Commercial Real Estate & Business News – February 6, 2018

Apartment rents might not be headed upward with the same kind of energy they did in recent years, but there's still upward momentum in the vast majority of U.S. markets. RentCafé recently reported that 89 percent of the nation's biggest cities (the top 250 by population) saw rents grow year over year in January, while only 2 percent experienced rent drops...»
Nearly three-quarters (74%) of mortgage bankers expect to see no downturn in the multifamily lending space this year, saying deal volume will either increase from or remain the same as in 2017. That's according to Berkadia's first Powerhouse Poll, which surveyed nearly 150 of the firm's investment sales brokers and mortgage bankers across 60 offices to assess 2018 opportunities in the multifamily space...»
Today's employment report from the Bureau of Labor Statistics shows growth in both public and private construction spending, according to an analysis by Associated Builders and Contractors (ABC). Construction added 36,000 net new jobs in January, an impressive increase of 0.5 percent on a month-over-month basis. During the past 12 months, construction has added 226,000 net new jobs...»
The average profits for people selling their homes recently hit a 10-year high. During the last three months of last year, ATTOM Data Solutions found the average home price was $54,000 more than what the seller had paid. In metro Phoenix, the average home price gain was $63,000, a 36 percent return on investment, according to ATTOM's research...»
Could Millennials be holding metro Phoenix's new home market back from finally recovering? Most of this huge generation of young adults haven't bought homes yet, and the Valley's home-building market still hasn't recovered from the crash. Housing market watchers, including myself, have been a bit obsessed with where and how Millennials, born between the early 1980s and 2000s, live...»

Commercial Real Estate & Business News – February 5, 2018

Another month, another solid jobs report. The pace of job growth has slowed somewhat over the last two years, but the economy is still adding jobs at about 2 million a year - a solid figure at a time when the unemployment rate is so low. January marks the 88th straight month of job growth, the longest such streak on record...»

The push is on to bring the NFL Super Bowl to Arizona for a fourth time. The National Football League has Super Bowls slated for 2019 through 2022 with games in Atlanta, Miami, Tampa and a new stadium being built in Los Angeles...»

The Phoenix Rising FC soccer team wants to build a new Major League Soccer stadium on the Salt River Pima Maricopa Indian Community land. Phoenix Rising already plays in a temporary 6,200-seat stadium on the Salt River reservation near McClintock Road and Loop 202...»

Arizona State University unveiled preliminary plans this week for a $160 million renovation of Wells Fargo Arena with an adjacent indoor sports complex to house men's hockey, wrestling and gymnastics...»

Nonresidential construction spending expanded 0.8 percent in December, totaling $720.4 billion on a seasonally adjusted basis, according to Associated Builders and Contractors' (ABC) analysis of data released today by the U.S. Census Bureau. This represents the fifth consecutive month during which the pace of nonresidential spending has increased...»

Commercial Real Estate & Business News – February 2, 2018 Inc. (Nasdaq: AMZN) is now the largest industrial real estate tenant in the Phoenix regional market as e-commerce led by the Seattle-based giant becomes a bigger and bigger part of the U.S. economy. Mike Petrivelli, CoStar's regional research analyst, said Amazon now occupies close to 5 million square feet of industrial space in the Phoenix market...»
A luxury Scottsdale apartment complex near the Waterfront has sold for a record $210.4 million. Optima Sonoran Village, on Camelback Road and 68th Street across from Scottsdale Fashion Square, was purchased by Des Moines-based Principal Real Estate on Tuesday, according to public real estate records. Rents run as high as $4,000 a month for the 592 apartments built in 2013...»
Few retail real estate insiders were surprised to hear that Toys 'R' Us will close 180 stores in the U.S., especially after the retailer weathered a disappointing holiday shopping season, following a bankruptcy filing in September 2017. As power center landlords grapple with how they will fill the closing Toys 'R' Us and Babies 'R' Us locations, some experts say the number of targeted stores is an encouraging sign...»
Fannie Mae's Delegated Underwriting and Servicing (DUS) program had a record year in 2017, providing more than $67 billion in financing and supporting over 750,000 units of multifamily housing. "[2017 marked] our 30th anniversary of DUS, a platform that relies on shared risk and strong lender partnerships to serve the needs of the rental housing market," said Jeffery Hayward...»
The Winter/Spring 2018 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey reflects the favorable changes to the commercial real estate (CRE) market caused by the recent federal tax overhaul. The tax bill is expected to increase the rate of return on CRE and makes investment more attractive. Survey participants predict that it will cause moderate though uneven growth...»

