Commercial Real Estate & Business News – October 24, 2014

10 Trends in Commercial Real Estate for 2015

The sustained performance of the U.S. commercial real estate industry is expected to continue in 2015, fueled by improving fundamentals and robust investor appetite, in both domestic and foreign arenas, according to Emerging Trends in Real Estate 2015, co-published by PwC US and the Urban Land Institute (ULI)… Read more »

As Good As It Gets? Office Market Moving Into Sweet Spot In Recovery

Conditions in the U.S. office market are aligning in a way that office investors have dreamed about. A serendipitous combination of falling vacancy, rising net absorption and a controlled supply of new office space is creating broad-based opportunities to increase rents and reap higher property incomes on their office property investments… Read more »

Will Amazon Be The Future of Brick-and-Mortar Retail?

Microsoft. Samsung. Apple. Google. Amazon: These are the most prominent tech companies around. Do they also represent the future of brick-and-mortar retail?… Read more »

Could Looser Lending Standards Boost Phoenix Market?

Will banks start to drop their standards and let people with slightly lower credit scores and much lower down payments buy homes? That’s the big question, after the Federal Deposit Insurance Corporation (FDIC) and other agencies voted to approve new, looser lending rules this week. A well-known expert from the W. P. Carey School of Business at Arizona State University says if the change happens, and the adjustments are reasonable, then it could be good for the Phoenix-area housing market, stimulating growth… Read more »

Phoenix Ranks Low on Real Estate List

In the Emerging Trends in Real Estate 2015 report, Phoenix ranked No. 26 out of 75 markets, behind the likes of Washington, Indianapolis and San Antonio. At the top of the list sits Houston, followed by Austin (No. 2), San Francisco (No. 3), Denver (No. 4) and Dallas-Fort Worth (No. 5)… Read more »

Commercial Real Estate & Business News – October 23, 2014

ULI: Investment Momentum Will Continue

With the Urban Land Institute’s Fall Meeting in full swing here, a pair of surveys cosponsored by ULI predicts the industry’s current momentum will carry over into 2015. The 2015 edition of ULI’s annual Emerging Trends in Real Estate report, co-published by PwC US and issued Wednesday at the conference, cites the rise of markets outside the coastal gateway cities, with Houston leading the way. Similarly, the semi-annual ULI/EY Real Estate Consensus Forecast issued last week predicts continued strengthening in the capital markets and in commercial real estate fundamentals… Read more »

MB Real Estate Enters Valley Market . . . Pays $40.885 Million for Medical Offices

In three sales totaling $40.885 million ($312 per foot), companies formed by MBRE Healthcare Group purchased roughly 131,000 sq. ft. of medical office buildings in Sun City. The sellers were companies formed by Healthcare Trust of America Inc. in Scottsdale (NYSE:HTA). The investment is the first in the Valley for MBRE Healthcare Group… Read more »

Lennar Buys Downtown Land from Israeli Developer for $13M

An Israeli real estate investment firm has sold a long empty downtown Phoenix parcel to homebuilder Lennar Corp. for $12.75 million. Lennar wants to build a 368-unit apartment complex at the property on the northwest corner of Central Avenue and McDowell Road… Read more »

New Data Point to Rising Construction Tide in 2015

In the West region, which includes Arizona, the index in September dipped slightly to 54.2 from 54.4 in August, but the index for the region is in the fourth month of a rebound from declining trends from April and May… Read more »

State Ready to Buy Homes for Loop 202 Extension

Plans to extend the Loop 202 freeway around the Phoenix area’s southern edge are nearing final approval, and owners of approximately 200 homes are being told they’ll soon have to find new places to live. The proposed South Mountain Freeway would extend from Interstate 10 near the Ahwatukee section of southeast Phoenix with I-10 on the metro area’s west side… Read more »

Commercial Real Estate & Business News – October 16, 2014

Hines Assembles Land For Mixed-use Project In Chandler…Flips Apartment Site

Hines Interests Limited Partnership in Houston, Tex. (Gerald Hines, principal) has completed the $20.42 million assemblage of a 25.5-acre parcel in Chandler that is planned for a mixed-use project called Chandler Viridian. As reported by BREW in April, the $150 million residential, office, retail and hotel complex is being developed next to the Chandler Fashion Center regional mall. Upon completing one of two property acquisitions that make up the assemblage, Hines resold the multi-family site… Read more »

Economists Predict Steady CRE Growth Ahead Despite Undercurrents of Global Turmoil

A consensus survey of economists and analysts convened by the Urban Land Institute and EY Real Estate predicts solid but not spectacutar returns for U.S. real estate investors as moderate economic growth supports a steady strengthening in commercial real estate capital markets and fundamentals over the next three years. The latest Urban Land Institute/EY Real Estate Consensus Forecast is slightly more optimistic… Read more »

