The advance estimate of GDP for the first quarter was an annual rate of 1.4%. That there would be a drop from the 3.4% rate in the fourth quarter of 2023 was widely expected. The details of what moved and how are important. But first, recognize that this was a slowing of real
Construction on the Tohono O’odham Gaming Enterprise’s $450 million casino complex is well underway in the West Valley and is on track to be completed this year. In its first phase, the Desert Diamond Casino White Tanks at San Lucy will feature 900 class III slot machines and
With the first quarter of 2024 behind us, it’s important to pause and take a closer look at the trends that have shaped the current state of the construction industry in the greater Phoenix metropolitan market and the factors positioned to further influence its outlook in the
Mesa-based Christopher Todd Capital closed April 24 on its its first build-to-rent community, paying $57 million in cash for a 217-unit asset in Avondale. The purchase price is well below what it would cost to build from the ground up today, said Brent Long, president of the newly
Portico, the luxury condominium development in the Loop 101 and Scottsdale Road corridor, announced today that it is sold out. The project took only one year from writing its first binding contract to sell all of its 112 units. Portico is award-winning developer Belgravia Group’s
With the spring home-buying season now upon us, potential home buyers are facing difficult choices as they watch already-high mortgage rates and home prices climb further, and a portion are opting to stay on the sidelines until buying conditions improve. The Mortgage
Valley surfers wanting to catch some waves without leaving the state will have the option later this summer, as a development that includes a surf park is nearing opening in Mesa. Cannon Beach, a 38-acre development in Mesa anchored by a surfing lagoon, is under construction
Reshoring manufacturing has become a trend since the pandemic, as reported by outlets like CNBC, and it all comes down to supply chains. But those in industrial CRE who could benefit from it are learning that keeping up with foreign exchange issues and the current strength
A proposed luxury apartment community just east of Biltmore Fashion Park that has met steep opposition is a step closer to being built after some design changes. The Camelback East Village Planning Committee unanimously approved a 60-unit apartment community
A housing bill signed into law by Gov. Katie Hobbs could help with two major challenges in metro Phoenix: housing shortages and a surplus of vacant commercial buildings. House Bill 2297 will allow developers to convert or demolish a small portion of a city’s commercial
The April letter about triple-net lease from Northmarq’s Chris Lomuto shows, as he put it, a “mixed bag of results.” Top observation is that the average closing cap rate for the month ending March 31, 2024, was about 6.60%, or roughly 95 basis points up from the depths of July 2022. It’s also down nearly 20 basis
While the rest of the nation’s industrial market takes a breather, Phoenix has nearly 41.6 million square feet of active industrial construction projects, accounting for 10.9% of the national total, as revealed by LGE Design Build’s newly released Q2 Construction Delivery Outlook report. “In assessing the construction sector’s
If Kroger’s proposed $24.6 billion acquisition of Albertsons goes through, the transaction will create a big new player in Arizona’s supermarket business. C&S Wholesale Grocers, with no current supermarket operations in the state, overnight could emerge as a rival almost as large here as Kroger, which owns
Looking to increase tax revenue from car sales, Mesa is getting ready to sign off on a $14 million tax incentive for Berge Auto Group. City Council last week approved a notice of intent to enter into a retail development tax incentive with Berge to construct a 127-acre mixed-use development
The April letter about triple-net lease from Northmarq’s Chris Lomuto shows, as he put it, a “mixed bag of results.” Top observation is that the average closing cap rate for the month ending March 31, 2024, was about 6.60%, or roughly 95 basis points up from the depths of July 2022. It’s also down nearly 20 basis points from December 2023. But the evening out bears the classic problem of looking at averages rather than data distributions. As Lomuto noted, the deals with higher closing caps had offset those with lower closing caps.
Scottsdale-based Modus Cos. is going big in the build-to-rent space, to the tune of $425 million. The apartment developer is preparing to break ground on 1,030 build-to-rent units across the metro. High mortgage interest rates and a housing shortage are driving more people to rent homes, said Ed Gorman, founder of Modus Cos. Phoenix has long
Following the completion of a Frito Lay distribution facility, a new logistics park in the West Valley has landed other major tenants with even more on the way. Texas-based Frito Lay was the first tenant to move into the Peoria Logistics Park at 75th and Northern avenues, which
After a record run of distribution center expansions in 2021 and 2022, U.S. industrial tenants have proceeded much more cautiously in recent months. Early 2024 data shows that industrial tenants have continued to lease and occupy more U.S. industrial space, but at the slowest
Greystar, a global leader in the investment, development, and management of institutional quality commercial real estate, today announced the completion of its first 1,074,858 square feet at Gateway Grand, a Class A industrial development in Mesa, Arizona, and the company’s first
The just-released quarterly survey for April 2024 conducted by the National Multifamily Housing Council confirms what many owners and operators already know: nationally, the market is looser – meaning there are higher vacancy rates in the sector and lower rent growth
The pace of decline in U.S. commercial real estate prices decelerated in March for the eighth month in a row, led by improvements for industrial sector, MSCI Real Assets said Thursday. The RCA CPP National All-Property Index fell 3.0% from a year ago and 0.2% from February
The keynote speaker at GlobeSt.com’s Spring Multifamily conference, held this week at the Lighthouse on Pier 61 in Manhattan, delivered a pep talk to an audience that really needed one. The weather was too chilly to go outside and enjoy a spectacular view of the Hudson
A privately owned real estate firm in California has purchased a Phoenix-area luxury multifamily project at a 25% discount from recent market highs as the area struggles with the fallout from overbuilding, including falling rents and rising vacancy rates. Decron Properties acquired
A proposal to build a tower at the Biltmore Fashion Park in Phoenix is moving forward after the Phoenix Planning Hearing Officer agreed it met city plans for the area. Macerich, the owner of the shopping center, and Phoenix-based developer RED Development submitted an
Taiwan Semiconductor Manufacturing Co. is making “significant progress” on its north Phoenix site with engineering wafer production already underway in its first factory still under construction, the company said on an earnings call Thursday. C.C. Wei, TSMC’s chief executive