DAILY TOP 5

A trophy office building in the Camelback Corridor in Phoenix sold for $86M this week in the market’s largest single-building sale of the year, the Phoenix Business Journal reported. The 10-story, 222K SF Class-A property, called Esplanade III, was purchased by Southwest Value Partners. An LLC connected to Transwestern and C-III Capital Partners was the seller, represented by JLL brokers, the PBJ reported. The partnership acquired the building in 2019 for $60.2M. Esplanade III is just one building in the 1.3M SF mixed-use Esplanade campus, which also houses Esplanades I, II, IV and V, co-owned by Monarch Alternative

Growth in data center development is fueling an increasing share of U.S. industrial demand, CoStar Group reported. Data center-adjacent occupiers now account for more than 6% of leasing activity across logistics properties within five miles of data center facilities, up from less than 3% in 2020. Nationally, data center inventory has reached roughly 69 gigawatts of existing capacity, with another 43 GW under construction. This has led to broad-based growth across several categories related to development and operation of the centers, including construction firms, power and cooling equipment suppliers, operators

Glendale leaders agreed to move forward with incorporating land into the city for a massive data center project and a natural gas plant that’s expected to bring in millions in city revenue. Councilmembers wanted the public to know the city could do nothing to stop the development of Project Eagle, formerly known as Project Baccara. Maricopa County officials cleared the 160-acre site for construction near Litchfield Road and Olive Avenue in May. “I know this has garnered quite a bit of attention with the general public,” said Councilmember Lauren Tolmachoff. She had City Attorney Michael Bailey clarify that the developer

U.S. hotels extended their growth streak during the week of Aug. 9-15, with revenue per available room (RevPAR) increasing 6.2% year over year, marking 19 consecutive weeks of growth. While average daily rate (ADR) remained the primary driver and rose 3.5%, hotel occupancy gains continued to strengthen as demand growth accelerated. U.S. hotel occupancy rose 1.7 percentage points as demand increased 3%, representing the third consecutive week of demand growth above 3%. That is the first time demand has grown above 3% for three straight weeks since 2023 and another indication that performance gains are becoming increasingly demand-driven rather

The Phoenix office market continues to show signs of resilience in 2026, outperforming many major Western markets as vacancy declines, investment activity remains healthy and medical office properties emerge as a particularly strong segment. According to CommercialCafe’s July 2026 national office report, Phoenix recorded an office vacancy rate of 16.9%, down 60 basis points from a year earlier. That puts Phoenix below the 17.7% national vacancy rate and makes it one of only two major Western markets — along with Los Angeles — with vacancy below the

Two Valley cities are in the top 10 for small business growth, with one of those singled out as one of the best for job growth, according to a new analysis. A report from human resources technology platform Blink ranked Glendale and Scottsdale at Nos. 8 and 9, respectively, among U.S. cities “with the most booming main streets” — a description generally meant to capture cities’ downtowns and similar local business hubs in terms of both economic activity and local engagement. The study’s authors said they focused on retail and food/hospitality

A new industrial park in Avondale is the latest bet that Phoenix’s Southwest Valley can evolve beyond its roots as a simple storage and shipping hub into a logistics powerhouse. Phoenix-based Creation Equity recently began construction on Avondale Tech Center, a nearly 700,000-square-foot development aimed at advanced manufacturing, research and development, and assembly users. The project reflects a growing push by developers to attract higher-tech tenants to west Phoenix cities that have historically been dominated by

As ALDI enters its 50th year in the United States, the discount grocer is accelerating its expansion in Arizona, with plans to open 10 new stores in the Phoenix market by the end of 2026. The company expects to add a total of 40 new stores across the market by the end of 2030, significantly expanding its existing Valley footprint. The Phoenix expansion is part of ALDI’s plan to open more than 180 stores across 31 states in 2026. By the end of the year, the company expects to operate nearly 2,800 stores nationwide, moving closer to its goal of 3,200 locations

Data center developers in Phoenix are pressing pause on projects in the face of significant local backlash that has led to regulatory and zoning changes, the Phoenix Business Journal reported. Some of the delayed projects include facilities by developers Vermaland LLC and LPI Co., both in Pinal County. Arizona boasts 160 data centers, according to Data Center Map, with Phoenix home to 149 of them. Last year, the city ranked top among data center markets by sales volume. Developers delaying data center build-out in the region mirrors a national trend

Delinquency rates for mortgages backed by commercial properties decreased during the second quarter of 2026. This is according to the Mortgage Bankers Association’s latest commercial real estate finance loan performance survey. Commercial mortgage loan performance improved during the second quarter, with delinquency rates declining across most major property types and capital sources. While office and lodging properties continue to face challenges and CMBS delinquency rates remain elevated relative to other lenders, the overall decline

After a soft first quarter, the retail sector regained positive momentum in Q2 as tenant demand returned, vacancies remained stable and new construction stayed limited. According to second-quarter reports from CBRE, Colliers, Cushman & Wakefield, JLL and Lee & Associates, the combination is creating a favorable setup for landlords and investors, even as retailers contend with increasingly selective consumers. Absorption. Retail demand returned in the second quarter, reversing the Q1 negative absorption created, in part, by multiple move-outs

