Commercial Real Estate & Business News – July 29, 2016

The next FOMC meeting will be in late September, with two U.S. employment reports between now and then, along with other data releases, such as second-quarter GDP. But that might be too soon for a hike; there will also be meetings in November and December, one of which might be more likely to see a rise...»
The U.S. office market continued its steady momentum in the second quarter, recording 39.4 million square feet of net absorption in the first six months of 2016, nearly equaling the 40.2 million square feet absorbed during the record-setting first half of last year. The U.S. office vacancy rate ticked down another 15 basis points to 10.6% in the second quarter of 2016, well below the long-term historical vacancy rate of 11.3%. CoStar analysts expect the office vacancy rate to continue trending lower before bottoming out at around 10.2% in 2018, about the same as lowest point of the last real estate cycle...»
Arizona's gross domestic product growth smashed expectations in the first quarter 2016 with a 2.6 percent growth rate over the previous period, according to new data from the Bureau of Economic Analysis. That pace placed the state at the top of the Southwest region, which as a whole had a 0.5 percent growth rate. Nationally the state tied for fifth with Michigan in GDP growth...»
Arizona's multifamily market has been enjoying a ten year high lately, so its no surprise six Arizona cities made WalletHub's top ten best cities in the U.S. for renters. To help prospective renters get the most bang for their buck, WalletHub's analysts compared the 150 largest cities based on their rental attractiveness and quality of life. In making such a comparison, we examined each city across 15 key metrics, ranging from historical rental-price changes to cost of living to jobs availability...»
Metro Phoenix was praised for "combining creativity and quality," as well as how the area "surprises with its range of quirky and delicious options" - though to Phoenicians, it's not really a surprise. Gogobot specifically gave accolades to some of the biggest names and establishments in the Valley culinary scene: Upward Projects' Postino WineCafe for its "historical buildings and an approachable wine list;Chris Bianco's Pizzeria Bianco for its house-made mozzarella and Italy-imported tomatoes; Taco Guild's location in an old church; and Sam Fox's True Food Kitchen for its "delicious 'clean' eating, from grass-fed bison burgers to kale and avocado dip"...»

Commercial Real Estate & Business News – July 28, 2016

The Federal Reserve announced today that it will not raise the interest rate, staying the course amid a disappointing earnings cycle and a post-Brexit landscape. Central bank officials were meeting this week for the first time since Britain jostled the markets by voting to pull out of membership in the European Union...»
CMBS loan delinquencies have ticked higher in recent months and experts are predicting a more volatile stretch for the second half of the year as more large loans mature...»
Developers Unveil New Plans, Bring in Artists for Circles Records Redevelopment
The development group looking to bring a new 19-story apartment tower to the old Circles Records building in downtown Phoenix has unveiled new plans aimed at easing opposition from preservationists worried about the future of a property first built in 1946...»
A Starwood-brand hotel could soon join the growing list of tenants at south Scottsdale's SkySong development, where a mix of mid-rise office towers, apartments and restaurants are rising around the complex's iconic tent-like canopy. Arizona State University Foundation officials in early July told city leaders they've landed a  hotel for the mixed-use project...»
A new Class A office building was recently completed by developer SAXA. The Scottsdale, Ariz.-based developer worked with LGE Design Build on project known as Bahia 101, the first project of its kind completed in the Scottsdale Airpark since 2009...»

Commercial Real Estate & Business News – July 27, 2016

International investors still have great reasons to put their money into real estate in the U.S., as the economy here continues to outperform the rest of the world. "In an environment that is regarded both as the safest and most secure in the world, with a strong currency and the best opportunity for capital appreciation, the U.S. is the safest harbor," says James A. Fetgatter, chief executive of Association of Foreign Investors in Real Estate (AFIRE)...»
Those who come in for edible fare may be more apt to linger, and in turn, spend more time with the merchandise, says James Sundstad, vice president of branded environments at strategy, branding and retail design firm CBX. " "You're giving them a reason to be there that isn't just about buy something or get out," he says...»
"The number one thing about any great downtown is that it's walkable," said Dan Klocke, executive director of the Downtown Phoenix Partnership, an affiliate of DPI. "Through events, through streetscape improvements and through filling ground-floor spaces, we think we can create a really special, walkable, interesting and fun downtown"...»
Sales volume more than doubled from first quarter to second quarter. The median price per unit was up 36 percent from a year ago, reaching $106,600. Cap rates were stable in the first half, settling in the mid-5 percent range. This level remains the same as we experienced in 2015...»
Arizona's seasonally adjusted unemployment rate increased two-tenths of a percentage point from 5.6% in May to 5.8% in June, according to a report from the Arizona Department of Administration's office of Employment and Population Statistics. The U.S. seasonally adjusted unemployment rate increased two-tenths of a percentage point from 4.7% in May to 4.9% in June. A year ago, the Arizona seasonally adjusted rate was 6.0% and the U.S. rate was 5.3%...»

Commercial Real Estate & Business News – July 26, 2016

The two buildings will be 97,000 square feet and 115,000 square feet, and will join a 17,500-square-foot, two-story office/warehouse building that was recently leased to Super Shuttle International on a long-term basis...»

According to Black Knight Financial Services' most recent Home Price Index (HPI) report, home prices in May 2016 registered at $263,000, just 1.8 percent off the June 2006 peak of $267,000. Moreover, price tags are up 31.7 from the market's bottom...»
Years have passed since the credit crisis and housing market crash with banks foreclosing on millions of homes nationwide. In the subsequent years, many of these homes have been purchased by investors. From major institutions to individual investors, hundreds of billions of dollars of single family residences have ended up as rental properties in the control of investors. Groups like Blackstone had purchased upwards of 50,000 single family homes since the downturn and are now beginning to look to liquidate blocks of these homes and realize their profits...»
A Utah digital marketing company has picked Old Town Scottsdale for what could be a 500-worker sales and operations center. That company, Clearlink, also filled some downtown Scottsdale space previously occupied by troubled human resources technology company Zenefits...»
The 312-room resort at 5001 N. Scottsdale Road was touted as the the largest resort renovation in Scottsdale during the transformation. The project was initially estimated to cost $22 million...»

Commercial Real Estate & Business News – July 25, 2016

In what is the highest price sale of an industrial building in the Valley in four years, a venture formed The Koll Co. in Newport Beach, Calif. (Ray Wirta, CEO) paid $74.75 million ($74.06 per foot) to buy a 1 + million-square-foot distribution center located at 6835 W. Buckeye Road in Phoenix...»
Metrocenter Mall opened in 1973 as the biggest shopping center in Arizona and one of the largest nationwide. However, Metrocenter was challenged in recent years by competing regional malls, changing shopping patterns and the Great Recession...»
A New York-based developer submitted a Planned Unit Development zoning request to the City of Phoenix to construct a 28-unit condominium development with 4,080 SF of ground floor neighborhood servicing retail space to be located at the SWC of West Sherman Street and South Second Avenue...»
The two organizations with more than 40,000 employees working in the state of Arizona, the state itself and hospital operator Banner Health, finished 1-2 when the Phoenix Business Journal today published its annual Largest Employers list...»
Global investors look to stability of U.S. commercial real estate market as safe haven As the fallout from Brexit continues to stir market volatility, many international investors are seeking the security and economic stability of the U.S. commercial real estate market. Coupled with low interest rates for loans, brokers who belong to CCIM Institute...»
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