Commercial Real Estate & Business News April 27, 2018

The commercial real estate market is extremely competitive and enticing major brands to select one development over another requires more than just “location, location, location.” With everything getting “smarter,” from devices to cities, the expectation for brands is that real estate property will keep pace with evolving technical standards. Up until now, branding considerations in property design have taken a backseat in terms of developers’ top priorities…»
Just when millennials are getting ready to take the plunge and buy their first homes, the market has turned against them. Of the homes for sale in the Phoenix market, 50.4 percent are high-end homes, while only 17 percent are entry-level homes, according to a new report released today by Seattle-based Zillow Group Inc. (Nasdaq: Z and ZG) Phoenix is worse off than the national average, she said, with 22 percent of entry-level homes available on the market nationwide…»
The steady rise of mortgage rates presents a good-news/bad-news situation for the multifamily property sector, according to CoStar research.  While any bump in interest rates increases borrowing costs for apartment developers and other commercial real estate projects, it also makes it harder for would-be homeowners to qualify for mortgages, which results in more demand for apartments. Recent research from CoStar posits that for every rise in home mortgage interest rates…»
Subway Restaurants is planning to shutter an estimated 500 locations in the U.S. The Milford, Conn.-based chain wants to focus on better restaurant locations and boosting sales, according to Bloomberg. High on its priorities list is overseas expansion. The news comes a year after Subway shut down 800-plus locations. 2016 also saw store closings, Bloomberg reported. The chain currently has close to 26,000 locations in the U.S.…»
Even though a lot of retailers have been closing up shop lately, things aren’t that bad in the retail real estate market. The Phoenix market saw the retail vacancy rate drop to the lowest its been in nearly 10 years during the first three months of the year. The vacancy rate for the entire metro Phoenix retail market was 9.6 percent during the first quarter of 2018, according to a report published this week by commercial real estate services company Cushman & Wakefield…»