In the News—Week of September 30, 2024
Deal of the Week
Amerco, the real estate division of Uhaul recently acquired a Self Storage facility in Springfield, Missouri. The property will add 219 units and over 25,000 Net Rentable Square Feet to their abutting property. The property was acquired for $2,000,000 in an all cash transaction. This transaction was closed by Joel Montemayor, Senior Escrow Officer, in our Scottsdale, AZ office.
National
Cables replace white-collar workers as office tower turns into data center
One Wilshire, once a typical office building in downtown Los Angeles, has been transformed into a major data center, the Los Angeles Times reports. Cables, pipes, coolers, generators and other equipment have replaced white-collar workers. The 30-story tower serves as a key link between Asia and North America. This is part of boom for what might be called data-storage real estate, which is sweeping the country. “Never in my career of 25 years in real estate have I seen demand like this on a global scale,” says JLL real estate broker Darren Eades, who specializes in data centers. New construction houses many data centers, but existing buildings are being converted as well.
National
Institutional investors warming up to CRE, head of investment fund says
There has been a significant shift in the commercial real estate market, Market Watch reports. Institutional investors are showing renewed interest in potential investments, particularly outside the office sector, PGIM Real Estate’s head of U.S. equity, Soultana Reigle, says. The improved sentiment is attributed to stabilizing property valuations, encouraging investors to re-enter the market. “From a valuation perspective, what has been evident to us is that we are flattening out,” Reigle tells the website. “People are anxious about missing a window.”
National
Houston tech hub to revitalize former Compaq headquarters
A Houston technology hub called ViVa Center has secured $40 million in financing through Texas’ Commercial Property Assessed Clean Energy program, Houston Innovation Map reports. This funding will support the revitalization of a 2.3-million-square-foot facility, formerly Compaq headquarters, into a state-of-the-art data center focused on cloud computing and AI. The project aims to meet the rising demand for data center infrastructure amid increasing data consumption and technological innovation. ViVa Center plans to offer 250 megawatts of power, as well as various energy-efficient upgrades, including advanced HVAC systems and LED lighting. The financing is provided by Nuveen Green Capital through Lone Star PACE.
National
Warners Bros. considers bringing Harry Potter-themed store to Chicago
Warner Bros. is set to bring a Harry Potter-themed store to Chicago’s Magnificent Mile, The Real Deal reports. The multilevel space at 676 N. Michigan Ave., formerly occupied by Express, could become the second long-term Harry Potter store in the U.S. after New York’s Flatiron District location. This development comes as the Magnificent Mile faces a retail of around 33.5%. The store aims to become a tourist attraction with interactive experiences and themed merchandise.
Arizona
Montreal-based company plans data center near downtown Phoenix
Montreal-based 5C Data Centers has announced plans to expand its operations by opening a new facility in Phoenix, KTAR reports. The 140,000-square-foot data center, named PHX01, is scheduled to go live in 2025 and will be located near downtown Phoenix. This expansion aims to meet the growing demand for high-performance and sustainable data center solutions, with a focus on handling artificial intelligence and machine-learning workloads efficiently. The project is expected to bring economic growth and job opportunities to the area, Phoenix Councilwoman Laura Pastor says. The Greater Phoenix Economic Council views this investment as crucial for advancing the region’s technology cluster.
Arizona
Phoenix finishes second in survey for industrial real estate in top MSAs
The Phoenix metro area has experienced a 44% increase in its distribution and warehouse space stock over the past five years and ranks as the No. 2 market for industrial real estate, AZ Big Media reports. Commercial Cafe surveyed the 100 largest metropolitan statistical areas and evaluated each for distribution and warehouse space inventory; distribution indicators and costs; and logistics infrastructure. Phoenix finished behind only the Dallas-Fort Worth area. Savanah, Georgia was third, the Riverside-San Bernardino-Ontario area in California was fourth and Chicago fifth. Phoenix scored points for the 58.9 million square feet of space added in the past five years, its proximity to West Coast ports and its relatively low rental costs.
