Commercial Real Estate & Business News – August 4, 2017

Commercial real estate has been used effectively in ultra-high-net-worth (HNW) and family office portfolios as a means to enhance yield in a return-starved market. This enhanced yield has not been lost on the greater institutional marketplace, however, where sovereign wealth funds, domestic pension funds and life insurance companies have flooded the market with capital, prompting concern over the potential for a pricing bubble…»
NEW YORK CITY-Second-quarter investment sales volume was predictably off on a year-over-year basis in the Q2 US Capital Trends report from Real Capital Analytics. However, RCA cautions industry members not to make too much of the 5% Y-O-Y drop. It’s been 10 years since the Blackstone Group took Equity Office Properties private, a $39-billion buyout which RCA calls “the high-water mark of deal activity in 2007…»
Phoenix’s High Street development, a high-end retail, office and apartment development near Desert Ridge, has a new owner. An Alabama firm has invested at least $93.4 million into the 628,000-square-foot project that was foreclosed on during the housing crash. High Street, home to Sprout Farmers Market corporate offices and the eateries Kona Grill, La Bocca, Mellow Mushroom, Blue Martini and Ocean Prime, was called CityNorth until a few years ago…»
As of July 2017, this submarket has the most units in the pipeline with roughly 3,000 units underway. New construction has been heavily concentrated at the top end of the market – more than 80 percent of the in-development units are 4 & 5 Star rated. Relative to other construction-heavy submarkets such as Tempe and Chandler/Gilbert, projects tend to be slightly smaller in size. For example, the 4-Star, 225-unit Alta Midtown is representative of the development pipeline here, and initial rent offerings are about 40 percent above the submarket average…»
T-Mobile US Inc. is opening 24 retail stores this year in Arizona and hiring 170 employees to fill those stores. The new stores and hiring are due to the Bellevue, Washington-based wireless network operator’s expanded network coverage and millions of new customers, said Sam Sindha, T-Mobile’s senior vice president for the southwest region, which includes Arizona. “Every quarter for the last 17 quarters we’ve added millions of customers…»