Commercial Real Estate & Business News – July 1, 2015

Office Market Is on a Slow Roll

Increase in office space was strong in second quarter but a relatively modest expansion by historical standards. Employers took on 8.2 million square feet of additional office space in the second quarter, marking one of the stronger periods since the recession but a relatively modest expansion by historical standards, according to real-estate research service Reis Inc... Read more »

Top 6 Cities for Highest Rent Growth

Average multi-family rents nationwide “continue to flourish at historically robust levels,” a situation highlighted by an increase of 6.3 percent over the past 12 months, according to a report released Monday by Yardi. Based on data from 100 U.S. markets, the June 2015 edition of Yardi’s Matrix Monthly also reported a 1.3 percent month-over-month rent increase in June, the largest increase during the current recovery... Read more »

U.S. Pending Home Sales Hit Nine-Year High

Contracts to buy previously owned U.S. homes rose to their highest level in just over nine years in May, in a further boost to the housing market and the broader economic outlook. The National Association of Realtors said on Monday its Pending Home Sales Index, based on contracts signed last month, increased 0.9 percent to 112.6, the highest level since April... Read more »

Hines Kicks Off Infrastructure Construction and Office Design at Chandler Viridian

Hines, the international real estate firm, has commenced construction on the infrastructure at Chandler Viridian and is moving forward with the design of the Class-A, six-story office building for the mixed-use property’s master plan development. Chandler Viridian, located at the northwest corner of the Loop 101/Loop 202 interchange in the heart of the Price Corridor in Chandler, will include a central plaza with 240,000 square feet of Class-A office space, a luxury multifamily complex, a modern brand hotel, and retail options along with a pedestrian promenade to the Chandler Fashion Center... Read more »

Online Insurer Zenefits Adding 700 Jobs in Tempe

Zenefits, an online health insurance broker, is adding 700 new jobs in a new office in Tempe, a move that would complete a planned three-year expansion of the company in little more than one year, officials said Monday... Read more »

Commercial Real Estate & Business News – June 30, 2015

Economy Watch: Should We Be Optimistic About the Economy?

There’s a fair amount of evidence now that the U.S. economy’s going to see a second-quarter rebound. For one thing—and it’s pretty much the bedrock of everything else—the economy’s been creating jobs robustly for two months now (the employment numbers for the third month of the quarter, June, will be out on Thursday, ahead of the Independence Day holiday). Also, consumer spending is up; new and existing home sales are up; and now consumer sentiment is up a fair amount as well, according to the University of Michigan. Its Index of Consumer Sentiment came in at 96.1 for June, up from 90.7 a month ago, and 82.5 a year ago—increases of 6 percent and 16.5 percent, respectively... Read more »

International Capital Now Involved in Nearly 20% of Total CRE U.S. Sales Volume

The gusher of foreign capital flowing into U.S. commercial real estate continues to surge. It has had such an impact on the market that even presidential hopefuls are referencing it in campaign stump speeches... Read more »

The Monday Morning Quarterback

The latest data available shows that the 1st quarter was not as weak as originally expected. Corporate profits, while declining, stayed strong. Personal income and consumer spending were also strong in May. Consumer confidence improved. In addition, single family home sales were up. In Arizona, lodging occupancy was up. Overall, it was not a bad week... Read more »

Apartment Sales Volume Surges 22% in May

After plummeting 37% year over year in April, apartment sales jumped 22% in May as the multifamily industry posted $9.1 billion in sales volume, according to New York-based commercial real estate data and analytics firm Real Capital Analytics (RCA). The garden sector led the growth with a 31% year-over-year sales volume increase to $6.4 billion in May. As cap rates have fallen on trophy high-rises, more investors are going further out for yield... Read more »

Retail Forecaster

Will online retail sales ever surpass those in brick-and-mortar stores? Under current conditions, that outcome is unlikely. In 2013, e-commerce was slightly less than 6.5 percent of retail sales (retail and food services sales, excluding automotive sales). It is important to recognize that retailing is the final step in distributing merchandise to consumers. In other words, retail is a logistics-based business.... Read more »

Commercial Real Estate & Business News – June 29, 2015

As Arizona Economy Grows, Other States' Often Grow Faster

Last week, the state reported its best-ever tourism numbers in 2014, including nearly $21 billion in spending. And the Arizona Super Bowl Host Committee estimated $720 million in spending related to the Pro Bowl and Feb. 1 Super Bowl, a record for football's big game... Read more »

ASU, Catellus Advance 20-Year District Plan

Last week, Arizona State University and Catellus Development Corporation announced a preliminary master plan to renovate the 330-acre Athletic Facilities District northeast of the university’s Tempe campus... Read more »

Lafferty Planning St. Ambrose Condominium Project In Downtown Phoenix

Lafferty Development Inc. in Phoenix (Michael Lafferty, pres.) is planning to develop 200 to 230 condominiums in a project in downtown Phoenix being called St. Ambrose. The 2.1-acre site, located at the southwest corner of 12th and Van Buren streets, is now occupied by several automotive-related businesses... Read more »

Is Downtown Phoenix Ready for a Renaissance?

Apparently Phoenix Mayor Greg Stanton has thrown down the gauntlet. According to Andy Weflen, regional director of analytics for GlobeSt.com Thought Leader Xceligent, a rivalry of sorts has grown between the mayors of Arizona’s urban heart and Tempe. And it seems that the state capital—long suffering from a lack of a definitive vital CBD—may have just gotten the leg up. Stanton, in his April State of the City address, unveiled that Uber, the app-based car-on-demand company, took some 40,000 square feet in what serves as the city center, and a trail of corporate users, coincidentally or via its lead, have followed... Read more »

Developer of Mega-Lagoons, Super-Sized Pools with Caribbean Blue Water Looks to Arizona, California Markets

A Latin American-based, multinational company that develops energy efficient mega-lagoons and gigantic swimming pools with crystal clear water similar to the Caribbean and Tahiti is looking to enter the Arizona, California and Nevada markets... Read more »

Commercial Real Estate & Business News – June 26, 2015

A new business in Gilbert is hoping to attract customers by offering movies, bowling, mini golf and pizza all under one roof. FatCats, a Provo, Utah-based company, opened its latest location in Gilbert this month in a 53,000-square-foot space near Greenfield and Baseline roads... Read more »
Arizonans saw a 1 percent increase in personal income in the first quarter while the nation as a whole was just a hair behind with a 0.9 percent increase, according to a report released Monday by the U.S. Bureau of Economic Analysis. The state ranks 17th in income increase trailing New Jersey. Many Arizona industries saw an increase in earnings growth.. Read more »
Investors developing shopping centers and malls aimed at the Hispanic, Asian and other ethnic communities increasingly find national retailers lining up for a chance to join local mom-and-pop stores catering to these fast-growing groups of consumers. Retailers have long sought to tailor their merchandise mix and marketing messages to different groups of shoppers by age group or to men or women. Ethnicity is increasingly becoming a factor in strategies used by shopping center investors to attract shoppers into their stores... Read more »
Arizona’s population increased 1.5 percent over 2013 to 6.7 million, according to new data from the U.S. Census Bureau. Even though Arizona saw fewer than 100,000 new residents, it’s the largest year-over-year population increase since 2008, when the state’s growth rate was 1.8 percent... Read more »
Today’s high net worth investors are hungry for real estate properties, and they have a clear preference for properties in North America, reveals a survey produced by real estate services firm Savills and strategic advisory firm Weatherill Consulting. The firms interviewed wealth managers and private bankers around the world for the survey called “The Weight of Money: How Private Investment is Changing the World of Real Estate.”...Read more »
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