Helix Grabs Commercial Property for $13M

Helix, an Arizona-based commercial real estate investment company, recently acquired a truck distribution industrial complex in Tolleson for $12.75 million. Located at 94th Avenue and Buckeye Road in Tolleson, the 40-acre commercial property consists of 179,000 square feet of buildings including a warehouse, office administration facility, maintenance garage, covered wall truss work area and a 60,000-square-foot covered structure on the rail spur… Read more »

CMBS Loan Delinquencies Continue Steady Decline Across Most Property Types

The level of commercial mortgage-backed securities borrowers who are behind in their payments continued to fall among all major commercial property types in September, with the exception of hotels. The decline in deliquent loans was due to a combination of rising loan volume resolved through sales and restructurings and a brisk flow of new securities issuance, according to Fitch Ratings. Delinquent loans fell eight basis points in September to 4.77% from the previous month as $571 million in loan resolutions… Read more »

Foreign Investors Chase Yield, Safety in U.S. Office Sector

Foreign buyers increased their investment in the U.S. commercial real estate markets in the first half of 2014, pouring in $85.4 billion in property purchases here compared to $76.7 billion in the first half of 2013. Almost half of foreign investment this year, about $37.8 billion, went into the office market, as buyers from countries including China, Russia and Canada fought over trophy properties in major markets… Read more »

Commercial Real Estate & Business News – October 15, 2014

Two school campuses for grades K-12 – in south Chandler and Goodyear – will be built by Great Hearts Academies in time for the 2015 school year. Great Hearts CFO Ward Huseth said ground-breaking is expected in late October with completion due by July. The project manager is Nations|Wright and the architect is Gensler. The GC for the south Chandler project is Tempe-based Okland Construction… Read more »
Not a lot of new data this week on the national front, but the data that was released all point to a continued expansion. Locally, most of the data was housing related and told a familiar story: housing is not doing well. Yet, despite that disappointment, the overall Arizona economy continues to recover. Were it not for the problems in single-family housing, the local economy would probably be… Read more »
The housing market crash produced a flurry of buying activity as investors snapped up single-family homes at bargain basement prices. The recovery in the residential market is prompting investors to retool strategies as this emerging investment niche continues to mature. Big institutional capital flowing into single-family rental homes in recent years has changed the landscape… Read more »
Few things excite residents in the West Valley as much as new restaurants, especially if they’re not national chains that start with the word “Red.” A few new places have opened recently. One restaurant yet to open is being treated as a secret – or as secret as something can be after public-relations people have sent out a press release about it. There’s also a new shopping opportunity in Sun City… Read more »
As the number of retirees climbs nationwide, people beginning a new stage of life might want to consider living in the West Valley. Long known for communities like Sun City and Sun City West, other parts of the West Valley are attracting attention as options for retirees. Peoria and Glendale recently were ranked in the top-50 best places to retire in the country, with Peoria coming in at No. 10… Read more »

Commercial Real Estate & Business News – October 14, 2014

Chicago Developer To Build Phoenix’s Tallest Residential High-Rise

Phoenix has selected a Chicago developer to build the city’s largest and tallest residential high-rise in downtown, a 34-story glass tower that will change the city’s skyline. Plans for the massive development, known as Phoenix Central Station, include about 475 apartments, 30,000 square feet of commercial space and a dog park. It will meld those uses with a bustling transit hub already on the site at 300 N. Central Avenue… Read more »

Private Market Multifamily Financing Activity Steps up in First Half

Most private side multifamily market participants stepped up their financing activity during the first half of 2014 in contrast to what is happening from government-backed loan buyers. Second quarter 2014 saw increased activity from most private market participants including life insurers, banks and thrifts, and CMBS conduit lenders, according to Kim Betancourt, director of economics and market research at Fannie Mae… Read more »

Retailers Embrace The Rise Of Outlets

Big retailers used to keep outlets far away from their main stores, but according to a report by The Wall Street Journal more and more of those retailers are starting to see the benefits of more overlap between outlets and full-price stores. For example, the WSJ said, some brands have decided to place full-price stores in outlet malls… Read more »

ASU Improvement Plans Include $36.5M Student Pavilion for FY16

Arizona State University plans capital improvements worth $68.5M for fiscal year 2016. ASU plans the Student Pavilion on the Tempe campus worth $36.5M, a building that would house a 1,500-seat multipurpose space for music, films, speakers and other events. The three-story, 79KSF structure would include food-service and academic-department space. The Student Pavilion will replace the Undergraduate Academic Services Building… Read more »

Loft Project Planned Within Heritage District In Gilbert

Trackside Lofts LLC in Granite Bay, Calif. (Dr. Paul Brown, Colin Brown, principals) plans to develop a 164-unit multi-family project within the Heritage District at the southeast corner of Oak Street and Cullumber Avenue in Gilbert. The company paid $1.55 million to acquire the 7.545-acre site, which is located west of Gilbert Road and southwest of the Union Pacific Railroad. The seller was IRG Gilbert LLC, a company formed by International Risk Group in Littleton, Colo… Read more »

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