In the News—Week of April 11, 2022
Inland Southern California has almost no industrial space available
The area of Southern California known as the Inland Empire is virtually out of available industrial space, The Real Deal reports. Pre-leasing has become the norm for warehouse, manufacturing and distribution space — at around 0.6%, according to Newmark. The area includes the intersection of Interstate 10 and Interstate 15 and the Ontario airport. Ontario handles much of the freight going in and out of the region. Average monthly asking rents for industrial properties in the Inland Empire were $1.03 per square foot in the first quarter, 41% higher than the year before.
Energy & Efficiency
$500M grant announced to make schools more energy efficient
The Biden administration has announced a $500 million grant program to improve energy efficiency in public schools, The Hill reports. The program is funded through the infrastructure law. “Public K-12 districts spend roughly $8 billion a year on energy bills, meaning energy efficiency improvements to HVAC systems, lighting, insulation and other energy upgrades can unlock significant savings to go toward student learning and success,” a senior administration official said on a call with reporters.
Office leasing in Houston’s Energy Corridor is beginning to pick up
The Florida real estate investment firm Accesso Partners is updating its Houston office portfolio and says leasing momentum is picking up momentum in the Energy Corridor, the Houston Chronicle reports. Accesso recently landed a 21,000-square-foot lease with Smith Seckman Reid, an engineering consulting firm. Smith Seckman Reid is relocating its Houston offices from 3700 W. Sam Houston Parkway in Westchase. “We’re starting to see some pent-up demand from these last couple of years of very minimal activity,” says Mike Adams, managing director, southern region for Accesso. “No one was really doing anything unless they absolutely had to. We are starting to see some signs of life, especially in the Energy Corridor.”
Granite moving forward with 23Springs in Uptown Dallas
Granite Properties, a commercial real estate investment, development and management company, announced it is moving forward with 23Springs, which will be the largest office building in Uptown Dallas, Real Estate Weekly reports. Granite closed construction financing with Bank OZK for the 26-floor, 626,215-square-foot development. Bank OZK will lease four floors totaling 110,029 square feet in the tower. Construction will start in June and is expected to be finished in March 2025.
Arizona Supreme Court rules AG can sue Regents over Omni hotel deal
Arizona Supreme Court has unanimously ruled that Attorney General Mark Brnovich did not wait too long before filing suit against the Board of Regents over an agreement to build a 330-room Omni Hotel, Capitol Media Services reports via The Daily Independent. Justice John Lopez, writing for the court, said state law gives Brnovich up to five years to pursue any claims of misspending of public funds. The suit centers on the 2018 agreement between the regents and Omni to build a hotel, convention center and parking lot on land that ASU owns. Construction is nearly complete. If Brnovich is successful, it could limit or stop arrangements between state universities and private entities for commercial leases on state-owned land. Each side claimed victory.
IHG planning to open Voco hotels in Saltillo, Guadalajara
IHG Hotels & Resorts will introduce Voco hotels to the Mexican market, Hotel Management Net reports. The hotels in Guadalajara and Saltillo will extend the brand beyond its current foothold in major cities in the United States, Europe, Asia, Africa and Australia. The Voco hotel Guadalajara Neruda will open later this year. Vertex Ophthalmic Group will own the 11-story hotel. American Hotels Group will convert an independent hotel that was built in 2006 in Saltillo. That property is expected to open as the Voco hotel Saltillo in 2023.