Most real estate investors, developers and operators will look back on 2018 as a year that exceeded expectations. Despite the longevity of the current cycle, and significant new development of multifamily, self storage and industrial product, fundamentals in those sectors remain strong, and demand for assets is robust. These largely positive trends face some crosswinds, as policy initiatives related to
Arizona is a hot spot. And it has nothing to do with our scorching summers. The state’s job and economic growth forecasts over the next five years are among the best in the nation. Population growth through 2022 is expected to be the third-fastest in the country and employment growth is expected to be equally strong. “Arizona continues to foster a welcoming pro-business environment for
Rents in Phoenix climbed more than 7 percent in 2018, a growth rate eclipsed by only one other city in the country. In its year-end analysis, RentCafe pegged rent growth in Phoenix at 7.7 percent among large cities in 2018. Only Las Vegas saw rents rise faster than Phoenix among large cities for the year. Sin City rents climbed 7.9 percent. “Cities like Las Vegas, NV and Phoenix, AZ have proven to be
The Phoenix area added 17,500 new jobs in construction during the 12-month period that ended Nov. 30, the second-biggest gain in jobs nationwide. Phoenix ended the period with 135,300 construction jobs, compared with 117,800 in November 2017, according to a study done by the Associated General Contractors of America. Construction employment grew in 74 percent of
Media giant Gannett Co., parent of The Arizona Republic and azcentral.com, has sold its 10-story office building and parking garage in the heart of downtown Phoenix for $37.65 million, according to public real estate records. ViaWest Group, a Phoenix-based real estate company, is the buyer. It purchased the building through an LLC called VWP EVB 200 Office. Republic and azcentral.com offices will remain
Sustained momentum from the U.S. economy’s extended economic expansion bodes well for major commercial real estate asset classes in 2019, promising additional allocation from institutional and international investors, a hunt for opportunities in secondary markets, and robust construction completions in sectors such as office and multifamily, according to
President Trump is nearing the halfway mark in his current term, and the country is still waiting to see if he will make good on one of his key campaign promises—a $1.5 trillion infrastructure spending plan. Early in 2018, the Trump Administration introduced a plan that calls for putting up $200 billion in federal funds that would require a 4-1 match from state and local governments with an aim to
FPL forecasts a positive outlook for commercial real estate salaries, bonuses and workforce growth forecasted for 2019. For its annual “Real Estate Compensation Pulse Survey, the global professional services firm polled 276 real estate companies globally in several areas including compensation via base salary, overall performance, annual bonus, long-term incentive, and
The average worker spends 40% of the day at their desk. Eighty percent of work is defined as “collaborative.” Forty-three percent of respondents in a survey indicate that less than 5% of their worksite include enclosed offices. More than 80% of workers spend their time engaged in collaborative work. So says JLL’s 2018 Occupancy Benchmarking Report. What do all these stats ultimately mean?
Phoenix is one of the top 10 markets for class-B rent growth, according to a new report from CBRE. The ranking illustrates the intense growth in the market, and has fueled substantial value-add investment activity. The rent growth in this specific segment of the multifamily market illustrates Phoenix’s value proposition is affordability, which has fueled population and job growth in the market
Rosa Gonzales was crying as she waited in the long line, waiting to eat her last meal at a restaurant closing its doors after 90 years in business. She was grieving Sing High Chop Suey House, the downtown Phoenix fixture where she and her husband stopped by every week for a meal. “It was our favorite place when we first just got married. We’d been coming here since 1971. It was our weekend thing to
For the U.S. apartment market, 2019 may be the year the wave breaks. Developers are building 660,000 new apartments nationwide, according to CoStar data – about 4 percent of the existing stock. They’re expected to finish 500,000 of those over the next 18 months, marking the peak of a busy development cycle. After that, deliveries will finally slow down, according to
Existing home sales in the United States increased by 1.9% in November, the second month in a row of rises, according to the latest index report. Three of four major US regions saw gains in sales activity last month, the data from the National Association of Realtors shows but they are still down 7% compared with November 2017. Lawrence Yun, NAR’s chief economist, said that two consecutive months of
An historic red brick building on Roosevelt Row in downtown Phoenix will get new life as creative office space. Point B Inc. is renovating the Hardware Store, which was first built as a “castle hall” for the Knights of Pythias and dedicated in 1928. The building at 829 N. First Ave., contains about 15,000 square feet of space on two levels with 6,000-square-foot floor plates, plus an upper mezzanine level and
There’s no doubt about it: the 2018 housing market has seen its ups and downs. The year started with sky-high home prices, historically low mortgage rates and a definitive upper hand for sellers. In recent months though, home price growth has faltered, rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer. Will these trends continue?
