DAILY TOP 5

At the National Association of Business Economics’ annual meeting in Philadelphia last week, economists, executives and policymakers discussed a wide range of topics. Here are a few takeaways from conference speakers on the American consumer, artificial intelligence and immigration and trade policies that may interest the commercial real estate industry. While the labor market has weakened, high-income households remain in a strong position and continue to

Kaos Hospitality is expanding its presence in the Watermark mixed-use development in Tempe with plans to open two new restaurant concepts complex. The company has operated its Asian-inspired steakhouse Three Thirty Three at the Watermark, along Scottsdale Road north of Tempe Town Lake, since late 2024. Now it has leased two other restaurant spaces and is looking to expand its offerings in Tempe. The first of the new concepts to open will be 212° Shabu Shabu, which

A new report by The Pew Charitable Trusts and global architecture, planning, and design firm Gensler shows Phoenix could turn empty offices into housing and help the city address two major challenges: a surplus of vacant offices and a shortage of housing. The report outlines how co-living, dorm-style microunits can be designed and financed to provide lower-cost homes for people earning well below the area median income. Median rents in metro Phoenix have

A joint venture led by Federal Realty Investment Trust has obtained a combined $73.3 million for the refinancing of the Chandler Shopping Center Portfolio, two retail properties in Chandler, Ariz., totaling 616,639 square feet. The financing consists of a $51 million mortgage for the 354,548-square-foot Chandler Festival and a $22.3 million loan for the 262,091-square-foot Chandler Gateway. PNC Bank provided the five-year, fixed-rate loans, public records show. JLL Capital

JDM Partners, the real estate acquisition and development firm led by Jerry Colangelo, appointed Torry Berntsen as co-CEO, who will serve alongside co-CEO and founding partner Mel Shultz, the company announced Monday. The company owns high-profile properties around the state and country, including the Wigwam Resort, Arizona Biltmore Golf Club and Marina Heights in Tempe. It is also the asset manager for the long vacant former Chase Tower in downtown Phoenix, and led the development of both Chase Field and the Mortgage Matchup Center

Converting vacant high-rise office buildings into dorm-style living for adults could be key to tackling housing affordability struggles while also helping revitalize Phoenix’s downtown, according to a report from Gensler Such projects could also present an attractive opportunity for developers who may be wary of traditional office-to-apartment conversion projects, as they offer quick speed to market and lower development costs, the report concluded. “You can do one of these conversions and bring homes online, these new micro apartments, in about

Leasing volume in the U.S. office market ticked up in the third quarter, according to preliminary estimates, but remains just shy of its pre-2020 norm. The total square footage leased on new agreements — excluding renewals — is estimated to have reached between 100 million and 110 million square feet, or about 1.2% of inventory. While this marks a modest increase over recent quarters, it still trails the quarterly average of 115 million square feet recorded between 2015 and 2019. A closer look at the data reveals that small lease sizes continue to weigh on overall

Diversified Partners, one of Arizona’s leading real estate brokerage and development firms, has announced plans for Williams Station, a new entertainment-anchored development coming to the northeast corner of Loop 202 and Dobbins Road in Laveen. The $50 million project will feature a mix of retail, dining and entertainment uses in a walkable, desert-inspired setting that celebrates the area’s Southwestern heritage. Named in honor of the Williams family, the longtime owners of the property, Williams Station will reflect the authentic character of Laveen

Northern Arizona is beloved by many Arizonans as a shaded retreat from the desert heat, where Ponderosa pine trees and small-town charm define daily life and weekend trips. In recent years, the region, stretching from Flagstaff’s high-altitude innovation corridor to the fast-growing communities of Show Low, is turning its attention to making a larger impact on Arizona’s economic landscape. Strategic investments in infrastructure, housing and workforce development are helping Northern Arizona transition from a quiet getaway into a dynamic hub

Aldi’s plans for a regional office and distribution center in Goodyear are finally moving ahead. The grocer has long had expansion plans in the Valley and proposed a regional office and distribution center in Goodyear nearly eight years ago. The project went dormant but was reactivated last year when Aldi submitted a site plan with the city. The city approved that site plan for the facility in late September, according to a Goodyear spokesperson. The complex will be

The multifamily market is starting to look more ordinary again—and that might be the best news investors have heard in years. After nearly half a decade of volatile rent growth, supply-chain disruptions and economic uncertainty, Yardi Matrix executives Jeff Adler and Paul Fiorilla say the sector is nearing equilibrium. Their latest projection points to a tightening yet more predictable environment by 2027—one where steady construction flow and modest rent increases

The Lodging Conference took place at the picturesque JW Marriott Phoenix Desert Ridge during the first full week of October. Despite ongoing challenges in the capital markets, conference attendees remained upbeat, noting recent large transactions as green shoots in the hospitality industry. Coincidentally, the conference venue was sold in a large portfolio deal earlier in the year, underscoring investor interest in trophy assets. Development activities face more challenges than

