Commercial Real Estate & Business News – January 6, 2016

With 3.9MSF of office space under construction and the lowest average apartment rent of 37 reported markets, the Phoenix area offers strong appeal to technology firms.According to a recent JLL report, the Loop 101 corridor, also known as the Silicon Desert, offers both challenge and opportunities for tech firms looking to locate here. Companies have a talent pool of young and educated workers to draw from, but space is competitive in the most in-demand areas… Read more »
Dallas-based Prevarian Senior Living plans to break ground this week on an $18.2 million senior living facility in Gilbert. Called Savanna House, the 119,000-square-foot assisted living and memory care facility will offer three memory care neighborhoods, each catering to residents who are living with different stages of Alzheimer’s and dementia. The assisted living portion of the community will offer residents assistance with activities of daily living.Read more »
Sixty four percent of respondents to the annual survey of the Association of Foreign Investors in Real Estate (AFIRE) plan to invest more in U.S. real estate this year and another 31% expect to maintain their allocations at 2015 levels — while none expect to decrease their investments. New York outranked London as the top global city for foreign real estate investment for the second straight year, while Los Angeles jumped from 10th place last year to third place in the latest survey… Read more »
Congress gave a nice Christmas present to the apartment building industry in the omnibus budget package, passed just before the holidays. The budget package includes a long list of good things for apartment investors. International investors finally got some relief from the punishing Foreign Investment in Real Property Act (FIRPTA). Affordable housing investors will benefit from the extension of provisions to the federal low-income housing tax credit (LIHTC)… Read more »
Arizona and the nation will continue the trend of improving employment in 2016, including in construction, according to state Department of Administration forecasts. The department estimates the state will add 63,100 non-farm jobs this year, a 2.4 percent improvement. The Phoenix metro area should see the highest percentage of growth at 2.6 percent, followed by metro Tucson at 1.8. Estimates for the Construction sector are for 2,200 new jobs to be added, a gain of 1.8 percent… Read more »