Commercial Real Estate & Business News – October 14, 2016

Central bankers seem to be in disagreement about how to proceed with raising the currently ultra-low interest rates, based on The Federal Open Market Committee recently released minutes of its Sept. 20-21 meeting. Some FOMC members believe that waiting might lead to later larger rate increases-and another recession as a result...»


It's not the news Valley renters want to hear. Rent prices are expected to go up again. Rent prices have been skyrocketing across the Valley for quite a while with the average rent up seven percent since last year...»

Phoenix's homeownership rate increased to 63.4% in the second quarter, surpassing the national average from the first time since 2010, according to the Second Quarter 2016 Economic and Single-Family Housing Market Outlook Report for Phoenix...»
City and business leaders from across the Valley met with AOL co-founder Steve Case Oct. 7 as he toured the region's successful startups through his Rise of the Rest bus tour. Phoenix Mayor Greg Stanton met Revolution venture capital firm CEO Case first thing in the morning at Civic Center Park and joined the bus tour for breakfast at the Desert Botanical Gardens, where more than 50 joined him...»
Last week, Arizona lawmakers were updated on the state budget and economists' view of the near-term financial landscape. Here are five things to know...»

Commercial Real Estate & Business News – October 13, 2016

Steady, improving employment numbers at both the local and national levels are the highlight of an ongoing, eight-year economic recovery, which saw unemployment as high as 10 percent. With unemployment hovering around 5 percent now, top Valley economists say this is likely "as good as it's going to get" recovery-wise for the foreseeable future...»

Pollack said that we're nestled into the fourth-longest expansion since World War II. The problem, he said, is it's the slowest expansion in U.S. economic history. "We going to see continued subpar growth in 2017," he said. "We just have to get used to it"...»


The national wave of new apartments and multifamily property sales that has dominated big markets such as Phoenix since the recession could be making its way to Flagstaff. A new report ranks Flagstaff and Northern Arizona University sixth nationally for new apartments designed for college students coming online next year...»

The planned Crescent Rio complex will be located on 3.2 acres of land on First Street, just east of Hardy Drive, that is owned by Tempe-based Spagnuolo Investments and currently houses office and industrial buildings...»

A San Diego bowling and sports bar restaurant and entertainment concept called Tavern+Bowl is opening a new location at the Westgate Entertainment District in Glendale. It will be Tavern+Bowl's first Arizona location and also include a microbrewery...»

Commercial Real Estate & Business News – October 12, 2016

Prices for apartment buildings continue to rise relative to property incomes-months after the market seemed to have peaked. Investors continue to offer higher and higher prices for apartment properties relative to the income the properties produce. After a slow beginning to the year, cap rates in the apartment sector continued their relentless march downwards...»
In the new century, economic development has become, in the most literal sense of the term, rocket science. Regional leaders see a chance for the East Valley to emerge not just as a place for tech companies to build factories and branch offices, but as a true hotbed of innovation-a sort of Silicon East Valley, if you will...»
More than 100 years ago, Phoenix's Warehouse District was a bustling area where trains would crisscross the streets, bringing wholesale goods and produce in and out of the region. Then the urban flight of the 1950s and 1960s swept the nation, and Phoenix wound up with a severely empty warehouse district. For the many building owners in the area, it became cheaper to own dirt than an empty warehouse, so many of the brick-walled sentinels of the past were torn down and replaced with dirt or parking lots....»
Turf Paradise Race Course has an annual economic impact of $91 million during live race meet season from October through early May, according to a new study...»

Republic Services is expanding into a 400-employee, 72,000-square-foot facility in Chandler. The northeast Phoenix-based waste management company is opening a customer resource center in the East Valley as a way to bring the workplace closer to the workforce...»

Commercial Real Estate & Business News – October 11, 2016

Uptown Plaza in Phoenix will welcome a new clothing store later this month from the duo behind a popular downtown Phoenix restaurant and bar. The couple that owns the Duce in downtown will open a standalone R&R Surplus at the recently renovated Uptown Plaza on Oct. 21....»
Private investors turned more of their attention to single-tenant net lease assets this year, as institutional buyers pulled back from the property type due to the tightening in the capital markets in the early months of 2016. ...»
The Phoenix office of JLL released its Q3 2016 Phoenix Office Report, highlighting benchmarks and includes the lowest vacancies since 2008 and still-rising rents. Still, Phoenix remains one of the most affordable office markets on the West Coast....»
The construction industry rebounded in a meaningful way in September by gaining 23,000 net new jobs on a monthly basis after losing 5,000 net jobs in August, according to an analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors (ABC). ...»
The jobs data released Friday showed negligible change, but the employment report - the last before the Federal Reserve's next policy meeting, in November - has fueled speculation about a Fed rate hike by the end of the year....»

Commercial Real Estate & Business News – October 10, 2016

About 25 years ago, an opulent shopping center with posh shops, a walk-through aquarium and an IMAX theater, the likes of which was not found anywhere else in Arizona, opened in the heart of Scottsdale. The city's main drag, Scottsdale Road, was realigned to make room for the grand project with half a million square feet of space and marble floors....»
Goodwill of Central Arizona isn't stopping its expansion streak. The nonprofit will open a 22,000-square-foot location at 9000 W. Northern Ave. in Peoria on Oct. 14. Goodwill opened two new locations less than a month ago as well as a Mesa location earlier this year and a north Phoenix location around this time last year....»

The Maricopa County stadium district board of directors voted to explore the option to sell Chase Field, downtown home of Major League Baseball's Arizona Diamondbacks, to private out-of-state investors last month. The proposed deal, which was made public in early August, would include keeping the Arizona Diamondbacks at the stadium through 2028 ...»

Hiring by large companies will generate further demand in local apartments, creating density in urban corridors. Continued optimism by Phoenix employers boosted job growth during the past four quarters, with increases expected throughout the year. White-collar jobs along with health professionals contributed to a large share of total employment, including nursing/direct care staff and back-office positions....»

The Labor Department released its employment numbers for September showing that the US economy added 156,000 positions to the nation's payrolls. This was below most economists' expectations for the month and below the revised figures posted in August. The numbers have a national significance - they will become fodder in the US presidential election campaign...»
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