After several years of low returns, investors have shown greater interest in commercial real estate. While 2023 and 2024 were challenging years, the downturn was largely capital markets-driven, shaped by higher interest rates and constrained liquidity rather than by deteriorating underlying supply-and-demand fundamentals. In 2026, improving debt capital markets are beginning to create a clearer path forward. A revival is underway even as overall transaction volumes remain
Morgan Stanley’s real estate investment division has raised $2.9B for a new opportunity fund, one of the largest fund-raises of this real estate cycle. This was the first close for the North Haven Real Estate Fund XI Global, PERE reported. The fund-raise was disclosed in a Securities and Exchange Commission filing last week. The fund is targeting a total equity raise of $4B, PERE reported, which would be almost a third more than the $3.1B it raised for its tenth opportunity
In December, the non-seasonally adjusted civilian labor force in the Phoenix-Mesa-Chandler MSA (Phoenix MSA) grew 2.6% over the year to 2.8 million, continuing an upward trend. September and November recorded similar year-over-year gains of 2.7% and 2.9%, respectively. The Phoenix MSA’s labor market showed solid strength in December, as non-seasonally adjusted resident employment climbed 2.1% year-over-year to 2.7 million. September and November both posted similar
Arizona attracted the most industrial investment dollars in 2025 among U.S. states, according to Avison Young’s industrial investment tracker. There were 10 industrial real estate projects across the state that attracted nearly $520B in investments last year, the report says. Texas followed Arizona, securing the No. 2 spot with $373.5B of investments. “Arizona’s become a top spot for manufacturing because it’s business-friendly, has a strong logistics infrastructure, and the federal incentives
As Taiwan Semiconductor Manufacturing Co.’s $165 billion chipmaking complex in north Phoenix continues to expand and developers start to launch major projects all around it, a busy freeway interchange in the vicinity is getting an upgrade to match the growth. Work is underway in earnest on the main component of a $129 million project to build an interchange at the Loop 303 and Interstate 17 that will include four direct-connecting ramps and added lanes between
Location: Southwest corner of 56th Street and Deer Valley Drive, just north of Loop 101 in Phoenix. Description: A 240-room hotel is under construction in north Phoenix’s new CityNorth development. The hotel, which is dual-branded — AC by Marriott and Element by Westin — will be eight stories tall and include 5,500 square feet of meeting and conference space. LaPour Partners and Holualoa Cos. are developing the project to fit within CityNorth’s 100-acre footprint, neighboring
Sales volume for Phoenix commercial real estate properties increased 13% year over year to about $14 billion in 2025. This marks the second consecutive year with accelerating deal flow, building on 2024’s 33% gain. The pickup in investment activity was broad-based, with each of the four primary property classes posting increases last year. The retail segment led the way, climbing 21% annually to about $2.4 billion in 2025. Phoenix was one of the top 10 best-performing retail
Commercial real estate prices are moving again. Green Street’s latest Commercial Property Price Index shows U.S. all‑property values up 0.2% in February and 2.5% over the past year, a profile that the firm characterizes as consistent with “fair” pricing and largely stable cap rates. Beneath that modest headline figure, the index paints a market still digesting the post‑2022 reset, with aggregate values 15.8% below their 2022 peak and a wide spread in performance across property
An 11.5-square-mile chunk of desert in northeastern Peoria took one vital step closer to becoming the long-promised ‘Innovation Core,’ after the Planning and Zoning Commission unanimously recommended allowing industrial, commercial and residential uses there. The seven-member commission voted with minimal opposition from the public at its March 5 meeting. The decision paved the way for the city to create the Peoria Innovation Core Planned Community
Phoenix’s quarterly segmentation data illustrates a market increasingly defined by demand rotation, event concentration and pricing discipline rather than growth across all major segments. Short-term travel demand was the primary catalyst behind the strongest quarters of 2024, especially in the winter-driven first and fourth quarters as leisure travel and major events filled more room rooms. This momentum allowed hotels to raise prices, reinforcing the segment’s role
As economic developers look for ways to bolster Arizona’s economy, they must balance the need to attract relocating and expanding companies with the availability of our state’s most precious resource: water. TSMC selected North Phoenix as the site of its U.S. operation in 2020 precisely for this reason. The decision to locate here was largely due to the state and city’s thoughtful and thorough planning, including a 100-year plan to reduce water consumption, improve water quality
PopStroke, a golf entertainment concept with the backing of Tiger Woods, is changing its plan for an upcoming location in Gilbert. More than a year ago, PopStroke Entertainment Group, which has headquarters in Jupiter, Florida and Dallas, Texas, received the thumbs up from the Town of Gilbert’s Planning Commission to build an indoor mini golf facility on 4.25 acres of vacant land near Ray Road and SanTan Village Parkway, by the SanTan Village shopping and
