Multifamily cap rates appear to have stabilized, ending a two-year cycle of steady increases and raising the prospect that the sector could be at the edge of an upswing, according to CoStar’s National Director of Capital Markets Analytics, Chad Littell. While most investors remain focused on the impact of interest rates, it is actually rent growth that has provided the most reliable signal for shifts in cap rates throughout recent cycles—a key theme echoed
It shouldn’t be a surprise to anyone that homeowner affordability continues to decline. The National Association of Realtors has acknowledged this. So has the Joint Center for Housing Studies of Harvard University. Now, CBRE has thrown its own figures into the mix. In a report, “Fewer Renter Households Can Afford Homeownership,” the authors said that 1.8 million renter households can’t afford median-priced homes in their markets. The reasons? “Persistently
A new wave of wealth is reshaping Phoenix’s housing market, making it the fastest-growing millionaire hub in the United States. Between 2019 and 2023, the number of millionaire renters in Greater Phoenix rose by 519%. Renting was once viewed as a temporary step toward homeownership. Today, for many affluent individuals, it has become the destination rather than the interim. And with that increase in millionaire renters has
During the first two quarters of the year, a total of 59 industrial sales closed, involving 8 million square feet and generating $1.4 billion, according to the latest Yardi Research Data. The average price per square foot during this period stood at $179.65—higher than the $163.89 per square foot recorded during the same period in 2024—marking a steady demand for industrial properties. During the year’s second quarter, 4.5 million square feet
Coffee giant Starbucks will be closing hundreds of stores across the country this weekend, including more than a dozen in Arizona. Starbucks CEO and chairman, Brian Niccol, announced this week that the chain is closing locations that do not meet financial performance or customer and partner standards. He said the company plans to close 1% of company-operated coffee shops this year. The Puget Sound Business Journal reported that Starbucks
Southern California-based Vallarta Supermarkets has made its first inroads into Arizona with plans to open a new store in Glendale in early 2026. Headquartered in Santa Clarita, California, Vallarta has been operating for 40 years, primarily focused on California’s Latino customer base. It has more than 70 stores in California and continues to expand in the Golden State. The company has already started construction on its first Arizona location and will be pursuing an aggressive growth strategy in the Valley. “We came to make a presence here, not for just one
U.S. commercial property prices have sustained upward momentum in August, notching broad gains across major property sectors and marking their strongest annual performance since late 2022, according to MSCI’s RCA CPPI report. The National All-Property Index advanced 2.4 percent year-over-year and 0.9 percent from July, with the monthly pace equating to an annualized 11.1 percent increase. Retail assets remained at the forefront of price growth, posting a 5.3
As walls came down at Metrocenter Mall on November 18, a new vision was unleashed for the 80-acre property. The demolition marks the start of an $850 million redevelopment, transforming the site into a vibrant multi-use, self-contained, transit-oriented community encompassing the city’s new Metro Light Rail station, which will serve as one of the major focal points of the development. Spearheaded by Concord Wilshire Capital and TLG Investment Partners, in partnership
A handful of new stores and restaurants are open at Canyon Trails Towne Center, as the developer prepares to build another phase of retail buildings and a hotel on the Goodyear site. The center, which was once planned to be 100 acres of retail, began before the Great Recession. Because of the financial crash, only portions of the project got built, and the rest stalled, David Malin, president of Scottsdale Development Partners, a consultant working with the center’s owner
The region’s leading luxury retail center, Scottsdale Fashion Square, is taking new steps to enhance its shopper experience. Today Macerich (NYSE: MAC)—one of the nation’s leading owners, operators and developers of one-of-a-kind retail and mixed-use properties in top markets—announced a new enhancement project that will elevate the central gathering space known as the Palm Court. The Palm Court is the hub of activity within the center and a
Bond yield swings are driving the most abrupt changes in property returns, and nowhere is this more apparent than in commercial real estate markets defined by lower capitalization rates, according to a September report from Oxford Economics. In a period where macroeconomic shocks ripple quickly through asset classes and high-stakes moves in Treasury yields are set against the backdrop of policy uncertainty, the report suggests that a permanent shift in long-term bond
Developer Concord Wilshire Capital announced that it has completed demolition of the former Metrocenter Mall and Oakwood Homes has been named the exclusive residential builder for The Metropolitan, an $850-million, vibrant, mixed-use destination project. The 64-acre development is set to transform the former site of the Metrocenter Mall into a walkable urban village seamlessly integrating Light Rail with housing, entertainment, dining, and retail. “We are pleased
