Commercial Real Estate & Business News – April 29, 2016

Tenant interest in suburban office space is finally ramping up, with many suburban office markets starting to see gains in net absorption, occupancy and rental rates after watching their urban counterparts enjoy steady gains over the past several years. While it may be premature to pronounce a full comeback, suburban markets showed the largest increases in year-over-year demand on both a square-foot and percentage growth basis... Read more »
Four years of planning, developing and building support for an artist community in downtown Mesa is nearing fruition. The planned ArtSpace Mesa, on vacant land on Hibbert Street between First and Second streets, is intended to bring local artists together to live and create in a talented community. ArtSpace Mesa is to include 50 apartments complete with artist studios. One-, two- and three-bedroom apartments are planned and rent will range from $385 to $830 a month... Read more »
A Las Vegas developer wants to build a $64.5 million new apartment complex in Tempe near Arizona State University. Nevada-based Fore Property Co. has plans for a 423-unit multifamily development on 13.2 acres parcel next to the McClintock/Apache Boulevard Metro light rail station... Read more »
Despite federal banking regulators voicing concerns over commercial real estate loan concentrations and market distress over global macro-economic uncertainty and collapsed energy prices, the nation’s banks seem to have continued to step up their CRE lending in the first quarter. Based on interviews and remarks in first quarter earnings conference calls, bank executives reported continued confidence in growing their CRE loan portfolios at more moderate rate... Read more »
The average cap rate for retail properties nationwide moved up by 11 basis points between the fourth quarter of 2015 and the first quarter 2016, to 6.59 percent, according to a recent report from commercial real estate services firm CBRE. Still, the figure represented a 13 basis points decrease year-over-year. Retail properties located in Eastern U.S. experienced the biggest quarter-over-quarter jump in cap rates, by 16 basis points to 6.29 percent...Read more »

Commercial Real Estate & Business News – April 28, 2016

Housing remains the bright spot in a darkening economic outlook according to Freddie Mac's economists. Though they have revised their forecast for economic growth downward in the latest edition of the company's Outlook they are still forecasting housing will retain its momentum in 2016. First quarter data painted "a bleak picture" of economic growth the report says. Information on consumer spending, manufacturing, auto and retail sales...Read more »
Earlier this year, we shared news that Sam Fox would be opening a brand-new concept in the Valley, off 44th Street and Indian School Road. And though the details of that concept are still unclear, we now know a bit more about the upcoming shopping center the restaurant will sit in, as well as who its neighbors will be... Read more »
Millennials, often burdened with student loan debt and at the early stages of their careers, often choose to rent over buying. But now that Bank of America has launched a program with Freddie Mac to issue new mortgages for low- and middle-income earners, could the homeownership program help reverse the Millennial rental trend—and eat into multifamily profits? First, let’s take a quick look at what exactly the mortgage program does... Read more »
he Southeast Regional Association of REALTORS (SEVRAR), the largest realty association in Arizona, has purchased a 3.1 acre site for its office headquarters at Chandler Airport Center. The site was purchased for a build-to-suit office and conference facility, and the project has an expected completion date of early 2018...Read more »
With a proud history of revitalizing retail centers, De Rito Partners Development, Inc. is excited to announce the ongoing redevelopment and re-tenant efforts at Arcadia Fiesta, located at the southwest corner of 32nd Street and Indian School Road in Phoenix. “The new center will bring a fresh and newly upgraded shopping experience to this neighborhood... Read more »

Commercial Real Estate & Business News – April 27, 2016

For the last few years, the multifamily asset class has been the top performer of all property types, delivering a per-unit revenue (market rent x occupancy) growth rate of 4.8 percent in 2015. Some markets clearly outperformed others. These included Portland, Ore., San Francisco, Oakland, Calif. and Sacramento, Calif., all of which saw per-unit revenue growth rates above 7.5 percent last year. But there is much concern that developers have been adding too much inventory, flooding some markets with new supply. This will inevitably raise vacancy rates...Read more »
Returns on commercial real estate continued moderating in the first quarter, the National Council of Real Estate Investment Fiduciaries said Monday afternoon. However, Chicago-based NCREIF noted that while returns were weaker in Q1, CRE fundamentals remained solid, while investment sales volume on properties within the NCREIF universe was up by double digits year over year. For Q1, the total return on the NCREIF Property Index was 2.21%, down... Read more »
Intel Corp. has reported 560 worker layoffs at the semiconductor company's Chandler operations. The job cuts will happen at two Intel campuses in Chandler, according to written notifications from the company. Intel will layoff 248 workers from its Dobson Road location and another 312 from its Chandler Boulevard campus... Read more »
Nearly five months after tourism officials began urging Mesa to pursue a state-of-the-art sports and tournament complex, council members are still split over whether to put the $56 million facility on the November ballot — and time is running out. The proposal for the dual-stadium, indoor-outdoor complex — which would have 24 fields, 8,000 seats and a 110,000-square-foot field house — has attracted regional support since the concept was presented in December... Read more »
It's pretty safe to say that the restaurant business in the United States is about as healthy as it's ever been. According to a Bloomberg report, March 2015 marked the first time since data began being collected by the U.S. Commerce Department in 1992 that Americans spent more eating out at bars and restaurants than on purchasing groceries in stores and supermarkets... Read more »