Scottsdale-based developer SimonCRE is under contract to purchase land in Surprise for a new retail development. The site, which is next to the Village at Prasada shopping center, will be called Prasada East and is where Whole Foods is planning to build a new store. The Prasada East site is currently owned by Suburban Land Reserve Inc., a real estate arm of the Church of Jesus Christ of Latter-day Saints. The Village at Prasada is located off the Loop 303 and Waddell Road in
For the first time in nearly two years, apartment occupancy and asking rents posted consecutive monthly gains in early 2026, though annual comparisons remained soft and regional performance varied, according to RealPage’s February 2026 update. National occupancy ticked up to 94.8% in February, rising 10 basis points in both January and February. Effective occupancy remains 10 bps below year-ago levels and roughly 90 bps below the recent peak in
Construction input prices increased 0.7% in January compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential construction input prices increased 0.6% for the month. Overall construction input prices are 2.3% higher than a year ago, while nonresidential construction input prices are 2.9% higher. Prices increased in two of three energy categories last
Two hotels are slated for Palo District, the former Fiesta Mall site in Mesa, its developers announced. Sunny Day Sports, the district’s developer, made the announcement on March 2 stating it would support the project’s “emerging role” for women’s health and elite athletics. The former Fiesta Mall came under Sunny Day Sports’ management in November after the city council created a theme park district, along Alma School Road and Southern Avenue. That plan
ZOM Living, a Florida-based developer, is delivering the two-building project — one, named Hazel, directly across from Scottsdale Fashion Square mall and the other, dubbed Azure, alongside the Arizona Canal. When finished, both towers will provide tenants with easy access to Old Town’s vibrant nightlife scene, restaurants and shops. Overall, the development will comprise 532 units and more than 14,610 square feet of commercial and retail
Flagstaff’s affordable housing options have expanded with the opening of Sierra on 66, a 221‑unit community funded through Low‑Income Housing Tax Credits (LIHTC). The development team said the Route 66 project helps Flagstaff’s “affordable housing emergency.” According to Kevin Sturgeon, lead developer for Roers Companies, Sierra on 66 has been years in the making. “We’ve been working on it for probably four to five years, from when we signed the site up and began
The average asking rent for Phoenix apartments remained unchanged in February, maintaining the slow-and-steady performance seen over the past few months. Stabilization comes on the heels of back-to-back monthly gains in December and January, resulting in a 0.3% rent increase in the three-month period ending in February 2026. While recent growth is underwhelming for a market that regularly notched monthly gains of 0.3% to 0.5% before the pandemic, it marks
Phoenix’s pronounced swings in revenue per available revenue, or RevPAR, over the past two years reflect a market shifting from event-driven distortions into a supply-driven recalibration phase. Volatility in 2024 was largely driven by comparisons to the prior year. The 8.1% RevPAR decline in the first quarter reflected extraordinarily difficult comps against early 2023, when Super Bowl LVII, the WM Phoenix Open and Cactus League Spring Training generated outsized compression
Limited new developments and healthy tenant activity drove industrial vacancy in Greater Phoenix down 10 basis points during fourth quarter to 9.7 percent at the end of 2025, according to a report released by Colliers. Fourth quarter 2025 marked the third consecutive period of decline in vacancy following seven straight quarters or rising vacancy that ended in early 2025. Year-end 9.7 percent vacancy reflected a 90-basis-point decline year-over-year. While total inventory continues
Core multifamily investors ended 2025 feeling better about buying than at any point in the past year—but they are not rewriting their models just yet, according to a new CBRE survey that underscores a cautious, metrics-driven thaw in sentiment rather than a full-fledged turn in the market cycle. In CBRE’s Q4 2025 Multifamily Underwriting Survey, 76% of respondents reported positive sentiment toward core acquisitions, up from 64% in Q3 and just 44% a year earlier. That shift
The National Association for Business Economics’ Economic Policy Conference in Washington, D.C., last week brought together economists, policymakers and executives to discuss a range of topics, including the impact of artificial intelligence and the challenge of an aging population on the nation’s fiscal future. Here are a few takeaways from those discussions. Demographic headwinds and higher interest rates will make deficit reduction more
When the City of Phoenix narrowed its conditions for acceptable data center development sites in 2025, it put Vintage Partners in a complicated situation. AZBEX has extensively covered the move to restrict data center conditions in Phoenix and other jurisdictions around the state. Most of that reporting is available here. Vintage owns a 63-acre property at the SWC of Loop 202 and Lower Buckeye Road. The site, which the company purchased from the Arizona Department
Vestar, one of the largest privately held shopping center owners and operators in the western United States, has announced a new wave of restaurants coming to Verrado Marketplace, opening in 2026. Among the newest additions are: OHSO Brewery – A locally owned brewery, distillery, and eatery with multiple valley locations; Paris Baguette – A neighborhood bakery offering coffee and teas, delicious cakes, pastries, and more; BJ’s Restaurant – Known for its craft beers, deep-dish