Commercial Real Estate & Business News – January 5, 2018

Investors and lenders are expected to closely monitor property fundamentals in the markets and property sectors they invest in for 2018 as the U.S. economy continues its extended recovery now heading into its 10th year. Despite record low unemployment, increased consumer confidence and a strong stock market, many in the industry see slower growth ahead for rent increases, property prices and overall demand for commercial space. As the capital market moves later into the current real estate cycle…»

The delinquency rate for CMBS fell to 4.89% in December, its lowest reading in 15 months, Trepp LLC said Wednesday. The 29-basis point drop was the largest in about two years, and also represented the sixth consecutive monthly decline in late-pays for CMBS. In the 16 months between March ’16 and this past June, the CMBS delinquency rate moved up 13 times.…»

Co-working concept Spaces has inked a deal for its second Phoenix-area location. Amsterdam-based Spaces will open a 32,000-square-foot co-working area this year at the Galleria in Scottsdale. It follows the company’s opening last year of its first Valley location with a 40,000-square-foot lease at Renaissance Square in downtown Phoenix. Spaces is part of IWG plc, a global holding company which includes several brands including Regus, which operates flexible workspace. …»

With a large increase in the amount of spec office construction nationally and continued building of warehouse and distribution facilities and multifamily housing, the outlook for commercial development hasn’t been this strong in years. However, the increased building activity is exacerbating the already-keen competition for skilled construction workers. Combinied with the rising cost of construction materials, fuel and services, the labor shortage is expected to squeeze commercial contractors in the New Year…»

Wan Hai Lines Ltd. – a global shipping company – has bought the Perimeter Center building in Scottsdale for $10.35 million. It serves as the Taiwan-based shipping company’s U.S. headquarters. Real estate development and investment firm Irgens was the seller. Irgens bought the Perimeter Center at 17200 N. Perimeter Drive in Scottsdale in 2015 and renovated the Class A office building.…»