Commercial Real Estate & Business News – May 5, 2017

Apple Inc. is creating a $1 billion investment fund to grow advanced manufacturing in the U.S. Apple CEO Tim Cook made the announcement on CNBC’s “Mad Money”. Arizona and more specifically the East Valley and Phoenix could fit into that mix. Apple has a big data center in Mesa and recently filed paperwork with the U.S. government for the potential assembly of data center servers at that East Valley facility…»

“This slow death of cutting stores doesn’t always work, unless they cut corporate — that’s much harder to do,” Sternlicht said in the interview, taped at the Milken Institute Global Conference, in Beverly Hills, California. Still, “retail will re-balance” and be “smaller but healthier” in five years, he said. “The mall is not dead”…»

Forget about the millennials. With retirements looming, longevity increasing, and housing prices just right for equity liquidation, baby boomers are the here and now of the next decade of multifamily demand…»

The average U.S. multifamily rent rose by $3 in April, reaching $1,314, according to Yardi Matrix’s monthly survey of apartment markets. At the same time, the national rent-growth rate has slowed to below long-term growth trends. Rents rose by 2.0% in April on a year-over-year (YOY) basis, down 50 basis points (bps) from March. This represents a significant drop from the 5.5% rent growth seen a year ago…»

Rents are now so high in the United States that the typical tenant could buy a home nearly 50% more expensive than the median valued property and keep the same monthly housing budget, new research has found…»