Phoenix MSA continues to lead the nation in rent growth, rising 9% y/y to $1,185, still well below national average rent of $1,415. More than 8,700 units came online during 2019. Given the current construction rate, 2020 should prove to be the highest delivery amount since 2009’s 9,315-units.
Union @ Roosevelt, a recently developed mixed-use project within the popular Roosevelt Row district of Downtown, has been sold to a Chicago-based investor for $27 million. Located at 888 N. 1st Ave., features 80 luxury, mid-rise apartments with 9,100 square feet of ground floor retail space and 28,000 sqft of land.
The fully-leased apartment community is home to three retail outlets. GenuWine is a self-serve wine bar with a wide selection of wines, as well as a variety of cheeseboards and locally brewed beer. Fatty Daddy’s ice cream provides customers with local, hand crafted pastries and desserts, free from preservatives, GMOs and artificial colors. Finally, there are multiple letter of intent for the remain restaurant space that will provide the full service restaurant experience for the tenants living at Union and the general public.
The deal, which closed on Monday, includes Galvanize’s campus in downtown Austin in the Northshore building at Second and Nueces and seven other campuses across the country.
In the deal, K12 gets Denver-based Galvanize’s management, brand recognition, network of alumni, Galvanize campuses and programs in data science and software development, said Nate Davis, Chief Executive Officer and Chairman of K12’s Board of Directors, during the company’s earnings call Monday afternoon.
K12 expects Galvanize to contribute $50 million in revenue this year, Davis said. K12 had more than $1 billion in revenue in 2019.
Apartment rents witnessed the slowest annual rise in 17 months – a 3% increase in one year, reaching $1,474, according to a report from RENTCafé. The national average rent ended 2019 by slipping $1 compared to November, but the rent increases are still an average of $43 more compared with one year ago.
Here are the highlights for rent increases in Metro Phoenix:
• Phoenix ended the year charging $1,123 in average rent, after a $98 increase over one year, or 9.6%. This is the largest increase from among the US renter mega-hubs.
• Even higher increases were registered in Avondale, 11.2%, and Mesa, 9.9%. Avondale rents added $122 since the end of 2018, reaching $1,215. Meanwhile, Mesa average rents went up $99, to $1,094.
• Scottsdale charges the most expensive rents, $1,560 on average. They went up $91 compared to one year ago.
• The cheapest rents are in Glendale. Here the average reached $1,026, after adding $79 since the end of 2018.
• The slowest rent increase was registered in Goodyear, as rents here added $62 in one year, reaching $1,252.
A handful of Silicon Valley companies are relocating or expanding their presence in Tempe.
The city, especially the area around Tempe Town Lake, has become a magnet for technology companies, financial institutions and cybersecurity firms from northern California.
Tempe, in particular, is attractive because of its central location in the Valley, access to the airport, and educated population, officials say.
Mayor Mark Mitchell, in a written statement, attributed the influx to “the availability of a highly trained workforce, a lower cost of doing business and a tremendous quality of life.”
The theme of the 13th Annual IREM-CCIM Economic Forecast was “The Real Scoop.” Judging by the comments of economists and industry panelists, the message that resonated was “Phoenix and Arizona are on fire.”
“Last year we talked about being late in the game and would there be extra innings,” said keynote speaker Elliott D. Pollack. “Where do we stand in the cycle now? Well, Phoenix is the most affordable major market in the Western U.S. We’re growing at three times that of other U.S. cities and still need to figure out how to deliver affordable housing. We’re likely to remain one of the top five metro areas in the country. Overall, I’d say the picture is positive.”
The Valley’s premier real estate outlook recently drew a crowd of more than 400 at the Omni Scottsdale Montelucia. Besides Pollack, the Economic Forecast featured panelists who specialize in office, industrial, multifamily and retail properties.
As we embark upon a new decade, it’s hard to miss the technological advances happening all around us. Arizona in 2020 is a state ripe with investment in cutting-edge technology, one where entrepreneurship is thriving and the breakthroughs of tomorrow are happening right in our own backyard.
Arizona’s autonomous vehicle sector is a prime example of how our state has positioned itself to be on the leading edge of the future. After all, it’s where The New York Times said “self-driving cars go to learn.”
While it’s easy to imagine a future zipping around the state in driverless cars, what hasn’t been simple is measuring the actual economic impact of this future for our state. But economist Jim Rounds crunched the numbers and recently released a report for the Arizona Chamber Foundation on the various models and assumptions for Arizona. One thing they all point to? By leading other states, Arizona is poised to reap a disproportionate share of the billions in economic growth and investment this new industry will bring.
Arizona gained nearly 111,000 residents in the 12 months ending June 30.
But you’d be wrong to think they spread out pretty evenly among the state’s 91 cities.
New figures Thursday from the state Office of Economic Opportunity find Queen Creek and Buckeye the biggest year-over-year gainers, each boosting population by more than 7%.
Maricopa was not far behind at 5.1% with growth exceeding 4% in Goodyear, San Luis, Marana and Clarkdale.
Glendale grew by only 0.6%, lower than the state average of 1.6%. Peoria was slightly higher, with 2.3% population growth in the last year.
Avondale grew by 2.4%, Litchfield Park was up 1.8%, Surprise grew by 2.5% and Youngtown 1%.
Buckeye is the state leader in population growth since 2010, up by 60%. Goodyear is not far behind with 35.9% population growth since 2010.
Glendale’s population growth since 2010 is 7.1%.
Peoria grew by 16.9% since 2010.
Maricopa County and the state both grew by about 12% since 2010.
The numbers and the growth rates are more than just bragging rights.
Even a rise in interest rates cannot slow Arizona’s red-hot housing market.
“The modest uptick in mortgage rates over the last several months reflects declining recession fears and a more sanguine outlook for the global economy,” says Sam Khater, chief economist for Freddie Mac. “Due to the improved economic outlook, purchase mortgage applications rose 15 percent over the same period a year ago, the second-highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into 2020.”
That renewed confidence in the economy has most Arizona experts bullish on Arizona’s residential housing market.
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