January 30, 2019

A record number of passengers flew in and out of Phoenix Sky Harbor International Airport in 2018. The Valley’s primary airport saw a total of 44,943,686 passengers in 2018, according to data released Tuesday by the city of Phoenix Aviation Department. That was a 2.3 percent increase compared to 2017 and surpassed the previous record of

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Freddie Mac’s multifamily line of business set a record $77.5 billion in loan purchase and guarantee volume for 2018 and $500 million in low-income housing tax credit (LIHTC) equity investments. The $78 billion in total production bests the company’s prior record of $73.2 billion set in 2017. Overall, the company financed more than 860,000

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Rent growth in the United States was steady in the 12 months to November 2018, up by 2.9%, up marginally from the 2.8% recorded in the same month in 2017. The growth is highest year on year in Las Vegas with a rise of 6.7% and the analysis from real estate firm CoreLogic also shows that at the lower end of the lettings market rents increased

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January 29, 2019

Crown Realty & Development has closed on 96.5 acres of land near Desert Ridge Marketplace and acquired master developer rights to 5,700 acres, opening land that had been tied up in bankruptcy and litigation to development. The land previously was valued at $121 million. Irvine, California-based Crown purchased the land with a winning bid of

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Housing hot spots — those areas where land is being gobbled up for future rooftops — have been identified in the far West Valley, northwest Valley and far southeast Valley, and even go down as far south as Casa Grande. RL Brown, publisher of Phoenix Housing Market Reports, identified these areas in his 2019-21 forecast issued this week. While single-family

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After a big bump late in the year, Phoenix joined Las Vegas as the nation’s leader for apartment rent growth in 2018, according to RealPage, Inc. In the last 12 months, apartment rents have climbed 7.4% in Phoenix, matching the increase in Las Vegas. By comparison, apartment rents rose an average of 3.3% across the nation in 2018. Despite the fast-rising

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The national vacancy rate for multifamily properties was 4.9% at the end of last year, up 10 basis points (bps) from the third quarter and 30 bps year over year, according to Reis’s Apartment First Glance report for the fourth quarter of 2018. Vacancies have been rising steadily since their most recent low of 4.1%, in the third quarter of 2016, but remain

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As metro Phoenix’s employment rate continued to grow in 2018, office vacancies in the Valley dropped to their lowest level since 2007. The Phoenix area ended the year with a 15.6 percent vacancy rate, its lowest point since the rate reached 14.3 percent in 2007 just prior to the Great Recession, according to Cushman & Wakefield research. The firm anticipates

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January 28, 2019

Midtown Phoenix is no longer a canyon of far-from-full office towers built more than three decades ago. The area that businesses moved away from in the late 1990s is now drawing start-ups and big companies that want to be near light rail, new restaurants, apartments, redeveloped buildings and revived historic neighborhoods. But one big piece

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Caesars Entertainment Corporation, the world’s most diversified casino-entertainment company today announced plans to open Caesars Republic Scottsdale, its first non-gaming hotel in the United States, as part of its plan to expand its brands and loyalty network through its licensing strategy. Caesars Republic Scottsdale will be located adjacent to

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When looking to increase a property’s value, developers might first look at an investment in the neighborhood’s public space, according to a host of experts at one of the Valley’s largest development conferences on Friday. Finding ways to improve the public space in city cores was a focus at the Arizona chapter of the

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Mark-Taylor Cos. is working on several multifamily construction projects while it also turns its eye toward acquisitions this year. Chris Brozina, recently promoted to CEO, said the Scottsdale-based company has four luxury apartment projects under construction, with 1,628 units totaling $338 million in development costs. That’s in addition to a

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Avondale Mayor Kenn Weise was joined by WESTMARC president Sintra Hoffman, Congressman Lorenzo Sierra, Heers Management president Brett Heers and other Arizona civic and business leaders at a VIP reception to celebrate the opening of Avalon Apartment Homes. The property, which is located at 2005 N. 103rd Ave., in Avondale, has been making

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January 25, 2019

A recent Investor Intentions Survey 2019 compiled by the Pension Real Estate Association (PREA), the European Association for Investors in Non-Listed Real Estate Vehicle (INREV) and Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV) found that institutional investors raised their target allocations to real estate this year to

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Arizona State University-owned land may be the target of a lawsuit over diversion of property taxes, but its massive real estate development designed to fund ASU’s athletics facilities is progressing forward unscathed. Overall, the Novus corridor just east of Phoenix has nearly $1 billion worth of projects in the works, making it the largest single

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The nation’s largest banks are being more cautious with their commercial real estate lending, based on what they are saying on their earnings conference calls. The same headwinds that slowed bank lending last year are extending into 2019, as economists debate how much longer the current economic expansion, on pace to reach a record

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As manufacturing employment grows in Phoenix, rents for the Valley’s industrial space have reached a 10-year high. According to Avison Young research, triple-net asking rents increased 2.3 percent year-over-year during fourth-quarter 2018, reaching $7.07 per square foot. In the southwest submarket south of Buckeye Road, asking rents have

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The Local, a new, multimillion dollar, mixed-use development located in the heart of downtown Tempe at University Drive and Ash Avenue, is set to welcome its first residents April 2019. This newest addition to the Tempe market will be anchored by the region’s newest lifestyle Whole Foods Market. “We are excited to be joining the Tempe community and to

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January 24, 2019

Vantage Data Centers bought 50 acres in Goodyear, Arizona, for construction of its largest data center campus in North America to date, in the latest sign of rising demand in the Phoenix area fueled by the growth of cloud computing and e-commerce companies. The massive Goodyear campus is planned to include three data centers for a total of

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This week marked a major milestone for one of Phoenix’s most awaited developments as construction “topped off” on Block 23 — the future home of downtown’s only full-service grocery store. The development will include a 230,000-square-foot office building, 330 apartments, retail, restaurants and a Fry’s Food Store. The project is slated to open

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As large-scale malls and shopping centers have been in decline in recent years, developers are turning to small-scale, mixed-use developments to fill a niche. “People still want the experience for retail, but we can’t do it on that scale,” said David Sellers, CEO of Phoenix-based LGE Design Build. LGE has opened locally oriented commercial developments in

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Progressive Corp. expects to hire more than 10,000 people in the coming year, including more than 300 in Phoenix. It’s the Ohio-based insurance company’s most aggressive hiring push to date and comes after growing revenue more than 50 percent in the last three years to $30 billion. In Phoenix, the company employs about 700 people and plans to

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For Jorge Pérez, art is more than just things that can fill up walls and rooms or add color to spaces that beg for more color. The Related Group’s chairman, CEO and co-founder views art as a vital part of his life and his business empire. “I’m a big art collector, so I believe that transferring that beauty into the buildings that we do improves not just

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January 23, 2019

Metro Phoenix’s population and job growth are keeping investors bullish on the multifamily market in 2019. Also driving investor enthusiasm is the affordability factor — even though rents continue to rise in metro Phoenix, it’s still less expensive than many West Coast cities. In metro Phoenix, 20 percent of residents’ income goes to rent, compared

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The high probability of more interest rate increases by the Federal Reserve, and other developments—ranging from geopolitical uncertainty, U.S. political gridlock and U.S.-China trade friction to sliding stock market performance—that made headlines during the recently holiday season are continuing to do so this year. With so many sources of

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