Commercial Real Estate & Business News – April 26, 2016

Students are quickly signing leases to live at off-campus student housing communities when the new academic year starts this fall, pushing rents higher despite competition from the thousands of new student housing beds that developers plan to deliver. “Pre-leasing is ahead of last year at this time,” says Kenny Emson, senior vice president of finance and administration for the National Multifamily Housing Council... Read more »
A 100,000-square-foot flex industrial building is going up at the corner of Gilbert and Queen Creek Roads. The flex industrial concept is unique in that it allows a mix of uses within the same tenant space such as retail or a showroom in the same building as office, R&D, a lab, a call center or distribution or manufacturing uses. Construction is expected to begin in July with completion in first quarter 2017, according to developer, The Rockefeller Group... Read more »
Old Town Scottsdale is getting another new restaurant concept. Farm + Craft is opening in June at the former Stingray Sushi at 4302 N. Scottsdale Road, under the ownership of Riot Hospitality Group, which owns popular Old Town bars Hefe and Dierks Bentley’s Whiskey Row. The new concept will be fast-casual, offering dining options throughout the day, with full service in the evenings. Farm + Craft is heavily focused on healthy eating...Read more »
The urban cluster of high-density housing, offices and retail shops emerging in north Scottsdale could soon take another leap forward with about 1,000 condos or apartments proposed by two developers. Both would rank among the area's largest residential complexes while adding an array of new stores and restaurants near Scottsdale Quarter, Kierland Commons and the Scottsdale Airpark, one of metro Phoenix's largest employment centers...Read more »
Scottsdale will have its second Postino WineCafe next week. The seventh Postino in the Valley — dubbed Postino Highland — will open Wednesday, May 4 in the former Valley National Bank at 4821 N. Scottsdale Road. Upward Projects, the Phoenix-based group behind Postino and other notable eateries such as Windsor and Joyride Tacos, had been eyeing the building for some time... Read more »

Commercial Real Estate & Business News – April 25, 2016

With little fanfare, Arizona in recent months finally closed the books on the recession, with statewide employment now higher than it was prior to the downturn. Arizona’s largest non-government employers are doing their part, gradually boosting their job totals... Read more »
The Greater Phoenix office market got off to a steady start during the first quarter. Net absorption was positive, vacancies ticked lower and rents rose. Further strengthening is likely in the months ahead, as employers continue to expand payrolls. Employers added more than 70,000 new jobs in 2015—the strongest calendar year of growth since 2005—and similar gains are forecast for 2016 and 2017... Read more »
Large national lenders will remain active in the larger metro markets, and regional and local lenders will remain the option for small metros, MetroGroup Realty Finance’s founder Patrick Ward tells As we head further into Q2, we spoke exclusively with Ward about financing for the commercial real estate sector and what to anticipate for the rest of the quarter and the remainder of the year... Read more »
A Las Vegas developer wants to turn land near the Westgate Entertainment District, University of Phoenix Stadium and a new casino into a 340-unit apartment development. Vegas-based Fore Property Co. wants to get the land rezoned and develop apartments on parcels that are still used as farmland on occasion... Read more »
Edison Midtown, a new Midtown Phoenix condominium tower by Scottsdale-based developer Deco Communities is blazing ahead with construction to meet the growing demand from all over the Valley for new for-sale residential in Midtown Phoenix. With dozens of buyers already lined up to move in, the project is on track for an early spring 2017 completion. “There is an incredible burst of energy happening in the Midtown neighborhood right now,”...Read more »
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