Investment sales for the last few months of 2018 — normally the most active period of the year — have admittedly been meh. But Real Capital Analytics says deal volume for 2018 is on track to exceed 2017’s. Preliminary volume figures for November suggest a slowdown of investment activity, Real Capital Analytics noted in a recent post, with the slowdown in the fourth quarter more pronounced in
After announcing plans for $500 million worth of Phoenix-area projects, Related Group has submitted plans for its first proposed development near Scottsdale and Thunderbird roads. Miami-based Related Group submitted plans to the city of Phoenix proposing a 293-unit apartment complex, called Manor Scottsdale, at the site of an LA Fitness, which is soon to be vacant, according to
A surge in online purchases helped US retailers enjoy their biggest rise in festive shopping sales in six years, invigorating the sector at the end of a year that has seen thousands of stores close. Total US retail sales tracked by payments company Mastercard during the crucial period between November 1 and Christmas Eve leapt 5.1 per cent from a year ago, to $850bn. Online sales leapt 19.1 per cent
With rent growth rebounding to nearly double the national rate, Phoenix is experiencing a sudden sprint in rent improvement, as positive demographic trends and one of the most active economies in the U.S. prop up the metro’s multifamily market. Rents were up 5.4 percent year-over-year through September, to an average of $1,085. Despite high completion rates, average occupancy
Mesa residents in the southeast part of the city may not realize it, but they’ve likely been drinking water from a different tap the last few months. More specifically, water from a different treatment plant. The Signal Butte Water Treatment Plant, the largest capital project in Mesa history, has officially been dedicated a few months after it began serving the city’s residents who live roughly from
Retail is having its best holiday shopping season in six years, according to early data tracking consumers’ purchases. Sales in the U.S. from Nov. 1 through Christmas Eve were up 5.1 percent to more than $850 billion, according to Mastercard SpendingPulse, which monitors spending both in stores and online via all forms of payment. Mastercard also said online sales during that time frame were
There could be more Arizona representation on Capitol Hill in a couple years, the result of continued population growth in the state. An analysis by Virginia-based Election Data Services shows Arizona could get a 10th congressional seat as a result of population shifts in the U.S., according to Capitol Media Services and the Arizona Daily Star. With the House of Representatives limited to 435 total seats,
Phoenix’s office market is growing steadily, supported by exceptionally strong economic growth and population gains. Phoenix added 73,500 new jobs in the 12 months ending in August, making it one of the strongest markets in the country. While the bulk of growth comes from industries such as construction and health care, the office-using sector is growing rapidly as well, adding
There have been a lot signs that Phoenix’s industrial market is coming into its own. Earlier this year, Phoenix was named a top buy market for investment, and it has seen rapid growth, both in absorption and rent. Now, significant speculative developments are coming to the market. Lincoln Property Co. has just delivered a 40-foot clear height speculative third-party logistics facility in Phoenix, illustrating
Sustained momentum from the U.S. economy’s extended economic expansion bodes well for major commercial real estate asset classes in 2019, promising additional allocation from institutional and international investors, a hunt for opportunities in secondary markets, and robust construction completions in sectors such as office and multifamily, according to a commercial real estate outlook
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