In the News—Week of February 10, 2025
Deal of the Week
A national homebuilder completed the take-down of seven finished lots from its land banking partner in the Aloravita South master planned community in Peoria, Arizona. The $1.2 million transaction was the 17th lot take-down for this project, which has been handled by Thomas Title Builder & Developer Services since the acquisition from the Arizona State Land Department. Senior Commercial Escrow Officer Joel Montemayor and Underwriting Counsel Chadwick Campbell led the effort for the Thomas Title team.
National
Experts believe the commercial market in New York City is on the road to recovery
Industry experts expressed cautious optimism at a recent CRE outlook event that the market in New York City has recovered, the Urban Land Institute reports. The forecast suggests improving market conditions driven by potential interest rate reductions, though the timing of these cuts remains uncertain. New York City’s real estate market shows particular promise, with Manhattan and other metro areas ranking favorably in market prospects, and office space absorption rates stabilizing after years of decline. Notable challenges include environmental regulations like Local Law 97 and the need for older buildings to modernize.
National
Miami office market among top performers in the country in 2024
Miami’s office market demonstrated exceptional performance in 2024, emerging as a leader among major U.S. cities, Commercial Search reports. The city experienced significant growth with a 41% increase in investment volume and maintained the lowest vacancy rates nationwide at 15.2%. With 1.8 million square feet of space under development across 18 properties, Miami’s construction pipeline substantially exceeded the national average. The market commanded premium prices, surpassing even Manhattan, while also positioning itself as a prime location for office-to-residential conversions and maintaining the highest share of coworking spaces among gateway markets.
National
Chevron sells off former Noble Energy headquarters in Houston for bargain price
Chevron has sold Noble Energy’s former headquarters building in Houston to Austin-based Capital Commercial Investments for $18.2 million, a substantial decrease from its previous $130 million value, Chron reports. The sale includes a 10-story tower with over 520,000 square feet of office space and existing furniture. This transaction is part of Capital Commercial’s broader strategy to acquire properties in prime locations near quality school districts. The firm made several other purchases in Houston and Dallas in 2024.
National
Landlord of 345 California Center in San Francisco pays off $150M loan
A prominent San Francisco office building, known for its distinctive twin flagpoles, has achieved a significant financial milestone, the San Francisco Examiner reports. The 35-story structure at 345 California Center, which houses offices and a hotel, is completely debt-free after its owner paid off a $150 million loan. The building is owned by a Chicago-based company called Metropolis Investment Holdings through an affiliate. This development represents a notable achievement in San Francisco’s commercial real estate landscape, particularly given the current market conditions.
Arizona
Taser-parent company Axon’s proposed project will have to go to a vote of the public
Axon’s proposed development project in Scottsdale, which includes apartments, a hotel and mixed-use facilities, will be put to a public vote following a successful referendum petition, The East Valley Tribune reports. The petition, led by Taxpayers Against Awful Apartment Exemptions, gathered over 26,000 signatures, with county auditors confirming an 82% validity rate. While the vote is currently scheduled for November 2026, Axon’s founder Rick Smith has indicated this timeline may prompt the company to relocate elsewhere. The project, planned for a 74-acre site near Hayden Road and Loop 101, had previously received City Council approval with a 5-2 vote.
Arizona
Phoenix area among leading markets in converting offices into apartments
Phoenix has emerged as a significant player in the office-to-apartment conversion trend, ranking 11th nationally with 1,634 units in the pipeline, AZ Big Media reports. The city experienced a 19% year-over-year increase in office-to-residential conversions, with these projects representing 71% of all adaptive reuse developments in the area. While Phoenix’s convertible office space is relatively limited at 4% (approximately 6 million square feet), there have been notable projects, such as the Canyon Corporate Center’s transformation into 400 apartments.
