Author: BEX Staff

While nowhere near becoming a leading option, some Federal Reserve officials are floating the idea of another interest rate increase if stubbornly persistent inflation does not show signs of easing soon. Going into 2024, most market watchers were predicting three decreases in interest rates over the year. To date, none have been enacted and no target dates have been set for any. The Fed’s policy statements have said several months of declining inflation will be needed before any cuts are initiated. Minutes from the April 30-May 1 Federal Open Market Committee meeting show some participants expressed a willingness to tighten…

Giving Back 1. ECM Technologies and Tolin Mechanical have announced they will work together to enhance the 186 HVAC systems serving 11 Boys and Girls Clubs of the Valley locations. ECM will donate its ThermaClear HVAC anti-oil-fouling technology and Tolin will contribute its services to perform the treatments. The donation is valued at more than $107K. Awards & Accolades 2. At a recent gala honoring the organization and its members, American Subcontractors Association – Arizona presented its 2023-2024 Constructing Community Awards. The categories and winners were: Excellence in Safety – Most Improved: Banker Insulation, Excellence in Safety – Associate Member:…

Sales Transactions 1. Cross Ocean Partners and CRE The Beam on Farmer have paid $56.2M for The Beam on Farmer, a 180KSF office building with a six-story parking garage in downtown Tempe. The site was developed under a Government Property Lease Excise Tax agreement between developers Mortenson Co. and PGIM Real Estate and the City of Tempe. The seller was represented by Barry Gabel, Chris Marchildon and CJ Osbrink with Newmark Group, Inc. 2. The Garrett Companies has sold The Plaza Taos Apartments, a 164-unit community in Chandler, for $55.25M. The buyer traces to Olympus Property, which now also manages the property.…

By Roland Murphy for AZBEX A new report from RealPage by Carl Whitaker indicates the Construction sector might be one of the next segments of the labor force to see a slowdown in employment. RealPage claims employment growth in sections of the economy more sensitive to interest rates are already seeing slowing or erosions in job numbers, which the author claims indicates a “rolling recession.” A rolling recession occurs when portions of the economy experience a recession, while the overall economy does not. Writing on the topic for GlobeSt, Erik Sherman cited a Cushman & Wakefield report that also referred…

By Rebekah Morris for AZ Builder’s Exchange, LLC An industry coalition led by the Arizona Chapter of the AGC has successfully guided legislation through the state government, and SB 1054 has been signed by Gov. Katie Hobbs. The bill extends the use of horizontal Alternative Project Delivery Method contracts for another five years to 2030. The bill was unanimously approved. As reported in AZBEX last August, Arizona Revised Statutes titles 28 and 34 had provisions that were set to expire in 2025. If not renewed, cities, towns, counties and state agencies would not have tools such as Design-Build, Job-Order-Contract, and…

By BEX Staff for AZBEX QTS Realty Trust has submitted plans to the City of Glendale to build a 16-building, nearly 3MSF data center campus north of Camelback Road along Cotton Lane. The QTS PHX 3 campus covers 391 acres adjacent to the Allen Ranches community on land QTS purchased in the C|303 industrial park for $255.3M in 2022. Local news outlets report the 16 buildings will each be at least 180KSF. The multi-phase project will begin with the buildings planned for the southern portion of the property and build out over several years. In addition to the data halls,…

By BEX Staff for AZBEX Rejecting the recommendations of County staff and the Planning and Zoning Commission, the Pinal County Board of Supervisors has voted to approve a set of rezoning and associated requests for Rancho Bella Vista Mixed-use, a 252-unit workforce affordable housing development on 12.9 acres with an associated 3.9 acres of retail at the SEC of Bella Vista and Gantzel roads in San Tan Valley. The full site had previously been zoned for commercial and has sat vacant for 20 years. In recommending against the requests, staff expressed the opinion that commercial was a more desirable use…

While one report should never be seen as indicative of a trend in and of itself, good news is always welcome. The latest NAIOP index of commercial real estate sentiment, which measures developers’ and building owners’ expectations for conditions for the next 12 months, has risen above the 50 threshold for the first time in 18 months. The latest index only reached 52, but respondents said they are more optimistic than they had been about every CRE segment except construction costs. Developers expect to see interest rates decline in the next 12 months, pushing the expected availability of debt and…

Awards & Accolades 1. Green Ideas’ Rio Yards at Novus Innovation Corridor, a 157KSF office building in Phoenix, received the LEED Silver Certification. Groundbreakings 2. Creation RE/PE announced the groundbreaking of the first phase of the $250M Park Algodon industrial and mixed-use project at the NWC of Loop 101 and Indian School Road in Phoenix. Developed under a joint venture with Clarion Partners, the 87-acre development will total 1.3MSF at buildout. Phase I comprises four buildings totaling 766KSF. 3. The City of Glendale announced the groundbreaking of the four-acre Glendale Heroes Regional Park. The park offers two natural turf multi-use…

Following extensive negotiations between area residents and landowner The Lines Family and its development team, the Phoenix City Council recently voted to approve a planned unit development request for Gila Foothills, a 290-acre project area in Laveen. Planned uses for the site near Estrella Drive and 51st Avenue include an auto mall, a hospital with a Level 1 trauma center, single- and multifamily housing, and other supporting uses. Since the plan was initially proposed, some residents have complained about the proposed density of housing, the presence of the auto mall, the possible height of the hospital, and general impacts on…