Commercial Real Estate & Business News – November 21, 2014

Arizona’s private sector added 28,500 jobs in October over September – nearly double the typical October over the last 10 years, and 62 percent more than the post-recession job gains for the month. The state’s unemployment rate dropped to 6.8 percent, down 1 percent from October 2013. Arizona still is a percentage point higher than the national unemployment rate of 5.8 percent… Read more »
Bloomberg also reported this week that Apple has told Mesa officials it will stick with its plan to bring manufacturing jobs to Arizona. “They’ve indicated their commitment to us: They want to repurpose that building and use it again,” Mesa City Manager Christopher Brady told Bloomberg… Read more »
First Industrial Realty Trust Inc. has almost doubled its holdings at the Mack Arrowhead industrial park in Peoria with the acquisition of another 220,324 sq. ft. of industrial space in the project. In February 2008, BREW reported the publicly-traded real estate investment trust buying 228,277 sq. ft. in two buildings at Mack Arrowhead. In the recent sale, First Industrial Acquisitions Inc. paid $18.275 million ($82.95 per foot) to acquire 220,324 sq. ft. in three buildings… Read more »
A joint venture formed by Jackson-Shaw Co. in Dallas and LaPour Partners in Las Vegas plans to develop 177,750 sq. ft. of industrial space in a spec project located just west of Phoenix Sky Harbor International Airport. The three-building development is targeted for an 11.5-acre parcel located at the northwest corner of 7th Avenue and Interstate 17… Read more »
The changes in the financial envionment today is nothing short of remarkable. With real estate now considered a prized asset class, commercial property owners enjoy unprecedented access to capital. An abundance of buyers eagerly bid up commercial real estate values and a superabundance of lenders line up to compete to finance their properties… Read more »

Commercial Real Estate & Business News – November 20, 2014

Prices, Trading Volume for Commercial Property Continue Yearlong Rebound In Third Quarter

Retail Joins Party as Pricing Trends Hold Steady for All Property Types from Year Ago: With the accelerating recovery in retail real estate taking center stage, U.S. commercial property saw price gains and increasing sales in both the high and low ends of the commercial real estate market during the third quarter, according to the latest CoStar Commercial Repeat Sale Indices (CCRSI). Read more »

Empty-Nesters Flock to Apartment Living

Magnitude of Boomers’ rental demand stuns some industry observers. Young adults ages 22 to 30—those “Millennials” who are a target demographic for many of the new apartment properties hitting the market—are likely to be in their first or second post-college home away from their parents. But it’s becoming more and more possible that their next-door neighbors could be their parents…or at least people their parents’ age… Read more »

5 Restaurant Chains That Will Outperform The Rest Of The Industry

The restaurant sector is becoming increasingly competitive. Americans go out to dinner an average of 74 times a year, The Washington Post’s Wonkblog reports, citing the consumer research firm NPD Group. That’s the lowest reading in three decades… Read more »

2015: Paradise Valley Could See New Ritz-Carlton Pitch

It appears the development behemoth known as the Paradise Valley Ritz-Carlton project may be rising from its recessional slumber. Community chatter around the project is building in anticipation of new leadership taking over in the Town of Paradise Valley in 2015, which includes new town council members and a new town manager… Read more »

Downtown Restaurants Can Expand Seating onto Phoenix Streets

Businesses in the downtown Phoenix arts district have the option of extending activity onto city streets with the new Downtown parklet program. Parklets are pedestrian seating and activity areas that can be developed within the bounds of two streetside parking spaces. The greenspace can be used by restaurants for patron seating and other seasonal pedestrian spaces… Read more »

Commercial Real Estate & Business News – November 19, 2014

Deutsche Bank’s Torsten Slok thinks this could be the best ever holiday season for retail sales. Sloks points to recent labor market data. Because hiring for the holiday season is generally done in October, it can be a good way to predict how retailers are feeling about sales for the final quarter of the year… Read more »
Canadian investment in U.S. commercial real estate is on track to hit record levels this year, once Canada’s second-largest pension fund closes a $2.25 billion deal to buy a landmark Manhattan property, according to data from property research firms. Canadian pension funds and developers have been raising their investment in foreign real estate this year, primarily in the United States, as they seek alternatives to a consolidated domestic market… Read more »
Builder confidence regained ground this month, increasing to the second-highest level of 2014, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index stood at 58 in November, up from 54 in October. The NAHB considers the index in positive territory at any reading above 50. The index rose over the summer, standing at 53 in July, 55 in August, and 59 in September, the highest point in 2014…Read more »
STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate (STORE), announced Tuesday the pricing of its initial public offering of 27,500,000 shares of its common stock at a price to the public of $18.50 per share. The shares are expected to begin trading on the New York Stock Exchange today under the symbol “STOR.” The offering is expected to close on November 21, 2014, subject to customary closing conditions… Read more »
The Mesa Riverview area is getting a massive boost to its hospitality accommodations in the form of Starwood Hotels and Resorts’ Sheraton River View Hotel. The four-story, 160,000-plus-square-foot facility, directly adjacent to Cubs Park, will feature views of the park and easy access to games, allowing baseball fans to stay as close to the action as physically possible… Read more »

Commercial Real Estate & Business News – November 18, 2014

Underwriting Standards Moving Back to ’07

Since CMBS came back a few years ago, there has been a lot of conservative underwriting,” said Ken Carpenter, managing director of CCRE. “Leverage-wise, it’s not back to ’07—we had more leverage back then—but underwriting standards are moving back to ’07.” He adds that today, 65% to 70% leverage is most common, while that figure was higher in 2007… Read more »

Retail Sales Rise Ahead of Holiday Shopping

U.S. retail sales edged up in October, according to a report released by the Commerce Department, evidence that recent job gains and lower gas prices are lifting consumer spending as the holiday shopping season begins. Retail sales rose 0.3% last month after falling by the same amount in September. Excluding gas stations, where falling prices lowered spending, sales rose a solid 0.5%… Read more »

Freddie Mac: 5 Game-Changing Predictions for 2015

The housing market is about to turn a corner into the new year, and according to Freddie Mac, the U.S. economy is well poised to sustain about a 3% growth rate for 2015… Read more »

Construction Set to Commence for Rivulon Development in Gilbert

Although a slice of the project is already under construction, representatives from the town of Gilbert, Nationwide Realty and others broke ground on what will become the town’s most sizable business plaza. The officials unearthed dirt for the incoming Rivulon project during a ceremony in Gilbert on Nov. 12. The ceremonial shoveling came as the symbolic first step toward the completion of the 250-acre development located off of Gilbert Road by the Loop 202 Santan Freeway… Read more »

Fowler Property Strikes Again…Spends $24.225 Million for 334 Units in Tempe

Fowler Property Acquisitions LLC paid $24.225 million ($72,530 per unit) to purchase the 334-unit Suncadia apartment community located at 505 W. Baseline Road in Tempe. The seller was a Sun River Village L.P., a limited partnership formed by Holland Partners. Maricopa County records show tbe Fowler company acquired the property by assuming a Freddie Mac loan with an original principal balance of $14.924 million. The federal agency also provided $3 million in supplemental financing… Read more »

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