Commercial Real Estate & Business News – December 8, 2016

Construction has started on two high-rise apartment towers on a former parking lot next to Arizona State University in downtown Tempe. The development, yet to be named, will include 20-story and 12-story buildings with a total of 407 apartments on the northwestern corner of University Drive and Forest Avenue....»
Santa Monica-based Ring - which makes video security doorbells - is opening a new 100-worker customer service center at the Westgate Entertainment District in Glendale. The center is slated to open in March. The California-based company already has an office in Scottsdale....»

'To be continued' usually signals an exciting story twist is coming. But anyone hoping for a plot twist next year to the ongoing saga of shrinking apparel retailers won't be happy with the comments by several top retailers in this segment during quarterly earnings conference calls this past week. ...»

The question of how, or if, borrowers will be able to refinance the nearly $120 billion in CMBS loans maturing through 2018 is on the minds of market participants, including the ratings agencies. S&P Global Ratings said Friday that some $12 billion of the $92 billion of loans maturing during 2017 alone could default and end up in special servicing....»
Arizona had the third highest increase in real gross domestic product in the U.S. in the second quarter. Arizona's 3.3 percent increase over the same period in 2015 was also higher than the national average. The state's GDP was just shy of $300 billion for the quarter, compared to $290 billion a year ago....»

Commercial Real Estate & Business News – December 7, 2016

Experts warned that hundreds of thousands of new apartments would open in 2016 and drive up the vacancy in the sector. But for most of this year, average vacancy rates stayed low. "The market has proved to be incredibly resilient,"...»
A new soccer stadium near the Loop 101 and Loop 202 interchange could help transform the area into the Phoenix-area's newest top-tier sports and entertainment hub, bringing much-welcomed revenue to nearby businesses and cities. ...»

Hardison/Downey Construction Inc. broke ground today on a $15 million apartment complex, giving young adults with autism a chance to live on their own. When the construction project was originally announced last year, Ryan Cos.was going to build First Place-Phoenix for First Place AZ....»

The single tenant medical sector remained popular with investors through the first three quarters of 2016, and several demographic factors will likely sustain that interest over the next few years, regardless of changes in the nation's political landscape. ...»
HonorHealth last week closed the purchase of a 60-acre site along Interstate 17 in far north Phoenix where it plans to build a 300-bed hospital near an existing, stand-alone emergency department. The Scottsdale-based health system spent $30.6 million on the site ...»

Commercial Real Estate & Business News – December 6, 2016

The owner and operator of Scottsdale Fashion Square on Monday announced plans to renovate the mall's luxury wing anchored by Neiman Marcus and add residences, office space and a new hotel to the facility near downtown Scottsdale. ...»
Scottsdale-based SimonCRE has sold a new retail center in Payson for $2.6 million. The center totals approximately 5,000 square feet and is on the Beeline Highway in Payson. That translates into a sale of $520 per square feet. Orion Investment Real Estate's Nick Miner brokered the deal. ...»

Investors continue to have a big appetite for class A industrial product and that has the sector on pace to see its second-largest year since 2008 in terms of volume, according toJLL's third quarter investment report. By the end of the quarter, the US market had seen $31.1 billion in 2016 investment sales, a 28.9% drop from the historic year of 2015, during which a number of mega-portfolios worth billions traded hands. ...»

Next year should continue to build on Arizona's improving economy despite mediocre housing and population growth by the state's historic standards, experts said Monday. Arizona should add 81,000 new jobs in 2017 and unemployment should drop to 4.8 percent in that time, said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W.P. Carey School of Business at Arizona State University....»
Last week was a great week for economic news. Third quarter real GDP was reported at its fastest growth rate since the third quarter of 2014. After three quarters of weak results, this is very good news. The unemployment rate continued to dip and employment continued to grow. Consumer confidence continues to get better and personal incomes continue to grow....»

Commercial Real Estate & Business News – December 5, 2016

An increase in short-term interest rates looks increasingly likely when the Federal Reserve convenes on Dec. 13 and 14, following the latest national employment report from the US Department of Labor's Bureau of Labor Statistics. November's job numbers for non-farm payrolls brought the unemployment rate down 0.3 percentage points to 4.6%, the lowest in nine years. ...»
A leading commercial real estate group is easing its opposition to a proposed new arena the Arizona Coyotes want to build in Tempe next to Arizona State University. NAIOP Arizona has changed its position on the proposed $400 million Coyotes arena from opposed to neutral, said Tim Lawless, president of the arm of the national commercial real estate group. ...»

The world-class concert hall envisioned by Christi Worsley would bring to reality the biggest and costliest dream ever floated for downtown Mesa. The historic city center would become a hub of culture and education all but unparalleled in the American Southwest. But even at that, Mesa still could be left wondering what might have been...»

Sam Fox, the mastermind behind Fox Restaurant Concepts, which has developed concepts such as The Henry, Flower Child and North Italia, among others, has announced plans to open Culinary Dropout at The Yard in downtown Gilbert. The 25,000-square-foot space, which is Fox's biggest development yet, will open off Gilbert Road, adjacent to the Powerline Trail in the Heritage District - directly across from Heritage Marketplace, a popular restaurant development. ...»
Nonresidential construction spending totaled $699.7 billion on a seasonally adjusted, annualized basis in October, a 0.3 percent decrease from September's significantly upwardly revised total, but an increase of 2.6 percent year-over-year, according to analysis of U.S. Census Bureau data released Thursday by Associated Builders and Contractors (ABC)....»
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