Commercial Real Estate & Business News – June 17, 2016

Scottsdale has long been known as a shopping destination, and it's long benefitted the city's tourism and its overall economy. Shopping is the most frequent activity for both overnight and day-trip domestic visitors, according to the the city of Scottsdale's Longwoods Visitor Report; and 86 percent of respondents said they shopped during their visit to Scottsdale in the 2015...»

Economists both within and outside of the commercial real estate sector had expected the Federal Reserve to delay action on an interest rate increase at its June meeting, and their expectations were met Wednesday. In a Research Brief last week, for example, Marcus & Millichap pointed to weaker-than-anticipated May job growth as providing "an opening to withhold a rate hike this month and delay action until it believes economic momentum supports a hike....»

The founders of Pita Jungle are launching a new concept focused on seafood. Nelly Kohsok, Fouad Khodr, and Bassel Osmani, who launched Pita Jungle in 1994, are opening Grand Blue, which will include dishes like cast-iron cooked sardines, cioppino or a spicy rockfishand seafood quinoa wrap....»

In a property sale that closed two years after originally scheduled, a company formed by JLB Partners L.P. in Irving, Tex. (James Bosler, chairman) paid $10 million to acquire a site in Tempe that is planned for 367 apartments. The 14.66-acre parcel, now occupied by the shuttered Lake Country Village shopping center, is located along the north side of Baseline Road and about a block east of Rural Road. The seller was LCV Property Inc., a Delaware company believed to be formed by the Royal family of Dubai in the United Arab Emirates...»

A retailer can accomplish plenty in two and a half years, but 61.2 percent of industry professionals say they are concerned about their readiness to meet updated lease accounting standards from the Financial Accounting Standards Board (FASB), which are set to go into effect in 2019, according to a recent study by consulting firm Deloitte. The updated accounting rules, released in February, call for financial and accounting professionals to bring detailed information about their companies' operating leases onto the balance sheet....»

Commercial Real Estate & Business News – June 16, 2016

Up to this year, the global economic story has been one of the U.S. and then the rest. The U.S. continues to lead the economic pack, while the E.U. and Japan are stuck in tepid growth, fending off recession. All the while, China attempts to stem its economic deceleration. In 2016, it seems this narrative...»
Oscar, a New York-based health insurance company, selected Tempe for an operational expansion after a competitive process that included working with economic development representatives from the Greater Phoenix region, including the Greater Phoenix Economic Council, the city of Tempe and Arizona Commerce Authority. The region's large, skilled workforce...»
Mesa just landed a cutting-edge medical technology manufacturer with upwards to 500 jobs. Dexcom (Nasdaq: DXCM), a San Diego-based continuous glucose monitoring manufacturer, is taking a 216,000-square-foot building on South Dobson Road near Loop 101 in Mesa's Fiesta District. The facility will be the company's second manufacturing plant. This is this third major employer in...»
Infill and restaurant developer Wetta Ventures has broke ground on a new $5 million restaurant project at Arizona State University's SkySong development in south Scottsdale. The project will include three or four different restaurants. It totals 12,000 square feet and will also have a 3,000-square-foot garden. Completion is set for the end of the year...»
P.B. Bell, a leader in multifamily housing development, management and acquisitions, has opened Velaire at Aspera, a luxury apartment community within the long-awaited Aspera mixed-use development in Glendale, Ariz. Velaire at Aspera is the third new community P.B. Bell has opened since late September. Located at 75th Avenue and the Agua Fria Loop 101 Freeway...»

Commercial Real Estate & Business News – June 15, 2016

More than a dozen companies have either moved to Glendale or expanded in the city this year, a surge that economic development officials largely attribute to the West Valley city's increasing population and transportation infrastructure....»

Barbells in weight training can be beneficial; barbells in CMBS deals, not so much. A new report from Fitch Ratings sees the practice of barbelling-wide dispersion of credit risk within a transaction-becoming more common in commercial mortgage securitizations, with negative implications for the long term....»

More than 2,000 sleepy acres of Casa Grande-area farmland could be transformed into a $500 million motorsports complex with full-size race and test tracks for cars and motorcycles, luxury homes and a private airport in the next five years. Construction on "Attesa" - billed as a massive regional economic engine by both city and Pinal County officials - could begin as soon as next...»
Investors are still eager to buy apartment properties, but they just aren't as eager to pay quite so much for them. "Deal volume is pulling back as buyers and sellers are simply moving further apart on pricing expectations," says Jim Costello, senior vice president with New York City-based research firm Real Capital Analytics (RCA)...»

