June 26, 2019

Retail investors continue to move their chips to Phoenix’s fast-growing exurbs with high household incomes. Affluent East Valley submarkets Gilbert and Queen Creek have been the favorites, accounting for about one-quarter of the more than $800 million in retail sales volume through late June. Queen Creek and Gilbert are well positioned for

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Trammell Crow Company (TCC) today announced plans for a new Class A speculative commerce park in Metro Phoenix. The project will sit on 48 acres and be comprised of one to three buildings totaling approximately 700,000 square feet. The site is located on the Gila River Indian Community (GRIC), at the southwest corner of

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New construction starts in May climbed 10% from April, according to Dodge Data & Analytics. The increase continues the double-digit swings that were reported during the previous two months, when a 16% hike for total construction starts in March was followed by a 15% decline in April. Each of the three main construction sectors

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In the race to capture additional apartment demand, many multifamily investors are drafting off demographics, betting that areas experiencing in-migration growth will also see substantial demand for rental housing. Indeed, CoStar data indicates that the broad apartment market remains quite strong, with renter demand soaring to

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Store closures are an all too common occurrence nowadays, with announcements hitting the news cycle on a semi-weekly basis. Mass closings by household names like Victoria’s Secret, Gap, and J.C. Penney have raised concerns amongst developers that traditional retail centers are in danger of extinction as e-commerce gains steam. Fortunately, the

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June 25, 2019

Shoppers ramped up their spending in May. And April sales were better than previously indicated. Retail sales rose 0.5% in May over the previous month and increased 3.2% year-over-year, according to the National Retail Federation (NRF). The NRF numbers, which exclude automobile dealers, gasoline stations and restaurants, are based on data from

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Arizona’s booming economy has added more than 300,000 new jobs since 2015 according to a new employment report released recently by the Arizona Office of Economic Opportunity (OEO). Since 2015, Arizona has added 310,400 new private sector jobs (seasonally adjusted, nonfarm). Over the last year, employment has increased by

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At the Arizona Chamber of Commerce and Industry Annual Awards Luncheon last week, the Chamber awarded the Town of Gilbert the “Best City for Business” in recognition of its pro-business initiatives and ongoing economic development efforts. The award, which was sponsored by Cox Communications, was accepted onstage at

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Located in the highly desirable town of Gilbert, on the southeast corner of Cooper and Ray Roads, Cooper Square sold for $2,827,500 ($183 per square foot).  Comprised of two multi-tenant shop buildings totaling 15,462 square feet, the shop buildings are anchored by Leading Edge Academy, a K-12 Charter School, and

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Urbanization is upon us. Millennials and Gen-X’ers are finding that life in the city is simply more attractive and convenient than their parents found life in the suburbs. And big urban metropolis are responding by forging out green space, adding more residential real estate and improving overall infrastructure. As Millennials are now the

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Strong absorption continues to mitigate supply-driven pressure in Phoenix’s industrial market. Over the past 12 months, more than 6.5 million square feet of industrial space has been absorbed, and about 7.2 million square feet has delivered. Vacancies are hovering near 6.5%, well below the market’s historical benchmark. Amazon accounts for

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Population growth continues to propel the Phoenix commercial real estate market and its economy at large. According to the U.S. Census Bureau, the population of Arizona’s state capital increased by 25,288 people, the largest gain among U.S. cities from 2017 to 2018. U.S. cities with the next largest population increase during that time

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EverWest Real Estate Investors and CarVal Investors have completed the $46 million sale of The Circuit, a 185,000-square-foot adaptive re-use office project located at the intersection of the Loop 101 and Loop 202 in Tempe, Arizona. EverWest and CarVal were represented by Chris Toci of Cushman & Wakefield. The property buyer is

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The biggest economic news last week came from the Fed open market committee which held the Fed Funds rate flat at 2.25%-2.50%. This went against the desires of President Trump who wanted the Fed to lower rates. Based on how markets reacted, the Fed met most people’s expectations. The Fed stated it “will act as appropriate to

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Thirty-five condominiums will hit the market this week when The Statesman Group releases the second phase of sales at The Luxe, a $145 million luxury condominium community located within the sought-after Desert Ridge neighborhood. Following the success of the nearly sold-out first phase that broke ground just last month, the second phase

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June 21, 2019

U.S. multifamily rents rose by $5 to $1,442 in May 2019, marking a $14 rise over the last three months, according to the latest Matrix Monthly report by Yardi Matrix. At the same time, year-over-year rent growth fell by 50 basis points, down to 2.5% for May. Rents have risen 1.2% this year to date—the lowest rent growth recorded

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For the past eight months, homebuilders in the Valley have experienced lower demand for new homes than the previous year. But that streak has been broken.From mid-May through mid-June, new home sales shot up 16% year over year, said Jim Belfiore, founder of Phoenix-based Belfiore Real Estate Consulting and author of

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Larry Kush, senior vice president of ORION Investment Real Estate’s land division, has joined the Scottsdale bond campaign’s steering committee. The bond campaign favors three Scottsdale bond measures planned to make community investments throughout Scottsdale to benefit residents, according to a press release

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Apartments have been the darling of real estate capital markets for the past seven-eight years. This deep into an outstanding run, some investors have begun to worry if the clock is approaching midnight for Cinderella. However, an examination of underlying demand dynamics suggests that the U.S. will require an extraordinary

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The state’s jobless rate remained unchanged for May at 4.9% despite continued losses in retail trade. New figures from the Office of Economic Opportunity show 1,100 fewer people employed in retail sales in May than the month before. And employment numbers remain below where they were a year earlier. Particularly hard-hit have been

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June 20, 2019

Armed with loads of cash and the latest in machine learning, investors are reshaping the $26 trillion market for U.S. residential real estate, starting in Phoenix, the petri dish for America’s housing experiments. At the edge of the city’s stucco sprawl, a beige, three-bedroom house with a gravel yard sold last month for $240,000. The seller,

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The office investment market is back on track and buoyed by significant sources of capital for deal-making, following some political and economic uncertainty over the past year, according to a mid-year Office Investor Sentiment Report by Real Capital Markets (RCM). Investors are starting to look more closely at the investment value of

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The multifamily market might be headed for a slowdown next year. According to a new economic letter from UCLA Anderson Forecast and UCLA Ziman Center for Real Estate, slowing job growth could hamper apartment demand and stall rental rates in 2020—and investors should start shifting investment strategies to react to the

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After months of uncertainty regarding what will happen to the flailing Barnes & Noble bookstore chain, a sale is imminent. U.K.-based hedge fund Elliott Advisors announced earlier this month that it will acquire the company in an all-cash transaction valued at $683 million, including debt. That breaks down to $6.50 per share. The once-powerhouse

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Goodyear just cleared a hurdle to build the Sonoran Valley Parkway, a more direct route to a community that currently is home to fewer than 100 residents. The feds approved allowing the proposed 15-mile parkway to travel across federal lands. But city officials have no firm timeline for the road first proposed 11 years ago to connect

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