Commercial Real Estate & Business News – April 18, 2014

Construction is under way on Hayden Ferry III, a 261,000 square foot, Class A development in the Tempe submarket of Phoenix. Hayden Ferry III will be the final phase in Parkway Property’s 780,000 square foot master planned office community. The 10-story property will be located along the south shore of Tempe Town Lake, offering waterfront views and accessibility to the Mill Avenue entertainment district and light rail system…Read more »
The 17/Union Hills Business Center, a two-building, 113,880 SF industrial and showroom project is expected to break ground May 2014 at 2350-2400 West Union Hills Drive in Phoenix. The multi-tenant project consisting of 61,320 SF and 52,560 SF buildings will feature 24’ clear height, dock and grade level loading, ESFR fire protection and fenced truck courts. Space availabilities begin at 4,755 SF. Each suite will offer at least one dock door and one grade level door, with many of the suites offering multiple dock doors per bay… Read more »
A venture formed by Trinsic Residential Group plans to develop a 220-unit apartment complex on a infill site in central Phoenix. The multi-family community is targeted for a 7-acre site that wraps the northwest corner of 20th Street and Indian School Road. The Trinsic venture is assembling the land from three sellers in deals that will total nearly $6 million… Read more »
Arizona employers added 15,600 net jobs in March, but it wasn’t enough to budge the state’s 7.3 percent unemployment rate. The private sector added more than 17,000 jobs, but government losses again erased some of the gains. The flat unemployment rate mirrored the national pattern, where the jobless rate remained stuck at 6.7 percent. A year ago, Arizona’s unemployment rate stood at 8.0 percent… Read more »
The fastest growing sector among real estate investors is the net lease market. Yes, good old boring single-tenant, investment-grade buildings. With the upside pretty much capped, it never garnered too much attention outside of 1031 exchange investors and stodgy institutions. However, that has changed dramatically. With bond yields at record lows over the past three years, net lease buildings have gained favor as alternatives to fixed-income investments by providing steady returns while maintaining low risk… Read more »

Commercial Real Estate & Business News – April 17, 2014

Price Momentum Continues to Build for Commercial Real Estate

Based on an analysis of 1,028 repeat sales in February 2014 and more than 125,000 repeat sales since 1996, the CCRSI found commercial real estate prices registered broad gains during that month. The two broadest measures of aggregate pricing for commercial properties within the CCRSI-the value-weighted U.S. Composite Index and the equal-weighted U.S. Composite Index-gained 1.1% and 1.7%, both reached double-digit growth over the previous 12-month period… Read more »

In Many Cities, Rent is Rising Out of Reach of Middle Class

The strain is not limited to the usual high-cost cities like New York and San Francisco. An analysis found 90 cities where the medial rent – not including utilities – was more than 30 percent of the median gross income… Read more »

Look for Continuing Moderate Growth in Phoenix’s Apartment Market

The first few months of the year are an important period for the apartment sector in Phoenix, as the metro’s biggest block of quarterly demand normally registers in the January-March time span. That emphasis on 1Q’s leasing volume is a notable difference between this market and most others, as the 2Q and 3Q periods are the peak apartment leasing times throughout most locales. So how did Phoenix do during the initial three months of 2014?… Read more »

SunCap Acquires Chandler Land Planned For FedEx Distribution Center

April 16th, 2014 — A 47.911-acre parcel of vacant agricultural land at the northwest corner of Gilbert and Queen Creek Roads was sold for $12,522,123 or $6 per square foot. The seller, The Rockefeller Group, acquired the property as part of a larger tract totaling 76.9628 acres in August of 2006 for $21,445,024 or $6.40 per square foot. Rockefeller had planned to develop the site into Chandler Crossroads, an 866,000-square-foot business park. The parcel was split into the subject property and a 24.52-acre piece retained by Rockefeller pursuant to an April 11th survey… Read more »

TopGolf Hiring 450 for New Scottsdale Entertainment Complex

The Dallas-based operator of golf entertainment facilities is spending the next week seeking hire for its first Arizona location, slated to open in June at the Riverwalk development on the Salt River Pima-Maricopa Indian Community near Scottsdale… Read more »

Commercial Real Estate & Business News – April 16, 2014

​Who Will Win the Battle for the Millennial Grocery Shopper?

When it comes to the grocery discount battle, Walmart remains the king. With 55 percent of Walmart’s annual revenue coming from grocery sales, the brand is the biggest grocer in the U.S. Many mistakenly assume that Target would be chief among millennials when it comes to grocery retailers. In fact, Walmart remains the most popular choice among millennial parents among retail visits overall. According to Barkley’s most recent study, when given the choice to shop at only one store (Amazon, Target or Walmart) for the rest of their life, millennial parents chose Walmart. Why?… Read more »

Economy Watch: Retail Sales See Healthy Uptick; Federal Deficit Still Dropping

The Census Bureau reported on Monday that retail and food services sales for March, adjusted for seasonal variation and holiday and trading-day differences — but not for price changes – came in at $433.9 billion, an increase of 1.1 percent from February. The March 2014 numbers were also 3.8 percent above March 2013, and the January 2014 to February 2014 percentage change was revised from a gain of 0.3 percent to one of 0.7 percent… Read more »

