Ask many metro Phoenix renters, and you’ll hear the same complaint: The cost of leasing the roof over their heads is getting tougher to afford. And they’re not imagining it. Higher rents recently landed the Valley on a top 10 list of U.S. cities where renters have the toughest time stretching their wages to pay rent.
A stabilizing housing market and population gains will help Arizona’s economy expand faster than the nation’s again this year, though the gap will narrow, according to a forecast released Tuesday. These are the key findings: Another year of solid growth: Arizona’s economy, which expanded 2.6 percent in each of the past two years, is poised to grow 2.7 percent this year
As the U.S. economy continues to evolve, the high-tech sector is growing at four times the rate of the national economy and is expected to generate 9 million new jobs between 2012 and 2022, according to the U.S Bureau of Labor Statistics (BLS). And with stiff competition for talent in major existing tech hubs, including San Francisco and Seattle, tech companies are opening offices in new markets
Scan the downtowns of the nation’s largest cities, and you are likely to see a staggering array of cranes. Most of them are helping to build luxury apartment buildings. In fact, multifamily construction is now at a 40-year high; the trouble is, developers are putting up the wrong kinds of buildings. The luxury market is largely overbuilt, while there is a shortage of affordable rental housing, and developers are hamstrung by the now record-high cost of construction.
What better way to kick off the new year than to discuss the new tax law and the gift we all just received as real estate investors? The new tax legislation will impact investors and their investment strategies as we all continue to search for yield and source opportunities within the alternative investment landscape. As equities and bonds continue to demand outsized liquidity premiums we believe certain real estate investments will have enhanced after-tax yields in 2018.
WASHINGTON, DC—The US economy remains on track for 2.7% real GDP growth this year despite rising long-term interest rates and the stock market’s recent turbulence, Fannie Mae said Thursday. The GSE’s latest Economic and Housing Outlook also predicts a 3.3% year-over-year increase in sales of new and existing homes, including for-sale apartments
Builder confidence remained high in February, and their confidence in future sales expectations even reached a post-recession high, according to the National Association of Home Builders and Wells Fargo Housing Market Index. Builder confidence remained unchanged at its high level of 72 in February, the HMI showed. However, January’s HMI shows this is a slight dip
PHOENIX (February 14, 2018) – Robson Multi-Family will be opening Noria, its first luxury apartment community in Chandler, in March. Noria represents an entry into the multifamily market for Robson, a well-established developer of luxury, active adult communities in Arizona and Texas. P.B. Bell has been selected to manage leasing and property management
A conservative lawmaker is running a bill at the Arizona Legislature prohibiting public funding and subsidies for professional sports stadiums, ballparks and arenas. State Sen. Warren Peterson’s measure — Senate Bill 1453 — would potentially impact public money for new or renovated arenas for the Phoenix Suns and Arizona Coyotes
This is an exciting time where retail shoppers have more choices, more options, greater variety of ways to make purchases, receive goods and services, and certainly have the ability to express their opinions of their experience than ever before. Retail is evolving at a pace not experienced in decades. E-commerce is alive and well, and so is brick-and-mortar retail
So they closed your favorite dive bar and put in a Lululemon in the name of “urban renewal.” Gentrification affects us all, especially when we enjoy all-day $5 PBR-and-a-shot specials or, y’know, affordable housing. On the flip side, blight is real, and American cities are recognizing how much value they’ve been ignoring in empty paved lots, in abandoned buildings, and in decrepit post-industrial spaces
U.S. retail and food services sales dropped 0.3 percent in January compared with December, the Census Bureau reported on Wednesday. The bureau adjusts its calculations to account for seasonal variation and holidays, so the decline wasn’t a function of the end of the holiday selling season. The monthly drop is in contrast to December, when adjusted sales were up 0.4 percent compared with the month before
The forecast for the Tucson metro area’s commercial real estate market is bright. Listing a variety of reasons that the global economy is strengthening, Michael Coretz of Commercial Real Estate Group of Tucson said Southern Arizona is riding the waves of the strong economy to steady growth. “Historically, Tucson’s market has been dominated by local tenants, but the dynamics of the local commercial real estate market are beginning to change
New restaurants are finding older locations to achieve success in Gilbert. Among the town’s recent restaurant openings are Arizona BBQ Company, American Poutine Co., Steak and Stone of Gilbert and Flying Basset Brewing Co. All are outside the robust Heritage District and are repurposing spaces. The Flying Basset Brewing Co. recently opened in the former Famous Sam’s restaurant at Ray and Cooper roads
JLL has identified six trends that will impact tech companies’ real estate decisions in 2018, according to the latest JLL Tech Office Insight research report. While these six trends are national in scope, Matt Coxhead, JLL’s executive vice president, describes how each trend applies to Phoenix. “Phoenix is a hot market that has experienced a lot of organic growth from local tech companies and corporate expansions from other markets
Commercial real estate executives are optimistic on the whole about the economy and the real estate market in 2018, but express some caution about 2019, according to the Real Estate Roundtable’s Q1 2018 Economic Sentiment Index. Released late last week, the index is based on a survey of 47 named executives and experts, as well as other anonymous participants.
