April 25, 2019

The Valley’s largest speculative industrial development since 2013 came online in the first quarter, causing industrial vacancy rates to increase slightly even as absorption kept pace with last year.The first phase of the Ten Distribution Center finished construction in March, bringing 1.1 million square feet of new spec product to the market.According to the first quarter industrial insight from JLL,

Read The Full Article...

Phoenix is one of the fastest growing office markets in the country. In the first quarter, office rents increased 10% year-over-year, and in 2018, rents increased 4.2%, according to research from Avison Young. The first quarter marketed 23 consecutive quarters of growth as well as positive absorption. Job and population growth are behind the strong activity, and this demand will likely continue to attract new

Read The Full Article...

Ask and ye shall receive.Last week, I wrote about wanting to know the extent of Microsoft Corp.’s plans for land it recently purchased in Goodyear. Up until then, the tech giant and city officials had been mum on what exactly was in the works, though speculation had focused on a data center.That speculation was confirmed, as documents made available by the city last week to a

Read The Full Article...

The outlet center sector has been one of the few bright spots in the retail industry, which has been in upheaval with retail bankruptcies and store closures.Outlet centers boast brand-name retailers looking to sell overstock items and out-of-season merchandise to consumers who are looking for more bang for their dollar.“It’s the best news in the brick-and-mortar category,” says Lisa Wagner, a principal with

Read The Full Article...

April 24, 2019

It’s home to California’s Redwood Empire and Wine Country. It’s got a perfect climate, not too hot and not too cold, with a little fog to make things interesting.It’s not too far from — or too close to — San Francisco. It’s where writer Jack London chose to live out the last days of his short life, and it even has a museum dedicated to cartoonist Charles M. Schulz, the creator of

Read The Full Article...

Developers and landlords have for decades sought green certification to help them attain a level of sustainability that can make their buildings more efficient, and cheaper, to maintain in the long run.In turn, the buildings can fetch premium rents and achieve higher occupancy rates.But as the industry for independent review grows, some organizations have started to

Read The Full Article...

Last year marked the largest increase ever in outstanding multifamily debt, a trend fueled in no small part by life insurance companies. Against the backdrop of a persistent low-rate rate environment, many of these risk-adverse institutional investors are now deploying third-party money to get a bigger piece of the multifamily finance pie.In 2018, life insurance

Read The Full Article...

A joint venture between Jackson-Shaw and LaPour Partners has begun development on Parc Germann, a two-building urban industrial project in Chandler, Ariz. JLL will handle leasing for the 224,471-square-foot property, which is expected to open later this year. The firm’s Executive Vice President Pat Harlan and Vice President Kyle Westfall will lead the

Read The Full Article...

The Phoenix market continues its growth spurt. It’s latest record: office absorption. In the first quarter, Phoenix recorded 1.05 million square feet of total office absorption with new leases accounting for 900,000 square feet of leasing activity, according to a local market report from JLL. This is a 10-year record for office absorption for the market. Phoenix has been

Read The Full Article...

April 23, 2019

Healthcare clinics and co-working facilities may soon find new homes in closed bank branches.Bank branch inventory in the U.S. has decreased by about two percent each year over the past two years, according to real estate services firm JLL. From 2016 to 2018, 5,700 branches closed across the country, and forecasts call for another approximately 1,700 bank

Read The Full Article...

Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office space and completing roughly 396 new projects in its top

Read The Full Article...

Phoenix and Tucson may still merge by 2040.A 2005 prediction for the cities with downtowns separated by 120 miles didn’t seem far fetched when proclaimed by growth experts during the housing boom.But when the bust started in 2007 and stretched to 2011, such a prediction seemed unlikely.Now, metro Phoenix is on another growth streak. New census

Read The Full Article...

Ecommerce is often faulted as disrupting the retail market, but according to Blake Pomeroy of Koss Real Estate, the underlying technology boom is responsible for the evolution in retail and the emergence of ecommerce. The problem is complex, and to truly adapt, retailers and retail owners must leverage technology to meet cultural changes and

Read The Full Article...

