Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz of the day will be.
Wednesday, the Standard & Poor's 500 index slipped by 1.16 points, or less than 0.1 percent, to 2,387.45. The Dow Jones industrial average lost 21.03 points, or 0.1 percent, to 20,975.09, and the Nasdaq composite slipped 0.27 points, or less than 0.1 percent, to 6,025.23.
Benchmark U.S. crude oil rose 6 cents to settle at $49.62 a barrel. Brent crude, which is used to price international oils, fell 28 cents to $51.82. Natural gas rose 10 cents to $3.14 per 1,000 cubic feet, wholesale gasoline fell 3 cents to $1.59 per gallon and heating oil fell 1 cent to $1.54 per gallon.
Pima County providing shelter at Shooting Range, Fairgrounds for residents evacuated during Sawmill Fire; Fair festivities unaffected by fire – As efforts to battle the Sawmill Fire in the Santa Rita Mountains continue, Pima County is providing support to emergency responders and affected residents. In coordination with the Red Cross, Pima County’s Southeast Regional Rifle and Pistol Range at 11296 S. Harrison Road is being used as an evacuation center. During this time, the range will be closed to public shooting until the location is no longer needed for evacuation purposes. Pima County Natural Resources, Parks and Recreation, as well as the Southwest Fair Commission (which operates the Pima County Fair), have provided support and resources for evacuees, their livestock and pets. Dry camping facilities, an on-site veterinarian, EMS, feed and bedding for livestock, shower facilities, and food vendors are available for evacuees at the fairgrounds. The Sawmill Fire does not pose a threat to the Pima County Fair and the festivities continue as planned. Pima County Office of Emergency Management is assisting with incident management and support during fire suppression and evacuation operations. The Pima County Sheriff’s Department is assisting with evacuations and road closures in the fire area. Call (520) 351-4900 for information about evacuations and road closures. For information on the road and trail closures in the Coronado National Forest, contact the Nogales Ranger District at (520) 281-2296. Office hours are 8 a.m. to 4:30 p.m. Monday through Friday.
BALLOTS IN MAIL FOR MAY 16 SPECIAL ELECTION - The Tucson City Clerk's Office today began mailing ballots for the May 16 mail-in special election asking voters to consider Proposition 101, a proposed half-cent city sales tax for roads and public safety. If approved, the five-year sales tax increase would use $100 million to restore, repair, and resurface City streets, and $150 million would be spent on vehicles, equipment, and facilities for the Tucson Police and Tucson Fire departments. A half-cent sales tax increase is estimated to cost each household member in the City of Tucson approximately $3 per month over the course of the five-year period. Proposition 101 information and maps: https://bit.ly/2nx0vlh
ENHANCE YOUR COMMUNITY WITH A GRANT FROM C2E - Tucson Conserve to Enhance (C2E) is accepting grant applications from local organizations seeking to improve the community with water-harvesting and habitat restoration projects. Enhance your neighborhood wash or green spaces to reduce flooding, create habitat, and improve the health of our watershed. Awards are up to $10,000. Submit your 2-page Step 1 application for consideration by May 31, 2017. Visit the link below for more information and to download the application. Do you have questions or need help with your application? Join C2E for a free grant workshop on Tuesday, May 2, from 5:30-7 p.m. in the Ward 6 Community Room, 3202 E 1st St. Learn about the goals of the C2E program, the grant process, and receive application guidance. RSVP to [email protected]. C2E application and information: https://bit.ly/2p4JHWl
Janet Yellen’s Successor at the Fed Just Might Be Gary Cohn “Speculation is building on Wall Street that a likely replacement to run the central bank would be Gary Cohn, director of the National Economic Council and Trump's closest economic advisor. Cohn also is a former chief operating officer of Goldman Sachs. ‘The buzz among those who claim Cohn confides in them is that he would like to eventually replace’ Yellen, assuming Trump decides to move in a different direction when the chair's term ends in early February, Beacon Research said in its daily report for clients Tuesday.” (CNBC)
Rising Home Prices Raise Concerns of Overheating “The U.S. housing market’s red-hot recovery from the depths of the crash five years ago is fueling concerns among economists and real-estate brokers that home prices are overheating. A dearth of new construction and strong demand from buyers are pushing up prices twice as fast as the rate of income growth, the latest data show, a level economists said is unsustainable.” (Wall Street Journal, subscription required)
