In the News—Week of February 17, 2025
Deal of the Week
An Arizona-based land development investment company, led by Anita Verma of Arizona Land Consulting, has acquired approximately 156 acres of agricultural land in Buckeye, AZ, for $21,700,000. They plan to work on entitling and rezoning the property for future commercial site development. The transaction was closed by Senior Escrow Officer Bryan Selna from the Scottsdale, AZ, office.
National
Another good sign: Blackstone goes after major stake in 1345 Sixth Avenue
Blackstone is pursuing the acquisition of a major stake in 1345 Sixth Ave., demonstrating renewed confidence in Manhattan’s commercial property sector, the New York Post reports. This move follows their substantial lease expansion at 345 Park Ave., where they increased their footprint to over 1 million square feet. Market indicators show promising signs of recovery, with office space demand surpassing pre-pandemic levels and fourth-quarter sales in 2024 showing substantial year-over-year growth. The positive trend is further evidenced by record-breaking high-rent leases and strong occupancy rates in premium buildings, suggesting a robust comeback in Manhattan’s commercial real estate market despite earlier skepticism.
National
Commercial property delinquencies up in Q4, Mortgage Bankers Association says
Commercial property mortgage delinquency rates rose in the fourth quarter of 2024, the Mortgage Bankers Association reports. Office spaces faced particularly significant challenges due to weak market fundamentals and high interest rates. Commercial mortgage-backed security loans exhibited the highest delinquency rates at 5.3%, while other capital sources maintained relatively moderate levels. Industrial properties showed improvement, and the overall economy’s strength continues to support certain property segments.
National
Downtown Seattle faces record vacancies while market stabilizes in suburban Eastside
Downtown Seattle is experiencing record-high office vacancy rates reaching 30% in the central business district as of early 2025, Axios reports. While neighboring areas like the Eastside have shown signs of stabilization, Seattle’s downtown continues to struggle with over 25 million square feet of available office space. The situation has led to declining property values and discounted sales of major buildings, raising concerns about the broader impact on the city’s real estate market. Local leaders are responding with various initiatives, including streamlined regulations for office-to-housing conversions and strategic rezoning, while also counting on major events like the 2026 World Cup to help revitalize the area.
National
Denny’s ups the number of restaurant closings to 180 as struggles continue
Denny’s has announced plans to close approximately 180 locations across the United States, which is 30 more than their initial closure plans, CNN reports. The company attributes these closures to factors including expired leases, aging locations requiring costly renovations and declining profitability in certain areas. While the chain’s remodeled restaurants saw increased customer traffic, only a small fraction of their 1,300 locations underwent renovations in 2024. The company is facing significant challenges, with recent sales declining due to consumer uncertainty and inflation, leading to a dramatic drop in their stock value.
Arizona
Falcon Field Airport in Mesa to add 14 hangers, corporate office space
A significant expansion project is underway at Falcon Field Airport in Mesa, featuring the construction of 14 aircraft hangars across four buildings, AZ Big Media reports. The development, called Falcon 12, spans 68,500 square feet, will include dedicated corporate office space and is being executed through a partnership between Agate Construction and DKS Properties. Construction is scheduled to begin early this year and is expected to be completed in 10 months. The project, situated in the airport’s historic district, incorporates design elements that pay homage to the facility’s heritage while meeting modern aviation needs. Falcon Field began as a training site for British fighter pilots in World War II.
Arizona
Phoenix metro area enjoys strong growth in co-working space during fourth quarter
The Phoenix area has emerged as a leader in the national coworking space market, showing impressive growth in the fourth quarter of 2024, AZ Big Media reports. The Valley’s coworking inventory expanded by 8% to reach over 2.87 million square feet, ranking 14th largest nationally and achieving the third highest growth rate among major markets. With 155 locations, Greater Phoenix holds the 11th position for the number of coworking spaces in major U.S. metro areas. This growth aligns with broader national trends as the coworking sector continues to adapt to evolving workplace preferences.
