Commercial Real Estate & Business News – January 15, 2018

If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do you have to keep moving forward. - Dr. Martin Luther King, Jr.


U.S. retail and food service sales gained 0.4 percent compared with November and were up 5.4 percent compared with a year ago, the Census Bureau reported Jan. 12. The bureau adjusts for seasonal variation and holidays, but not price changes, so the gain is more than the fact that shoppers always buy more in December than in other months; it's a solid gain, especially since inflation is a minor factor in most retail categories...»

Online bulk-order wholesaler Boxed has received acquisition interest from grocery giant Kroger and several other major retailers, according to people with knowledge of the situation, with offers already in or expected to arrive next week for the New York-based startup...»
"The announcement by Walmart to close 63 Sams Club stores is evidence of the continuing evolution of the retail segment," Mark Stapp, an economist and real estate expert at the W. P. Carey School of Business at Arizona State University, said. "Last year, according to Fung Global Retail and Technology store closures report, there were 6,955 announced store closings in the US and year to date there is 1,509 announced store closings"...»


In December, the number of construction projects at metro Phoenix hotels was up 25 percent, according to data released Friday by STR, a company that tracks supply and demand data for the hotel industry. There were 7,006 rooms in construction across 50 different hotels last month compared to the 5,308 rooms over 40 hotels in December 2016. That is a 32 percent increase in rooms under construction...»

Almost a quarter of property sales in the United States were for above the original asking price last year with homes selling on average for $7,000 more than listed, new research shows. Some 24.1% of homes sold above the asking price in 2017, up from 17.8% in 2015 as a combination of strong demand and limited supply pushed up the amount buyers have been prepared to pay, according to the market report from real estate firm Zillow...»

Commercial Real Estate & Business News – January 12, 2018

At the end of 2017, the office sector continued to experience a slowdown. There was a 50 percent year-over-year decline in investment sales volume in November, though there was also a 4.1 percent year-over-year increase in pricing, according to a report from New York City-based research firm Real Capital Analytics (RCA). Some of the decline in activity may have been driven by the rising asset prices being out of sync with expectations...»
Assessing the multifamily market at the start of 2018, Greg Willett, RealPage's chief economist, likes the industry's current position. " 'Stable' is the word we come back to over and over again when we talk about the overall performance," he says. Rents climbed 2.5% in 2017, according to RealPage, while national occupancy remained at 95.1% at the end of the fourth quarter, unchanged from the year before...»
Buying a home is more affordable than renting in 54% of markets in the United States but 64% of the population live in locations where renting is more affordable, new research shows. The least affordable places to rent are areas in Northern California, Washington DC, and Brooklyn while the most affordable rental markets are in Alabama, Illinois, Ohio and Tennessee...»
2017 will go down as one of metro Phoenix's best-ever years for home sales. An early tally shows 93,500 Valley houses changed hands last year. That's 6 percent higher than home sales in 2016. "Only 2004, '05 and 2011 were better years for home sales," said Tina Tamboer, senior housing analyst with the Cromford Report. And in those years, the Valley's housing market was far from normal...»
Research from ATTOM Data Solutions finds it's cheaper to rent than buy in metro Phoenix, but both options require larger chunks of paychecks. ATTOM reports fair market rent for a three-bedroom is $1,574, compared to $1,467 last year. The median home price in the fourth quarter of 2017 was $265,000, compared to $250,000 during the fourth quarter of 2016...»

