Leverage on CMBS Multifamily Loans Gets Higher

CMBS lenders now offer higher and higher levels of leverage to make deals—especially as prices for apartment properties rise compared to rents. These high-leverage loans worry market watchers like the bond-rating agencies. These ratings agencies are raising their credit enhancement levels. Bond buyers are getting pickier what loans they will accept... Read more »

U.S. Home Sales Falter to Start Year

Sales of previously owned homes slowed in January, a reflection of the rising prices and tight supplies that could constrain the housing market this year. Existing-home sales fell 4.9% last month from December to a seasonally adjusted annual rate of 4.82 million, the National Association of Realtors said on Monday, the slowest pace in nine months. Weather didn’t appear to be a big factor in the report, which showed sales falling across all regions of the country... Read more »

Phoenix Area Attracting More Canadian Residents, Businesses

For decades, our neighbors up North have been relocating their businesses to the Valley. Here's a look at some that came recently and others that have been here for a while. Read more »

REITs See Move Outs to Homeownership Drop in 4Q

Amid reports of an improving for-sale market, apartment REITs actually saw the number of renters who moved out to buy new homes drop 300 basis points to 15.2% (of total move outs) year-over-year in the fourth quarter of 2014. When single-family sales are strong, the REIT group as a whole can see as many as 20% of their move outs go to homeownership... Read more »

Arizona Manufacturing Jobs Steady But Slumping

Arizona is tied for last place in one national ranking – and it's a good thing. Only 1.3 percent of the state's employment is in non-durable goods manufacturing. On the other side of durability, the state is solidly in the middle of the pack and steady in percent of workforce involved with durable goods manufacturing. Those rankings are slightly glimmering good signs for the export economy because jobs in those industrial sectors are holding steady... Read more »

Microsoft Could Land Big Data Center In Phoenix

Microsoft Corp. could locate a large new data center in Phoenix. A commercial real estate official said the Microsoft data center could be landing at Union Hills Drive near Interstate 17. The project could total as much as 575,000 square feet and the transaction may be completed via private equity firms and other data center entities even though it will be Microsoft operations, according to the industry executive who asked not to be named... Read more »

Small Apartments: Are We Building Too Many?

In the current supply cycle, many new buildings include a large share of studios and one-bedroom apartments. That’s understandable, given the continued importance of millennials as a prime target market this year. These small units fit Gen Y renters’ needs well, since this group is willing to trade space for a good location and attractive amenities. With supply coming in at a continued good pace, however, the question now is whether small units will continue to perform as well in the near future as they do today... Read more »

Market Trend: Phoenix Retail Deliveries, Construction and Inventory

During the fourth quarter 2014, 21 buildings totaling 377,959 square feet were completed in the Phoenix retail market. Over the past four quarters, a total of 700,237 square feet of retail space has been built. There were 427,089 square feet of retail space under construction at the end of the fourth quarter 2014... Read more »

State Farm Exec: Transit Helped Tempe Get $600m Hub

Tempe's public transportation network, which includes neighborhood shuttles, buses and light rail, played a major role in State Farm's decision to build a massive regional headquarters overlooking Tempe Town Lake, a company executive said last week. State Farm will anchor a $600 million development by Sunbelt Holdings and Ryan Companies... Read more »

Hilton Phoenix Airport Hotel Transformed

Waramaug Hospitality, a private investment group, unveiled the newly revitalized Hilton Phoenix Airport hotel. The 259-room property at the Phoenix International Airport has undergone a $7.5 million renovation ($29,000 per room) over the last six months. The renovation includes all new guestrooms and bathrooms, corridors, public spaces and a completely new lobby featuring a Starbucks outlet and Hilton Connectivity Zone. The property also had major infrastructure work completed such as... Read more »

The CRE Bar Is Set High for 2015

As we assess market conditions across the globe today we can hold our heads high and thank last year’s momentum for this year’s potential. A positive foundation has been laid. Economic indicators look good, leasing is robust, new deliveries are set to be 25 percent above last year and prospects for even larger construction volumes are expected for 2016... Read more »

What Renters Want: Affordability Becoming Major Concern

As rents continue to rise across the country, tenants are prioritizing affordability and looking for ways to save. A new survey from Apartments.com suggests that tenants are feeling the crunch of rising rents... Read more »

What the Numbers Say About Arizona's Tech Sector (Hint: It's Good News)

Not a day goes by that I don't look into the eyes of someone who represents the success of Arizona's technology community: a company leader excited about the next "great thing" his company is about to unveil, a researcher whose hard work will make our lives better, a child celebrating the "aha" moment when a STEM lesson takes hold... Read more »

Super Bowl Generates Record Revenues for Hotels

According to Smith Travel Research, revenue per available room (RevPAR), a key indicator of hotel performance, spiked at $324.87 for metro Phoenix on Jan. 31, the day before the Super Bowl. That’s the highest RevPAR ever recorded for metro Phoenix’s hotels for a single day, and represents a 318 percent increase over the same day in 2014... Read more »

Apartments, Community Space Coming to Arts District

An arts-inspired apartment complex coming to McDowell Road plans to turn a sluggish hotel surrounded by museums and theaters into a neighborhood destination. Broadstone Arts District is slated for nearly five acres off McDowell and Alvarado Roads, east of the Phoenix Art Museum and Phoenix Theatre. The two, four-story buildings will include 280 studio, one and two-bedroom apartments for about 400 residents... Read more »