Commercial Real Estate & Business News – October 9, 2014

Calpers Reboots Its Real-Estate Ambitions

As it pulls the plug on hedge funds, the country’s biggest public pension is giving its property portfolio a $7 billion jolt. The California Public Employees’ Retirement System plans to increase its $26 billion of commercial real-estate investments by 27%, according to its latest asset-allocation report. The boost would leave Calpers with its largest property holdings since before the financial crisis…. Read more »

ASU Picks Developer For 330-acre Master-Planned Athletic Facilities District

In one of the most innovative programs to fund new and renovated athletic facilities without tapping public money, Arizona State University has picked Catellus Development Corp. to master develop its 330-acre athletic facilities district. The 20-year build out could put approximately 10 million square feet of retail, office, and research and development space along Tempe Town Lake between McClintock Drive and the east side of Marina Heights on both sides of Rio Salado Parkway… Read more »

Office Development Reaches Highest Level Since Great Recession

U.S. office construction has reached its highest level since 2008 as developers break ground on new projects in a growing number of markets where job growth, rising rents and falling vacancies are finally justifying new development. An analysis of CoStar Analytics data shows about 86 million square feet of higher-end office properties larger than 50,000 square feet under construction… Read more »

Investors Snap Up Apts., Office Properties to Fuel Third Quarter Sales Volume

With vast amounts of investor capital allocated to chase after all types of commercial real estate, especially multifamily and office assets, sales of U.S. commercial property are projected to total about $415.1 billion for the four-quarter period ending with the third quarter of 2014. That represents an increase of about 8% over the previous four-quarter period, according to early CoStar COMPs sales transaction data… Read more »

MARKET REPORT: Tucson Market Continues to Show Upward Trend

Even though decreased government spending impacted both momentum and activity in Tucson’s real estate market, employment in the metropolitan area is showing a promising tendency. The 5.8 percent unemployment rate at the year’s midway point was 0.6 percent lower than just six months ago, and real estate market fundamentals looked similarly encouraging… Read more »

Commercial Real Estate & Business News – October 8, 2014

The Valley’s commercial real estate market will continue to improve slowly in 2015 with promising growth in residential rental housing, an Arizona State University real estate professor said. “We don’t see big changes in 2015 at all,” Mark Stapp with ASU’s Center for Real Estate Theory and Practice told those attending the SRP 2015 Economic Forecast on Oct. 2. However, Stapp said population growth in the metro area will increase demand…Read more »
The economic news for August appeared to contain dismal news for the housing market with existing home sales down 5.3% from a year ago and down 1.8% from July, but the opposite is the case. August’s numbers demonstrate that the housing market is improving and that the low hanging fruit (i.e. below market units) is gone and that investors are leaving the housing market because the ability to turn a quick profit had ended…Read more »
OliverMcMillan, a boutique real estate developer known for creating artistic, enduring destinations, has broken ground on SALT – a four-story, 265-unit, Class A apartment community in Tempe, Ariz. The development will feature studio, 1, 2, and 3 bedroom living spaces. Residents will enjoy boutique resort style amenities with…Read more »
A Scottsdale real estate company is developing a speculative industrial building at Phoenix-Mesa Gateway Airport. Dale Cavan’s Cavan Commercial has reached a land lease deal with the East Valley airport to develop 7.5 acres at Sossaman Road and Velocity Way. Cavan wants to build 100,000 square feet of industrial space on the airport parcel. “We are excited to expand into this rapidly growing submarket… Read more »
Arizona’s stature in international trade is taking a giant leap forward thanks to the more than decade-long, behind-the-scenes efforts to promote more efficient and effective commerce. The Greater Nogales Santa Cruz County Port Authority will join federal partners to celebrate a bi-national ribbon cutting ceremony in Nogales on Oct. 15 to mark the $244 million completion of the Mariposa Land Port of Entry reconfiguration project…. Read more »