5 Things You Need to Know About Industrial Real Estate “E-commerce demand in this booming sector is pushing industrial occupancy past record levels. First-quarter net occupancy gains increased for the 28th consecutive quarter, according to C&W. This marks the longest expansion on record, with net absorption of more than 1.3B SF added since 2010. Last quarter, the sector absorbed 53.8M SF, up from Q4 2016’s 49.3M SF, though this represents a 14.4% decline in absorption year-to-year.” (Forbes)
Guitar Center’s Latest Jam: Future Threatened by its Huge Debt Burden “Is the big leveraged buyout wave of 2005-2007 about to claim another victim? Bonds issued by Guitar Center, the biggest retailer of musical instruments in the world, are languishing at record lows on growing concern that the company is going to be overwhelmed by its roughly $1 billion of outstanding bond debt, part of a debt burden that totals about $1.6 billion, once loans and other borrowings are included.” (MarketWatch)
Trump’s Plan to Kill Energy Star Could Benefit His Properties “Energy Star is best known for labels that tell you how much you’ll pay on your utility bill if you buy a new refrigerator or television. But it also has ratings for hotels, condominiums and office buildings. Trump’s properties tend to receive low Energy Star ratings. The most recent scores from 2015 reveal that 11 of his 15 skyscrapers in New York, Chicago and San Francisco are less energy efficient than most comparable buildings. On a scale of 1 to 100 for energy efficiency, Manhattan’s old Mayfair Hotel, which Trump converted into condos, rated a 1.” (CNN)
Amazon Plans Fulfillment Center Trio for NJ “Amazon will open a 900,000-square-foot fulfillment center in Cranbury Township, where larger customer items such as furniture and sports equipment will be picked and packed. Logan Township will host the largest of the facilities, a 1 million-square-foot building also designed to accommodate larger goods. And in Edison, a 900,000-square-foot fulfillment center will sprout up to handle smaller customer items, including books, kitchenware and the like.” (Commercial Property Executive)
Trump’s Real Estate Buddies LeFrak and Roth Talk Infrastructure Plan “Richard LeFrak and Steve Roth, New York real estate giants and members of President Trump’s working group on infrastructure, dished this week on how to rebuild the country’s aging roads, bridges and other facilities. Appearing at a Washington, D.C. event, the two could not nail down the specifics of the president’s proposal, even as LeFrak bragged that he had Trump’s ear. Roth, the head of Vornado Trust Realty, discussed a plan that would involve $1 trillion in infrastructure spending, financed through a combination of public and private partnerships.” (Forward)
Chinese Buyers Acquiring Source Mall “More than five years after being foreclosed and taken back by its lender, the struggling, mostly vacant Mall at the Source in Westbury has finally found a buyer. A Chinese firm that manufactures and distributes home furnishings, equipment and building supplies is in contract to purchase the 521,486-square-foot mall and plans to turn it into a giant showroom, according to real estate industry sources. The acquiring company’s officials met with mall management in the mall’s empty food court Tuesday.” (libn.com)
New York Landlords Exploit Loophole to Hike Rents Despite Freeze “For renters in almost 30 percent of the city’s 860,000 rent-stabilized apartments, the law’s protections against steep rent hikes have vanished thanks to a late-night loophole created by state lawmakers in 2003. The loophole involves a seeming benefit to tenants known as a ‘preferential rent’ — a rent below the legal maximum allowed under rent stabilization. Landlords say such discounts are good for tenants because “they’re getting a deal. They’re getting a bargain.” (The Real Deal)
365 by Whole Foods Set to Enter Stage ‘2.0’ “On Wednesday, Whole Foods Markets will further its endeavor to bring a more economical incarnation of its brand to the market. 365 by Whole Foods will roll out its fourth location Wednesday with a 30,000-square-foot facility that will serve as the first installment in Texas. The store is in the Cedar Park neighborhood of Austin. The 365 branded stores bring Whole Foods’ patented organic, healthy approach and deliver it to customers via grab-and-go prepared options as well as standard grocery items.” (Supermarket News)
PUBLIC COMMENT IS ENCOURAGED FOR REVIEW OF CITY MAGISTRATE -- The City of Tucson Magistrates Merit Selection Commission is currently reviewing an application for reappointment from the following City Magistrate: Geraldine S. Hale Public participation is welcome and encouraged from those who have had direct experience with the magistrates’ courtroom. All comments should be submitted in writing by 5 p.m., Monday, May 15, 2017 to: City Magistrates Merit Selection Commission City Clerk's Office P.O. Box 27210 Tucson, AZ 85726-7210. All comments are confidential and disclosed to Commission members only. Public comments should include the basis for expressed opinions.