The tallest building along the north side of Tempe Town Lake has completed vertical construction and is on track to open in October.The Watermark Tempe, a $150 million mixed-use development on the lake’s north shore and west of Scottsdale Road, will be a 16-story, 265,000-square-foot Class A office building, and include 44,000 square feet of

Read The Full Article...

Brokers are busy again with the sales of hotel properties, after a slow winter with relatively few transactions.“Investor appetite continues to be very strong for hotels,” says Kevin Mallory, global head of CBRE Hotels. “That’s a surprise.”Low interest rates may be luring buyers and sellers back to the market.“We’ve seen additional product come to

Read The Full Article...

The Greater Phoenix industrial market remained steady during the first quarter, despite decreased net absorption relative to the end of 2018.  Construction activity has increased, but vacancy declined during the first three months, according to a report released by Colliers International in Arizona. According to the Bureau of Labor Statistics, Phoenix

Read The Full Article...

More major changes are coming to downtown Phoenix, as a city transit center gets transformed into a new development comprising more than 1.1 million square feet. The $231 million project was approved by Phoenix City Council on April 17.It’s happening at 300 North Central Avenue, current site for the Central Station Transit Center that’s a hub for

Read The Full Article...

The first development in the Novus Innovation Corridor’s third phase, a 259-room, dual-branded hotel, is set to break ground April 23.Mortenson is the developer, builder and owner of the hotel, said George Forristall, director of real estate development at Mortenson. The eight-story hotel will be a part of the Hyatt Hotels Corp. under the Hyatt Place

Read The Full Article...

With significant leases from Arizona State University — which is taking two floors in the six-story building — and companies including Berkadia and Limelight Networks, SkySong 5 already is nearly three-fourths leased while still under construction. “We are very pleased with the interest in SkySong 5,” said Sharon Harper, President & CEO of

Read The Full Article...

April 19, 2019

Foreign investors generally remain confident in a strong economy, solid real estate market fundamentals and steady inflows of capital into U.S. real estate, according to the 2019 AFIRE International Investor Survey. The survey was designed and administered by AFIRE and the James A. Graaskamp Center for Real Estate at the Wisconsin School of

Read The Full Article...

US retail sales recorded their biggest jump in 18 months in March, driven by sales of motor vehicles, petrol and clothing, which signalled consumers continue to support the economy.Headline retail sales rose 1.6 per cent month-on-month in March, the Commerce Department said on Thursday — the biggest monthly increase since

Read The Full Article...

According to JLL’s Q1 Phoenix Industrial Market Report, the mid-bay industrial market now represents 42.1 percent of the Valley’s under construction industrial stock. The report points to a lack of product in the 50,000- to 200,000-square-foot size range as a driver of this new construction.“For many years, demand for Phoenix industrial space has centered around

Read The Full Article...

The state’s seasonally adjusted jobless rate ticked down a tenth of a point in March in what, by all indications, was a pretty unremarkable report.On one hand, the state’s construction industry continues to boom, adding 2,800 jobs last month and 16,700 in the past year. That latter figure was enough to post a 10.8 percent year-over-year gain. But Arizona also lost

Read The Full Article...

Microsoft has added to its growing land holdings in Goodyear, Arizona, buying 147 acres for undisclosed purposes in the fast-growing Phoenix suburb that is popular for data centers.An entity of Chicago-based First Industrial Realty Trust Inc. sold the vacant land that is part of the 1,600-acre PV303 business park , north of Interstate 10 and west of Loop 303, for

Read The Full Article...

April 18, 2019

People keep moving to Phoenix.That’s the takeaway from new data released Thursday by the U.S. Census Bureau, which finds the Phoenix metro added nearly 100,000 residents from July 1, 2017, to July 2018.During that 12-month period, the Phoenix-Mesa-Scottsdale metro gained 96,268 people

Read The Full Article...