In the News—Week of August 4, 2025
Deal of the Week
An Arizona-based investor refinanced a commercial property located in the heart of Flagstaff, Arizona. The $10 million refinance was secured through Construction Loan Services II, LLC, a Washington-based lender. The deal was closed by Vice President and Senior Commercial Escrow Officer Joel Montemayor with support from Director of Commercial Services Kylie Cook. Title services were led by Senior Commercial Title Officer Teri Guevara in our Scottsdale office.
National
Commercial real estate billings decline for architecture firms
Architecture firms are experiencing declining billings in the commercial real estate sector due to economic concerns and tariff uncertainties, CNBC reports. Scores from AIA/Deltek Architecture Billings Index remained negative in June at 46.8 (above 50 indicates growth) with particular weakness in multifamily firms. Despite increased inquiries into projects, the value of newly signed design contracts has fallen for 16 consecutive months. The AIA forecasts minimal growth in nonresidential building spending at just 1.7% this year and 2% next year, with manufacturing facilities expected to decline while institutional facilities show more growth potential.
National
Quiet San Francisco neighborhood transformed into hub for AI firms
The North Waterfront area of San Francisco has transformed into a hub for AI companies seeking refuge from downtown’s decline, The San Francisco Standard reports. Companies like Salient and Sync Labs have established offices in this neighborhood, drawn by its peaceful atmosphere and proximity to engineering talent. Real estate investor Jamestown owns 40% of the office properties in this stretch and is working to create a “tech and innovation campus” by linking Waterfront Plaza and Levi’s Plaza. Despite high vacancy rates mirroring the rest of the city, Jamestown has attracted AI startups through renovations, amenities and strategic programming, although the area still lacks sufficient restaurants and social venues.
National
Dallas remains No. 1 for hotel construction, followed by Atlanta, Nashville, Austin, Phoenix
Dallas continues to lead the hotel construction pipeline in the United States, Hotel Management Net reports. Figures from Lodging Econometrics shows the Dallas area had 199 projects and a record-high 24,497 rooms in Q2. Other top markets are Atlanta (165 hotels and 19,027 rooms), Nashville (128 hotels and 17,025 rooms), Austin (125 hotels and 14,598 rooms), and Phoenix (123 hotels and 16,228 rooms). Austin showed significant year-over-year growth of 10% in projects. The forecast indicates 735 new hotels with 84,788 rooms will open across the U.S. by year-end 2025, with continued strong growth projected through 2027.
National
Run-down Manhattan rental may get new life from Stanford White descendent
An 1880s Stanford White-designed Manhattan townhouse, currently a rundown rental property, is listed for sale at $6.95 million with plans to restore it to a luxurious single-family home, the New York Post reports. The renovation designs, created by White’s great-grandson’s architectural firm, would transform the 25-foot-wide building into a five-bedroom residence with amenities including a wine cellar and rooftop deck. The property has a colorful history, having served various purposes including housing for Nazi persecution victims, before being damaged by fire in 2013. The proposed renovation plans have already received approval from the Landmarks Preservation Commission and Department of Buildings.
Arizona
Scottsdale church wants to build apartments on part of its property
Scottsdale United Methodist Church plans to transform an underutilized portion of its 61-year-old property into affordable housing with 82 apartment units in two three-story buildings, the Scottsdale Progress reports. The development, which requires no rezoning approval due to the 2012 Downtown Overlay zoning, will be financed through federal Low-Income Housing Tax Credits and restricted to households earning up to 80% of the area median income. The church cites declining membership as motivation for the project, seeing an opportunity to expand its mission by addressing workforce housing shortages in downtown Scottsdale. While the development must still go before the Development Review Board, Councilman Barry Graham has expressed concerns about density and parking adequacy for the project.
Arizona
Greater Phoenix holds onto top spot even as industrial construction slows
The Phoenix area maintained its status as the leading industrial development hub in the U.S. with 17.4 million square feet of construction underway, AZ Big Media report. Figures from CommercialCafe show this total is less than half the development volume from a year ago. The industrial sector experienced unprecedented expansion between 2020-2024, delivering over 2 billion square feet of new supply nationwide, driven by e-commerce growth and supply chain issues. Current industrial vacancy rates have risen to 9% nationally as the market absorbs recent developments, with companies reconsidering leasing decisions amid tariff uncertainties.
