Commercial Real Estate & Business News – January 29, 2018

Industrial assets among the 7,527 commercial properties indexed by the National Council of Real Estate Investment Fiduciaries posted the highest returns in the fourth quarter, NCREIF said Thursday afternoon. The sector's leading status carries over to 12-month results, for which industrial was the only property type in the NCREIF Property Index (NPI) to post double-digit returns. ...»

Construction cranes are sprouting in downtown Phoenix. That could transform with city's skyline if a number of proposed high-rise developments come to fruition. They show what kind of development is - and isn't - happening within downtown and the rest of the region. "Over the next 18 months, the Phoenix skyline is going to change significantly ...»

At first, they barely talked to each other as they made their morning laps around the mall's hallways. But at some point - many could not recall exactly when - their mornings intertwined. For decades, about a dozen people regularly walked through Fiesta Mall....»

French Thompson, owner of French Designer Jeweler on Main Street, gets ready for the day the morning of Monday, Jan. 22 in Old Town Scottsdale. Through digital screens, marketing campaigns and social media efforts, the old west has set out to meet the new west....»

Working for REITs has been a significant part of Aaron Halfacre's career. From July 2014 to March 2016, Halfacre served as president and chief investment officer of Charlotte, N.C.-based student housing REIT Campus Crest Communities Inc., which Chicago-based Harrison Street Real Estate Capital LLC took private in 2016 in a $1.9 billion deal. Right before that, Halfacre led capital markets strategy and investor relations at Phoenix-based Cole Real Estate Investments Inc....»

Commercial Real Estate & Business News – January 26, 2018

NEW YORK CITY-US commercial property sales declined 7% year over year in dollar volume to $463.9 billion in 2017, says Real Capital Analytics. However, in contrast to a decade ago, the decline in volume was accompanied by an almost equal Y-O-Y rise in pricing, to 7.1%. As the year ended, values across commercial real estate were up 23% from their pre-crisis peak a decade ago...»
Irwin G. Pasternack AIA + Associates PC and Pasternack Properties has broken ground on the 1.1 million-square-foot industrial building off 83rd Avenue near Interstate 10 and the Loop 101 in west Phoenix. The TEN Distribution Center 1 is the first phase of a larger 3.6 million-square-foot, $300 million industrial park on one of the large commercial real estate parcels in the region...»
Recent estimates suggest that convenience stores will achieve total sales of about $73 billion in 2018-on the lower end of the spectrum for this sub-sector-and total sales growth of just 5.5 percent, according to the "Retail, Apparel and Restaurants-U.S., 2018 Outlook," from Moody's Investors Service. Convenience stores are staple assets in the portfolios of net lease and 1031-exchange investors...»
The U.S. office market continued to benefit from strong fundamentals going into 2018, despite continued deceleration in net absorption, occupancy and rental rate growth. With robust corporate profits and continued office-using job growth, that trend is expected to hold through the year as the recently approved tax cuts and expected gradual increases in interest rates...»
The Greater Phoenix industrial real estate market posted a strong fourth quarter finish to 2017, which was one of the city's historically best years. Net absorption was the strongest in a decade, absorbing robust construction completions and pushing the vacancy rate to a 10-year low. Net absorption of industrial space topped 2.1 million square feet in the fourth quarter...»