Deco Communities to Build $22 Million Condo Project in Midtown Phoenix

Another midrise condominium project is in the works for the Valley, this time amid the office skyline of midtown Phoenix. It could be the first major condo complex to rise up in the area since 2008, and is being built by the same company, Scottsdale-based Deco Communities, that is erecting the $32 million condo project in downtown Scottsdale, which I wrote about last week… Read more »

CityScape Welcomes First Residents

CityScape Phoenix marked its final development milestone in February when the first residents moved into the CityScape Residences, a collection of 224 luxury apartments that sit atop Kimpton’s Hotel Palomar Phoenix… Read more »

Gov. Brewer Says Arizona’s Bid for Tesla Battery Plant is Competitive

Gov. Jan Brewer said Arizona submitted a highly competitive package to Tesla Motors Inc. in hopes the company opens its proposed battery factory here, and that she believes at least one of the states Tesla was considering is out of the running. Palo Alto, Calif.,-based Tesla said in February that Arizona was among four states in contention for a $4 billion or more factory that could employ 6,500. Also competing are Nevada, New Mexico and Texas… Read more »

Commercial Real Estate & Business News – April 15, 2014

Consumers Feeling Better About Current Conditions, Outlook; PPI Rises in March

The preliminary Reuters/University of Michigan consumer sentiment index for April came in at 82.6 on Friday, according to the university, an increase from 80.0 at the end of March, and 79.9 in mid-March. The latest reading is the highest since last summer. Both components were up. Consumer expectations came in at 73.3, compared with a final March reading of 70.0. Current conditions rose to 97.1, compared with the final March reading of 95.7. Expectations probably gained because of higher confidence in the employment market, which seems to have made strides since a case of the winter blahs, as well as optimism about rising income… Read more »

NRF: Retail Sales Climb in March

Spurred by warmer spring weather, U.S. retail sales, which exclude automobiles, gas stations and restaurants, increased 0.8% adjusted month-to-month in March and 1.6% unadjusted year-over-year, according to estimates from the National Retail Federation (NRF)… Read more »

Real-Estate Crowdfunding Finds Its Footing

Before last year, Ed Medley had never invested in commercial real estate. Now, he’s a part-owner of shopping malls, mobile-home parks and apartment buildings from Los Angeles to Tennessee… Read more »

Market Trend: Phoenix Office Vacancy Down to 17.8%

The vacancy rate was down over the previous quarter, with net absorption totaling positive 750,157 square feet in the first quarter. That compares to positive 701,474 square feet in the fourth quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 790,491 square feet… Read more »

DriveTime Chairman Acquires Vacant F-1 Race Factory Building

Benderson Development, a vertically integrated developer of commercial properties, has completed the sale of the former F-1 Race Factory building—now known as Tech 143—for $9.4m or $82.58 per square foot. The acquiring entity, Verde Investments, Inc. is a real estate investment vehicle used by DriveTime chairman, Earnest Garcia. Garcia paid $3.4m in cash and secured an additional $6m in financing with MidFirst Bank… Read more »

Commercial Real Estate & Business News – April 14, 2014

New Industrial Park in Gilbert

The project known as Park Lucero is located on 48.1 acres at the northwest corner of Mustang Drive and Germann Road near the Chandler/Gilbert border. The site has frontage along the Loop 202 freeway and Germann Road and is directly adjacent to more than one million square feet of retail amenities. Construction will begin summer 2014… Read more »

Phoenix Developer on Mission to Save Historic Buildings

For more than 20 years, he has returned numerous warehouses to commerce, including those that now house the Bentley Gallery at Bentley Projects and the Duce restaurant, bar and clothing store. In a city where demolishing deteriorating structures has been the norm, Levine became one of the first to start buying old buildings for the sole purpose of preserving and transforming them… Read more »

Cities Where Real Estate Investors are Finding Deals

Investors are draining out of formerly foreclosure-torn cities like Phoenix and Las Vegas, but that doesn’t mean they’re abandoning real estate altogether. Instead they’re relocating to cheaper, less competitive locales, a trend that’s expected to continue… Read more »

ULI Special Report: Smart Moves for Smart Capital

While institutional capital isn’t necessarily known for its flexibility and innovation, an environment of accelerating change in business conditions has some companies adjusting their strategies for securing high yields while minimizing risk. A panel of industry innovators met this Thursday at ULI’s Spring Meeting in Vancouver to discuss their approach for making winning bets in today’s market… Read more »

Economy Watch: Initial Unemployment Claims Lowest in 7 Years; Import Prices Rise, Led by Energy

For the week ending April 5, initial unemployment claims came in at 300,000, a sharp decrease of 32,000 from the previous week’s revised level, according to the U.S. Department of Labor on Thursday. The last time initial claims were this low was well before the recession — May 12, 2007 — when they stood at 297,000. The four-week moving average, which tends to be less jumpy, was in fact a little jumpy last week, decreasing 4,750 from the previous week’s revised average… Read more »

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