Investors are seeing opportunities in multifamily markets with durable job growth and limited new deliveries, but they remain highly selective about where they choose to invest, according to Crexi’s August 2025 report. Median cap rates for multifamily properties sold rose slightly to 6.36% while asking cap rates slipped to 7.19%. The spread between the two indicated ongoing price discovery and selective bidding for quality “even as multifamily proves to be a less risky
Nearly 900,000 square feet of industrial space across more than 40 Phoenix-area buildings has been acquired in a $168 million transaction. Institutional investor BKM Capital Partners, which focuses on multi-tenant light industrial real estate, bought the Valley portfolio alongside Kayne Anderson Real Estate, according to a Sept. 10 announcement. An affiliate of Equus Capital Partners Ltd. was the seller of the portfolio, which includes eight properties in Phoenix and Tempe. CBRE’s
The Phoenix multifamily market is in a persistent state of fundamental imbalance, keeping vacancy elevated and rents on the decline. The average asking rent at Valley apartment properties decreased 0.5% in August, matching the decline in July and marking the seventh-consecutive month with flat or negative rent movement. Last month’s underwhelming performance brings the year-to-date rent change to negative 1.4%, a meaningful weakening compared to 2023 and 2024
Office work across the nation is taking a turn toward technology, and the fastest-growing office occupations in the Phoenix metro show that trend is true of the Valley as well. Those are among key findings in Yardi Kube’s Most Popular Office Occupations in the U.S. report, which ranked jobs’ popularity by their speed of growth between 2019 and 2024. In the Phoenix-Mesa-Chandler metro, occupations in data and mathematical sciences have been growing the fastest
The expansion of remote work in recent years has altered perceptions around the purpose of an office. People whose daily commute was a simple fact of life suddenly found themselves performing their duties from the comfort of their own home. But in some professions, being physically present is the only way to be successful, and other businesses discovered that these arrangements come at the cost of culture and collaboration. That’s exactly why it’s important to identify the 10
The Bureau of Labor Statistics recently released a preliminary look at its benchmark revision of annual job data, estimating that total U.S. nonfarm employment in March 2025 was 911,000 jobs lower than previously reported. While the 0.6% downward revision was the largest since 2009, not all geographies were impacted equally. Eleven states saw an upward adjustment to their payrolls, led by Arizona and New York, which were both undercounted by 1.1%. A
New retail development across the United States is in the midst of a dramatic slowdown, but fast-growing Phoenix continues to see activity with a multibillion-dollar project about to get off the ground. Developer Vestar on Monday unveiled plans for Legacy Park, a roughly 9.4 million-square-foot mixed-use complex slated for a vacant 200-acre site in Mesa, in the East Valley area of the greater Phoenix market. The first phase, estimated to cost more than $1 billion
Sprouts Farmers Market Inc.’s Valley expansion is continuing with a new store planned in Mesa. The Phoenix-based specialty grocer (Nasdaq: SFM) on Sept. 9 presented details about the planned location, at the intersection of West Southern Avenue and South Alma School Road, to Mesa’s Design Review Board. The 90,000-square-foot commercial center is set to receive a façade upgrade to accommodate the new Sprouts, according to a presentation
National multifamily developer Wood Partners has expanded its presence in Phoenix with the opening of Alta 87 in Gilbert. This marks the company’s third community in the region and the Town’s first with a structured parking garage. Alta 87 is now leasing, offering two months of free rent along with other exclusive specials. “The opening of Alta 87 marks an important milestone for Wood Partners as we continue to expand our footprint in the fast-growing Phoenix
Commercial real estate is piping hot in Deer Valley, according to some local real estate experts. The latest — a two-building office park in Deer Valley sold for $22.5 million, CBRE announced. The office park is near Seventh Avenue and Loop 101. The single-story buildings “occupy 7.22 acres and were constructed in 2001,” according to a press release
New apartments were rented slightly faster in the first quarter of 2025 than in the second half of 2024, offering a brief but significant pause in what had been a long downward trend in absorption rates. In the first quarter, 48 percent of newly built apartments were leased within three months, inching up from 47 percent and 46 percent in the previous two quarters, according to a Redfin analysis of Census Bureau data. While the
Vestar has plans in the works for another major mixed-use development, this time in north Phoenix. The developer is proposing a mixed-use project including a 544-unit hotel, a nearly 86,000 square-foot fitness center and 437,000 square feet of retail space, called Dove Valley Towne Center. A rezoning request was introduced at the North Village Planning Committee meeting Sept. 11. The goal is to set up the over 100-acre site for
