In the News—Week of March 07, 2022
CRE community needs to pay attention to paperwork to comply with sanctions
The United States sanctions on Russia means that anyone in the commercial real estate industry has to be aware that all transactions must comply with government policy, seyfarth.com reports. The Treasury Department’s Office of Foreign Assets Control has a list of “Specially Designated Nationals,” which are companies and individuals that are not allowed to do business with U.S. citizens or residents. Any firm or individual must conduct due diligence to ensure they are not transacting business with anyone on the Office of Foreign Assets Control list.
Energy & Efficiency
Nano coolant cuts industrial chillers energy consumption by up to 10%
Sunway University, Sunway Innovation Labs and Daikin Refrigeration in Malaysia say they have developed nano technology that will cut energy consumption in industrial chillers, Business Today reports. The consortium says its graphene-based nano-fluid can reduce energy needs by up to 10% in the systems used to cool machines and warehouses. Chillers account for as much as 40% of energy use in some industrial buildings.
CityCentre developer purchases former Phillips/Conoco campus
Midway, the Houston-based developer behind CityCentre, paid $25 million for the former ConocoPhillips campus, the Houston Chronicle reports. Sale prices for Texas property are not usually made public. But the seller, Howard Hughes, disclosed the sale in a filing with the Securities and Exchange Commission. Howard Hughes reported a $7.4 million loss on the 68-acre property in west Houston. The vacant office property is near Midway’s upscale, mixed-use development CityCentre.
Gateway developer puts three prime sites in Frisco up for sal
IGO Dubai, the developer of the Gate mixed-use project in Frisco, has put up three prime parcels for sale, The Dallas Morning News reports. The sites total almost 7 acres and are on the Dallas North Tollway. The Gate is a $1 billion project that includes multifamily, retail and offices. Plans call for more than 2 million square feet of construction.
Office market in Phoenix area shows positive absorption in fourth quarter
There are positive signs in the Greater Phoenix office market after a rough couple of years, AZ Big Media reports. Figures from Transwestern Real Estate Services show the market enjoyed positive net absorption in Q4 for the first time since the COVID-19 pandemic began. Landlords were asking for higher rents in all but two submarkets. One of those, Tempe, saw a slight drop in the average rent, but its newly completed 100 Mill building set a record with $50 a square-foot-rental rate. Unemployment in the metro area was down to 2.8% in November, and the Valley of the Sun is forecast to see one highest rates of job growth in the next decade.
Steelmaker says it will invest $1 billion in Nuevo Leon plant
Ternium says it will invest $1 billion in its plant in Peaqueria, Nuevo Leon, Mexico Business News reports. The Argentina-based steel maker wants to expand its portfolio of products that serve automotive, renewable energy, construction, agriculture and home appliances industries. The upgrades will increase the capacity to produce high-strength and ultra-high-strength steels, beginning in early 2024. “We believe this new investment program will strengthen Ternium’s competitive positioning, allowing us to substitute imports in the Mexican market to better serve our customers with a broader and more technologically advanced product portfolio,” CEO Máximo Vedoya says.