The Litchfield Park City Council approved an $11.5M bond for projects related to the Litchfield Square downtown core development and associated infrastructure. The bond aims to supplement inflation and other cost increases, which had raised the project’s costs from $25M to $40M.

The Avondale Planning Commission has recommended approval for a rezoning request to create a 45-acre mixed-use development called The District at Crystal Springs. The development will include healthcare facilities, commercial spaces, residential and hospitality uses, with the potential for a hotel and restaurants. The site will be divided into five parcels, including multifamily apartments, commercial spaces, an Encompass Health hospital, and multifamily townhomes. The District at Crystal Springs aims to provide a residential base for the development’s healthcare component and a built-in customer base for retail and commercial offerings.

Chemical Strategies Inc. has acquired 10 acres of land for $2.4 million in Central Arizona Commerce Park, Casa Grande. The company plans to develop a chemical distribution and third-party logistics facility costing between $10 million and $14 million, with an expected opening in mid-2024. The new distribution center joins 15 other semiconductor-related projects in the region.

The Tucson commercial real estate market has experienced various impacts since the onset of the COVID-19 pandemic. The local economy has seen job growth and increased household incomes, while inflation remains high. The office market has faced challenges, with vacancy rates rising and businesses considering smaller spaces. The industrial market has experienced low vacancy rates and demand driven by logistics, distribution, manufacturing, and the cannabis industry. The retail market has seen steady vacancy rates and continued growth in restaurant activity. Lastly, the multi-family housing market has experienced a slowdown in rental growth and cautious underwriting by buyers.

Barclay Group has acquired parcels at Gladden Farms Marketplace in Marana for $4.9 million from Weingarten/Kimco Realty Corporation. The deal includes 9.65 acres, and the marketplace will now feature a 125,000 sq ft Fry’s Food Store with a fueling center and drive-thru pharmacy, set to open in Q3 2024. Additionally, six more out parcels, plats, and shops will be part of the shopping center, totaling 32,200 sq ft at build-out.

Two hotel conversion projects have been announced in Metro Phoenix to increase residential inventories and services. Mesa City Council plans to buy the 72-room Grand Hotel for $7.4M and convert it into a home for the city’s Off the Streets transitional housing program. Meanwhile, Maricopa County Board of Supervisors approved an agreement providing $7.3M in American Rescue Plan Act funds to the City of Tempe to rehabilitate a motel and create up to 60 residential shelter units.

Florida’s home prices have increased by 73.5% in the past five years, with New York residents being the primary movers to the state. Meanwhile, companies are increasingly seeking office spaces in suburban areas, and commercial real estate faces challenges due to reduced property sales and leasing.

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.

Kohlberg Kravis Roberts & Co. acquired a 1.3-million-square-foot industrial park, GO | 99, for $165 million, marking the largest industrial sale in 2023. Cushman & Wakefield facilitated the sale of a 599.5K-square-foot industrial building in Glendale for $81.7 million. Ivanhoe Electric purchased 5,975 acres for its Santa Cruz Copper Project for $34.3 million, while Christ Church Gilbert bought a church building and two commercial buildings for $24 million. Lincoln Property Company’s LPC Desert West and Goldman Sachs signed Tempur-Pedic to a full-building pre-lease at Buckeye85.