Here are the news stories you might find interesting today:
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U.S. retail landlords less willing to negotiate
NEW YORK (Reuters) – While retailers are likely to face another tough holiday season, it may be much more difficult for them to extract any concessions from their landlords to help ease the ride, a top restructuring expert said on Tuesday.
ASU-RSI: Signs Point to Improvement
The ASU Repeat Sales Index (ASU-RSI) continued to decline in June, but the numbers contained positive signals that improvement is the trend in the Phoenix metro real estate market. Overall, the ASU-RSI revealed that Phoenix prices in June declined by 31 percent when compared with prices in June 2008 — a slight improvement over May, when prices declined by 33 percent over May 2008, and April, which declined 35 percent compared to April 2008. When prices are compared month to month, there is more hopeful news. Prices tracked by the index increased by 0.8 percent in June 2009 compared to May 2009 — the first time that has happened since March 2007.
Is A Market Bottom Imminent?
Investors sidelined by the lingering effects of a deep recession and capital crunch are preparing to jump back into the commercial real estate market. According to an exclusive quarterly investor survey, 70% of investors indicate they are currently amassing capital in preparation for the right buying opportunity.
Hunter Hagan Signs 10-Year Lease
| Hunter Hagen & Co., an accounting firm, signed a 9,393-square-foot lease at the Scottsdale Financial Center, Phase III. The 10-year lease is valued at approximately $2.75 million. The five-story office building at 7272 E. Indian School Road was built… |
Hospice of Arizona signed a six-year lease for 17,261 square feet at the North Loop 101 Business Center, Building D in Phoenix. The health care provider is taking occupancy in first quarter 2010. The two-story, 88,057-square-foot office building at 19820 N. Seventh Ave. sits on almost 8 acres of land. It is in the Deer Valley/Airport submarket.
The U.S. Department of Veterans Affairs signed a 15-year lease at the Ancona Professional Plaza, Building A in Surprise, AZ. The tenant took 26,670 square feet and is moving into the space in August 2010. The two-story, 75,000-square-foot office building at 13985 W. Grand Ave. was built in 2008.
99 of top 100 metros suffer job losses
| Ninety-nine of the nation’s 100 biggest labor markets had fewer jobs in August 2009 than a year earlier, and Phoenix was one of the hardest-hit cities, according to a report released Wednesday by the U.S. Bureau of Labor Statistics. |
Report: Nearly 1M bank foreclosures in process
| Nearly 1 million homes nationwide are in the process of foreclosure, according to a U.S. Department of the Treasury report covering banks and loan servicers that make up 64 percent of all outstanding mortgages. |
Trompeter Electronics closing Mesa plant
| Trompeter Electronics Inc., a manufacturer of connectors, adapters, components and jacks for the telecommunications, cable television and aerospace sectors, is closing its Mesa plant with 135 jobs being cut. |
Tempe awaits answers before deciding on using streetcar
Tempe is still considering a streetcar as a transit option for connecting south Tempe with the Valley’s 20-mile light-rail line.
Land in Phoenix, Scottsdale to be sold
The Arizona State Land Department has scheduled two land auctions for Dec. 15, selling preserve land in Phoenix and Scottsdale. In Phoenix, the purchase will be added to a new preserve, while Scottsdale’s addition will be a move toward completing a preserve. Here is a comparison:
Home builder defaults on Desert Ridge site
Meritage Homes has defaulted on its Desert Ridge property, where the home builder planned to put up a 1,200-home gated community called Calasera. The property, at the southeastern corner of 56th Street and Deer Valley Road, is 288 acres. It was the last sizable Desert Ridge parcel to be in private hands.
IRS Removes an Obstacle to Modify Securitized Commercial Loans
On September 16, 2009, the IRS issued Revenue Procedure 2009-45 in an attempt to remove one of the obstacles to modifying securitized commercial loans that are not currently in default but are likely to go into default before their maturity. Revenue Procedure 2009-45 provides a procedure that allows Real Estate Mortgage Investment Conduits (REMICs) to modify loans that are at risk of default without triggering tax penalties.
Feel free to contact me regarding any of these stories, the current market, distressed commercial real estate opportunities or your property.
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