Commercial Real Estate & Business News – August 31, 2015

The U.S. housing market has had a rough decade, but according to the Mortgage Bankers Association, time is on its side. The most recent recession depressed household formation, but a new study released by the organization this week asserts that household formation, and thus the demand for residential real estate of all flavors, will rise significantly during the next 10 years, bouyed especially by strong demographics. The exact mix of rental and for-sale will depend on consumer choices — such as whether Millennials really have eschewed for-sale housing in great numbers — as well as the cost of owning vs. renting, and other factors... Read more »
While Phoenix has been a prime real estate market for Canadians, investors from other countries such as China are putting their money into so-called "24/7 markets" such as New York, San Francisco and Los Angeles where there is constant activity day and night. “What we’re seeing with the Chinese and many other foreign investors is an interest in 24/7 markets,” said Gary Linhart, founding partner of ViaWest Group. “They want to hedge their money in real estate to protect it against fluctuations in China, but they want it to be in a market where people live, work and play”... Read more »
Commercial property investment activity in Europe reached its highest level since 2007, totalling 102.5 billion Euro in the first half of 2015, the latest market analysis report shows. The investment volume across the 16 participating countries was 25% up on the same period last year, according to the European Investment Briefing report from international real estate advisor Savills... Read more »
Commercial fundamentals in REALTORS® markets continued gaining strength during the second quarter of 2015. Based on NAR’s Commercial Real Estate Market Trends report vacancy rates mirrored regional and product variations, as most properties posted availability declines. With rising new supply, apartments experienced availability increases, as the national average rose from 6.0 percent in the second quarter of 2014 to 6.6 percent in the second quarter of this year... Read more »
Haggen said Friday it is working with suppliers to resolve supply chain issues and expects to pay all of them in full. The comments came in response to media reports the company has not kept up payments to suppliers...Read more »

Commercial Real Estate & Business News – August 28, 2015

American consumers are finally spending again, which is good news for retailers and retail property owners. The increased spending corresponds to improved consumer confidence, and experts expect that trend to continue...Read more »
Pending home sales were mostly unchanged in July, but rose modestly for the sixth time in seven months, according to the National Association of Realtors. But annually the July rate was up 7 percent over July 2014. Consensus expectation was for a 1 percent gain over the seasonally adjusted sales rate for June, following an upwardly revised decline of 1.7 percent last month... Read more »
The first phase of the 398-acre NorTerra mixed-use project in Phoenix is expected to have 300 to 400 residential lots and multi-family sites available to builders in 2016. The property, located at the northwest corner of 19th Avenue and Happy Valley Road, is part of a 578-acre tract being developed by USAA Real Estate Co...Read more »
Los Angeles-based Regent Properties is the new owner of the North Loop 101 Business Center located at the southwest corner of 7th Avenue and the 101 Freeway. The 259,142 square foot office sold for a price of $41.75 million or $161 per square foot, and was funded by a $29.5 million loan with Compass Bank... Read more »
The company said it has teamed up with Ibotta, a smartphone app that allows shoppers to earn coupons when they answer a short survey on their phone. It is also equipping store directors with iPads, which allow them to record mystery shoppers in action, see how team members on the sales floor behave with an eye toward improving the way they serve customers, and make sure the stores are meeting or exceeding industry and food safety compliance standards... Read more »

Commercial Real Estate & Business News – August 27, 2015

A Federal Reserve interest rate hike next month seems less appropriate given the threat posed to the U.S. economy by recent market turmoil, an influential Fed official said on Wednesday in the clearest sign that fears of a Chinese slowdown are influencing U.S. monetary policy. New York Fed President William Dudley said the prospect of a September rate hike "seems less compelling" than it was only weeks ago... Read more »
The top six areas among the 48 were Dallas, Orlando, Raleigh, San Antonio, Austin and Phoenix. According, Brian Velky, managing director of fiduciary and valuation services for Situs, said that "Phoenix has better price values than more expensive 'primary' U.S. markets such as Los Angeles, New York, San Francisco and Boston." He also said that "Phoenix has good growth projects for population and job gains. Phoenix has a strong outlook and relatively reasonable prices." Read more »
The historic Westward Ho is getting an uplift, with repairs and upgrades made to kitchen cabinets, floors, fixtures, windows and air conditioning systems in many of its 289 affordable apartments for the elderly... Read more »
Pratik Jogani of Los Angeles has purchased the Biltmore Waterfront Apartments near the I-17 and Cactus Road for $10 million. The sales price on the 288-unit property reflects $35,000 per unit and was funded by an $8.8 million Fannie Mae loan. This is a bank sale from a CMBS portfolio managed by CW Capital, which comes five years after the property was foreclosed for a $7,328,000 opening bid amount... Read more »
It was only a matter of time before the people who lost their homes to foreclosure would enter the housing market again. It appears to be happening in Phoenix. The National Association of Realtors has released a study that shows many "boomerang buyers" are ready to become homeowners again, and Phoenix will be a prime spot for that to happen... Read more »

Commercial Real Estate & Business News – August 26, 2015

8 Phoenix-Area Cities Hit Top 50 Healthiest US Housing Markets

Eight Arizona cities are rising in the ranks of healthiest housing markets in the U.S., according to a WalletHub study. They all landed in the top 50 healthiest U.S. housing markets for comparably sized cities based on population... Read more »

Norterra West Breaks Ground in Phoenix

USAA Real Estate Company of San Antonio, Texas, in association with Tempe, Arizona-based Metro Commercial Properties, has broken ground on a speculative office development in the I-17 / Deer Valley submarket in Phoenix. The development, named Norterra West, will include two (2), three-story Class-A office buildings approaching 300,000 square feet, and will capitalize on the pent-up demand for large blocks of quality, contiguous space from users looking to enter or expand into the economically attractive Phoenix labor market... Read more »

7 Arizona Hotels Sell as Part of ZMC / Hall Equities Portfolio

California investment company Hall Equities Group purchased a total of 7 Arizona hotels on Friday, totaling 715 rooms with a salesprice of just over $53 million, or $74,162 per room. The hotels are located in Scottsdale, Peoria, and Anthem, and have hotel flags of "Hampton Inn", "Days Inn", "Sleep Inn", and "Holiday Inn"... Read more »

Sprouts, New Restaurants Slated for New Queen Creek Development

Construction of a new 20-acre town center development has started in Queen Creek. The QC District development will include a Sprouts Farmers Market, Starbucks, Red Robin, HomeGoods and Orangetheory Fitness... Read more »

Tucson Market Continues Retail Rebound

Tucson’s retail market continued an even pace in the second quarter of 2015 ending mid-year at 6.7% vacancy. Average asking rents were $14.27/sf, essentially unchanged since 2011. Thanks to achieving the one-million population milestone, interest from retailers was not lacking. In addition to Broadway at Kolb, Natural Grocers will open two additional Tucson locations by year end at Broadway & Country Club and Orange Grove & Oracle. The stores will average 12KSF... Read more »

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