Commercial Real Estate & Business News – March 20, 2017

In recent years, surging development along the McDowell Road corridor has been in the process of replacing vacant commercial lots with mixed-use properties and multifamily residences. In 2016, the Scottsdale City Council approved rezoning for Aire on McDowell and Phase 2 of Skye on McDowell, new residential subdivisions that together will add 159 townhouses to the northeast and southeast corners of McDowell Road and North 68th Street...»

Minnesota-based Mortenson Co., who officially broke ground today on the 11-story, 210-room Hampton Inn & Suites hotel at Central Avenue and Polk Street in downtown Phoenix, has proposed plans to build a 20-story apartment next to the new hotel...»

The Valley has a long history of some of the country's best hotels, premier shopping malls and multi-million-dollar homes. Much of it is thanks to one family...»

The proposed plan calls for 300 guest rooms, 10 times the existing 32, with construction to take place in three phases over a maximum 10-year timeline...»

Phoenix isn't just hot, it's sizzling when it comes to residential real estate. Realtor.com named Metro Phoenix the No. 1 residential real estate market in the country, predicting Valley home prices will jump 5.9 percent and the number of sales will jump by 7.2 percent this year. And while the luxury market - those homes priced over $750,000 - picked up substantially in the second half of 2016, it's the lower-priced homes that experts say will drive a healthy housing industry over the next year...»

Commercial Real Estate & Business News – March 17, 2017

Unsurprisingly, the Federal Open Market Committee decided to raise interest rates again in March, signaling its optimism about the direction of the U.S. economy...»

Citing a strengthening labor market, moderate economic growth and increasing inflation, the Federal Reserve raised the target range for the benchmark federal funds rate from 0.75 percent to 1.0 percent on Wednesday. In doing so, the Fed took the first steps toward fulfilling its long-promised three rate hikes per year. Only Committee member Neel Kashkari dissented, preferring to maintain the target federal funds range as is...»

Much of the commentary surrounding the Federal Reserve's decision Wednesday to raise the Fed Funds rate by 25 basis points has been about how this is likely to increase mortgage rates, have a negative effect on home affordability, and potentially derail the still-wobbly recovery of the US housing market...»

Recently, the Salt River Pima-Maricopa Indian Community has been garnering a lot of development buzz. While developing on tribal lands can be a complex process, developers are taking on the challenges in order to take advantage of other perks associated with building on tribal lands like various tax benefits. New projects in the Talking Stick area have helped transform the casino destination into an entertainment district, attracting people from across the Valley to enjoy its new amenities...»

Eating out is no longer just about the food - it's about the experience. That's what OpenTable had in mind when compiling its "Top 100 Hot Spot Restaurants in America," looking at features such as interactive dining experiences, live entertainment, and appealing playlists, using the combined opinions of more than 10 million restaurant reviews submitted by verified OpenTable diners for more than 25,000 restaurants in all 50 states and the District of Columbia...»

Commercial Real Estate & Business News – March 16, 2017

Don't look now, but nearly eight years after the Great Recession ended, it's finally starting to feel like a normal economy again, at least judging by the Federal Reserve's second interest rate hike in three months. The Fed on Wednesday raised its benchmark short-term rate by a quarter percentage point to a range of 0.75% to 1% and stuck to its forecast of two more such increases this year and three in 2018. Some economists had expected Fed policymakers to modestly step up the pace. Wall Street cheered the Fed's decision but reacted with restraint...»

Apartment building developers have a lot to worry about. So many new developments are under construction, they are likely to compete with each other-and not just for residents. Developers are also competing to find construction workers to build their projects...»

Construction spending in January fell 1 percent to $1.18 trillion compared to $1.19 trillion in December 2016, according to the U.S. Census Bureau. However, residential construction spending grew by 0.5 percent to $476.4 billion, the highest level since August 2007, according to statistics from Trading Economics...»

The retail and entertainment destination at Third and Van Buren Streets will receive site furnishings, shade structures, landscape, lighting, new materials, fixtures and finishes, wayfinding, and branded signage features from the renovations...»

 
The Phoenix metro area is expected to significantly outpace the rest of Arizona when it comes to job growth for the two year period ending in mid-2018. The Arizona Office of Economic Opportunity projects that employment will increase 2.8 percent each year in the metro area, that includes Maricopa and Pinal counties...»

Commercial Real Estate & Business News – March 15, 2017

Chinese investors were the single largest group of foreign investors in commercial real estate in the U.S. last year, with deal volumes reaching a record high of $19.2 billion, up 10% from $17.3 billion in 2015, according to a new report from Cushman & Wakefield. Chinese investment made up about 29% of total foreign investment in U.S. commercial real estate, ahead of Canada, the second largest foreign investor, which invested $13.1 billion...»

A Fed rate hike is expected at the end of its widely watched meeting Wednesday. It would be the Fed's second rate hike since December and a sign that the central bank's leaders are moving interest rates up at a faster pace this year...»

Investors focusing on commercial real estate in the Americas have no plans to scale back their investments this year, according to the recently released CBRE Americas Investor Intentions Survey, which queried about 1,000 investors. Fully two-thirds of them intend to be net buyers this year, taking in more acquisitions than dispositions...»

 

Small businesses are excited about a new healthcare law, tax reform and regulatory relief from Washington. According to the February Small Business Optimism Index, small business optimism is at its highest readings in 43 years, despite a .6 point dip to 105.3. The National Federation of Independent Business released its monthly report that shows a month-over-month increase of optimism from small businesses...»

A few weeks ago I was triple booked. It was Phoenix Startup Week, I was speaking at an AZ Tech Council gathering on Medical Technology, and I was unable to attend an event on the Internet of Things. We have been attending these sort of things for 23 years now and it wasn't always like this. In fact, not too long ago it was kind of pathetic...»

Commercial Real Estate & Business News – March 14, 2017

Private investors accounted for nearly 30 percent of all transaction volumes in 2016, with particular interest in residential and commercial properties in some major U.S. cities, according to Knight Frank's latest wealth report. As an investor class, private investors-including ultra-high and high-net-worth-individuals, as well as various kinds of family offices-are now major drivers of CRE transactions, both domestically and abroad, according to the 2017 Knight Frank Wealth Report, which was released this March...»

Although apartment sale prices have more than doubled since 2010, market forecasts predict that rent declines are on their way in many cities. Many publicly traded REITs have pulled away from multifamily, and aggregate U.S. multifamily loan volume fell 2% year over year for the 12 months ending on Sept. 30, 2016, according to Banking Exchange...»

After a strong start to the year, construction continues to see rising employment, as the industry added 58,000 jobs in February - the strongest recorded level since March 2007 - the Bureau of Labor Statistics reported Friday. The month's total construction employment of 6,881,000 represented a 219,000 - 3.3% - increase from February 2016...»

Single tenant net lease properties remain a hotbed of activity in the commercial real estate industry. And market fundamentals point to continued strength in the sector. Yet sentiment has begun to soften ever so slightly based on the responses to NREI's second annual exclusive survey of the net lease real estate sector, which was conducted in February. Rising interest rates and general economic uncertainty remain concerns, as does the lack of stability in Washington emanating from the chaos of the new Trump administration...»

Feeling happy? If not, you might want to move to Scottsdale or Gilbert. The two East Valley cities are the highest-ranking Arizona cities on WalletHub's list of happiest cities. Scottsdale and Gilbert are two of the happiest cities in America, according to a new ranking from WalletHub. Scottsdale came in at No. 13 while Gilbert wasn't far behind at No. 16...»

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