Home Builders feel they have weathered the storm

Home builders feel they have weathered the storm, index suggests, from the USA TODAY, reports that home builder sentiment improved in January to its strongest since July, as price cuts, lower mortgage rates and incentives fostered demand, the National Association of Home Builders said Wednesday. The NAHB/Wells Fargo Housing Market index rose to 35 in January, up from 33 in December, marking its highest reading since 39 in July. "Builders are starting to see that the worst is behind them and that buying conditions have improved to the point that greater optimism is warranted," said NAHB Chief Economist David Seiders. The upturn in demand reflect lower mortgage rates since mid 2006, energy prices that sank from record highs, solid employment and household income growth, home price reductions and builder incentives, he added.
http://www.usatoday.com/money/economy/housing/2007-01-17-home-builders_x.htm
The second article, Office rents in parts of Phoenix top $40/sq. foot, from the Arizona Republic, reports that some office buildings in Phoenix at Camelback and 24th Street are commanding rents of more than $40 per sq. foot, rivaling rates of better known addresses in Chicago and Newport Beach, Calif. The Phoenix market average for Class A office space was $26.75 per sq. foot in the fourth quarter of 2006, according to Cushman & Wakefield of Arizona. Competitor CB Richard Ellis listed the Valley's Class A space at $29.21 per sq. foot. Across the Valley, the average asking rates for leases climbed between 15 percent and 20 percent in the past year, according to broker reports. Absorption of office space hit a new record, as nearly 3.5 million sq. feet were leased. The demand was based on strong job creation in 2006. Scottsdale Airpark showed the most job creation, followed by midtown Phoenix, according to the Cushman report. Larry Downing of Cushman & Wakefield says "the West Valley will be the submarket to watch in the next two to five years. Recent residential growth in the area and the addition of amenities like the University of Phoenix Stadium have helped position this submarket for future commercial growth."
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