A recent RentCafé report shows that Metro Phoenix maintains its leadership position in the Build-to-Rent (BTR) and Single-Family Rental sector despite a nationwide boom. In 2022, 14,541 new units were delivered across the US, a 47% increase from 2021. Phoenix has delivered 6,071 BTR units between 2017 and 2022, with a 2022 inventory of 8,239 units, representing a 280% increase during the study period. The city also leads in units under construction with 5,473 units.

The USDA is providing nearly $66M to improve access to jobs, healthcare, and infrastructure in Arizona’s historically underserved rural communities. The funding will support 17 projects, creating jobs, expanding businesses, and providing affordable housing, clean energy, and modern water and wastewater systems. This is part of a national $262M funding announcement for 68 projects across the US and Puerto Rico.

Office Properties Income Trust has secured a $30.7 million loan for a federal government-occupied property in Hyattsville, Maryland, as part of its financial preparations for an upcoming merger.

A recent survey by Seyfarth Shaw LLP reveals commercial real estate investors are cautiously optimistic, with 69% expressing a positive outlook for 2023, despite the current recession. This optimism is driven by expectations of upcoming bargains, as nearly half of the respondents plan to invest in distressed assets this year. Investors believe the economy may recover within six to 12 months.

Florida has become a prime destination for investors due to factors such as strong population growth, a tax-friendly environment, and a variety of investment options. The state’s commercial real estate attracts capital investments from both the US and global players, and its infrastructure, including ports and the Brightline high-speed train, has made it a crucial hub for trade. Additionally, South Florida has increasingly attracted technology companies and startups, while the restaurant and hospitality sectors have also experienced growth. Florida’s tax-friendly status and high rankings in areas such as innovation and job growth further contribute to its appeal for businesses and investors.

An op-ed in the Arizona Republic argues that building more housing units at the top end of the price scale is necessary, and that mandating policies for “workforce-attainable” and “affordable” market spaces may be detrimental. The article suggests that building more homes at market rates rather than focusing on affordable or subsidized housing can help reverse the housing crisis. However, the market is already building upper-end market-rate units, with nearly 90% of projects in the top two classes. The challenge lies in getting more projects moving and more units delivered given the current constraints.

Kohlberg Kravis Roberts & Co. has acquired a 1.3M sq ft industrial park in Arizona for $165M, marking the largest industrial sale in the state in 2023. Cushman & Wakefield advised US Capital Development in the sale of a 599.5K sq ft industrial building for $81.7M. Ivanhoe Electric paid $34.3M for 5,975 acres in Casa Grande, and Christ Church Gilbert acquired a 31.9K sq ft church building and two commercial buildings for $24M. NAI Horizon facilitated a $4.5M office building sale in Oro Valley, and The Niki Group purchased a 20.4K sq ft store for $3.13M. Lincoln Property Company signed Tempur-Pedic to a full-building pre-lease at Buckeye85, and Engineered Foam Packaging Corp. leased a 152.2K sq ft building in Casa Grande. Picklemall leased 104K sq ft in Tempe, and RED Development announced six new tenants for the redevelopment of the former Paradise Valley Mall.

The COVID-19 pandemic has led to a lasting preference for drive-thru retail locations among Americans. Government restrictions forced many restaurants to close their lobbies and dining spaces, resulting in increased patronage of drive-thru lanes as a safer option. This trend is expected to continue in the retail property sector.