Younan Properties Signals Start of Recovery in Office Market with Strategic Acquisition of High-Rise in Phoenix
Los Angeles, CA, May 30, 2024 (GLOBE NEWSWIRE) -- Younan Properties, a leading global real estate investment and management firm, has marked a significant milestone in its expansion strategy with the acquisition of 3200 Central, a Class A high-rise office building in the heart of downtown Phoenix. This 350,000-square-foot property underscores the firm's confidence in start of recovering of office market and its commitment to capitalizing on emerging opportunities.
Mr. Zaya Younan, CEO of Younan Properties, highlighted the positive shifts in the US office market during the first quarter of 2024. "With the macroeconomic environment started showing signs of improvements and a decrease in vacant office space due to significant conversions, we are witnessing a start of robust absorption rate that signals a healthy recovery phase," stated Mr. Younan. Recent key market data supports this outlook, showing that vacancy rates in over half of the nation’s key office markets have now dropped below their peak during the pandemic. Phoenix ranks among the most active tech markets in North America for office leasing activity, rent growth and high-tech job growth this year, according to CBRE’s annual Tech-30 report.
"The overall national key office market is also showing signs of improvement as more employers mandate a return to office work. The work-from-home experiment has seen a reversal, attributed to significant drops in productivity and a halt in collaboration-driven innovation. This shift is fostering a renewed demand for office space. The TIM index ( tenant in the market) in key market like Phoenix has increased to the same level as seen back in early 2014 where it shows tenant looking to actual expand their required space very much opposite to what we have seen in the past 3 years. The retraction of remote work policies and the return to physical offices are driving this resurgence." Younan added.
The selection of Phoenix for this strategic investment is based on its strong labor market performance and its appeal in the Sun Belt region, which has seen substantial corporate migration and tenant interest. The local unemployment rate in February stood at 90 basis points below the national average, and more importantly, the office-using employment was 5.1% above pre-pandemic levels, distinguishing Phoenix as one of only three cities nationwide with such robust demand and market stabilization post pandemic.
"3200 Central, currently at 68% occupancy, not only brings positive cash flow but also offers significant upside potential through leasing opportunities," Mr. Younan added. The building's prime location near major hospitals and amenities makes it particularly attractive for medical use tenants, aligning with market demands and strategic growth objectives. The building's design, location and facilities are tailored to meet the demands of modern tenants, blending health, sustainability, and efficiency to redefine the office experience. This approach not only caters to current tenant needs but also positions Younan Properties at the forefront of market developments.
Younan Properties is optimistic about the future of the Phoenix office market and plans to continue its focus on high-potential investments in this and other growing markets across the country.
About Younan Company
Younan Company is a global private equity firm that specializes in acquisitions and management of various assets and companies in the luxury consumer space. The company’s strategy is to build a portfolio of luxury products and properties, and lifestyle companies and services. Today, Younan Company is recognized as a global luxury brand with more than 5.8 billion in assets under management through its subsidiaries Younan Properties and La Maison Younan.
Younan Properties, Inc. is a commercial real estate investment and management company, headquartered in Los Angeles, CA with offices within the top 10 markets of the U.S., with over two decades of experience successfully acquiring, repositioning, and managing Class “A” high rise and mid-level office buildings.
La Maison Younan owns and manages various companies including three Saint-Émilion Grand Cru vineyards, Chateau la Croix Younan, Chateau Zaya, and Chateau Ascumbas. More recently, the company has entered the Spirits sector with El Septimo Cognac, El Septimo Vodka, and El Septimo Wines. The private equity firm owns El Septimo Premium Cigars headquartered in Geneva with Cigar Lounges globally, 7 Global Distribution Tobacco Wholesale, and MPA Studio de Création headquartered in Paris, France. Finally, La Maison Younan owns luxury hotels and resorts in France and Portugal, including Château de Beauvois, Hôtel Saint-Martin, Château Le Prieuré, Alexandra Palace, Domaine de Vaugouard, and Château de la Perrière, as well as Malibu Foz Hotel and Beach Resort located in Figueira da Foz, Portugal, and four French golf courses - Golf des Forges, Golf du Petit Chêne, Golf d’Avrillé, and Golf de Vaugouard.
Attachments
- Younan Properties Signals Start of Recovery in Office Market with Strategic Acquisition of High-Rise in Phoenix
- Phoenix Office-Using Employment Is 5.1% Above Pre-Pandemic Levels
Alexandra Younan Younan Properties 8187039600 AYounan@younancompany.com
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