Author: BEX Staff

Economic News  Phoenix Commercial Leasing Remains Bogged Down  Phoenix CRE is slogging away amid the COVID-19 pandemic, with some deals continuing to move forward but many major deals remaining stalled. Andrew Cheney, principal for Lee & Associates, says almost any deal for more than 50SKF has been put on ice. Nonetheless, confidence has increased slightly over the course of the pandemic, and more transactions have proceeded as scheduled, according to a survey done by the Society of Industrial and Office Realtors. (Source: Phoenix Business Journal)  Tech Sees a Largely Remote Future Work Environment  Now that many corporations have gone largely remote, and found that their workforces remain productive, the technology sector appears…

By Richard Dyer for Independent Newsmedia  A massive planned sports-oriented complex north of Florence will be adjacent to the future North-South Corridor connecting U.S. Highway 60 in Apache Junction to Interstate 10 in Eloy.  The Town Council recently voted to approve amending the 2020 General Plan to change the land-use designation on approximately 357 acres in two parcels from low- and medium-density residential and community commercial to a new category of sports-oriented mixed-use.  A map with the amendment shows the parcels are at the SEC of Judd and Felix roads, and at the SEC of Felix Road and the extension of Bella Vista Road, and are…

Source: Colliers International  The Greater Phoenix industrial market has surged during the COVID-19 pandemic, driven largely by the country’s increased use of e-commerce and elevated grocery shopping while restaurants were closed. Completion of new industrial projects in 2020 has been the strongest year in more than a decade.  Arizona’s business-minded approach led to more companies remaining open during the pandemic. The Trade, Transportation and Utility Super industries actually increased jobs year-over-year in the months of June through August. Additionally, demand for warehouse and distribution buildings surged because of online purchasing of goods and groceries.   Net absorption of industrial space exceeded 2.5MSF during third quarter. This marked the sixth consecutive quarter…

Giving Back  1. The Central Arizona chapter of CCIM, commercial real estate’s global standard for professional achievement, is offering two scholarships for classes in 2021 that lead toward getting the prestigious CCIM designation. The 2021 scholarship programs include:  The Tim Hatlestad, CCIM Endowed Scholarship, $1,000 value (CI 102, 103 or 104);  The David S. Miller, CCIM Endowed Scholarship, $1,000 value (CI 102, 103 or 104).  The deadline for submission is November 5th.  Awards & Accolades  2. The Greater Phoenix Economic Council (GPEC) has been named the top economic development organization in the U.S. (population 500k+) by the International Economic Development Council (IEDC) on Thursday during IEDC’s Virtual Annual Conference. The EDO…

Sales Transactions  1. Western Wealth Capital acquired Onnix Apartments, a 659-unit multifamily property at 1500 E. Broadway Road, Tempe, for $117.5M. The seller was Bridge Investment Group Partners. Institutional Property Advisors Arizona’s Cliff David and Steve Gebing handled the transaction.  2. An entity affiliated with Cortland Partners acquired The Angela, a 253-unit Class A multifamily community at 2727 E. Camelback Road, Phoenix, for $117M. CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter, Matt Pesch and Mark McFate represented the sellers, StreetLights Residential and Nexpoint Advisors.  3. Tides Equities LLC purchased the 472-unit Midtown on Main apartment complex at 2121 W. Main Street, Mesa, for $86.5M.  4. An undisclosed buyer purchased Elux at Tramonto, a 138-unit garden-style multifamily property at 35035 N.…

By Tasha Anderson for AZBEX  Arizona’s seasonally adjusted unemployment rate increased to 6.7 percent in September 2020, from August 2020, according to the latest report published by the Arizona Office of Economic Opportunity.   The national rate decreased to 7.9 percent from 8.4 percent in August. In September 2019, the state had a seasonally adjusted rate of 4.6 percent, and the national was at 3.5 percent.  The state had a net gain of 30,200 non-farm jobs over the month. “Historically (2010-2019), Nonfarm employment has averaged a gain of 28,700 jobs in August,” the report states. Government had the largest net gain with 10,800 jobs, followed by Leisure & Hospitality with a gain of 7,000. Construction reported no gains or losses for the month.   Trade, Transportation & Utilities took the top spot in job gains from September 2019 to September 2020 with a total of 14,900, while Leisure & Hospitality took the top spot in job losses over the year with 56,000. Construction reported a 3,300 job loss over the year.  The Construction…

Budget, Policy & Stimulus News  SBA Makes Some Smaller Loan Forgiveness Easier  The Small Business Administration released a streamlined Paycheck Protection Program loan forgiveness application for some loans under $50K — but small-business groups and experts say it still leaves many borrowers out in the cold. The new application provides a safe harbor for the smallest of PPP borrowers with one or more employees other than the owners who could not maintain the same level of full-time employees during their loan’s covered period. (Source: Phoenix Business Journal)  Economic News  CRE Rebound May Be Taking Hold  According to SIOR’s monthly Snapshot Sentiment Survey, member transaction volume reached the highest level since…

By Cecilia Chan for Gilbert Sun News  A developer wants to build a gated 207-unit townhome community at the SWC of Lindsay and Germann roads on land zoned for office use.  The applicant, Norris Design, is seeking a minor General Plan amendment and rezoning of the 14.53 acres currently used for agricultural, according to staff at a Planning Commission study session.  The site is located within the Gilbert and Loop 202 growth area, which identifies areas that are particularly suitable for multi-modal transportation and for uses such as residential, office, commercial and industrial, planner Keith Newman said.  He said constraints on the site – such as…

Source: JLL  Despite a sluggish first half of 2020, the Phoenix office market showed signs of growth during the third quarter, posting just over 300KSF of positive absorption.   The Chandler submarket led the way in Q3 with over 176KSF of net gains coming from the finance and insurance sectors. The Tempe submarket was a close second experiencing more than 100KSF of occupancy growth. During the same time more than 219KSF of new construction was delivered in Tempe, 65 percent of which was pre-leased by Infosys and ASU in the Novus Innovation Corridor.   While a slew of companies put sublease space on the market in Q2 due to the uncertainty brought on by the COVID-19 pandemic, some…

Groundbreakings  1. Sundt Construction, Inc. recently started expanding the campus of Royal Oaks, a Sun City retirement community. Sundt will help shape Royal Oaks’ newest neighborhood, Inspirata Pointe, by adding four new independent living buildings and new pavilions to the westside neighborhood. On the eastern edge of the campus, Sundt will return to the Friendship House to expand the space and build two new therapy buildings for rehabilitation and wellness services.  Progress Reports  2. Mountain Pacific Opportunity Partners, in partnership with Banyan Residential, announced the closing and commencement of vertical construction for the $50M Banyan Washington, a 223-unit multifamily development at 5321 E. Washington Street, Phoenix. The project broke ground in…