In the News—Week of July 28, 2025
Deal of the Week
An Arizona-based investor, MR Investments #2, LLLP, completed the $3.36 million refinance of two commercial parcels located in Mesa, Arizona. The properties remain a part of the investor’s long-term portfolio strategy. The title and escrow services were provided by Thomas Title & Escrow in collaboration with the National Commercial Services office in Orange County. Senior Commercial Title Officer, Teri Guevara led the closing with support from the broader commercial operations team.
National
More office space being repurposed than under construction in US
For the first time since at least 2018, more office space will be removed from the U.S. market through conversions and demolitions than added this year, AZ Big Media reports. Figures from CBRE show 23.3 million square feet are being repurposed versus 12.7 million square feet of new construction. Manhattan has 10.3 million square feet planned or under construction for conversion, the most in nation. Washington, D.C., (9.2 million square feet) and Houston (6.7 million) have the most office square footage planned or under construction for conversion. Meanwhile, Cleveland (8.4%) and Cincinnati (6.6%) have the largest percentage of their overall office square footage under conversion. Phoenix is experiencing this trend more intensely, with 3 million square feet planned for conversion/demolition compared to just 424,000 square feet of new office construction. Most conversions (76%) are becoming multifamily housing, which has added 33,000 residential units since 2016 with another 43,500 in the pipeline.
National
Corporate buyers stepping in after devastation of January’s Eaton Fire in Altadena, CA
Corporate entities are purchasing properties in Altadena, California, following the destructive Eaton Fire of January, Dwell reports. Approximately 50% of post-fire property sales went to corporate buyers, with six companies acquiring 42% of these properties, a rate far exceeding the national average of 23% for corporate single-family home purchases. Key buyers include Black Lion Properties (connected to lottery winner Edwin Castro), Ocean Development Inc. and several other firms with varying backgrounds and reputations. This pattern reflects a nationwide trend of institutional investors targeting destabilized communities.
National
Florida eliminates tax on commercial leases to delight of business community
Florida has officially abolished its business rent tax, which had been in place since 1969, with the change taking effect Oct. 1, Gulfshore Business reports. As the only state with a statewide sales tax on commercial leases, this elimination removes what many business groups considered a competitive disadvantage for Florida. The tax, which had gradually decreased from 6% to 2%, still generated $2.64 billion in fiscal year 2024 despite rate reductions. Business advocates celebrate this change, suggesting it will boost economic activity and make Florida more attractive for new businesses while providing existing tenants with an effective rent decrease.
National
JPMorgan bets on rental market, pays $243.5 million for tower in Manhattan
JPMorgan acquired a Midtown rental tower from Barings for $243.5 million, marking a significant investment in the New York multifamily market, The Real Deal reports. The 44-story Riverbank building features 418 residential units and ground-floor retail space, with monthly rents ranging from $3,835 for a studio to $8,240 for a three-bedroom unit. This acquisition aligns with JPMorgan’s earlier projection of growth in the New York multifamily market, citing factors such as rising rents and low vacancy rates. The deal, brokered by JLL Capital Markets, was partially financed through a $128.3 million Freddie Mac loan, demonstrating JPMorgan’s strategic expansion into residential real estate.
Arizona
Sales prices for office space in Valley fall below national average in June
Sales prices for office space in the Phoenix market fell below the national average of $189 per square foot in June, AZ Big Media reports. Figures from Commercial Cafe show Phoenix sales average $185 per square foot. Outside of California all the major metros in the West were under the national average. Portland averaged $152 per square foot, Seattle $124 and Denver $95. Western U.S. markets generally showed vacancy rates exceeding the national average of 19.4%. The office sector faces significant challenges with approximately 14,000 properties affected by loans that have recently matured or will mature by 2027, totaling nearly $290 billion.
Arizona
Manufacturing company leases facility at Mesa Gateway Airport for AI factory
Hadrian, an advanced manufacturing company, is establishing a $200-million AI-driven factory at Mesa Gateway Airport, the East Valley Tribune reports. Hadrian announced it is leasing a 270,000-square-foot facility. The factory will create approximately 350 high-wage jobs when it becomes operational early next year. The company selected Mesa due to its proximity to the Phoenix tech corridor, Luke Air Force Base and access to industrial talent, joining over 30 aerospace and defense companies already operating at the airport.
