Commercial Real Estate & Business News – June 27, 2016

Arizona is garnering national attention for job gains. While there's always more work to be done, earlier this year, Arizona finally gained back all of the jobs lost during the Great Recession...»

P.B. Bell CEO, R. Chapin Bell, said the multifamily housing market is striving to keep pace with the needs of two influential groups of consumers: baby boomers and millennials. Both are seeking carefree living environments in prime locations across the Valley...»
Scottsdale Canal Holdings, LLC seeks to create one of two options for the WaterView Mixed-Use Development, which would develop up to 268KSF on vacant land fronting the canal. The project would be the first to expand the concept embraced by the successful Scottsdale Waterfront (located south of Camelback between Scottsdale Road and Marshall Way) to the north...»
There are reports and a knowing source that say the Coyotes' focus for a new arena is on the Salt River Pima Maricopa Indian Community near McClintock and McKellips roads...»
Casa Grande issued the final building permit for the $1 billion project, which cost PhoenixMart a $250,000 permit fee. PhoenixMart is supposed to fill up with nearly 2,000 showrooms with goods and services from small and mid-size companies all over the world...»

Commercial Real Estate & Business News – June 24, 2016

While Arizona shed about 20,000 jobs from April to May this year, the state still boasted a healthy year-over-year growth rate, according to data from the Bureau of Labor Statistics. Year over year in May, Arizona added nearly 76,000 jobs, which was good enough for a 2.9 percent growth rate. That marks sixth best in the country....»
A combination of these factors is resulting in a 19% decline in the average size of a conduit deal that priced in the first five months of 2016 compared with last year, to the lowest levels since 2010, Hill said. While fewer loans are being originated, the velocity of deals brought to market has surprisingly increased, resulting in more conservative underwriting standards for 2016 vintage deals as compared with 2015 and 2014....»
Commercial real estate professionals have been wondering how the market would deal with the wave of commercial mortgage debt maturing in the next year and a half, particularly at a time when lending standards are considerably more conservative than they were 10 years ago....»
Investors are still eager to buy apartment properties, but they just aren't as eager to pay quite so much for them. "Deal volume is pulling back as buyers and sellers are simply moving further apart on pricing expectations," says Jim Costello, senior vice president with New York City-based research firm Real Capital Analytics (RCA)...»
Apartment volume fell for the fourth straight month in May-dropping 27% year over year, to $8.4 billion, according to Real Capital Analytics. All property segments are slowing down. "Transactions involving portfolios and entity-level deals led the decline in May, with volume down 51% year over year on sales of $1.1 billion...»

Commercial Real Estate & Business News – June 23, 2016

The rental market continues to drive housing's recovery-36% of U.S. households opted to rent in 2015, the largest share since the 1960s. Posting the largest 10-year gain on record, the number of renters increased by 9 million over the past decade, according to the annual State of the Nation's Housing 2016 report released today...»
Companies formed by Wentworth Property Co. LLC in Phoenix (James Wentworth, Sr., James Wentworth, Jr., principals) and Northwood Investors in New York City, N.Y. (John Kukral, pres.) paid $122 million ($191 per foot) to acquire 638,717 sq. ft. of buildings within the Perimeter Center business park in Scottsdale. The sellers of the portfolio were five...»

Delinquency rates for commercial and multifamily mortgage loans hit new lows in the first quarter of 2016 as liquidity conditions for real estate investors remain extremely favorable. "Strong fundamentals and strong property prices, as well as still low interest rates, continue to support the performance of commercial and multifamily mortgages...»

Federal banking regulators are closely monitoring real estate loan performance as banks have stepped up their commercial real estate and multifamily lending in the last several years. After another quarter this year of strong growth, many analysts also are beginning to believe risk related to CRE lending has also increased....»
Luxury rental home developer, BB Living opened its newest for-lease neighborhood in the award-winning Vistancia master plan. The neighborhood features 134 well-appointed townhomes in Acacia Grove in The Village at Vistancia and offers three- and four-bedroom with two-and-a-half baths starting in the $1,300s per month....»

Commercial Real Estate & Business News – June 22, 2016

On "King of the Hill," the animated sitcom that aired for 13 years on Fox, the character named Peggy Hill once called Phoenix "a monument to man's arrogance." Last summer, on a day the temperature broke records at 115 degrees, someone posted a segment on Reddit under the thread "Phoenix, Arizona, should not exist." And that is just a small taste of the disrespect often heaped on the nation's sixth-largest city....»
Days before a deadline for bids on hundreds of Sports Authority store leases, a pair of sporting-goods retailers are said to be discussing a joint bid for as many as 200 of the collapsing Englewood-based chain's stores. The Wall Street Journal reports that Sports Direct International plc (LON: SPD), the largest sporting-goods retailer in the...»
It has been a conundrum in the office market throughout the last few years: the job market has been fairly steady, especially for office-using industries. So why has office occupancy growth been so sluggish? Is it because employers are squeezing new staff into smaller spaces, especially Millennials who are more tolerant of this? Or is there some other cause? An arms-length look at the data shows that employers may be squeezing more staff into smaller quarters, but the "Millennial effect"-for lack of a better term-is minimall...»

The Federal Reserve warned that prices in the commercial real-estate market may have run up too far too fast. Valuations in commercial real estate "appear increasingly vulnerable to negative shocks, as CRE prices have continued to outpace rental income," the Fed said in its semiannual Monetary Policy Report to Congress. The Fed noted that prices exceed their pre-crisis peaks by some measures...»

WP Glimcher Inc. said Monday afternoon that its CEO and vice chairman, Michael P. Glimcher, had resigned from the company and its board effective immediately. The shopping center REIT also announced that it planned to rebrand as Washington Prime Group, the name under which it had operated after its spin-off from Simon Property Group in the spring of 2014. The spin-off entity later acquired Glimcher Realty Trust for approximately $2 billion....»
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