Commercial Real Estate & Business News – May 17, 2016

Commercial real estate leaders are confident in the strength of the commercial real estate market. But they’re also realistic enough to recognize that all commercial sectors will face their own challenges in the coming months. And they’re especially worried that rising interest rates could put the brakes on what has been such steady commercial real estate activity during the last two-plus years. That’s the result from a May survey from CIT Group, in partnership with Forbes Insight... Read more »
With recovery well underway in the Phoenix metro, commercial real estate activity is matching the level of the rebound. Office, flex and warehouse property types seem particularly in demand for one investment venture. Three business parks totaling 312,193 square feet have been acquired by a venture of San Juan Capistrano, CA-based Birtcher Anderson Realty in conjunction with JCR Capital of Denver. The joint venture acquired the parks from Presson Properties for approximately... Read more »
Grocery store chain Smart & Final Stores Inc. said it has converted all 33 stores it bought from Haggen in December to Smart & Final Extra! stores. The store openings were part of an aggressive growth plan for the Commerce-based retailer, which plans to open 100 new stores over the next four years and hire at least 5,000 employees to staff those stores... Read more »
Vancouver, BC-based Macdonald Development Corporation (MDC) is expanding its Arizona presence with the purchase of 0.403 acres of CC-zoned land, which is located at 6th Street and College Avenue in a premier downtown location. MDC purchased a 50% interest in the land parcel from property owner, Spike Lawrence, co-founder of Tempe-based Lawrence & Geyser Development Corp. Lawrence will maintain 50% ownership in the land, and work with MDC... Read more »
San Francisco-based real estate company Hamilton Zanze (HZ) announced the recent acquisition of Tresa at Arrowhead for $47,000,000 ($130,556/unit). The 360unit Class B+ apartment community is located in Glendale, AZ, approximately 10 miles northwest of Downtown Phoenix. Tresa at Arrowhead was built in 1998 and is 0.5 miles from the Arrowhead Towne Center and 1 mile from the vibrant P83 Entertainment District... Read more »

Commercial Real Estate & Business News – May 13, 2016

CRE investment as a proportion of the entire U.S. GDP is trending up for most property sectors. The Bureau of Economic Analysis reported on Wednesday that investment in non-residential structures decreased at a 10.7 percent annualized rate in the first quarter of 2016. That wasn’t a reflection on the health of commercial real estate, though it sounds like it should be. In fact, investment in most CRE sectors is still edging up... Read more »
It’s about the jobs, stupid. Employment_800x610The presidential election primary season has highlighted the theme of the angry voter, which has the effect of overstating the U.S. economy’s weak points while failing to notice the remarkable consistency in job creation that has underpinned the recovery. Through April, the private sector has added jobs for 73 consecutive months—the longest such streak on record—encompassing 14.4 million new jobs, or a shade under 200,000 per month... Read more »
Apartment property performance in 2015 continued to outperform even the strong performance seen in 2014 and 2013, according to the latest financial data collected on thousands of multifamily complexes. And the net operating income performance for the property sector may still head higher... Read more »
Whether it seems like it or not, Arizona's economy is doing well for now and is expected to post its best year in a decade, state economists said Wednesday. Jobs, wages and population should continue to set new post-recession marks for Arizona, which has seen a burst of growth in industries such as finance and health care, as well as construction and service-sector work, said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W.P. Carey School of Business at Arizona State University... Read more »
Vancouver, BC-based Macdonald Development Corporation (MDC) is expanding its Arizona presence with the purchase of 0.403 acres of CC-zoned land, which is located at 6th Street and College Avenue in a premier downtown location. MDC purchased a 50% interest in the land parcel from property owner, Spike Lawrence, co-founder of Tempe-based Lawrence & Geyser Development Corp. Lawrence will maintain 50% ownership in the land, and work with MDC and Bill Borders of Phoenix-based ARC Construction to create the vision for the development... Read more »

