October 18, 2019

Ryan Cos. US and University Realty have topped off 777 Tower at Novus, a 160,000-square-foot office building under construction on the Arizona State University campus in Tempe, Ariz. The developers completed the building structure, concrete work and dry utilities, while the metal panel installation and interior lobby works are scheduled to begin next month. The development

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A subsidiary of Bridge Investment Group has doubled its footprint in Phoenix, buying the Phoenix Gateway Center office complex from developer Lowe Enterprises for $85.8 million. Lowe sold the three-building, nearly 440,000-square-foot campus at 410-432 N. 44th St. in East Phoenix for about $198 per square foot, about average for the area over the past year, according

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A group of investors bought 196 acres of commercial land near Interstate 10 and State Route 85 in Buckeye for $3.65 million. The buyer was a partnership formed between Carefree Buckeye 196 LLC and Boeing V LLC, an entity formed by real estate investors Tom Tait, Tom Tait Jr. and Will Tait, according to Arizona Corporation Commission 

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As fall signals the end of the peak selling season, home sales across the U.S. continue to surge with the largest year-over-year gain since November 2016, according to the September RE/MAX National Housing Report. But what does that mean for Phoenix buyers? Phoenix residents are experiencing an increase in home sales. Here is a quick snapshot of

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Housing starts in September were at a seasonally adjusted annual rate of 1,256,000, 9.4% below the revised August estimate of 1,386,000 but 1.6% above the September 2018 rate of 1,236,000. Single‐family housing starts in September were at a rate of 918,000, 0.3% above the revised August figure of 915,000. The September rate for units in buildings with five units or

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October 17, 2019

With the continued barrage of retail bankruptcies, stores closures, repositionings and rightsizings of store fleets—and the fact that many experts say the U.S. is over-retailed—it probably comes as no surprise that retail construction levels remain well below pre-recession levels. “Another factor is with some of these larger shopping centers, the development is focused more on building

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Phoenix’s office market is in good shape. Employment growth in the office sector is strong, driven by corporate relocation and expansion plans. At the same time, affordability has made Phoenix one of the U.S.’s fastest-growing metros as people continue to in-migrate, drawn by a burgeoning tech scene and stable employment opportunities in most sectors. The vast

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Renters aren’t the only people moving to Phoenix for a better deal. Companies are also flocking to the pro-business city and driving significant growth in the office market. According to a recent report from JLL, the office market is heading toward a 14-year absorption record in Phoenix. This year, office absorption is 3.07 million square feet, surpassing the city’s

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Pacific Palisades, California-based Griffin Opportunities has sold Desert Gateway in Phoenix to Greenwood & McKenzie Real Estate Investments for $24 .02 million, or about $139 per square foot. The two warehouses at 909 W. Pinnacle Peak Parkway and 1000 W. Vista Bonita Drive total 172,803 square feet. Developed by Griffin in 2017, the multi-tenant, 95% leased

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After sitting on a patch of empty land in east Mesa for almost a decade, Rick Richmond decided it was time to start building. So this month he broke ground for the second phase of Crismon Gateway Village on 25.5 acres of land on Crismon Road between Baseline Road and the US 60. The development is set to include retail and office space, in addition to 128 units of

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October 16, 2019

These are interesting times for the real estate capital markets. Despite the growing wall of money dedicated to property investments and the decreased cost of borrowing, transactions have slowed down. A panel of experts at the New York University Schack Institute’s annual Women in Real Estate Symposium discussed the key factors controlling investors’

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Despite warnings signs of a possible recession, the American consumer is still swiping cards, driving new cars, and buying up houses, helping to boost the banking sector in the most recent quarter, according to earnings season reports released this week. “The strength of the large bank results today is on the U.S. economy and the U.S. consumer,” said Ken Leon, director of

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While economic growth is starting to slow, fundamentals for the multifamily industry remain strong, according to John Sebree, first vice president and national director at Marcus & Millichap, and Ryan Severino, chief economist at JLL. The two industry leaders were part of the annual Economic Outlook session at the Multifamily Executive Conference in

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In the more than a decade since the Great Recession, office construction in the Phoenix area has steadily moved eastward, concentrating heavily in Tempe, Chandler and Gilbert. According to a study done by Commercial Café using Yardi Matrix data, the Valley increased total office inventory by 13.6% during the 10-year period

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Construction has begun on LivGenerations Mayo Blvd., a luxury senior living community in Scottsdale, Ariz., that will have 181 units and provide independent living, assisted living and memory care for seniors. The property, comprising 285,212 square feet, is located less than 2 miles from the Mayo Clinic and is being developed by Liv Communities and Ryan

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October 15, 2019

Despite slowly waning GDP and employment growth, and frequent financial market volatility stemming from slowing global growth and the “As the World Turns” trade negotiations between the U.S. and China, most economists at last week’s National Association of Business Economists (NABE) meeting in Denver were sanguine about the prospects for the

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As e-commerce accelerates its sweeping disruption of the traditional U.S. retail industry, store tenants that offer experiences and use smaller spaces are driving demand for brick-and-mortar leases, according to a CoStar analysis. Tenants offering something to do rather than buy — think yoga studios, ax-throwing clubs and trampoline parks — are

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Walmart is now bringing groceries right to customer fridges in select markets. The discount giant has rolled out a pilot of InHome Delivery, a service that delivers fresh groceries and everyday items directly to refrigerators located inside customer kitchens or garages. Customers with eligible addresses in the Kansas City, (Missouri and Kansas), Pittsburgh, and

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After months of continued increases, multifamily rent growth has now hit a wall—dropping $1 to $1,471 for the month of September. Despite year-over-year growth falling 20 basis points to 3.2 percent, the market remains healthy as 2019 has shown another year of above-average rents, according to a Yardi Matrix survey of

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The multifamily market has certainly evolved over the last several years. From the types of amenities renters demand, to an influx of new development, to rising competition, all these factors have an impact on property owners and the bottom-line profitability of a community. This is why today, more than ever before, it is extremely important for

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October 14, 2019

The national apartment vacancy rate was 4.7% in the third quarter of 2019, unchanged from the last quarter and flat year over year from Q3 2018, according to the Reis Q3 Preliminary Trends report. Overall, vacancy has shifted 0.3% in the last two years for the markets covered by Reis. Both the national asking rent and effective rent rose by 0.8% in the

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Traditional tenants in retail centers once scoffed at having gyms in their midst for all the parking spaces they took up. No more. JLL’s research team examined 6,000-plus fitness center move-ins dating back to 2013 and learned that 111,055 fitness centers currently reside in retail centers, an increase of 23.5% since 2010. It predicted continued growth of this

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Locals know the Phoenix Metro area is divided into several overarching sub-sectors including the East Valley, West Valley and Central Phoenix. As a member of WeMAR (West Maricopa Association of REALTORS), the West Valley is not only where I call home, but the predominant area in which I work. For context, the West Valley is generally considered

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Industrial developers in Phoenix can’t build fast enough, even after new supply reached a decade-high last year. Developers have broken ground on nearly 4.4 million square feet of industrial space since July. Robust demand, fueled by strong employment and population growth, has tightened vacancies to under 7%, far below the market’s long-term average. While Phoenix

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Mesa’s Elliot Road Technology Corridor, once an isolated swath of open desert on the city’s eastern fringe, is now booming as proposed data centers multiply and years of planning pay off. Five companies bought land and several are pursuing construction plans. Raging Wire won planning and zoning approvals from Mesa in the past two weeks – a green light for

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