The Scottsdale Plaza Resort is being rebranded as Kimpton Miralina Resort & Villas and will be the first IHG Hotels & Resorts (NYSE: IHG) luxury and lifestyle property in the Paradise Valley/Scottsdale market when it opens in early 2026. Kimpton, which is under the IHG umbrella, announced Oct. 17 that the property will be branded and undergo a renovation. Located at 7200 N. Scottsdale Road in Paradise Valley, the resort has just over 400 rooms and villas and is located

Desert Financial Arena is about to get a brand-new look. Arizona State University is embarking on a multiyear, multiphase renovation of the arena — home of the Sun Devils’ men’s and women’s basketball, volleyball, gymnastics and wrestling teams — with an estimated cost of $100 million. The project, which has an anticipated completion date of December 2029 and requires approval by the Arizona Board of Regents, includes: New loge boxes. Club-level seating

A 122-year-old historic home in Tempe is preparing for its next life as an ice cream shop as construction began on the 1.5-acre site where it and a historic church stood for a century. The Hub on Campus Tempe, a 30-story apartment tower, will be built on a 1.5-acre site at Myrtle Avenue and Seventh Street, a site that used to be home to the Harry Walker House, which had operated as the House of Tricks restaurant. The site also includes the First Congregational Church

Despite facing recent opposition to its proposed $400 million hospital, Phoenix-based Banner Health is confident that the project will come to fruition as it heads to the city’s Planning Commission. The Scottsdale Airport Advisory Commission last month voted 5-1 against the proposed medical campus at the southwest corner of Hayden Road and Loop 101 in north Scottsdale, citing its proximity to the Scottsdale Airport runway. The airport commission’s concern is

Vacancy rates for office and retail spaces in the Valley were down in the third quarter of this year, while the amount businesses paid for those spaces was up. Those findings and more were revealed in a new report from commercial real estate firm CBRE. Senior Vice President Dave Barrett joined The Show to talk more about the numbers and what they mean. Full conversation: MARK BRODIE: Let’s start with, with retail spaces. You found that the vacancy rate was

Tenant demand is strong for retail in Phoenix — leading to a surge in rents and low vacancy. The market in the third quarter posted net absorption of +358,329 square feet, according to a report from CBRE. On a gross basis, absorption was 1.5 million square feet, marking the 20th straight quarter that the category exceeded one million square feet. The demand for space helped send the vacancy rate down by a modest 10 basis points from the previous three months

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index rose five points in October to 37, its highest level since April and the biggest month-over-month improvement since January 2024. The index, based on a monthly survey of single-family builders, measures confidence in current and expected sales conditions on a scale of 0 to 100. Readings above 50 indicate that more builders see conditions as good than poor, meaning that

The outlook for economic growth in the coming year has improved since the depths of uncertainty in the early summer, according to a new quarterly survey released by the National Association for Business Economics. And though the foundations of that expansion rest on a narrowing set of economic pillars, economists are increasingly aligned in their expectations for slower, but positive progress in the near term. The 40 professional forecasters who responded to

Despite Phoenix industrial construction activity continuing to slow down in 2025, 11.9 million square feet remain in the pipeline, helping Phoenix remain a well-positioned market for industrial tenants, according to an analysis from Kidder Mathews. Market Highlights: CONSTRUCTION activity totaled 11.9 million square feet. DIRECT NET ABSORPTION reached 2.4 million square feet. TOTAL LEASING ACTIVITY YTD is 11.3 million square feet. MARKET DRIVERS: Phoenix remains

Taiwan Semiconductor Manufacturing Co. is close to securing additional land in Arizona to create an “independent gigafab cluster,” chairman and CEO CC Wei announced on an earnings call Thursday morning. Why it matters: The new land will allow TSMC to execute its $165 billion vision for Phoenix and cement the Valley as an unequivocal semiconductor. The latest: Wei said “strong AI-related demand” is driving TSMC to speed up its Arizona expansion and roll

Pennsylvania-based Toll Brothers Inc. (NYSE: TOL) has opened a new luxury community within the Storyrock master plan in north Scottsdale. Called Toll Brothers at Storyrock, the community at 12835 E. Black Rock Road represents the final phase of homes offered within the exclusive master-planned community. Homes ranging from 3,665 to more than 5,000 square feet will start at $1.95 million. The 81 homes in the community offer views of Four Peaks and

A little more than two years ago, the state Department of Water Resources announced a moratorium on building new homes in some parts of the Valley that rely on groundwater. That came after the agency determined that there wasn’t an assured hundred-year water supply in those areas, as required under state law. Tony Davis spent time in one of the most affected cities — Buckeye — to find out how that change is impacting development — and residents. Davis is an