Author: BEX Staff

By Roland Murphy for AZBEX The Rider Levett Bucknall North America Quarterly Construction Cost Report for Q2 2022 shows comparative costs in Phoenix have risen 6.37% since July of last year. The national escalation rate was 7.5%. The Comparative Cost Index “tracks the ‘true’ bid cost of construction, which includes, in addition to costs of labor and materials, general contractor and sub-contractor overhead costs and fees (profit). The index also includes applicable sales/use taxes that ‘standard’ construction contracts attract.” Phoenix ranked 11th of the 12 metros RLB tracks. With a percent increase of 4.59, only Honolulu was lower. Seattle was…

By Associated Builders and Contractors Associated Builders and Contractors reports that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21st to July 5th. The reading is up 0.4 months from June 2021. ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels declined in June. The indices for sales and staffing remain above the threshold of 50, indicating expectations of growth over the next six months, while the reading for profit margins fell below the threshold of 50 for the first time since October…

A lawsuit filed in 2017 by a group of school districts and education support groups alleging state budget cuts deprived schools of necessary capital funding for more than a decade has been given a tentative September trial date, with a possibility of moving to January. Maricopa County Superior Court Judge Daniel Martin ruled last month that the court will examine whether or not the current finance system met minimum upkeep standards for schools in the state. The trial standard he set for consideration must establish minimum funding standards and provide sufficient funding so that districts can meet them, and that…

Groundbreakings 1. The next phase of development at Scottsdale One – a Hilton Home2 Suites hotel and retail, hospitality and medical office space – has begun. Developer DMB Associates, Inc. added $4M in improvements to the site’s existing infrastructure to facilitate the project. 2. Kitchell Development recently began construction on Elliot 94, a two-building, 214.5KSF industrial distribution complex at the NWC of 94th Street and Elliot in Mesa. Elliot 94 is a joint venture of Phoenix-based Kitchell Development and Park Ventures. 3. TYR Tactical recently broke ground on a third operations center: TYR 3. Half the space will be used for operations, while the other half will serve…

Developer The X Company is getting ready to break ground on Phase II of its X Phoenix co-living and multifamily development near 2nd Avenue and Van Buren. Phase I began leasing earlier this year and has exceeded expectations, according to company officials. X Phoenix consists of both traditional apartments and “co-living” units, where residents can lease a bedroom rather than an entire unit. The model is based on private student housing developments and has seen a high degree of acceptance in some smaller markets, particularly those with significant student populations transitioning out of college. Co-living spaces allow residents to have…

The Buckeye Planning and Zoning Commission’s only agenda item this week is a site plan approval hearing for the two-building Mission Park II and III industrial development on Perryville Road. The first building is planned for 200KSF at the SWC of Perryville and McDowell roads. The second is planned for 525KSF at the NWC of Perryville Road and Roosevelt Street. The 3.44-acre total site is bisected by I-10. The site plan approval request was submitted by Ware Malcomb on behalf of Martens Development Company (formerly Marwest Enterprises, LLC). The property has a planned area development overlay and business park zoning…

The Mesa City Council has approved budgets for the three Community Facilities Districts for the 2022-2023 Fiscal Year. Secondary property tax rates of $4.15/$100 of net assessed limited property value were also approved for all three districts. The Cadence Community Facilities District budget totaled slightly more than $9M, with $7.4M for public infrastructure costs, including $5.87M from general obligation bonds for road improvements and other public infrastructure. The CFD tax levy is $1.2M. The Eastmark CFD No. 1 budget was slightly less than $33.3M. A total of $25M is dedicated to public infrastructure expenses, including $16.7M in general obligation bonds…

By Roland Murphy for AZBEX Even though the pace of rent growth is cooling and some markets are expressing concern about overbuilding, the combination of rising interest rates and a rare degree of balance between deliveries and absorption is keeping the metro Phoenix multifamily market robust. A recent article on GlobeSt.com reported single-family occupancy is at its highest rate in two decades. With accommodations similar to – and often indistinguishable from – a traditional owner-occupied home, SFR and BTR attractiveness remains high and may even increase as rising mortgage rates and price inflation keep many potential home buyers out of…

By Embrey Vertically integrated real estate investment company Embrey has closed on land in Goodyear, the future home to the Senna at Canyon Trails multifamily community. Senna at Canyon Trails will be a 284-unit Class A community that will feature upscale amenities, such as a two-story clubhouse overlooking the resort-style pool and a landscaped courtyard with shade canopies and a firepit. The fitness center also faces the pool courtyard and offers on-demand technology. Other amenities include a connected dog washroom with a grooming table and dryer. Each unit will be equipped with high-end finishes, private balconies and 9′ ceilings. A…

The Scottsdale City Council heard a new report from Elliot D. Pollack and Company last week on the city’s affordable housing situation and were told the East Valley suburb’s affordability climate may be the worst in Metro Phoenix. The study was commissioned by pro-development group Home Arizona. Affordability was based on estimated median salaries in the Valley. Pollack has often stated professionals like teachers, firefighters and police officers cannot afford anything larger than a one-bedroom apartment in the city and are forced to live elsewhere. The latest study confirms and reiterates those findings. As bad as the affordability situation has…