Commercial Real Estate & Business News June 25, 2018

The U.S. Supreme Court has handed down its long-awaited decision regarding online sales tax collection – and digital-only retailers are not on the winning side.  In a 5-to-4 ruling in the South Dakota vs. Wayfair case, the court ruled that Internet retailers can be required to collect sales taxes in states where they have no physical presence. The ruling overturned the court’s 1992 decision in Quill Corp. v. North Dakota, which had affirmed the “physical presence” test for state sales-and-use tax collections (allowing states to collect sales taxes only on sales if the retailer has a “bricks and mortar” presence in that state)…»
Despite the prolonged national economic expansion-second-longest on record, now completing its ninth year-new office construction in the current cycle never surpassed the pre-recession peak of 105 million square feet. The report posited this as a function of the shift of development to downtowns, the post-recession emphasis on office space densification and more disciplined decision-making by both owners and tenants.  Since 2013, about 40 percent of office construction has been located in downtown or urban core locations. This contrasts the pre-downturn years the end of the 2000s, when less than 25 percent of office construction occurred in downtown locations. Suburban office parks were long the focus of development, as many tenants favored campus settings…»
Retailers and restaurants were supposed to be the big winners under the Republican tax law, but a last-minute drafting error that doubles the tax costs for badly-needed store renovations could eat into those gains.  Now the industry, led by Target Corp., Best Buy Co. and KFC-owner Yum! Brands Inc., is becoming more aggressive in pushing for a solution. In letters and visits to Washington last week, representatives urged congressional leaders of both parties to correct what’s been dubbed the “retail glitch.” While GOP leaders acknowledge the mistake, they haven’t guaranteed a quick fix.…»
Nearly $203 million was spent on vacant land in May in the Phoenix area, with the potential for investors holding on to much of those purchases.  In total, 51 transactions worth $1 million or more took place in the Phoenix area during the month, up from 39 transactions in April, according to the research. Approximately $183 million was spent on land in the Phoenix area during April…»
Thirty-five years ago, Phoenix acquired a downtown parcel for redevelopment purposes. Now, it’s happening.  Within six months the developer will enter into agreements with Phoenix with construction to begin within 18 months…»