In the News—Week of July 31, 2023
Deal of the Week
An Arizona-based real estate investment group refinanced their multifamily property in Phoenix, Arizona, for approximately $3 million. The transaction was closed by Bryan Selna, Vice President, and Senior Commercial Escrow Officer, in our Scottsdale office.
Good sign: More tenants interested in office space in San Francisco
Real estate tech firm VTS says its office demand index for San Francisco is up 10.2% over the second quarter of 2022, SF Gate reports. More prospective office tenants are looking for spaces larger than 50,000 square feet, figures from VTS show. San Francisco’s office vacancy rate was 29.4% in the first quarter of 2023.
Hotel construction across the nation rises 7% over 2022
The hotel construction pipeline is going strong, Building Design and Construction reports. Figures from Lodging Econometrics show there were 5,572 projects in the pipeline in the second quarter, a 7% increase from the previous year. That is a total of more than 660,000 rooms, a 6% bump from the previous year. Almost two-thirds of the projects are classified as upscale and upper midscale.
NYC life sciences project signs Graviton Bioscience as first tenant
Life sciences development West End Labs on New York City’s upper west side signed its first tenant, Graviton Bioscience, to a lease, Commercial Observer reports. Graviton, which develops drugs for the early stages of autoimmune diseases, agreed to lease 30,000 square feet. “Graviton was attracted to the building’s transformational repositioning that included high-end, pre-built lab suites, robust amenities and desirable location,” says David Stockel of CBRE, which represented Graviton.
Charlotte office vacancy above 20%, a record high for market
Charlotte’s office market set a record in the first quarter — and not in a good way, Spectrum Local News reports. Figures from JLL show the Queen City’s vacancy rate for office space rose about 20% for the first time, more than double what it was 10 years ago. Office space development has slowed to the lowest level since 2017.
49 million square feet of industrial being built in the Valley of the Sun
Builders are working on 49 million square feet of industrial construction in Greater Phoenix, AZ Big Media reports. Figures from JLL show that 17% of the industrial space under construction in the second quarter was already leased. “Phoenix remains an industrial frontrunner not only in the region but also in the nation,” JLL’s Pat Harlan says. “There is such a backlog of demand for new space that buildings are being leased long before they complete, by a population of tenants that is becoming increasingly diverse.” The industrial vacancy rate in the market is 3.1%.
NRS Logistics America buys 40 acres with rail access in Pinal County
NRS Logistics America, which provides logistic services for chemical and gas, has acquired 40 acres, including 4 acres with rail right of way, in Casa Grande, AZ Big Media reports. NRS paid $7.05 million to Auza Ranches for the property, which is near the west industrial area in Casa Grande. “Proximity to Phoenix. Proximity to its suppliers in the semiconductor industry. Land price. Housing affordability for employees. This deal made sense on so many levels for NRS Logistics,” says Kirk McCarville of Land Advisors Organization, which facilitated the sale.