Commercial Real Estate & Business News – October 7, 2014

Sunridge Hotel Group broke ground on a Courtyard by Marriott hotel that will be located adjacent to Phoenix-Mesa Gateway Airport. “Courtyard by Marriott is a great addition to the Gateway area and another sign of the growing success of southeast Mesa,” Mesa Mayor, and Airport Authority Board member John Giles says… Read more »
The first new project on the old Mountain Shadows Resort property is underway in Paradise Valley. Cullum Homes, a custom builder, is putting up 40 homes on a 10-acre site on the eastern side of 56th Street at Lincoln Drive. It will be one of just a few places in Paradise Valley where houses are not built on 1-acre lots… Read more »
The residential real estate market is about to go “boom.” According to AARP, for the next 18 years, Baby Boomers will be turning 65 at a rate of about 8,000 a day. That’s a lot of homeowners who may be thinking about unloading their large family homes. “It is often misleading to generalize for a whole generation,” said Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University…Read more »
Apartment completions in the nation’s top 100 metros reached the highest levels in 14 years in the third quarter at 66,813 units, and pushed the annual completion total so far to 226,615 units—also a 14-year high—according to information released by MPF Research. “The wave of new supply coming for the past year or two now is beginning to crest,” says Greg Willett, MPF vice president. “The timing looks right for this cycle… Read more »
Rental rates at malls and strip shopping centers ticked up slightly in the third quarter, but vacancy rates remained flat as the slow recovery in retail real estate continued to plod along. Asking rents at regional malls rose 0.5% in the quarter to $40.51 a square foot, up 1.8% from a year earlier, according to data released Thursday by real-estate research company Reis Inc. Mall vacancies remained at 7.9% for the fourth quarter in a row. Strip centers saw rents rise… Read more »

Commercial Real Estate & Business News – October 6, 2014

As reported in GlobeSt.com, cap rates for single tenant net lease properties have fallen steadily for several years, regularly hitting new historic lows each quarter as more investors put in bids. In the third quarter of this year, however, the national cap rates for retail properties held steady at 6.5%, according to new research by the Boulder Group, perhaps indicating that… Read more »
Knowing your demographics, strategically stacking space and bringing the ‘human connection’ between stores and the community are key to retail success in a mixed-use setting, said speakers on ICSC Western Division’s Next Generation panel… Read more »
The $450 million USA Place development in Tempe is poised to start construction early next year, according to its developer. A representative of developer Susan Eastridge said financing is moving forward and construction on the 10.5-acre project is scheduled to start in early 2015. Timetables and financing plans have changed for the project, which will move USA Basketball… Read more »
Lennar Multifamily has purchased 5.46 acres of vacant land (zoned Downtown Core) at the northwest corner of Central and McDowell avenues. The land parcel was sold for $12.75 million ($53.55 per square foot). There was no debt with the sale. An active entitlement case with the City of Phoenix calls for a 368 unit 4-story multifamily project… Read more »
The new construction pipeline may have finally started to take its toll. For the first time since the fourth quarter of 2009, the national vacancy rate actually jumped—moving up 10 basis points to 4.2 percent, according to New York-based commercial real estate research firm Reis. “We anticipated that vacancy would begin rising in 2014 due to the significant amount of new construction projected to be completed relative to demand,” … Read more »

Commercial Real Estate & Business News – October 3, 2014

U.S. office rents and occupancies inched higher in the third quarter, as a gradual improvement in the overall economy is translating into a sluggish recovery in the office sector. Average rents sought by landlords reached $29.62 a square foot in the quarter, up 0.4% over the second quarter and 7.7% since the postdownturn nadir reached in 2010, according to real-estate research firm Reis Inc. Read more »
Sales of retail properties continue to accelerate, with most investor groups now on the lookout for attractive retail assets, according to the most recent report from Real Capital Analytics (RCA), a New York City-based research firm… Read more »
Abacus Capital Group LLC has made its second multi-family investment in the Valley in nine months by paying $41.15 million ($171,458 per unit) to acquire the 240-unit Level at Sixteenth apartments located at 1550 E. Campbell Avenue in Phoenix. The seller was a company formed by Cornerstone Real Estate Advisors LLC…Read more »
The owner and founder of DriveTime Automotive Group Inc. in Phoenix has acquired an office-industrial project in Mesa that will house hundreds of new employees being hired by the fast growing national used car business. Verde Investments Inc. in Phoenix (E.C. “Ernie” Garcia, principal) paid $8.8 million ($82.07 per foot) to buy the 15.97-acre Superstition Commerce Park, which is located west of the northwest corner of US 60 and Sossaman Road… Read more »
Phoenix may have to wait another two years to make it out of the prolonged recovery following the worst economic calamity in four generations. The word from speakers at the SRP Economic Forecast 2015 presented by the Phoenix Business Journal is that 2016 is year of full recovery. A group of more than 700 business professionals gathered at the J.W. Marriott Phoenix Desert Ridge Resort & Spa to hear the advice… Read more »
footer script.