In the News—Week of July 7, 2025
Deal of the Week
An Arizona based investment firm sold a 57+ acre portion of agricultural land to a Chicago based leading global privately held developer and operator of sustainable energy in Buckeye, Arizona for $4.88+ million. This transaction was closed by Bryan Selna, Vice President and Senior Escrow Officer in our Scottsdale, Arizona Office.
National
National office vacancy rate at 19.4%; construction has slowed markedly
The national office vacancy rate is at 19.4%, up 160 basis points year-over-year, CommercialCafe reports. Figures from its U.S. office market report show the average listing rates increased 4.8% to $33.15 per square foot. Office construction continues to decline nationally with only 41.5 million square feet under development, representing just 0.6% of total stock. Major cities are increasingly focusing on office-to-residential conversions to address high vacancy rates, with Manhattan proposing 23 million square feet for conversion and cities like San Francisco implementing tax incentives and fee waivers to encourage repurposing. Regional performance varies significantly, with Northern California markets struggling with high vacancies while Southern U.S. markets show mixed trends, and Charlotte stands out for positive office job growth.
National
Multifamily REIT Cityview opens NYC office, begins shifting focus to East Coast business
Cityview, a real estate investment firm specializing in multifamily properties, is expanding its operations to the East Coast with a new office in Midtown Manhattan, Connect CRE reports. Previously focused on Western and Southwestern U.S. markets, the company is now pursuing a national strategy targeting markets with strong fundamentals and growth potential. The expansion will be led by Christoph Donner, who joined Cityview in January as global head of capital development and strategy after working at PIMCO. This strategic move represents a significant geographical diversification for the company, which has traditionally concentrated on supply-constrained West Coast markets.
National
Hyatt Hotels sells portfolio of 15 resorts that it just bought to Tortuga Resorts
Two weeks was enough. CoStar.com reports Hyatt Hotels Corp. has signed a deal to sell a portfolio of 15 all-inclusive resorts for $2 billion to Tortuga Resorts, a joint venture between KSL Capital Partners and Rodina. This sale comes just two weeks after Hyatt’s $2.6 billion acquisition of Playa Hotels & Resorts and transforms it into an asset-light transaction. The resorts are located across Mexico, the Dominican Republic and Jamaica, with Hyatt maintaining long-term management agreements for most properties. After this real estate deal closes, Hyatt’s net purchase price for Playa will be approximately $555 million, with the company expecting to generate substantial earnings by 2027.
National
Texas firm buys industrial properties in Cincinnati area from Blackstone
A Texas-based firm, Swift Creek Partners, recently acquired four industrial properties in the Cincinnati area for $44.8 million from a Blackstone REIT, the Cincinnati Business Courier reports via WKRC-TV. The portfolio consists of three properties located in West Chester Township and one in Hebron’s SouthPark Industrial Park, with the latter being the largest purchase at $16.4 million for a 218,400-square-foot building. This significant real estate transaction represents a notable investment in Cincinnati’s industrial market by an out-of-state buyer. The sale demonstrates continued interest in Greater Cincinnati’s commercial real estate sector despite broader market fluctuations.
Arizona
Moses Lake Industries opens research, semiconductor-making facility in Mesa
Moses Lake Industries has opened a new 50,000-square-foot manufacturing and research facility in Mesa, AZ Big Media reports. The facility will produce high-purity electrolyte solutions and copper-based materials essential for advanced semiconductor manufacturing. The facility represents a nearly $100 million investment by the Washington state-based company. Located in Arizona’s semiconductor corridor, the facility is expected to create high-value jobs in engineering, research and advanced manufacturing.
Arizona
Scottsdale seems to be odds with state over office-to-apartment conversions
Scottsdale is facing controversy over its interpretation of a new state law requiring cities to allow conversion of underused commercial buildings into apartments, the Scottsdale Progress reports. The law, recently amended to require “at least 10%” of eligible commercial properties be available for conversion, appears to target Scottsdale after the city previously limited conversions to just 1% of eligible properties. The Arizona Multihousing Association has criticized the city’s implementation, claiming the new amendment still does not comply with state requirements. City officials have not responded to these criticisms, raising concerns about potential legal challenges similar to other housing-related lawsuits the city is currently defending.
