Commercial Real Estate & Business News – January 13, 2016

Over the next two decades, demand for rental apartments will likely continue to be strong, if current homeownership rates remain where they are or improve only modestly. The homeownership rate and how low it will remain going forward is one of the biggest questions hanging over the apartment market. As the rate continues to drop, more households move into rental housing, keeping apartment rent growth high and vacancy rates low…Read more »
Scottsdale’s residents like to look as youthful and fresh as possible, and now a resort in the city is doing the same. Chaparral Suites in downtown Scottsdale is undergoing a $22 million makeover to become the Embassy Suites by Hilton. The massive cost of renovations makes the project the largest resort renovation in Scottsdale…Read more »
A long-vacant corner at Scottsdale Road and 2nd Street will become home to the area’s latest mixed-use retail and luxury residential development if plans for the 17KSF building area 2nd Street Square project are approved The proposal calls for two retail/restaurant suites of 1,224SF and 1,747SF. Also on the property will be four luxury two-bedroom, two-bath condominiums of between 1,700SF and 1,800SF… Read more »
The Metro Phoenix office market posted its strongest quarter of absorption since 2005 with 1.5 million square feet (msf) during Q4 of 2015. The year closed with a total 2015 absorption of 3.3 msf and occupancy growth in 17 of the 22 metropolitan submarkets during Q4. Vacancy in Phoenix closed the year at 18.7%, down 20 basis points from the previous quarter and down from 19.1% at year-end 2014… Read more »
The commercial lending market will be rife with opportunities, but investors as well as lenders likely will face a slight change in attitude this year. “I think you are going to see lenders and investors a little more cautious than the last few years,” he predicts. “As we move through the cycle, while asset prices have increased considerably, lenders and investors will not be as aggressive in lending or assuming rent growth or condo sales price growth as they have been.”… Read more »