DAILY TOP 5

The healthcare sector has been the most powerful job-creation engine in the U.S. economy over the past few years, now employing nearly one in seven workers. Medical office leasing, however, has not reflected this strength, resulting in a vacancy rate that has plateaued well above its pre-2020 level. The July report from the Bureau of Labor Statistics showed a further slowdown in the labor market, with nonfarm employment shrinking by 23,000 and prior months’ figures being revised downward by 103,000. On a year-over-year basis

Americans are spending more money on looking better, feeling better and living longer as part of what’s been dubbed the “vanity economy.” Shopping center owners are cashing in. Demand for specialty fitness and beauty services is getting a lift from a combination of social media, a growing focus on wellness and the potential influence of GLP-1 weight-loss drugs, according to real estate professionals. That includes boutique gyms, namely small fitness studios offering limited-size classes or personal training, with upscale decor

Aldi is continuing its expansion in the Phoenix area. In January, the company announced its plans to add 10 new stores in the Valley in 2026 and a total of 40 new stores by the end of 2030. This contributes to a total of 180 stores across the country that the German grocer plans on opening this year. A new distribution center was also in the works, with a plan to open in Goodyear by 2028. Based in Batavia, Illinois, Aldi is owned by a different branch of the same family that owns Trader Joe’s and is known for offering its own

The commercial real estate investment market is recovering, but the rebound is not showing up evenly across the numbers. Investors put substantially more capital to work in the second quarter even as the number of properties changing hands remained below year-ago levels, a divergence that points to a market being driven increasingly by larger transactions and rising pricing rather than a broad surge in dealmaking. Altus Group’s Q2 2026 US CRE Investment & Transactions Quarterly Report found that

The U.S. commercial real estate recovery is following markedly different paths across property sectors and markets, Integra Realty Resources (IRR) said in its newly released 2026 Mid-Year Viewpoint Report. More than 90% of retail markets surveyed are in recovery or expansion, while office markets remain evenly divided between recovery and recession. Multifamily performance is shaped largely by local supply cycles, while industrial markets are concentrated primarily in the expansion and hypersupply phases

Two Phoenix landlords have filed objections to Salad and Go sites they own being converted into coffee shops. Davis Enterprises-Indian School Plaza LLC, which owns a shopping center at Seventh Avenue and Indian School Road, and LJO Properties, LLC, the landlord of a small commercial development at 35th Avenue and Baseline Road, objected to the use because their centers already offer drive-through coffee. The centers include Scooter’s Coffee and Black Rock Coffee Bar, respectively. Salad and Go closed all its

The nation’s construction wave receded sharply during the first half, but these 10 metros still accounted for more than a third of all completed units. Multifamily deliveries in the first half of the year declined sharply across the U.S. Developers completed 203,073 units across 994 properties this year through June, down 41.3 percent from the same period last year and 34.7 percent from the first half of 2024, according to Yardi Matrix data. The slowdown has begun to redraw the development map. Sun Belt metros continue

MovingPlace has released its new mid-year report, revealing America’s hottest ZIP codes of the first half of 2026 along with the 10 hottest ZIP codes in Arizona so far in 2026. The report first looked at the areas who saw the biggest ranking changes when compared to the previous year, and now looks at the locations with the most move activity based on per capita moves. As Arizonans relocate in 2026, certain ZIP codes are standing out as the fastest-growing and most in-demand. The 2026 Mid-Year edition of The Hottest ZIP Codes

Two fully leased buildings at a massive industrial park in Glendale sold for $170,250,000 on August 24, according to Maricopa County records. The buildings, which are located at Park 303, traded hands from the developer, Lincoln Property Company, to entities tracing to Nuveen Real Estate, according to Tempe-based real estate database Vizzda LLC. The deal marks the highest two-building industrial sale price in state history, according to Lincoln. The buildings included in the latest deal total roughly 1.1 million square feet, with the first coming in at 629,835 square feet and the next at 483,300 square feet. The first is fully leased to

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