Commercial Real Estate & Business News – January 17, 2017

U.S. consumers continue to be more optimistic than they've been in years, according to the latest reading of the University of Michigan's Consumer Sentiment Index, which was released just ahead of the Martin Luther King Jr. Day holiday. The index for mid-January came in at 98.1, down slightly from 98.2 at the end of December, but up from 98.0 at mid-month December. A year ago, the reading was 92.6, so consumers are quite confident compared to then...»

 

Commercial real estate executives are upbeat on industrial, infrastructure and multifamily asset classes for 2017, according to the 2017 Real Confidence Executive Index from Altus Group, in partnership with NAREIT and the National Council of Real Estate Investment Fiduciaries (NCREIF)...»

 
Research by commercial real-estate firm CBRE says more than 1.3 million square feet of new retail space opened across the Valley last year. That's more than double the year before, but still a fraction of the pre-recession peak...»

Probably the most surprising news this week came from the U.S. Blue Chip consensus forecast. The latest consensus forecast, a survey taken on January 5th and 6th, was somewhat surprising to me. The real GDP consensus forecast for 2017 was 2.3% compared to the 1.6% expected for 2016...»

Arizona State University has been named the lead institution for a new U.S. Department of Transportation Tier 1 University Transportation Center that plans to focus on improving regional travel demand forecasting...»

Commercial Real Estate & Business News – January 16, 2017

Phoenix-based Vereit Inc. recently turned a corner on its road to recovery, posting a rare if modest quarterly profit. But that achievement, symbolic as it might be, wasn't something Glenn Rufrano highlighted in a recent meeting. Rather, the relatively new chief executive officer of Arizona's most valuable public real estate corporation cited a list of accomplishments that he considers more significant...»
The amount of empty industrial, manufacturing and warehouse space is at its lowest level since 2007 when the last recession began. That is according to year-end Phoenix industrial real estate numbers from JLL. JLL has the 2016 year-end regional industrial vacancy rate at 9 percent - the lowest since the end of 2007....»

It happened just two months before Christmas, a telling sign of the times for Mesa's Fiesta Mall. That's when national electronics big-box retailer Best Buy shuttered its store at the mall. The two-story anchor building was constructed in 2007 for the store, which relocated from across the street. Dick's Sporting Goods occupied...»

An investment firm plans to develop a high-rise apartment project at one of the two plots of land it purchased near Mill Avenue. Core Campus Investment Partners LLC purchased .75 acres at the southeast corner of Seventh Street and Mill Avenue in Tempe, along with the southwest corner of Seventh Street and Myrtle Avenue, for $8.4 million....»
Real estate developers, brokers and commercial tenants are turning to renovations and rehabilitation projects in desired submarkets such as downtown Phoenix, Tempe, Scottsdale and south of Phoenix Sky Harbor International Airport. New construction isn't as easy in those areas because of a lack of available land and prices for land have increased. There is more...»

Commercial Real Estate & Business News – January 13, 2017

Foreclosure filings reached their lowest level in 10 years in 2016, ATTOM Data Solutions said Thursday. The year just past also saw the lowest annual foreclosure rate nationwide since 2006. There were foreclosure filings on 933,045 US properties last year, down 14% from the year prior....»
Private equity funds are starting out 2017 continuing to bet on the single-family rental (SFR) market, a large but widely fragmented property segment that's entering its fifth year as an institutional real estate investment play. ...»

Freddie Mac (OTCQB: FMCC) announced today that it saw a record-setting $56.8 billion in loan purchase and bond guarantee volume in 2016, up from $47.3 billion in 2015. The company also announced it issued an unprecedented $51.2 billion in multifamily securities...»

On behalf of Bayport PV Associated LP, JLL's Capital Markets completed a $10.5 million refinancing for the Paradise Valley Medical Plaza. Principal Real Estate Investors provided the 10-year, fixed-rate loan for the fully occupied medical office plaza, located in Paradise Valley, Arizona....»
Altus Group Limited, in collaboration with the National Association of Real Estate Investment Trusts and the National Council of Real Estate Investment Fiduciaries, today released the results of the 2017 Real Confidence Executive Index, revealing that commercial real estate executives are especially bullish on industrial...»

Commercial Real Estate & Business News – January 12, 2017

Fed officials raised the target for short-term interest rates by 0.25 percentage points on December 14. The Fed's most recent forecast projects U.S. economic growth in 2017 to be 2.1 percent, slightly better than the Fed's previous projection in September. Trump's expansionistic policy rhetoric-pledging significant spending on new infrastructure...»
Retail construction in 2016 in the Phoenix metro reached the highest level since 2009, according to a new study by CBRE Research. The real estate firm found that in 2016, completed construction on retail brick-and-mortars reached more than 1.3 million square feet, outpacing construction from 2010 to 2015. ...»

With President-elect Donald J. Trump preparing to take office next week and the Republican-controlled 115th Congress already in session, the newly reconstituted House Ways and Means Committee met for the first time this week to discuss the GOP's tax reform "blueprint" released last summer calling for sweeping changes to federal tax law. ...»

A 30,195-square-foot Mesa retail center anchored by a Safeway, located at Val Vista Drive and Southern Avenue, was sold for $4,550,000 by Pac West Land LLC. Arizona Partners purchased Stonebridge Shopping Center, which was 69 percent occupied at close of escrow. In addition to Safeway, the property shares the site with a Del Taco, Jack in the Box, and a Safeway Fuel Station ...»
It's hard to find the winners from the 2016 holiday shopping season except for e-commerce sites. The numbers being reported by publicly held retailers look pretty abysmal, particularly in light of the bullish national numbers being reported by retail associations. The International Council of Shopping Centers (ICSC) released its post-holiday Shopping Survey...»

Commercial Real Estate & Business News – January 11, 2017

It has suddenly gotten a lot more difficult to borrow money for an apartment property. "The overall cost of borrowing has gone up undoubtedly, but the interest rates spreads offered by lenders are very similar to the spreads they offered last year."...»
Office leasing volume in the Phoenix metro area hit its highest volume since 2005, according to year-end data from the JLL commercial real estate firm. Regional net leasing activity - or absorption - for 2016 came in a 3.1 million square feet....»

New Glendale PGA Superstore offers simulators, practice bays, putting green. A new PGA Tour Superstore is scheduled to open Saturday in Glendale on Bell Road in a space previously occupied by Sports Authority....»

The group behind Market Street Kitchen is opening a new concept in Scottsdale. Keeler Hospitality Group, who own Market Street Kitchen in DC Ranch and Spencer's for Steaks and Chops in Omaha, Nebraska, are opening Liberty Station at 34522 N. Scottsdale Road, Suite 180 in February....»
The balance of power is shifting in the office sector from CBDs to the suburbs. Suburban markets generally are expected to outperform in 2017, a year that will also favor the Sunbelt. Specifically, while suburban office markets still average higher vacancy rates than downtowns, they're expected to fare better...»
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