Apparently, it's as true in economy as it is in psychology. The best predictor of future behavior is past behavior. Standing at roughly the mid-point of 2016, it seems that what we've gotten so far this year is what the rest of the year will shape up to be. Now, as you might remember from my January column, I was pretty confident that 2016 would be a robust, breakout year for the market, based in large part on the growth that I was seeing in my own precincts...»

Commercial Real Estate & Business News – June 14, 2016

Specifically, medical providers in retail spaces represent two compelling forces directing lives in the U.S. right now: Americans are spending more on health care, and want to do so in locations that are as convenient as they are safe. Also, landlords and investors are vigilantly looking for creditworthy tenants who can also consistently draw foot traffic to their properties. Not all medical services are suited to every available retail vacancy. Good partnerships do crop up, however, and it is a formula that both landlords and real estate investors are learning to perfect...»
There seems to be a concern over how long the recovery will last. At the present time, some forecasters are suggesting a slowdown or even a recession in 2017. But it is simply too early to tell at the present time. Despite weakness in the employment report earlier in the month, recent data is relatively positive. This is good news. If the slowdown in employment turns out to be an aberration, the likelihood is that the economy will continue to plod along as it has since the recession ended. And, at least at the present time, it appears that if there were a recession, it would be mild. ...»
Sagewood, a Scottsdale senior living community, has completed the expansion of its on-site, Acacia Health Center, according to Sagewood's Executive Director Stewart Ingram. Doubling in size, the $13.2 million expansion includes another 36,300 square-feet to Acacia Health Center at Sagewood. Sixty beds have been added to the health center including a new 20-bed memory care neighborhood ...»
Retail will remain an extremely popular investment vehicle among the other food groups given more passive ownership structure, low barrier to entry for ownership, intuitive nature, operating expense reimbursement structures, and predictive yields (assuming tenants are properly underwritten). Those thoughts are according to Eli Randel, director of business development at CREXi, who recently chatted with GlobeSt.com about his thoughts on all things retail. ...»
With a number of metrics pointing to a more sluggish economy (though not necessarily a recession), small wonder that U.S. consumers seem a little nervous about the future, at least according to the latest University of Michigan Consumer Sentiment Index. The overall index was down in June to 94.3, compared with 94.7 in May. The drop was small, but it reflects apprehension about the future-which could restrain consumer spending at retail properties....»

Commercial Real Estate & Business News – June 13, 2016

The Phoenix city council has unanimously approved a planned unit development application for 130 acres in and around the iconic Metrocenter Mall development, located on Interstate 17 between Peoria and Dunlap Roads. Of the 130 acres, 83 acres are occupied by Metrocenter Mall, the adjoining Macys and Sears anchor spaces, and the 10-acre land site of a future Walmart Supercenter. The new zoning allows for multiple new uses...»
Melissa Trujillo is part of the fastest-growing group of homebuyers in metro Phoenix. a group that is poised to drive the housing market during the next decade. Not the Millennials, though she's nearly one at age 38. And not the boomerang buyers, though she is one of those. She lost a home during the housing crash and had to wait five years to buy again. But the single mother of three, who bought a $135,000 three-bedroom home in west Phoenix earlier this month, is also Hispanic....»
A new luxury living apartment complex is opening up in Scottsdale in mid-June, a stone's throw from local hangout spot Hotel Valley Ho. When The Standard opens, it will be the only luxury apartment community that is partnered with a hotel to offer resident perks such as access to the Valley Ho pool, spa and room service, according to the property managers....»
Global real estate investment firm Hines is joining the ranks of major institutional investors seeking to cash in some of their longer-held investments and lock-in returns at today's high property valuations. The Houston-based developer disclosed it is exploring strategic alternatives for two of its sponsored non-traded REITs: Hines Real Estate Investment Trust and Hines Global...»
The struggles of Gap Inc. may ripple beyond either the retailer's investors or its landlords. Morningstar Credit Ratings LLC said Thursday it had identified 231 securitized commercial mortgages, with an allocated property balance of $13.89 billion, with exposure to various Gap brands. Of those loans, more than half are backed by collateral where leases with Gap expire in the next two years....»
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