Author: BEX Staff

Economic News  No Crash Predicted for Metro Phoenix  The Phoenix area’s housing market is showing no signs of crashing despite job losses and other economic hits because of COVID-19. Contracts to buy Phoenix-area homes priced above $300K soared over the past week, according to the Cromford Report. (Source: AZCentral)  Sr. Housing Occupancy Hits 15-year Low  Occupancy in senior housing has hit a 15-year low given the threat to older Americans from the pandemic. Since 2008, the number of assisted living facilities and independent living centers have seen unrelenting growth, jumping 33 percent. But COVID-19 has added a new twist for the industry and consumers. Occupancy slid 2.8 percentage points to 84.9 percent…

By Erin Thornburn for AZ Big Media  Remember the lyrics from Janet Jackson’s “Love Would Never Do (Without You)?”  “They said it wouldn’t last. We had to prove them wrong … There’s no easy explanation for it. But whenever there’s a problem, we always work it out somehow.”  If the West Valley could sing, she would likely select this tune (and maybe sing the praises of regional economic developers, too).  After all, not everyone may have anticipated the kind of growth the West Valley has experienced — currently with upward of 1.6 million residents, a population that is projected to rise to 2,094,824…

Source: NAHB Now  In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest NAHB/Wells Fargo Housing Market Index. The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.  “Builders are seeing strong traffic and lots of interest in new construction as existing home inventory remains lean,” said NAHB Chairman Chuck Fowke. “Moreover, builders in the Northeast and the Midwest are benefiting from demand that was sidelined during lockdowns in the spring. Low interest rates…

Giving Back  1. As the COVID-19 pandemic takes its toll on business and industry in Arizona, in the spirit of being stronger together, the state’s two CCIM chapters have united in support of the commercial real estate industry. Collaboration includes:  Regional activities and economic updates  Meaningful e-connection in support of chapter members and sponsors  Hosting webinars with relevant and timely content  Sponsored “Zoom Bingo” complete with prizes and a planned upcoming virtual event, “Deals and Drinks”.  Sponsored educational opportunities  Boards & Commissions  2. The Sundt Companies, parent company of general contractor Sundt Construction, has added Tom Sorley to its Board of Directors. Sorley retired as chief executive officer from Rosendin Electric in December 2019 and…

Sales Transactions  1. Pennybacker Capital purchased The Osborn Apartments, a 31-building, 302-unit multifamily complex near 32nd Street and Osborn Road, Phoenix, for $42M. Todd Braum, with Lee & Associates’ Arizona Apartment Group represented both the buyer and seller, Bean Investment Real Estate.  2. AP MP, LLC, an affiliate of MBRE Health Care purchased a two-story, 40.9KSF fully occupied medical building at 535 N. Wilmot Road, Tucson, for $11.55M. Justin Lanne and Andrew Sternberg with NAI Horizon’s Tucson office represented the seller, 535 Wilmot Investors, an affiliate of The Schomac Group. The building is wholly occupied and leased to Banner Health, Inc.  3. Safe Harbor Exchange, Inc. purchased a freestanding 40.7KSF industrial/flex building at 17602 N. Black Canyon Highway, Phoenix,…

By Tasha Anderson for AZBEX  A new multifamily residential development is being proposed for the NWC of Avondale Boulevard and the Corporate Drive alignment, also known as The BLVD east of Avondale Boulevard.  Property owner and developer, Lervick Investments, LLC requested approval of a development plan for the 354-unit apartment community on the 16.44-acre site. The City of Avondale heard and recommended approval at its July 15th Planning Commission meeting.  The project, called Avari Apartments, is planned as an urban-form apartment community, and will include a mix of 111 one-, 211 two-, and 32 three-bedroom dwelling units. The project is expected to be built in a single phase.  According to the documents…

Economic News  Hotel Outlook Worsens, Again  Despite some encouraging numbers a few weeks ago, the increasing spikes in COVID-19 numbers have once again created a downturn in the U.S. hotel industry, according to a recent report in National Real Estate Investor. (Source: National Real Estate Investor)  Office Markets Preparing a ‘New Normal’ Future  As offices re-populate, companies and building owners are examining issues of social distancing, amenity packages, and interior design. Technology companies that relied on closely spaced open work areas and social amenities will face significant changes, while traditional configurations will benefit from the social distancing that was designed into their current layouts. There…

By Tasha Anderson for AZBEX  Arizona’s seasonally adjusted unemployment rate increased to 10 percent in June 2020, from May 2020, according to the latest report published by the Arizona Office of Economic Opportunity.   The national rate decreased to 11.1 percent from 13.3 percent in May. In June 2019, the state had a seasonally adjusted rate of 4.8 percent, and the national was at 3.7 percent.  The state had a net gain of 19,700 non-farm jobs over the month. “Historically (2010-2019), Nonfarm employment has averaged a loss of 51,600 jobs in June,” the report states. Leisure & Hospitality had the largest net gain with 34,000 jobs, followed by Trade, Transportation & Utilities with a gain of 11,800. Construction lost 900 jobs over the month.  Trade, Transportation & Utilities took the top spot in job gains from June 2019 to June 2020 with a total of 5,900, while Leisure & Hospitality took the top spot in job losses over the year with 49,400.  The Construction sector features three major segments:…

Source: Colliers International  The Greater Phoenix industrial real estate market remains healthy, despite business conditions during the pandemic. America’s growth in online purchasing is driving expanded demand for warehouse/distribution space.  Net absorption of industrial space peaked at more than 2MSF in the second quarter. This marks the fifth consecutive quarter with net absorption exceeding 1MSF. Year-to-date the market has posted 3.7MSF of positive net absorption. Net absorption was dominated by warehouse space in the Southeast and Southwest areas. Leasing activity slowed significantly in April as the nation paused and evaluated effects of the Coronavirus, but virtual tours and tenant interest picked up again in May and June.   The number…

Groundbreakings  1. The Douglas Allred Company recently broke ground on two additional office buildings at their Park Place Development on Price Corridor. Both three-story buildings will be 150KSF and located on the NEC of Price and Willis roads. The architect is Balmer Architectural Group and the general contractor is Willmeng.  2. The Kansas City Royals broke ground July 9th on The Fountains at Surprise Center, their new four-story, 47-unit player housing complex, just south of a similar facility for the Texas Rangers, which opened up late last year. The project is expected to be completed by mid-2021.  3. Sequoia Pathway Academy recently broke ground on a 7KSF classroom addition in Maricopa, with hopes of having it open by the beginning of…