Commercial Real Estate & Business News – April 21, 2017

Reflecting what one real estate economist described as an overall sentiment of "restrained optimism," the latest ULI Real Estate Consensus Forecast sees a more modest rate of commercial real estate transaction from the frenzied pace seen in recent years, and a gradual slowing but still increases in rental rates, occupancy and pricing through 2019. ...»
Wednesday night, the Phoenix City Council voted to approve a $50-million deal that will fund design and pre-construction costs for Valley Metro's expansion in South Phoenix. It's the latest step towards creating a new offshoot of the light rail, which will run south down Central Avenue, starting at Jefferson Street and ending at Baseline Road. ...»

That often repeated narrative that high-cost, high-tax, liberal California is bleeding jobs isn't actually true. That's at least according to some new jobs numbers from the U.S. Bureau of Labor Statistics. BLS looked at job gains in the largest 50 U.S. counties in 2015 - the most recent data available. Three California counties - San Francisco, Riverside and San Bernardino - topped the list....»

An expensive operating model and loss of dominance in the organic food market are major issues grocery chain Whole Foods is facing as it tries to turn around from a year of floundering sales. Yet, despite the "noise" surrounding activist investor JANA Partners' additional stock purchase in early April, Whole Foods is still viewed as a desirable tenant by shopping center landlords. ...»
Apartment profits continued their string of strong performances last year, according to the latest full-year financial data collected on hundreds of thousands of multifamily units. The combined 2016 net operating income at 4,362 conventional multifamily complexes reporting year-end numbers totaled $5.2 billion, according to Fannie Mae and Freddie Mac mortgage-back securities data collected through March and analyzed by CoStar Group. ...»

Commercial Real Estate & Business News – April 20, 2017

Vacancies for US industrial are at their lowest levels in nearly 20 years thanks largely to technology-driven demand, Ten-X said Wednesday. E-commerce's positive influence on space absorption has already been well documented; less widely noted is the growing demand for cloud-server farms. Conversely, low oil prices mean that the energy sector is no longer the spur to industrial leasing that it was in former years...»
Institutional investors are increasing their interest in owning commercial real estate due to its more predictable returns, but what is the ripple effect on the rest of the industry? It's pretty well-known within (and outside of) the real estate industry that Blackstone is the largest owner of real estate in the United States...»

A Class A office campus in Scottsdale has sold for $37.5 million. The Scottsdale Executive Office Center is located at 15880, 15990 and 16100 North Greenway-Hayden Loop. Perry Investment Trust No. 1 LLC sold the 181,238-square-foot office park to Encino, California-based Kramer-Wilson Co. The Airpark office center was build in 1997. ...»

Mark Wayne is very bullish on downtown Phoenix and one of its largest office buildings - Renaissance Square. "Downtown is very much in vogue," Wayne said. Wayne is a managing partner with San Diego-based Cypress Office Properties which bought the close to 1 million-square-foot office towers in the heart of downtown Phoenix along with Oaktree Capital Management last year for $151 million. The two towers are 26 and 28 floors....»
A new $5 million restaurant complex in south Scottsdale has landed its first tenants. Two local restaurants are scheduled to open in late summer at SkySong, Arizona State University's Scottsdale Innovation Center, on the southeast corner of Scottsdale and McDowell roads. Bitters, a nearly 2,700-square-foot craft cocktail bar and restaurant ...»

Commercial Real Estate & Business News – April 19, 2017

Construction cranes crowd the skies over cities like New York and Los Angeles, as apartment developers build as many new units as they can. But strong demand for apartments continues to fill most new properties. ...»
Northfield, Illinois-based Medline Industries Inc. is opening a 630,000-square-foot distribution center in west Phoenix. The 4-story building at 8787 W. Buckeye Road sits on 36 acres, and was built by McShane Construction and designed by Ware-Macomb. The 37-foot tall facility stores more than 350,000 medical devices...»