Commercial Real Estate & Business News – January 31, 2018

Nikola Motor Co. has picked Arizona for a $1 billion, 2,000-job manufacturing plant and will also move its research and development and headquarters operations to Buckeye. The plant will be west of Phoenix and sit on 500 acres. Nikola will make hydrogen-electric semi-trucks at the planned Arizona facility. Nikola is now based in Salt Lake City...»
LOS ANGELES-December's enactment of the tax reform package buoyed investor sentiment toward commercial real estate and contributed to a favorable lending environment, CBRE said Tuesday. The latest CBRE Lending Momentum Index, which showed a slight quarterly decline for the last three months of 2017, nonetheless also reflected more balanced participation among lender classes...»
Irwin G. Pasternack AIA + Associates PC and Pasternack Properties have broken ground on TEN Distribution Center 1, a Class A industrial building representing the first 1.1-million square feet in the planned $300 million, more than 3.6-million-square-foot TEN Distribution Center industrial park, located on 83rd Avenue near the confluence of Interstate 10 and the Loop 101 in Phoenix...»
The announcement from Toys R Us last week that it will initially be closing up to 182 stores by April could end up being a positive for many of the landlords impacted. A significant, if not majority, of the properties are located in strong retail trade areas with attractive shopping demographics. In addition, retail properties near or in the shopping centers with stores slated for closure...»
The numbers for 2017 are in: It appears the holiday shopping season was a success. But will this translate to a revival for bricks-and-mortar retail in 2018? The short answer is that it depends. That was the message during real estate services firm Cushman & Wakefield's recent webinar on the topic, hosted by Garrick Brown, head of retail research for the Americas...»

Commercial Real Estate & Business News – January 30, 2018

For the student housing sector, 2018 should once again prove a strong year, according to industry experts. College attendance is not slowing-even if graduate school applications decrease amid a low national unemployment rate. However, there are still issues to watch out for, particularly in certain markets seeing a lot of new supply...»
President Donald Trump is expected to call for legislation enacting his long-awaited infrastructure program during his first State of the Union address tomorrow, a plan that reportedly includes at least $200 billion in federal spending to spur investment from the private sector, state and local governments. A six-page draft of the White House plan to overhaul the nation's highways, bridges, railroad and airports...»
After 20 years of a car-centric lifestyle in a large house in Bethesda, and nearly a decade of lobbying her husband, Roxanne Littner achieved her goal of moving into the District. "My husband was more attached to the house than I was, and wanted to stay longer, but when we had a plumbing issue and the basement flooded, I put my foot down and set a date to sell our house in a year...»
NEW YORK CITY-As is often the case, the comments in the latest SelectLeaders Hiring Trends survey tell the story of the cross-currents in the real estate industry. A few examples here help to illustrate the breadth of those comments. With regard to the industry outlook overall and the skill sets that the present environment calls upon, one survey respondent sees "positive trends overall but finding opportunities and creating value takes more work. We'll need a different set of resources (strong asset manager, deal leaders) to unlock asset potential...»
The U.S. economy grew by 2.3 percent in 2017, while fixed investment increased at an annual rate of 7.9 percent, according to an Associated Builders and Contractors (ABC) analysis of data released today by the Bureau of Economic Analysis. The economy expanded at an annual rate of 2.6 percent during the fourth quarter of 2017 after expanding at a 3.2 percent rate during the third quarter...»
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