In the News—Week of October 25, 2022
Deal of the Week
A Southern California-based real estate investment firm recently refinanced an industrial property for over $23 million in Phoenix, Arizona. Sheila Hunter, Vice President and Senior Commercial Escrow Officer, in our Scottsdale office had the pleasure of working with this outstanding client.
Regulators promise extra scrutiny for banks with large CRE loan portfolios
Federal regulators warned banks they would be carefully looking at commercial real estate loan portfolios, CoStar News reports. Janney Montgomery Scott, an analyst at a Philadelphia-based investment bank, wrote that banks with loans in Houston, Dallas and San Francisco — cities with office markets that are seen as distressed — can expect some extra interest from regulators.
Energy & Efficiency
WalletHub ranks Massachusetts the No. 1 state for energy efficiency
WalletHub, a credit monitoring service and personal finance advice site, rated every state but Alaska and Hawaii for energy efficiency, and Massachusetts came out on top. South Carolina received the lowest ranking. Arizona was 20th, and Texas ranked 38th. The criteria were home and auto energy efficiency, and among the factors were miles driven, gallons of gas consumed as well as temperatures and how much power was used.
Chicago firm has big plans for its initial property in Houston
Chicago’s Level X Group has entered the Houston market and plans to refurbish its first purchase in the Bayou City with amenities, The Real Deal reports. The idea is to make the 16-story office building at 2100 West Loop South attractive enough that it will draw employees back to the office and then companies will want to sign leases. Level X is a private equity firm.
Dallas developer lands spot for industrial park near Love Field
ndustrial park near Love Field GTC Real Estate Investments LLC has announced plans to develop a two-building industrial park on a site near Love Field, The Dallas Morning News reports. The project, Trinity Industrial Park, is a 5-acre site at Stemmons and Regal Row along Stemmons Freeway and will have about 80,000 square feet of office and warehouse space. Construction is scheduled to begin in the first quarter of next year.
Taiwan-based company breaks ground on semiconductor plant in Casa Grande
Chang Chun Arizona has started building its first U.S. manufacturing facility, a semiconductor plant in Casa Grande, AZ Business Magazine reports. The $300 million facility is expected to create over 200 jobs when it becomes fully operational in 2025. “Chang Chun Arizona represents yet another Taiwan-based semiconductor leader putting down roots in our state and adding to our vibrant advanced manufacturing landscape.” Gov. Doug Ducey said at the groundbreaking ceremony.
Mexico City workers are back in the office, but rents remain low
About three-quarters of the office workers in Mexico City are back in the office, but so far that hasn’t resulted in a rise in rents, Near Shore Americas reports. Figures from CBRE show another 6% of office workers are expected back by June. Commercial property owners in Mexico City also are benefitting from digital nomads from the United States. But the good news is tempered. Many companies are adopting the hybrid strategy and are looking for smaller office footprints. One expert says it could take 10 years for office space to be fully occupied.