EXHIBIT 1: Uber is expanding the number of states that will embrace its next-generation service concept: driverless cars. EXHIBIT 2: Autonomous deliveries are currently being road tested, with Budweiser paving the way in October 2016 with an autonomous delivery...»

Even without the lift from seasonal visitors, Arizona's economy has been humming lately from above-average retail sales and rising employment, an economist reported Wednesday. Arizona retail sales tracked by Visa Inc., excluding vehicles, jumped 8.6 percent in March, compared with about 6 percent for the nation...»
Privately held rue21 inc., a leading mall-based teen specialty apparel retailer, confirmed on its website and Facebook page that it is closing stores as part of plan to turn more attention to its online business. The chain operates about 1,200 stores across the country...»

Commercial Real Estate & Business News – April 18, 2017

Phoenix is weighing an estimated $9 million tax break for developers of a massive high-rise project near downtown's Roosevelt Row, even as a lawsuit over a similar incentive has stalled construction on another residential tower nearby. ...»
Renters in metro Phoenix are getting a bit of a break these days. It's not that rents are falling, just that they aren't rising as fast as they did last year. The average cost of leasing a Valley apartment grew by about 5 percent during the past year, according to new data for the national research firm Yardi Matrix....»

The names and descriptions of recent luxury seniors housing projects read almost like a draft day roster for a major sports league. On April 13, Bridgewater Capital announced plans for Mill Creek Place, an active adult community of townhomes on 38 acres in Staten Island, N.Y., with easy ferry access to Manhattan. In Fort Lauderdale, Fla., Canadian developer Jean Francois Roy is aiming to develop the Riverwalk Residences of Las Olas...»

President Donald Trump's tough talk on what he has described as other countries' unfair trade advantages over the US has caused concern among many people in the world of industrial real estate. They worry the new administration will attempt to rewrite the rules of international trade, and perhaps even start a "trade war" that could curb the import of needed goods....»
Barclay Group in Phoenix and Fry's Food & Drug Stores Inc. have acquired a 19.059-acre (net) site at the southeast corner of Baseline and Higley roads in Gilbert that is planned for development as a 165,000-square-foot shopping center being called City Gate Marketplace. The retail plaza, which will be anchored by a 123,419-square-foot Fry's Marketplace, will also feature 34,600 sq. ft. of shop space...»

Commercial Real Estate & Business News – April 17, 2017

There's a little bearishness mixed in with the bullish outlook for net lease retail, although it's not due to any intrinsic weaknesses in the sector itself. Rather, it's a byproduct of the same investor caution that has tempered investment sales across commercial real estate generally. "The post-election interest rate surge forced many investors to reconsider their strategies, though the limited use of leverage by net-leased investors tempered the pullback in transactions...»
Dexcom Inc. (Nasdaq: DXCM), a San Diego-based manufacturer of continuous glucose monitoring for patients with diabetes, has expanded into a new manufacturing facility in Mesa. The 180,000-square-foot facility will support the company's global manufacturing operations and is projected to create more than 500 jobs over the next several years....»

Tech held onto its place as the urban office sector's dominant industry, capturing 24.2 percent of leasing volume during the first quarter of 2017, according to the latest office report from real estate services firm JLL. By comparison, the second largest occupiers in the sector are insurance and finance firms, which represented 14.2 percent of leasing volume during the first quarter. ...»

Quicken Loans has focused its search for space and the potential move of as many as 1,000 jobs to downtown Phoenix. Quicken is looking at the One North Central building at Central Avenue and Washington Street for its possible big move, according to multiple sources. The Detroit-based mortgage lender currently has a campus in Scottsdale with approximately 1,000 workers....»
While the recent rash of store closings has cast a pall over the retail landscape, the ongoing shakeout has been a boon to the handful of restructuring specialists that cater to retailers. Part real estate brokers, part legal advisors and part wholesale marketers, these hybrid firms seem to get all the big store disposition assignments when retailers go belly up. ...»
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