La Land, and he tells why on an episode of the #TalkingTech podcast...»

Bioscience and medical sectors remain strong with dozens of projects occurring across the Valley. The transition in healthcare to a "well care" system instead of "sick care" model is accompanied by a goal to make healthcare faster, more convenient and accessible by developing more clinics, urgent cares and outpatient facilities...»

Industrial vacancy rates returned to single digits for the first time since the third quarter of 2007 and the Valley's market is expected to remain hot. Cushman & Wakefield reports overall asking rent rates in the Phoenix Metro reached its highest rate of $0.56 since Q3 2009. According to the same report, 15 of the 17 defined submarkets have experienced improvements in overall vacancy rates since Q3 2015....»

Alliance Residential Co. in Phoenix plans to develop a 200-unit luxury apartment complex at the northeast corner of Third Avenue and Osborn Road in midtown Phoenix. A joint venture entity formed by Alliance Residential paid $6 million ($56.96 per foot) to buy the 2.4 acre site, which is now occupied by two buildings that were built in the late 1950's. The seller was 240 Osborn LLC, formed by NOVO Development LLC in Scottsdale (Kurt Rosene, manager) and investor Jacob Long of Phoenix. Alliance Residential is developing the upscale apartment community in joint venture with Appian Capital LLC. The project is being called Broadstone Midtown...»

A debt-negotiation company in Tempe hopes to hire 1,000 more workers this year as it plans to develop a campus to consolidate its rapid growth. Freedom Financial Network, which has expanded rapidly in little more than a decade. The company already employs about 1,260 people in four buildings scattered near Baseline Road and Interstate 10...»

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