Commercial Real Estate & Business News – May 12, 2016

U.S. apartment sales surged 33 percent last year to $151.8 billion, and that momentum has carried over into first quarter of this year with another $38.6 billion in sales, according a recent report by apartment listing and data specialist Abodo, citing Real Capital Analytics data... Read more »
Lack of High-Quality Available Shopping Center Properties Hampers Both Retailers and Buyers: The U.S. retail real estate market recorded 11 million square feet of net absorption in the first quarter of 2016, causing the nation's average vacancy rate to tick down to 6%, the lowest quarterly level since the Great Recession... Read more »
For most of this cycle, luxury apartments have been opening in gateway markets, like San Francisco and Washington, D.C. But RentCafe's Nadia Balint says this luxury trend is spreading to under-the-radar locales, like Kansas City and Milwaukee too... Read more »
Whether it seems like it or not, Arizona's economy is doing well for now and is expected to post its best year in a decade, state economists said Wednesday. Jobs, wages and population should continue to set new post-recession marks for Arizona, which has seen a burst of growth in industries such as finance and health care, as well as construction and service-sector work, said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W.P. Carey School of Business at Arizona State University... Read more »
Looking for a great place to conduct business? Well, look no further: Arizona has been ranked one of the best places in the country to do business, according to a recent survey. Chief Executive Magazine’s annual “Best & Worst States for Business” found that Arizona ranked No. 6 in the country for business, climbing three spots from last year... Read more »

Commercial Real Estate & Business News – May 11, 2016

ICSC’s RECon Global Retail Real Estate Convention is coming up in just under two weeks Sunday throughTuesday at the Las Vegas Convention Center, but if you are (in any way) involved in the shopping center industry, of course you already knew that and are well into planning all your meetings there. What you maybe didn’t know is what all of your fellow retail colleagues are looking forward to and expecting from the event. GlobeSt.com caught up with just a few... Read more »
The Presson Portfolio sale included three properties – Fairmont Commerce Center, 1919 E. Fairmont Dr. in Tempe; Carleton Business Park, 5005 & 5025 S. Ash Ave., 40 W. Baseline Rd. and 5030 S. Mill Ave. in Tempe; and Fiesta Tech Business Center, 2150 and 2220 S. Country Club Dr. in Mesa... Read more »
The pedestrian-friendly community, located on the southern outskirts of Scottsdale’s Downtown District, is within easy walking distance of bus and trolley routes and is close to numerous cultural, recreational and employment opportunities in the area. Close by, two new developments are already underway in an area of ongoing revitalization in the city... Read more »
Preliminary construction work on the next leg of Mesa’s light rail line could begin as soon as August, according to city transportation officials. Engineers are expected to have a detailed design for the $153M, 1.9-mile addition — which would extend tracks east along Main Street from Mesa Drive to Gilbert Road — nearly finished by July. The extension would add two stations and a park-and-ride to the line... Read more »
Net lease retail investment is hitting new lows, but that’s a sign of its high esteem among investors. During the first quarter, median cap rates for single-tenant retail properties dropped to 6.18 percent, setting a record, according to a report published in April by The Boulder Group. That represents a decline of 7 basis points from the previous quarter and a 22-basis-point decline year over year... Read more »

Commercial Real Estate & Business News – May 10, 2016

The economic data released last week was mixed but mostly positive. The growth in employment for April was a disappointment compared to the trend of the last 12 months and bears watching. Labor force participation also dipped slightly, reversing gains from prior months. However, credit card spending and motor vehicle sales were up significantly, which points to both improved consumer confidence and strength in the labor market. Also, manufacturing has expanded for the second consecutive month... Read more »
It’s no surprise to hear that the Phoenix-Mesa Greater Metro area is currently undergoing billions of dollars of development--anyone that drives around can see the money being spent: buildings going up, old facilities being renovated, new facilities being created from nothing. Coming along with this development has been the rise of the ‘Master Planned Community’, as they call it... Read more »
Grand Canyon Education Inc. (Nasdaq: LOPE) plans to spend $180 million in construction projects this year, but that number is expected to drop as supply finally catches up with demand. The Phoenix-based operator of Grand Canyon University spent $49.8 million during the first quarter of 2016... Read more »
More people are renting than buying these days and they’re not just millennials. Renters occupied about 36.3% of households last year, the highest figure in a decade, according to a new Census Bureau report out last week. At the same time, homeownership dropped to 63.6% compared to 69% ten years ago. This uptick in rentals (and drop in homeownership) is often attributed to millennials who are putting off life’s big milestones. The data, however, paints a slightly different picture: Individuals in their mid-30′s to mid-40′s are more likely to be living in rentals today than they were a decade ago... Read more »
Home prices have risen sharply in many parts of the country, and bargains are hard to find. However, the largest owners and managers of single-family rental homes continue to improve their property management in markets where they own properties. They also continue to make strategic acquisitions to fill out their portfolios...Read more »
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