As the annual MBA’s CREF/Multifamily convention got underway this week in San Diego, attendees expressed a healthy level of appetite for originating new loans and a desire to lend the same amount or more this year than they did in 2017. Last year, commercial and multifamily mortgage originations increased by 15 percent compared to 2016
SAN DIEGO—As the market continues to expend and reach toward the peak of the cycle, banks have begun to develop more creative financing solutions to maintain market share as competitors from various capital sources become more prevalent. Those thoughts were according to panelists at a morning breakout session at MBA’s CREF/Multifamily Housing Convention and Expo 2018
Population and job growth, a modest cost of living and other factors could make Arizona a prime destination for franchise expansion over the next few years. Roughly one in 20 Americans works for a franchise, with franchise employment nationally at 8.2 million, so industry trends do matter to a lot of people. More than half of franchising jobs are in restaurants and other minimum-wage businesses
Applications have been submitted for permits for two healthcare-related Phoenix developments, each above $6.5M in valuation, as reported by BuildZoom. The projects include healthcare facilities for Banner Health and the Mayo Clinic. Sheeley Farms PCD Medical Center will be a 70K SF, four-story medical office building at 9321 West Thomas Road for the Banner Estrella Medical Center
The roundtable’s sentiment report, released last week, comes at an upbeat time for American business in general, surfing the wave of the new tax bill, while enthusiasm has flagged a bit in the wake of the beating taken by stocks. Overall, commercial real estate media played the tax bill as an overall positive for CRE investors, though how things will ultimately play out remains to be seen
NEW YORK CITY—It’s now seven for seven in terms of declines in CMBS delinquencies. Fitch Ratings said Monday that late-pays on Fitch-rated securitizations declined 10 basis points in January to 3.12%, representing the seventh consecutive monthly decline, thanks to low volume of new delinquencies along with steady issuance of new CMBS transactions. Delinquencies fell in most property types during January
Global population growth and increasing urbanisation is underpinning the radical changes happening in the retail sector. The World Bank estimates that 60 million people are moving to cities every year, which equates to more than 1 million a week. Today’s urbanisation is happening around the world. Millions of people every week have more access to stores, which leads to more spending
The strong gain in nonfarm payroll of 200,000 was ahead of the consensus forecast. Temp employme nt was up slightly month to month and up 3.4% year over year. This year’s strength in temps continues to provide support to the economic composite’s growth outlook. After last week’s market decline, I’m more comfortable with the current P/E. I’m returning to a “fair value” assessment
The Phoenix Metropolitan Area makes up the central part of Arizona, totaling over 9,000-square-miles. Also referred to as Greater Phoenix, this region includes both East and West Valley cities, but the City of Phoenix only accounts for 517-square-miles total, which can lead to confusion when talking to people from out of town or state, whether it’s a relative, friend, business owner, investor or site selector
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