When Kevin Davis, Americas CEO at JLL Hotels & Hospitality, looks into his crystal ball — powered by the recently released U.S. Hotel Investment Trends report — he sees hotel transaction activity increasing in the coming months. “I do think that you could see a pickup in transaction volume in the second half of the year, but I can almost certainly guarantee that there will be a substantial pickup in 2026 relative to 2025,” Davis said, pointing to an increase in bid activity
A once-unwanted 39.37 acre plot in Deer Valley failed to sell at auction last year. On Sept. 22, it spurred a bidding war and went for almost $6 million above the minimum at an Arizona State Land Department auction. Chicago-based Conor Commercial Real Estate ultimately acquired the land on the southwest corner of Deer Valley Road and 7th Street for $24.715 million. Joined by investors at Arizona-based Globe Corporation, the team outlasted four other bidders
A handful of new stores and restaurants are open at Canyon Trails Towne Center, as the developer prepares to build another phase of retail buildings and a hotel on the Goodyear site. The center, which was once planned to be 100 acres of retail, began before the Great Recession. Because of the financial crash, only portions of the project got built, and the rest stalled, David Malin, president of Scottsdale Development Partners, a consultant working with
K. Hovnanian Homes had no intention of backing down at a Sept. 23 Arizona State Land Department Auction. The New Jersey homebuilder took on several major national competitors, ultimately exceeding the minimum bid by more than $33 million to buy 52.9 prime acres in Desert Ridge. The starting bid price was $37.75 million. Toward the end of the auction, it was between K. Hovnanian and Blandford Homes, each bidding in $100,000 increments. K. Hovnanian won the
Most Western U.S. markets had vacancy rates above the national average of 18.7% in August, according to this month’s Office Report from CommercialCafe. For instance, last month, Seattle saw the highest vacancy rate in the region with a little more than 27% of space unoccupied, while San Francisco was second in the region with vacancy here reaching nearly 26% in August. Meanwhile, Phoenix remains one of the only large markets where office
Arizona State University remains the most innovative university in the nation, according to the latest U.S. News & World Report rankings. That makes 11-straight years that the Tempe-based school has held the title — which is as long as the recognition has existed as part of the magazine’s annual assessment of the nation’s higher education institutions. On the overall national school rankings, ASU jumped up four spots from last year’s rankings to come in at
While a huge amount of developments are under way north of Shea Boulevard, a few are simmering to the south. One of them: The Arden. The planned development is at 7601 East Polk Street, just north of McKellips Road and a paper airplane flight from the Tempe border. At the Oct. 9 Development Review Board, the Arden will make its case for two dozen “townhome style units,” each with two-car garages. Four parcels are combined on the 1-acre lot
A vacant 5.5-acre site at Central Avenue and Broadway Road could be redeveloped for affordable housing and commercial uses as Phoenix works to bolster transit-oriented development along the South Central light rail extension. “This is sort of a gateway to the south Phoenix community,” Xandon Keating, Phoenix’s deputy economic development director, said. “We are using this site for a development that can speak to the gateway
The region’s leading luxury retail center, Scottsdale Fashion Square, is taking new steps to enhance its shopper experience. Today Macerich (NYSE: MAC)—one of the nation’s leading owners, operators and developers of one-of-a-kind retail and mixed-use properties in top markets—announced a new enhancement project that will elevate the central gathering space known as the Palm Court.The Palm Court is the hub of activity within the
Vandelay Hospitality, a Dallas-based restaurant and bar company, is preparing to debut its Drake’s Hollywood eatery in Old Town Scottsdale. The Scottsdale location will be the fourth Drake’s Hollywood, following Dallas, West Hollywood, California and Houston. The concept plays off the glamour of 1930s–1940s New York and Los Angeles and has become a hangout for celebrities. The Old Town Scottsdale location will be opening in an
Through July 2025, the U.S. hospitality sector is defined by pronounced divergence in market performance. Out of 172 markets tracked by STR, 87 have posted year-over-year declines in occupancy, highlighting a landscape where larger U.S. economic volatility and local dynamics are shaping outcomes more than ever. Across the 172 U.S. hospitality markets tracked by STR, average year-over-year occupancy remains virtually unchanged
Spoiler: It’s not going to happen this year. VAI Resort, which promises an 11,000-capacity concert amphitheater, artificial beaches and restaurants including a celebrity chef’s first concept in Arizona, was scheduled to open in 2025. The opening was pushed back from 2024, after resort staff cited “delays in our timeline.” Now, it no longer lists an opening date. The new destination resort is highly anticipated because it aims to redefine tourism in the