Commercial Real Estate & Business News – June 19, 2017

In its first large-scale push into brick-and-mortar retail, Amazon (Nasdaq: AMZN) announced it has agreed to buy Whole Foods Market, Inc. (Nasdaq:WFM) in an all-cash merger transaction valued at $13.7 billion. ...»
Phoenix has been ranked third among the 20 hottest cities for available tech jobs now, according to ZipRecruiter and Money magazine. The top tech jobs in Phoenix are project manager, software engineer, software developer, data analyst and SQL developer, according to the article....»

The $13.7 billion union of Amazon.com Inc. (Nasdaq: AMZN) and Whole Foods Market (Nasdaq: WFM) isn't just hitting grocery rivals such as Kroger (NYSE: KR), Wal-Mart Stores (NYSE: WMT) and Sprouts Farmers Market (Nasdaq: SFM). ...»

The first phase of a project that will fundamentally reshape the east end of the Arizona State University campus and help fund the university's athletic department is under way. ASU and Oakland, California-based Catellus Development Corp., aim to develop 330 acres of ASU property...»
After taking a four-year break from buying apartments in the Phoenix area, Greystar Real Estate Partners LLC in Charleston, S.C. (Bob Faith, CEO) has returned to the Valley investment market. Greystar, one of the nation's largest multi-family property owners, paid $54.4 million...»

Commercial Real Estate & Business News – June 16, 2017

In a move that was of little surprise to commercial real estate experts, the Federal Reserve raised short-term interest rates for the third time in six months. The quarter-point move boosted rates to a range of 1% to 1.25%. Though this is the fourth rate hike central bankers have implemented since December 2015, the gradual moves have had minimal impact on commercial real estate dealings...»
The city of Peoria and development firm Plaza Cos. have inked a deal aimed at bringing an office/business park to a 14-acre property at the Loop 101 freeway and Peoria Avenue in the West Valley. Like a number of commercial real estate deals in the Phoenix market, Peoria will own the land and has approved a ground lease for Plaza Cos. develop it...»
Tempe's got millennials and college students - almost 52,000 of them are at Arizona State University's main campus. It's got Mill Avenue's bars, coffee shops and restaurants as well as Metro light rail and proximity to other tech and employment hubs (Scottsdale and Chandler). Tempe and Valley Metro are also building a street car system (not called desire) to run down Rio Salado Parkway and to Marina Heights development where State Farm has thousands of employees on Tempe Town Lake...»
The move is unlikely to change conditions in the commercial real estate sector, according to industry insiders. As has been widely expected, the Federal Reserve raised its target interest rate by 25 basis points on Wednesday, to a range of 1.00 percent to 1.25 percent, Reuters reports. This marked the second time the Fed has raised interest rates this year...»
Tempe - In what marks the entry into the Valley for the firm, Forum Real Estate Group in Glendale, Colo. (Darren Fisk, founder) is developing 286 apartments and a Whole Foods Market on a parcel west of Arizona State University in Tempe. The mixed-use project, called The Local, is planned for a 1.858-acre site located west of Mill Avenue at the northwest corner of University Drive and Ash Avenue...»

