In the News—Week of January 15, 2024
Deal of the Week
Amerco Real Estate, the Real Estate Division of Uhaul, recently acquired a 6.6 acre 468 unit self-storage facility with 99.635 Net Rentable Square Feet in Hobbs, New Mexico. The $11,250,000 transaction was closed by Joel Montemayor, Assistant Vice President & Escrow Officer, in our Scottsdale, Arizona office.
Multifamily enjoys 122% increase in absorption nationwide in 2023
The nation’s multifamily market saw net absorption of 332,000 units in 2023, Apartment.com reports via Business Wire. “The U.S. multifamily market staged a strong rebound in 2023 as the number of units absorbed rose by 122% year-over-year to 332,000 units,” said Jay Lybik, National Director of Multifamily Analytics at CoStar Group, the parent company of Apartments.com. “While the increase in demand was impressive, it was overshadowed by the influx of new units, causing imbalances in supply and demand and pushing vacancy rates higher.” In 2023, 565,000 new units were delivered, the highest number of units completed since the mid-1980s. This caused rents to fall in previously hot markets. Average rents fell in Austin (5.1%) as well as Jacksonville, Charlotte and Atlanta. The declines ranged from 4.8% to 2.6%.
Truist Financial decides it will trim about 80 of its branch offices by March
Truist Financial, a Charlotte-based bank, is trimming branches by March to boost profitability, Business North Carolina reports. The bank has been vague about how many offices and employees will be affected. Industry publications report it would be about 3.5% to 4% — around 80 — of its branches. The bank operates in 17 states and the District of Columbia. Last fall, Truist said it would cut costs by $750 million. More than half of the transactions Truist handles are digital.
NY assemblyman says vacant CRE, not schools, to house migrants
A high school in Brooklyn was turned over to migrants during a recent winter storm, and New York State Assemblyman Michael Novakhov now wants to use commercial real estate instead of schools, News Nation reports. “The solution is using … abandoned commercial property, old factories and stuff,” Novakhov, a Republican, tells the cable news channel. During the migrants stay, the students attended remotely.
Miami commercial real estate outperforming national market
Miami’s commercial real estate market might not be great, but it is better than many, Axios reports. Nationally, office vacancy rates were 19.2%, but only 9.6% in Miami. Office rents will likely grow in 2024, says Kevin Gonzalez, Colliers’ senior vice president in South Florida. And hotels are expected to have a stronger 2024. Industry experts say, like everywhere else, the market in South Florida will depend heavily on interest rates.
Chandler makes top 30 for cities where renters want to find an apartment
Chandler ranks 28th nationally in desirability for renters, AZ Big Media reports. Figures from RentCafe show that Chandler leads all Valley cities based on the number of searches, number of listings and the times a property was favorited. It was the fifth time in 2023 that Chandler ranked in the top 30. Peoria ranked 48th and Phoenix 51st. Nationally, Atlanta was No. 1 and Kansas City was No. 2.
Neighbors fear Taser parent’s new HQ will swamp area with apartments
Axon, the parent of stun-gun maker Taser, is starting the approval process for its new headquarters campus in Scottsdale near Loop 101 and Hayden in the face of major opposition, The East Valley Tribune reports. The plans were leaked last spring by a rival developer and call for a hotel and almost 2,000 apartments. That created a blow back from neighbors, and the city attorney, Sherry Scott, has already weighed in, saying the plans violate the law and would deprive the state of millions in revenue. The land was purchased from the State Land Trust.