In the News—Week of July 18, 2022
Deal of the Week
A California-based real estate investment firm recently purchased a 120-unit hotel site in Gilbert, Arizona for approximately $26 million. James Meng, Jon Grantham, Mike Montoya, and Julia Williams with Colliers (Phoenix) represented the buyer and seller. This transaction was closed by Joel Montemayor, Assistant Vice President in our Phoenix, Arizona office.
Team get a win when council decides to keep development project off ballot
The Oakland A’s managed to secure a small victory in their quest to bring about their Howard Terminal project, The Athletic reported. The Major League Baseball team wants to build a ballpark, apartments, offices and retail spaces at Howard Terminal, which is part of the port of Oakland. The $12 billion private-public partnership would keep the A’s in Oakland, and its backers say would create net tax revenue for the city. The City Council voted 4-2 to keep the project off the ballot in November.
Energy & Efficiency
Houston real estate giant cracks down on carbon emissions
Houston-based Hines has set an ambitious target for reducing carbon emissions that could have wide impact on commercial real estate, Houston Innovation Map reports. The industry giant has set a goal to become net-zero operational carbon by 2024 in its entire global portfolio. Hines currently owns or manages 1,530 properties in 28 countries. “As the impact of climate change is becoming increasingly integrated into our lives every day, the real estate industry has a responsibility to acknowledge this growing problem and take meaningful action to reduce our collective carbon emissions,” Jeff Hines, chairman and co-CEO of Hines, says.
Retail construction continues to roll in Greater Houston area
The Houston market continues to add retail space, Greater Houston Partnership reports. Figures from CBRE show the market added 668,000 square feet of retail in the last quarter, and 4.2 million square feet of space are under construction. The retail occupancy rate in the market is 94.3%, up 0.8% from the first quarter. The market saw the absorption of 1.6 million square feet of space.
North Texas leads the United States for construction of industrial space
The Dallas-Fort Worth metroplex has more industrial space under construction than any other market in the United States, Dallas.CultureMap reports. Figures from Commercial Property Executive show more than 60 million square feet of industrial space was being built in late June. The expansion of e-commerce is driving the market in North Texas and beyond. The vacancy rate for industrial space is about 4.7% nationally.
Investment group expanding Mesa’s ‘Asian District’
Mekong Real Estate Investment Group has broken ground on a $10 million expansion of its Mekong Plaza in Mesa, AZ Big Media reports. The 35,000-square-foot expansion at the southwest corner of Main Street and Dobson Road is expected to be completed next summer. “I’m inspired to see Mekong Plaza expanding in our thriving Asian District,” Mayor John Giles says. “This part of our city is both a significant economic driver and the best place to experience Asian culture, food and traditions without leaving town.” The existing plaza opened in 2008 with 10 Asian-themed businesses. Today it has 30 businesses, and the 100,000-square feet property is 100% occupied.
Newmark foresees expanding market for industrial parks in Mexico City
New York-based Newmark expects expansion of industrial real estate in Mexico City, Mexico Business News reports. Newmark says four of the 13 properties it manages have reached a 100% occupancy rate. “Availability levels in the industrial corridors lead us to not just increase construction and accelerate planning for our 13 industrial parks, but it also fosters expansion at the already existing areas. The industry is the driver of growth of the real estate industry in the current environment,” a market analyst for Newmark, Vianey Macias, says.