Commercial Real Estate & Business News – June 15, 2017

Job search site ZipRecruiter recently analyzed its database of more than 8 million active jobs, and ranked the 20 fastest-growing tech markets based on year-over-year data. Job growth for engineering, software, and IT roles may be losing steam in the Bay Area, but smaller cities are picking up the slack, the company says. Huntsville, Ala. topped the list, with over 300% tech job growth from 2016 to 2017. Thousand Oaks, Calif. (200%) came in second, followed by Phoenix, Ariz. (188%)...»
Arizona State University (ASU) and master developer Catellus Development Corporation announce the next phase of the Novus Innovation Corridor, the bold new community created by ASU's establishment of a university athletic facilities district. When completed, Novus will integrate more than eight million square feet of private, mixed-use urban development with new and renovated technology-enhanced collegiate athletic venues, ultimately bringing approximately 20,000 new jobs and 5,000 new residents to central Tempe...»
Quicken Loans has finalized a deal to move its Arizona office from Scottsdale to downtown Phoenix. The move will bring more than 1,100 jobs to the One North Central Building at Washington Street and Central Avenue. Detroit-based Quicken announced the deal this morning. The mortgage lender will lease 150,000 square feet across six floors at the downtown office building. The relocation from Scottsdale to Phoenix will be completed next year...»
Investors using 1031 exchanges continue to have a voracious appetite for triple net lease properties, and they are increasingly setting their sights on restaurants. "People are shifting to e-commerce-resistant retail, and restaurants are at the top of the list of what people are looking for," says Randy Blankstein, president of the Boulder Group, a net lease advisory firm. "So it has gone from a category that five years ago was considered specialty to very much a mainstream category that is getting a lot of interest from a lot of new players."...»
Urgent care clinics have become one of the fastest-growing segments of the medical-care industry, and more are showing up in neighborhood retail centers, providing a boost to flagging occupancy levels. While they may not be a cure to what ails the shopping center industry, they are offering some relief. The urgent-care sector is a highly fragmented industry with more than 4,300 companies operating more than 9,600 units, according to data from National UC Realty, a Tampa-based firm that has specialized in the category for the last 10 years...»

Commercial Real Estate & Business News – June 14, 2017

Average apartment rents are increasing across the country. And despite all the new units that have become available, renters keep showing up to leasing offices, keeping the average vacancy rate in the sector relatively low. "Stabilization is a word that comes up over and over," says Greg Willett, chief economist for RealPage and its subsidiary MPF Research...»
A Florida-based real estate firm has acquired its first property in the Phoenix market. Sterling Organization, a private equity real estate investment firm, has acquired Palm Valley Marketplace at the southwest corner of West Indian School Road and North Litchfield Road in Goodyear for $22.45 million...»
Many Millennial renters in metro Phoenix want to buy a home But they can't afford a 20 percent down payment, and it will take them more than a decade to come up with it, according to a new survey. It's no revelation that Millennials are caught between rising rents and home prices...»
Stockdale Capital Partners', Galleria Corporate Center continues to be a magnet for companies looking to locate and grow in the Phoenix area. With a newly remodeled lobby and common areas, the former 'mall turned creative office' complex in Scottsdale's Downtown Entertainment District is accommodating hundreds of jobs...»
Tempe - Green Leaf Partners Inc. of Danville, Calif. (Mike O'Neil, Thomas Hall, Farrokh Billimoria, co-founders) has added to its Valley multi-family holdings with the $59.5 million ($148,750 per unit) acquisition of the 400-unit Apache Station apartments located at 2323 E. Apache Boulevard in Tempe. The sellers were 33 tenant-in-common entities led by SCI Real Estate Investments in Los Angeles, Calif...»

Commercial Real Estate & Business News – June 13, 2017

A new report says the typical Arizona renter needs to work more than a 40-hour week, or share the rent, to afford a two-bedroom unit. New data from the National Low Income Housing Coalition shows Arizonans, on average, earn nearly 11 percent less than the national median, even with the increased minimum wage of $10 an hour....»
A German discount grocer has set its sights on becoming the third-largest American food retailer by store count, behind Walmart and Kroger. Aldi said it plans to invest $3.4 billion to open 900 stores by the end of 2022, giving it 2,500 stores nationwide. The grocer currently operates approximately 1,600 stores in 35 U.S. states. Earlier this year...»

Old buildings have a story to tell. The story of Federal Pizza on Central Avenue, a restaurant that opened five years ago in a 1950s building, began with a surprise. When the restaurant's construction team started to dig up the floor of what was the First Federal Savings and Loan to add plumbing for the bar, they ran into a problem....»

Arizona entrepreneur John Groberg is putting a new twist on the relatively old concept of timeshare space for medical tenants, and one medical office broker in Arizona says Groberg's idea may have momentum. Groberg is setting up a medical office space called Viva MedSuites in Scottsdale, a Phoenix suburb...»
Phoenix renters caught a slight break in May, as average rents decreased slightly from the high reached in April, according to Axiometrics, the leader in apartment and student housing market intelligence. Average effective rent for Phoenix apartments was $979 per unit per month in May, $2 less than April...»
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