Commercial Real Estate & Business News – October 4, 2017

Property values have surged steadily higher in the prolonged recovery. But that high tide isn’t raising all boats as some metros are still falling short of 2007 pricing. The broader commercial real estate market has regained and surpassed values that existed at the prior peak. The major metros have seen the biggest bounce with values that are 52.5 percent higher than a decade ago, while the rebound has been more modest in non-major metros at 10.8 percent…»

Park Central Mall was the first shopping mall in Phoenix back in the 1950s. Now, it looks to be the primary site Phoenix will be pitching to Amazon.comInc. (Nasdaq: AMZN) for its much-coveted second headquarters, according to multiple sources. Amazon is accepting bids this month for a $5 billion, 50,000-employee second headquarters to go along with its Seattle base. Phoenix, Tempe, Mesa and Tucson will all pitch sites along with scores of other cities and regions across North America. …»

Although lower in velocity than the apartment sector saw a few years ago, rent growth is continuing across the board, RealPage Inc. said Wednesday. However, occupancy has slipped fractionally and the balance of 2017 poses a question mark around this metric. Effective rents for new leases climbed 0.9% in the third quarter and 2.6% year over year, according to data from RealPage and Axiometrics. Annual rent growth has maintained a rate between 2.5% and 3% thus far this year…»

Sprouts Farmers Market, Inc. (NASDAQ: SFM) has plans to open 30 new stores in 2018, including nine in the first quarter. Two of those new locations are in the Phoenix metro, with sites slated for Mesa and Tempe. The Mesa location, at 3150 N. Recker Road near the Loop 202, was initially planned to open this year.…»

Cap rates in the net lease market sank to historic lows at various points in the past few years, but after a relatively short period of stability, investors eager to snap up these properties have pushed rates down again. The rates for retail properties now stands at 6.11%, a decrease of 12 bps in the past quarter, according to a new report from the Boulder Group, a net lease firm in the Chicago suburbs. This represented the lowest level in the net lease retail sector since…»