Commercial Real Estate & Business News – January 25, 2018

IRVINE, CA-The Bay Area would appear to be Oversupply Central as far as multifamily is concerned. The region's three largest metro areas-San Francisco, San Jose and Oakland-are also the three leading markets in which Ten-X Commercial research suggests that investors may want to consider selling their apartment properties...»
For high-net-worth (HNW) investors in commercial real estate, the federal tax overhaul is practically a financial home run. Legal and tax experts say the law bestows several benefits that make it more appealing for HNW investors to buy properties. Broadly speaking, the tax law, enacted in December, represents a huge win for HNW real estate investors...»
CHICAGO-The US economy has been steadily rising for years, but even as many sectors make great progress, brick-and-mortar retail seems like an exception. Consumer confidence hit a 17-year high in November and most experts believe it will remain at a high level in 2018. Overall retail sales increased in 2017, and indicators point to a successful holiday shopping season...»
Toys "R" Us announced Tuesday that it will close down 182 of its stores, including six in Arizona, as it tries to restructure the company and emerge from bankruptcy. The toy retailer filed for bankruptcy back in September, and since then has conducted an extensive store-by-store performance analysis, looking at historical and recent store profitability, sales trends, occupancy costs and the market...»
An attractive market for real estate investment and development can start and end with the economy. Hence, the woes felt during the Great Recession when the economy was down, unemployment was up and real estate activity was dramatically affected, but fast-forward to now. The stock market recently hit an all-time high, spending is up, unemployment is down...»

Commercial Real Estate & Business News – January 24, 2018

For years, multifamily has been the preferred bet for agnostic commercial real estate investors. But bulwarked by the continued rise of e-commerce and changes among manufacturers and retailers to optimize supply chain management, the industrial sector is giving multifamily a run for its money. The sentiment is based on exclusive research gathered as part of NREI's survey...»
Building its senior living portfolio, Western States Lodging broke ground recently on its 3rd community in the Phoenix MSA with Legacy Village of Salt River, located at Pima Center. "Senior living communities today have so much to offer" said Cole Smith of Western States Lodging/Management. "We're not only accommodating the needs of couples who maintain an active independent lifestyle...»
Multifamily investors have lots of options to choose from if they want to take out a mezzanine loan in addition to the primary mortgage on their property. "There are more and more participants willing to make mezzanine loans," says Ari Hirt, managing director in the debt and equity finance group at Mission Capital Advisors, a capital markets solution provider based in New York City...»
Scottsdale developer Fred Unger died Saturday after a seven-year battle with cancer, his family confirmed. The 69-year-old founder and president of Scottsdale-based Spring Creek Development was responsible for many of the city's landmark projects including the Royal Palms Resort, the Hermosa Inn and the canal Waterfront downtown...»
One company is looking at ways to offer different smart home packages at its A and B communities. Pensam Residential has been offering smart-home features for its residents for a little while now. But in 2018, it plans dive even deeper into that market. "The expansion of the program is being driven by strong demand for integrated, smart-home solutions...»

Commercial Real Estate & Business News – January 23, 2018

The hotel business is likely to break more performance records in 2018, according to experts in the sector. Developers continue to flood the pipeline with new projects. But since land to build hotels on is hard to find, and lenders are reluctant to make construction loans, the number of hotels under construction began to shrink at the end of 2017. This is the case despite the fact that more hotel rooms have been occupied...»
2018 is expected to bring healthy growth to the Valley with single-family home construction rising, job growth and an increasing population. "Basically, 2018 is going to be a pretty decent year, and my guess is most of 2019 will be as well," said economist Elliott Pollack, CEO of Elliott D. Pollack and Co. "Greater Phoenix is going to be growing more rapidly than anyplace else in the state...»
Hotel Adeline, a boutique hotel in Scottsdale, is accepting guests, even as it finishes up the last details of its $12 million renovation. The hotel originally opened in 1970 and carried many flags over the years, including a Clarion, Fairfield, Days Hotel. In October 2016, New Orleans-based HRI Lodging, LLC, took control of the property and changed it from the Days Hotel to the Scottsdale Inn...»
Somewhat lost in the wave of store closure announcements last year was news that another major user of retail space abandoned a record amount of square footage. U.S. banks accelerated their pace of branch consolidation last year, closing a net 2,069 locations, an 18% increase over the net number closed in 2016. The net number of closed branches amounts to about 10.46 million square feet of retail space closed...»
GILBERT, Arizona - Located along the Loop 202 retail corridor in Gilbert, within proximity to multiple new developments of retail, office, automotive, education, and residential, Gilbert Fiesta Shops sold for $3.5 million at a 7% cap rate. The 21,900-square foot shopping center was built in 2005 in the booming southeast valley of Phoenix. Gilbert Fiesta Shops is leased by both local and national tenants...»
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