More student housing is coming to the East Valley, as well as a new Target and townhomes. A 479,388-square-foot building will house nearly 800 students near Arizona State University in Tempe. It will also have space for ground-floor retail. National retailer Target will anchor phase two of Vineyard Towne Center in Queen Creek. The center also includes Arizona’s first Zaxby’s. And, a 38-unit townhome community is under construction
Taiwan Semiconductor Manufacturing Co. is eyeing land south of Loop 303, across the freeway from its north Phoenix campus, for expansion. The semiconductor giant signed on as an applicant of a massive rezoning in north Phoenix, which was first submitted by PulteGroup in late 2024. The land, which is owned by the Arizona State Land Department, must also go through a due diligence process and be sold at a public auction
Following the onset of the pandemic, Arizona managed to further diversify and expand its economy, cementing its reputation as a top-tier commercial hub — bringing both prosperity and new problems. As residents and businesses poured into the Valley, demand for multifamily housing outstripped supply, leading to higher rents and diminished affordability across the region. Developers responded with a burst of apartment construction
The government’s latest annual job revision landed with a thud, wiping out 911,000 positions from the previous count—a 0.6% drop that marks the steepest adjustment in a decade. The sheer size of the revision is rattling economists, raising fresh questions for commercial real estate and the broader economy, even if the full impact remains difficult to pin down. “This is the biggest one in 10 years,” Christine Cooper
Christine Mackay could never have predicted how her home metro would change when she started her first job in economic development decades ago. When she got hired in Chandler, one of her first big projects was landing a new call center in the city. It’s a far cry from companies she’s since shepherded to build or expand in the Phoenix area — a roster that includes Taiwan Semiconductor Manufacturing Co
Location: 7550 E. Legacy Blvd., along the northern block just east of Scottsdale Road in Scottsdale. Description: Construction of a large multifamily project called Legacy North Apartments at Crossroads is underway. The Dinerstein Companies, a Texas-based developer, is building the nearly 19-acre community in north Scottsdale’s burgeoning Loop 101 corridor, where the 120-acre master-planned
A looming cluster of commercial real estate maturities is shaping up to be one of the biggest tests for U.S. banks in recent memory. Recent analysis from Moody’s reveals that almost 63% of banks’ CRE loans are set to mature by the end of 2025—a figure that matches the “tangible common equity” held by these institutions. With refinancing pipelines already under strain from higher interest rates and ongoing
Arizona’s economy lost steam last year, with very slow job gains. That weakness has continued into 2025, according to the preliminary data. This has been matched by modestly rising unemployment and rapidly falling hire rates. Overall, the labor market appears to be on a knife-edge, if the preliminary data are correct. Income growth was also slow to start the year, but taxable retail sales growth has firmed
The Phoenix multifamily market is in a persistent state of fundamental imbalance, keeping vacancy elevated and rents on the decline. The average asking rent at Valley apartment properties decreased 0.5% in August, matching the decline in July and marking the seventh-consecutive month with flat or negative rent movement. Last month’s underwhelming performance brings the year-to-date rent
Mesa City Council has approved an agreement with Tempe-based Culdesac to develop a 27-acre vacant parcel near University and Mesa drives in downtown Mesa. Called Site 17, the undeveloped city-owned land has been on the city’s drawing board for years, Mesa Mayor Mark Freeman said. “This land has been vacant for more than 20 years,” Freeman said in a statement. “This development
For the first time in more than two years, the share of troubled commercial real estate loans on bank balance sheets edged lower in the second quarter of 2025. But while the slight decline offers a measure of relief, the overall rate of distress remains near historic highs, underscoring the pressure still facing the sector, according to a CoStar analysis of Federal Deposit Insurance Corp. data
Following the approval from the Village Planning Committee, Vestar, one of the largest privately held retail real estate companies in the western United States, announced today that they are moving forward with plans to develop one of its newest projects — Laveen Towne Center. The open-air shopping center will sit on a 90-acre site in the heart of Laveen, a rapidly growing
A Canadian real estate investment trust sold six office properties across the Phoenix area for U.S. $266 million as part of a deal with two U.S. investment firms to take the REIT private. City Office REIT, based in Vancouver, British Columbia, sold the buildings, which total nearly 1.25 million square feet, to the private real estate firm Southwest Value Partners, according to a statement from JLL, which