Amazon pharmacy warehouse in Phoenix sells for $44.15 million; plus more Valley industrial deals
A nearly 175,000 square-foot warehouse currently leased to Amazon’s pharmacy arm sold on May 12 for $44.15 million, according to real estate database Vizzda. Canadian investment firm Belkorp acquired the facility from Oxford Property Group, which bought it in September 2021 for $47.98 million. Before that, the property sold in November 2019 for $28.4 million. The facility is located at 3809 E. Watkins Street, at the northwest corner of 40th Street and University Drive. It’s currently leased…»
Top-tier malls are faring better — but debt deadlines can still bite
U.S. malls are entering a more structurally sound phase, with occupancy, rents and net operating income all trending higher, according to a new report from retail and technology analytics firm Coresight Research. Those gains are increasingly concentrated among top-tier, well-located properties, Coresight said. These malls are benefiting from limited new construction, sustained retailer demand for prime space and a strong ability to replace vacancies with high-performing tenants. Malls…»
How development boom gave life to Downtown Phoenix
Just a few decades ago, Downtown Phoenix became a ghost town after office workers commuted back to the suburbs. Today, investments across multiple sectors have turned Downtown Phoenix into a vibrant community at all hours for all ages. While there was some transformation that started in the late ’80s and early ’90s, the plan that truly shifted downtown was largely driven in 2004 by Mayor Phil Gordon, which led to the development of America West Arena (now Mortgage Matchup…»
Higher For Longer Rates Could Push Cap Rates Upward
Cap rates have moved up sharply since the Fed’s rate hikes began in 2022, but they may still have further to climb. That’s the takeaway from recent analysis by First American Financial Corp., in which Xander Snyder, senior commercial real estate economist, notes that the pace of the increase has made it feel more dramatic than it actually is in historical context. Even after the recent run-up, cap rates remain relatively low compared to long-term norms. The firm’s all-asset Potential…»
Limited-service hotels show strong break-even efficiency
A limited-service hotel can run at lower occupancy levels and still generate meaningful gross operating profit margins, or GOP margins. A review of a small sample of limited-service hotels across major U.S. markets shows they operate under a different profit model than full-service hotels, with lower break-even points, stronger flow-through and stronger margins. Across this subset, break-even occupancy levels for the majority of markets generally range between the…»
