Commercial Real Estate & Business News – October 7, 2015

The Federal Reserve’s recent decision to delay any increase in short-term interest rates appears to have been the correct call in hindsight based on last Friday’s disappointing news that total U.S. nonfarm payroll employment increased by only 142,000 in September, says economist Robert Bach. But the lackluster September jobs report released by the U.S. Bureau of Labor Statistics (BLS) also complicates the Fed’s task of communicating its plans to the financial markets... Read more »
Even the most pessimistic apartment market researchers agree that very few apartments were empty in the third quarter and that the vacancy rate in the multifamily rental sector will remain low in the short-term. “Vacancy expansion will not be dramatic—there is far too much demand,” says Ryan Severino, senior economist and director of research with Reis, Inc., a New York City-based research firm. “Vacancy will marginally drift higher.”...Read more »
The commercial real estate market is set to enjoy mostly favorable conditions through 2017, according to the latest three-year consensus forecast from the Urban Land Institute (ULI) Center for Capital Markets and Real Estate. While the latest semi-annual outlook is slightly less bullish compared with six months ago, the majority of indicators in the forecast signal favorable economic conditions and capital markets in the United States... Read more »
The Huntington Apartments have been sold for $34.6 million, netting Gelt investors a cumulative return of approximately 54% and an annualized return of approximately 36% during the 18-month ownership period. The Huntington, which is located at the intersection of Mill Ave and the 60 freeway, is in close proximity to Arizona State University and numerous high-profile employers... Read more »
Orange Grove Medical Center, a 40,782 total square foot multi-tenant office building, sold for $3,000,000, or $73.56/SF. The property is located on the southeast corner of Orange Grove Road and La Cholla Boulevard in Tucson, Arizona. Constructed in 1988, the medical center sits on fee ground at the Northwest Medical Center Campus and was approximately 51% occupied at close of escrow. The property was sold by a $2.5 billion publicly traded healthcare REIT, HR Acquisition... Read more »

Commercial Real Estate & Business News – October 6, 2015

Although an increase in CMBS delinquencies likely is in the offing, for the moment they’re continuing to improve. Trepp LLC said Monday that the delinquency rate fell 17 basis points in September for the largest single-month improvement in 12 months. September’s rate of CMBS late-pays dipped to 5.28%, while the rate of seriously delinquent loans—those 60-plus days delinquent, in foreclosure, REO or non-performing balloon—declined by 13 bps to 5.15%... Read more »
With a glittering mix of shops, salons, boutique gyms and restaurants on an impeccably landscaped 66 acres, the Mesa sales-tax darling that is Dana Park Village Square isn’t exactly hurting for patrons. But Houston-based developer Whitestone REIT — which bought the high-end “lifestyle center” in 2012 and has since boosted occupancy to 93 percent — believes a handful of improvements will attract more customers and persuade them to stick around longer... Read more »
Phoenix is in a building boom. Cranes dot the downtown skyline as construction crews transform lots on nearly every major street. Housing projects run the gamut from apartments to townhouses, from the central city to the suburbs. Some already are underway. Others will need more planning and approval before they break ground...Read more »
Old Town and south Scottsdale have edged past Tempe and now have the lowest office vacancy rates in the Phoenix market. The Scottsdale areas also have the second-most expensive asking rents in the region at $27.69 per square foot. The Biltmore/Camelback area has the most expensive Phoenix office rents — $29.38 per foot. The south and Old Town Scottsdale areas have a 9.3 percent vacancy rate. That is the only Phoenix submarket below 10 percent... Read more »
Demand for stabilized medical office buildings (MOBs) and new development is on an upswing, according to market experts, with cap rates matching pre-recession record levels. The average cap rate for performing MOBs declined to 6.5 percent in the first half of 2015, almost reaching the record low of 6.2 percent achieved in the third quarter of 2007... Read more »

Commercial Real Estate & Business News – October 5, 2015

Metro Phoenix’s homebuilding recovery didn’t stall in August like it has at least a few times times since the crash – another strong indicator the recovery is finally on. New home permits shot up 78 percent in August from the same month a year ago. That’s a staggering jump in new home construction. Now, before anyone starts worrying about another building boom led by speculators similar to 2005-06’s debacle... Read more »
Property management company P.B. Bell recently announced that a new apartment community called the View at Cascade is expected to open sometime in October. The 187-unit apartment complex is located just below Loop 101 in north Scottsdale and will offer one- and two-bedroom apartments. The apartment complex’s website lays out the various amenities, including 9-foot ceilings, quartz countertops and walk-in closets... Read more »
The Fed’s recent decision not to raise interest rates was a relief for many in the market, while others thought that a raise in rates was necessary.However, according to Chris Macke, managing director of research and strategy at American Realty Advisors, if and when the Fed does raise rates, it will have a nominal impact on the real estate market... Read more »
San Diego-based Douglas Allred Co. is looking at expanding its development footprint on Price Road in Chandler by 2 million square feet. Allred already has a 650,000-square-foot, six-building complex at Price and Willis Roads called Park Place. Infusionsoft is among the tenants at the $215 million Park Place development. The development firm is building a seventh building and will soon put forth more plans with the city of Chandler...Read more »
I’m sure you’ve heard it before: This time is different. No, really, this time is different—at least in the apartment market. And by different, I mean there’s a seemingly infinite and insatiable pool of demand for rental units, because Generation Y is huge, with millions of them living at home just salivating at the prospect of moving out. And they have a preference for renting versus owning... Read more »

Commercial Real Estate & Business News – October 2, 2015

Downtown Phoenix's Roosevelt Row Named One of the 'Great Places in America'

The American Planning Association announced today that Roosevelt Row in downtown Phoenix has been designated as one of the "Great Places in America." APA representatives, Phoenix Mayor Greg Stanton, Councilwoman Kate Gallego, Councilman Michael Nowakowski and the Roosevelt Row Community Development Corp. gathered this morning at DeSoto Central Market to make the announcement... Read more »

Time Magazine Ranks Tucson Fourth as Best Place for Millennials

Though it might seem sleepy to outsiders, Tucson is a bit of a hidden gem for millennials, thanks in part to a revitalized downtown, including a big new supermarket, and range of ethnic restaurants... Read more »

P.B. Bell Set To Open The View at Cascade

The scenic setting at The View at Cascade provides for stunning views of Scottsdale’s Sonoran desert landscape as well as the area’s mountainous horizon. Perched atop the community’s five-story amenity tower, the Sky View Lounge allows residents to enjoy the area’s natural beauty from a serene, elevated perspective... Read more »

Where Retro Meets Sophistication, The Standard is Old Town Scottsdale’s Newest Resident

Adjacent to the Hotel Valley Ho, an iconic 1950s landmark, The Standard blends design elements from the era with sophisticated state-of-the-art amenities. Being Scottsdale’s only luxury apartment community tied to a hotel will offer one-of-a-kind resident perks including full access to OH pool and cabanas, VH Spa, Sky Line Rooftop, room service, valet parking, pet walking and sitting, dry cleaning and full-service concierge service... Read more »

Former Phoenix Ritz-Carlton to Reopen as The Camby Hotel

The former Ritz-Carlton Phoenix hotel at 24th Street and Camelback Road that closed in July will reopen in December as The Camby Hotel, officials announced this week. The luxury hotel on the southeast corner of 24th Street and Camelback Road is part of Marriott International’s Autograph Collection of independent upscale and luxury hotels. Owned by Host Hotels & Resorts and managed by Destination Hotels & Resorts, it will be Arizona’s only Autograph Collection hotel... Read more »

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