In the News—Week of October 30, 2023
Deal of the Week
An Arizona-based investment group refinanced its 140,000 square foot office building along the Camelback Corridor in Pheonix. The lender was a private finance group from Canada. The $8.1 million transaction was closed by Sheila Hunter, Vice President and Senior Commercial Escrow Officer in our Scottsdale office.
Iconic Flatiron Building in NYC to be converted to multifamily
After 102 years as an office space, the Flatiron Building in New York City is being turned into a residential building, Curbed reports. The group of owners will have to work with the Landmarks Preservation Commission, which has had jurisdiction over the iconic structure since 1966. The building’s last major tenant was Macmillan Publishing imprints, which left in 2019. The floors have mostly been gutted, giving architects a blank canvas to design apartments or condos.
Pharmacy deserts? Drug-store chains plan to shut more than 1,500 outlets
The nation’s largest drugstore chains are going to close 1,500 outlets, and the fear is that it will leave millions in “pharmacy deserts,” The Daily Mail reports. Rite Aid, CVS and Walgreens plan to close stores because of intense competition and losses from crime. “According to our estimates, about one in four neighborhoods are pharmacy deserts across the country,” says Dima Qato, an associate professor at the University of Southern California. “These closures are disproportionately affecting communities that need pharmacies most.”
Asking rates for office space in Miami rise to record levels
Asking rents for office space in Miami-Dade County and Palm Beach County continue their rapid rise, Commercial Observer reports. Figures from JLL show Miami-Dade County landlords asked on average for $59.46 per square foot in the third quarter. That’s 16.5% higher from a year ago. Broward County remains a bargain with, landlords asking $15.43 per square foot, a 4% increase from a year earlier.
First new office tower in New Orleans since 1980s lands Shell as major tenant
Cypress Equities and Lauricella Land Company is building the first office tower in New Orleans since 1989, and the building has landed a tenant, Realty News reports. Shell, which employs 800 in New Orleans and 2,000 offshore, will lease 135,000 square feet in the tower in the River District. The remaining 7,000 square feet will be for ground-level retail. “This (development) further solidifies the long-standing and successful relationship between Louisiana and Shell,” says Gov. John Bel Edwards. “From traditional oil and gas exploration to the current clean energy transition, we are continuing to build on the strength of our partnership by creating more opportunities for economic development and growth that will benefit our people and bring a dynamic addition to the River District neighborhood of New Orleans.” Amazon already has 10,000 workers in the eastside suburb.
World Series of CRE: Dallas market edges out the Valley in comparison
The World Series pits the Arizona Diamondbacks against the Texas Rangers this season, and CoStar Analytics decided to compare the commercial real estate markets of each team’s locale. The Rangers call Arlington, which is between Dallas and Fort Worth, home. The Diamondbacks are located in Phoenix. CoStar created a scorecard for multifamily, retail, office and industrial. Arizona won on retail. The markets split on office. Texas won on multifamily and industrial. Perhaps the Diamondbacks will do better on the field.
Tempe area among hottest zip code in nation for apartment construction
Tempe’s zip code 85281 is among the hottest zip codes in the country for apartment construction, AZ Big Media reports. Figures from Rent Cafe show the zip code, which includes the area around Arizona State University, added 5,667 apartments in the past five years, making it No. 6 on the list. Phoenix’s downtown zip code 85004 ranks No. 26 for apartment construction, with 3,754 units built between 2018 and 2022.