U.S. industrial construction activity continued to moderate through June. Developers completed 135.5 million square feet across 616 properties nationwide, down 12 percent from the 153.6 million square feet delivered during the first half of last year. Compared to the same period in 2024, delivery volume fell almost 47 percent. However, activity was more concentrated in the markets at the top of the ranking. The 10 metros below accounted for 59.8 million square feet across 255 properties, about 44 percent of all industrial space delivered nationwide. Their combined volume

Phoenix-based Vestar has its eyes on another parcel of state-owned land where it wants to build a new retail project. It applied for a roughly 20-acre site at the southwest corner of Black Mountain Boulevard and Deer Valley Drive in the Desert Ridge area. The property is going up for auction November 5 with a $6,850,000 starting bid. The starting bid accounts for several roadwork improvements that the winning bidder will be required to undertake at the intersection, such as constructing additional turn lanes. That work will cost around $2,336,107, and was subtracted from the starting bid

In 77% of the Phoenix area’s ZIP codes, sellers listed their homes in July for less than they did last year. Why it matters: Some home buyers could be getting better deals than they did last year when mortgage rates were at comparable levels. By the numbers: Realtor.com’s July Market Hotness Index, based on listing views and time on the market, ranks Phoenix in the bottom third of the metro areas it tracks. On the supply side: Phoenix area homes are sitting on the market for 66.5 days — 9.5 days above the national average. But that’s three days shorter than last year

The recovery in U.S. commercial real estate investment sales is taking hold where the market is most fragmented—and increasingly, where competition is no longer confined to traditional private buyers. Properties valued from $5 million to $25 million traded for $57.11 billion in the first half, a 9.3% increase from a year earlier, according to Green Street’s Sales Comps Database. It was the second consecutive year of first-half growth for the segment, signaling that buyers and sellers are

The wave of new apartments that gave renters more options and more deals over the past two years is beginning to recede. The typical U.S. asking rent rose to $1,962 in July, up 2.3% from a year ago, the fastest annual pace in over a year, according to the Zillow® Rental Market Report for July. Even as rent growth picked up speed, 2 in 5 listings still offered a concession, a lasting benefit of the construction boom. What has changed isn’t demand; it’s supply. The historically large

One of Phoenix’s few available megawarehouses has been leased before construction is complete. DHL Group has preleased VT 303 in Glendale to occupy the entire 1.15 million-square-foot building, reports indicate. The deal represents a win for the landlord, VanTrust Real Estate, which placed a bet on Phoenix’s scarcity of megawarehouses to rework the initial vision for the 66-acre site. CBRE’s Cooper Fratt, who was involved in representing the landlord in the deal, told CoStar

Commercial real estate borrowers increasingly pursued fixed-rate financing during the second quarter as the decline in borrowing costs lost momentum. Quotes for short-term, fixed-rate senior loans increased 28% from the previous quarter, while floating-rate senior quotes declined 16%, according to the Altus Group U.S. Debt Capital Markets Survey. SOFR Finds Its Floor- The shift came as the Secured Overnight Financing Rate, the benchmark underlying many floating-rate loans

The developer behind the long-delayed Mattel Adventure Park in Arizona appears to have stepped away from the West Valley project but continues to advance a similar development in the Kansas City metro area. Rian Kirkman, senior vice president of marketing for VAI Resort, confirmed in an email that VAI Resort now is the developer, owner and operator of the under-construction Mattel Adventure Park in Glendale. Glen Bilbo, CEO of Epic Resort Destinations, previously led the

Mesa is preparing about 150 acres controlled by the Arizona State Land Department for residential and commercial uses, part of a large, master-planned community. The Mesa Planning and Zoning Board unanimously recommended approval for a general plan amendment and rezoning of land at Hawes and Elliot roads to allow about 100 acres of single-family residential development and about 50 acres of mixed-use and commercial development. According to city documents, the land had previously

Economic activity showed signs of strengthening in July, pointing to continued growth in the months ahead, according to data from the Conference Board. The research group said its Leading Economic Index, a closely watched measure of future economic activity, rose 0.2% in July. The index’s six-month growth rate turned positive for the first time in four years. The index combines 10 forward-looking indicators, including unemployment claims, manufacturing orders, building

Another solar plant project with battery energy storage systems to help power future data centers is in the works outside of Phoenix. Salt Lake City, Utah-based Copia Power, which develops, builds and operates grid-connected power and data center infrastructure, is working to rezone about 3,100 acres near Tonopah in the far West Valley for its latest project, the Belmont Energy Center, according to planning documents filed with Maricopa County. Most of the project site – about 2,860

Arizona doesn’t need anyone to tell us we have incredible Mexican food. But when Arizona Mexican restaurants get a little love from The New York Times, it certainly doesn’t hurt. The New York Times recently unveiled its list of the 41 best Mexican restaurants in America, assembled after reporters, editors and photographers spent more than a year traveling the country in search of standout restaurants. Three Arizona favorites earned coveted spots — and they showcase just how diverse

The Denū Hotel & Spa, the first luxury hotel in downtown Phoenix with a full-service spa, is preparing to open in September and already has a notable book of group business. Set to debut on Sept. 16, the 236-room hotel is located at 1 E. Adams Street in downtown Phoenix in a newly constructed 17-story building. Pronounced “DEH-noo”, the word has roots in Old English and translates to “valley” as a nod to the region’s nickname, Valley of the Sun. While Denū has significantly