Commercial Real Estate & Business News – January 11, 2018

The percentage of NREI readers who believe the current real estate cycle is in expansion/recovery phase has jumped to 41 percent this January, from 26 percent during our last reading in November. At the same time, the percentage of survey respondents who think the cycle is now at its peak took a sharp downward turn, to 45 percent from 59 percent in November 2017...»
Developers are still planning projects with considerable gusto, so it's likely that 2018 will be a strong year for nonresidential development, reports Dodge Data & Analytics. The company's Dodge Momentum Index was up 3.6 percent in December to 153.9 (2000 = 100) from the November reading of 148.6. The index is a monthly measure of the first report for nonresidential building projects in planning...»
The CMBS market is kicking off 2018 with a lot more confidence than was the case a year ago. In 2016, everyone was living in fear of risk retention rules and what they were going to do to the CMBS market, notes Tom Fish, executive managing director and co-lead of the real estate investment banking practice at real estate services firm JLL. People were worried that the new rules...»
Florida-based Avesta Communities has entered the Arizona real estate market with its $58 million purchase of the Coronado Crossing apartment complex in Chandler. The development has 320 units and sits on 19 acres. "Arizona is a great market and the city of Chandler has tremendous potential for growth," says Luke Kline, director of acquisitions...»
Sprouts Farmers Market on Tuesday rolled out grocery home-delivery service to customers in the Phoenix and Tucson areas through a partnership with Instacart that will be extended to other states around the nation. The Phoenix-based chain of stores will offer same-day deliveries in as little as one hour to customers placing orders through computers, tablets and smartphones...»

Commercial Real Estate & Business News – January 10, 2018

The construction industry has entered 2018 with expectations of a successful year ahead, according to a survey by the Associated General Contractors of America and Sage Construction and Real Estate. Most notably, construction firms anticipate demand for construction services to continue on the upswing across the board. Construction firms have reason to be confident...»
Rents continued to grow in 2017 as the market kept its stable footing heading into 2018, according to RealPage. In its latest report, the real estate technology and analytics firm said rents climbed at a moderate pace of 2.5% in 2017, and the typical monthly apartment rent is now $1,330 in the U.S. "While the apartment rent-growth pace has slowed from the performance seen a couple of years ago...»
As Baby Boomers age-10,000 Americans will turn 65 every day for the next 20 years-the total demand for inpatient care will witness enormous growth. With the number of mental health patients on the rise, micro-hospitals are steadily evolving into consumer-friendly environments, taking their cue from the hospitality industry. In addition, architects are prone to further incorporate digital technologies...»
In 2017 Americans learned to expect the unexpected, whether it be politics, weather or housing. Driven by record low inventory, little about the housing market went as forecast last year. "We thought there would be some things to take the pressure off," reflects Skylar Olsen, senior economist at home search site Zillow. Interest rates would rise. Construction would pick up...»
The new year is starting with continued growth in the economy. Jobs continue to increase. Both the manufacturing and non-manufacturing sectors are expanding. Motor vehicle sales remain strong. Construction spending was up. And the local housing market remains strong. The current strength is likely to continue in the near and intermediate term as the effect of the tax cuts and proposed infrastructure spending work their way through the economy. While all good things must end, the end of this cycle does not appear to be in sight at this time...»

Commercial Real Estate & Business News – January 9, 2018

December's solid employment gains capped off a year marked by rising consumer confidence, discretionary spending and better-than-expected holiday sales - even as robust wage growth remained elusive. "The job market's done well and people feel they can actually move jobs now - that just kind of snowballed," said Dwight Johnston, chief economist for the California Credit Union League. "It was a good year last year"...»

2017 will go down as one of metro Phoenix's best-ever years for home sales. An early tally shows 93,500 Valley houses changed hands last year. That's 6 percent higher than home sales in 2016...»

Tempe has come in at the top of the table for growth in 2017. That is according to a new report by U-Haul International. Tempe - which is home to Arizona State University - replaces another college town, Madison, Wisconsin atop the U-Haul growth list...»

Avesta Communities has purchased a 320-unit apartment community in Chandler, Ariz. According to Yardi Matrix, Coronado Crossing traded for $57.7 million, paid in cash...»

Jevan Capital has acquired La Mirada, a 300-unit apartment community in Phoenix. The all-cash, $15 million transaction finalized after a year of negotiations with HOA, which decided to sell the property in bulk. Jevan owns six other apartment communities in the Phoenix metro...»

footer script.