Author: BEX Staff

Economic News Student Housing Seeing Slow Pre-leasing Off-campus student housing properties around the country reported just 25.9 of Fall 2021 units had been pre-leased as of December 2020. At the same period in 2019, 32.4 percent had been pre-leased for Fall 2020. Uncertainty about in-person classes due to the pandemic is a leading contributor for students and parents taking a cautious approach to entering financial commitments on housing that may not be used. (Source)  Real Estate Innovations That are Here to Stay  Companies that wanted to survive the upheavals of the COVID-19 pandemic had to ramp up innovation and adaptability. Real…

By CRG  CRG, the real estate development and investment arm of Clayco, has announced it is developing The Cubes at Glendale, a 335-acre industrial park featuring 5.5MSF at the intersection of Reems Road and Northern Avenue in Glendale.  The project, which is a strategic joint-venture partnership with Bird Dog Industrial, will begin construction of a 1.2MSF speculative warehouse on March 1st. The firm closed on the first 260-acre parcel of land for the development with a second expected to close in the second quarter.   CRG currently has an active pipeline of more than 25 projects valued at more than $3B throughout the country. This project, which went from contract to close in…

CBRE has released its reports on the Industrial and Office markets’ Phoenix-area activity in the Fourth Quarter.  Industrial saw a decrease in quarter-over-quarter vacancies from 6.1 percent to 6.0 percent. During Q4 there were 5.09MSF of net absorption and 8.04MSF of gross absorption. Net absorption for the year was 13.1MSF, the highest ever in Phoenix. Gross absorption came in at 23.7MSF.  Phoenix Industrial construction also set records. 4.7MSF was delivered in Q4, bringing completions for the year to 13.3MSF. Currently, there is 11.1MSF under construction and another nearly 16MSF planned across 74 buildings.  On the office side, quarter-over-quarter vacancy increased to 17.4 percent. Absorption fell 326KSF in…

Awards & Accolades  1. AZ Business Magazine published the 10 Young Business Leaders to Watch in 2021. The CRE leaders on this list include:  Adam Finkel, Principal; Tower Capital  Lindsay Mollenberndt, Chief Business Development and Marketing Officer; Fennemore  Kevin Walsh, Partner; Quarles & Brady  Company News  2. Phoenix-based Shelton Residential has been acquired by Houston-based Asset Living. Asset Living will add Shelton’s 400 employees and more than 17,000 apartment units Shelton has under management in Arizona, Texas, Colorado and New Mexico.  3. HomeServe USA, a leading provider of service plans, repair, and installation services for the home, announced the acquisition of Canyon State Air Conditioning, Heating and Plumbing (Canyon State). Serving customers in and…

Sales Transactions  1. MG Properties purchased Andante Apartments, a 576-unit, 32-building complex at 15801 S. 48th Street, Phoenix, for $145.25M, from Security Properties. CBRE Capital Markets financed $99.5M in new Fannie Mae debt.  2. Equity LifeStyle Properties purchased the Dolce Vita multifamily residential complex for $90M, from Northwestern Mutual Life Insurance Co.   3. Bluerock Real Estate purchased Cielo on Gilbert, a 432-unit apartment complex at 1710 S. Gilbert Road, Mesa, for $74.25M. The seller was Capital Real Estate.  4. A group of investors that included Keller Investment Properties’ Scott Keller purchased Metro 101 Apartments, a 259-unit multifamily community at 2157 E. Apache Boulevard, Tempe, for $69M, from a group including an affiliate of Southwest Next Capital…

By Tasha Anderson for AZBEX A new 1.074MSF distribution warehouse building is being proposed for the NWC of Lower Buckeye Road and Miller Road. LGE Design Build, on behalf of the owner, Creation RE, LLC, submitted plans to the City of Buckeye, requesting site plan approval for the two-phased project known as 10 West Commerce Park. The City of Buckeye approved the site plan at its January 12th Planning Commission meeting. 10 West Commerce Park will sit on approximately 76.35 acres and will consist of a one-story, cross-dock warehouse building with a maximum height of 45 feet. Phase one, which…

By JLL Medical office experts in the Phoenix office of JLL have been selected to market approximately 80KSF of new medical office space planned for one of the last Val Vista Drive-fronting parcels surrounding Dignity Health’s Mercy Gilbert Medical Center in Gilbert. Called Mercy Medical Center, the 80KSF medical office project is being directed by Diversified Partners. It is part of the developer’s new 11-acre mixed-use project which, at completion, will total more than 200KSF of Class A office, retail and restaurant space. Located on 5.03 acres at the SEC of Val Vista Drive and Mercy Road, Mercy Medical Center is immediately…

By Associated Builders and Contractors Associated Builders and Contractors has reported its Construction Backlog Indicator rebounded modestly to 7.3 months in December, an increase of 0.1 months from November’s reading, according to an ABC member survey conducted from December 18th to January 5th. Backlog is 1.5 months lower than in December 2019. ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in December. The sales index climbed above the threshold of 50, indicating contractors expect to grow sales over the next six months. The index reading for profit margins remained below that threshold. The staffing level…

By Colliers International Impact of the COVID-19 pandemic has clearly arrived in Phoenix office market statistics for fourth quarter 2020. The city had its first quarter of negative net absorption in more than eight years. Yet, the outlook is optimistic for a swift recovery in 2021 and 2022 as companies can safely bring employees back to work for much-needed interaction and career development. The Greater Phoenix marketplace posted 143.4KSF of negative net absorption during the final three months of 2020. This followed an astonishing run of 34 consecutive quarters of positive net absorption. This negative net absorption is directly attributed…

Groundbreakings 1. PVB Fabrications, Inc. (PVB) broke ground last week to prepare for its headquarters expansion at 11871 N. Breakers Road Marana. Initially, the new facilities will include a 15.4KSF administrative office building plus a separate 35KSF fabrication/production facility. A future phase of construction will include a second 35KSF fabrication/production facility providing 70KSF of fabrication/production space. Phase one of the new headquarters is scheduled to be complete by October 2021. Partners include the Arizona Commerce Authority, the Town of Marana, the Pima Community College and the Small Business Development Center, PICOR, Randel Jacob Design Group, PLLC, Stewart Title, Eric Nadler,…