In the News—Week of January 20, 2025
Deal of the Week
Amerco, the Real Estate division of Uhaul recently closed on a newly constructed self-storage facility in Marietta, Georgia for $9.4 million. The newly acquired property sits on 2.2 acres and will add 646 class A units totaling 63,869 Net Rentable Square Feet to Uhual’s portfolio. The transaction was closed by Senior Commercial Escrow Officer, Joel Montemayor and National Account Executive, Justin Wine in our Scottsdale, AZ office.
National
NYC real estate ready to bounce back in 2025, Bloomberg projections show
New York City’s real estate market is showing robust signs of recovery, CRE Daily reports. Bloomberg.com projects total property values to rise 5.7% to $1.6T in fiscal year 2025, led by a 7.3% increase in residential property values. Brooklyn leads the way, with apartment values expected to surge by 15%, driven by strong rental demand and single-family home sales. The commercial sector demonstrates resilience with a projected 3.8% growth, including improvements in office, retail and hotel segments.
National
Erieview Tower in downtown Cleveland to be converted into Ohio’s first W Hotel
A major redevelopment project in downtown Cleveland will transform the 38-story Erieview Tower and Galleria into Ohio’s first W Hotel property, hotelmanagement.net reports. The $218 million project, led by Kassouf Development, will create a 210-room luxury hotel alongside 227 residential apartments with high-end amenities. The development will include a rooftop bar, restaurant, spa and a 15,000-square-foot ballroom. With construction beginning in phases throughout 2025, the project is expected to reach completion by late 2026.
National
San Francisco office building sales expected to top $1 billion in 2025
San Francisco’s commercial real estate market is showing signs of recovery, with office building sales expected to exceed $1 billion in 2025, the San Francisco Examiner reports. The market has seen a notable increase in sales volume, with 23 buildings sold for $916 million in 2024, more than doubling the previous year’s figures. While office vacancy rates remain high at 36.5%, there are positive indicators including increased leasing activity from AI companies and startups, which made up 30% of total leasing activity in 2024. The market reset has created opportunities for new landlords to offer competitive rates and improve properties, while institutional investors are returning to the market, attracted by potential growth in the AI sector.
National
Omaha commercial real estate remains stable through rocky and promising times
The Omaha commercial real estate market distinguishes itself through remarkable stability and adaptability, even during economic challenges, REjournals.com reports. Despite high interest rates and construction costs affecting markets nationwide, Omaha maintains strong leasing activity, particularly in industrial and retail sectors. The city’s diverse economy, supported by health care, technology and finance industries, contributes to its steady growth and attractive investment environment. Major developments, including a new streetcar system and the Mutual of Omaha headquarters, demonstrate the market’s continued vitality, while historically conservative development approaches help maintain market balance.
Arizona
Arizona to receive $1.2 billion in CHIP funds for ASU, Tempe facilities of Natcast
The U.S. Department of Commerce has announced $1.4 billion in CHIPS funding to strengthen domestic advanced packaging capabilities for semiconductors, AZ Big Media reports. The funding is split between four major recipients, with Arizona securing significant investments through Arizona State University ($100 million) and Natcast ($1.1 billion) for their facilities in Tempe. The ASU project will focus on developing next-generation microelectronics packaging, while Natcast will operate advanced packaging capabilities at a new prototyping facility. This investment aims to establish the United States as a leader in semiconductor innovation and create a sustainable domestic advanced packaging industry.
Arizona
‘Punchcard Building’ to be converted into resort hotel/apartment complex
The iconic “Punchcard Building,” originally known as the Phoenix Financial Center, is set to be transformed into a mixed-use urban resort called Recess Phoenix, the Phoenix Business Journal reports via Newsbreak.com. Left Lane, a New York-based developer, plans to convert the 18-story office tower into 209 hotel rooms and 143 multifamily spaces. The distinctive building, known for its resemblance to a 1960s era computer punch card, is at Central Avenue and Osborn Road. The project also includes plans to repurpose two 9,000-square-foot rotundas for potential restaurant use and add new facilities across the 7-acre property.
