Commercial Real Estate & Business News – April 17, 2015

The Metropolitan Phoenix retail market continues its recovery, as noted in a recent report from CBRE Phoenix Research. With vacancy under 10 percent for the first time in seven years, demand for space is beginning to reflect that of pre-recession levels. However, while a sense of normalcy is slowly returning to the market, real estate experts are noticing new trends emerging in this post-recession retail market; and, one of the most prominent of those trends is Medtail, or the addition of medical related tenants to traditional shopping centers...Read more »
Greater Phoenix saw its unemployment rate drop to 4.8 percent in March, the lowest in Arizona, according to the state Department of Administration. Meanwhile, Arizona’s seasonally adjusted unemployment rate dropped 0.3 percent to 6.2 percent in March, the largest decline in four months... Read more »
A joint venture formed by Trinsic Residential Group has completed the $6.2 million assemblage of a multi-parcel site in Central Phoenix that is planned for a 220-unit apartment community being called Aura on Indian School. The 7.01-acre property wraps the northwest corner of 20th Street and Indian School Road... Read more »
Home sales were up in the Phoenix area but the number of listings on the market are down, according to new data today from Arizona State University. ASU’s housing expert Michael Orr reported Thursday that home sales were up 9 percent in February compared to a year ago and 19 percent over a sluggish January... Read more »
Another infill, restaurant-oriented development is slated for Seventh Street in Phoenix. The $7.8 million Crown on 7th project is being built at the former Crown Imports building between Missouri and Bethany Home roads...Read more »

Commercial Real Estate & Business News – April 16, 2015

Continuing the broad recovery across all property types and throughout most U.S. markets, commercial real estate prices again moved upward in February, reflecting solid occupier demand as well as widening investor interest in smaller properties outside the largest U.S. metros... Read more »
Since bottoming five years ago this quarter, the average per square foot price being paid for single-tenant net leased retail properties has now surpassed their pre-recession highs of 2007. The average price increased to about $263 per square foot in the past quarter, up from its low of about $175, according to CoStar Group sales data... Read more »
A Phoenix-based company had most apartment starts in the U.S. in 2014, according to a new ranking by an industry group. Alliance Residential Co. had 7,500 apartment starts last year and has 11,000 units under construction... Read more »
HSL 44 Monroe, LLC, is excited to announce the $50.65 million purchase of a controlling interest in 44 Monroe, Arizona’s tallest luxury residential tower featuring breathtaking penthouse living. Located at 44 Monroe on the northeast corner of 1st Avenue and E. Monroe Street, the property is located in the heart of the downtown Phoenix financial district. HSL purchased 184 condominium units in the 198-unit tower. HSL will continue to operate the property as a luxury apartment home building... Read more »
Phoenix had the worst retail vacancy rate among large U.S. cities last year but hopes to shed that distinction this year. A new report on the retail real estate market in major U.S. markets shows Phoenix ended 2014 with a 10.5 percent vacancy rate... Read more »

Commercial Real Estate & Business News – April 15, 2015

Living in an apartment? Expect your rent to go up again. Renting has gotten increasingly expensive over the last five years. The average U.S. rent has climbed 14 percent to $1,124 since 2010, according to commercial property tracker Reis Inc. That's four percentage points faster than inflation, and more than double the rise in U.S. home prices over the same period... Read more »
Commercial real estate lending increased for the fifth consecutive year in the U.S., as a strong fourth quarter capped expansion across lenders and property types, according to the latest research from CBRE. Loan closings were boosted by the demand for acquisition financing, which accounted for close to one-half of lending volume in 2014... Read more »
Two Class A office developments are coming to Scottsdale, and one of them will be an Inc. 500 company headquarters. Saxa Inc. and Caliber Cos. will break ground in June on a $7 million office building near Loop 101 and Bell Road. The Bahia 101 project will total 40,000 square feet. Developers say it is the first Class A building to be constructed in the area since 2009. It is slated to deliver next year... Read more »
With a winning bid of $35 million ($1 million per net acre), Camden Property Trust in Houston, Tex. (NYSE:CPT) has taken control of a parcel in northeast Phoenix that is planned for 1,150 apartment units. The 49.6-acre (35.3 net) site, located at the northwest corner of Mayo Boulevard and 68th Street, was sold at public auction by the Arizona State Land Department... Read more »
Seeking to refocus on its core industrial manufacturing business, GE said it will dispose of most GE Capital commercial real estate assets over the next 24 months. The Connecticut-based GE announced sales agreements this morning for most of those assets after its board of directors decided to act due to favorable market conditions for commercial property... Read more »

Commercial Real Estate & Business News – April 14, 2015

Survey Shows Commercial Real Estate Poised For Three Years of Growth

The forecast from the Urban Land Institute (ULI) Center for Capital Markets and Real Estate, released April 8, shows commercial real estate transaction volume rising to $470 billion this year from $424 billion in 2014, an increase of 11 percent. Volume is projected to climb to $500 billion in both 2016 and 2017, a 6 percent increase from the forecast 2015 level... Read more »

Chasing Growth From Coast to Coast

The US economic recovery, it has been said, has been on a steady but uneven journey since the devastating financial crash of 2008. While the big picture story is a positive one—growth is here, fundamentals are strong and the future looks solid—the mercurial path of this growth forces commercial real estate firms to play a mental game of chess as they try to anticipate these twists and turns... Read more »

Why the Housing Market Is About to Perk Up

Although housing starts have been soft (after all, it's hard to build when there's snow on the ground) housing sales (both new and existing) have recently rebounded to the surprise of many. New homes sales surged 7.8 percent on a monthly basis in February to a seven-year high. Existing sales jumped 1.2 percent on a monthly basis... Read more »

Strength in Numbers: Crowdfunding bullish on real estate

Crowdfunding isn’t just about raising capital for smart watches, giant batches of potato salad or unexpected life events. It’s increasingly an online marketplace used by real estate investors around the country. Massolution reported last April that crowdfunding platforms raised $2.7 billion for more than a million campaigns in 2012. It went on to predict, as reported by Fortune magazine, that by 2025 the global crowdfunding market would see business between $90 billion and $96 billion — two times the size of the current venture capital industry, per a 2013 study by World Bank... Read more »

Nobody Panic!! The Outlook is Still Good, in our Opinion

While the data has been more mixed than it has been over the past year, part of the cause is Mother Nature (the harsh winter in the mid-west and northeast), part is due to unions (the west coast port slowdown) and part is due to the fact that we are probably past that point in the cycle where all the news will be good. The basics still appear to be intact. Consumers’ incomes are slowly growing, jobs are being added (chances are good that the lackluster performance last month was an aberration), confidence remains strong, businesses are in good shape financially and housing is slowly recovering. No unusual debt burden issues for consumers or business have manifested themselves... Read more »

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