Younan Properties signals the beginning of the office market recovery with the strategic acquisition of a skyscraper in Phoenix

Los Angeles, California, May 30, 2024 (GLOBE NEWSWIRE) — Younan Properties, a leading global real estate investment and management company, has achieved a significant milestone in its expansion strategy with the acquisition of 3200 Central, a Class A high-rise building in the heart of downtown Phoenix. This 350,000 square foot property underscores the company’s confidence in the office market recovery and its commitment to capitalize on emerging opportunities.

Mr. Zaya Younan, CEO of Younan Properties, highlighted positive developments in the US office market in the first quarter of 2024. “As the macroeconomic environment begins to show signs of improvement and decreasing vacancy rates due to significant conversions, we are witnessing the beginning of a high absorption rate that signals a healthy recovery phase,” he said Mr. Younan. The latest key market data supports this outlook, showing that vacancy rates in more than half of the country’s key office markets have now fallen below their highest levels during the pandemic. According to CBRE’s annual Tech-30 report, Phoenix is among the most active technology markets in North America in terms of office occupancy, rent growth and high-tech job growth this year.

“The overall national office market is also showing signs of improvement as more employers recommend a return to office work. The work-from-home experiment has backfired, which has been attributed to a significant drop in productivity and a halt to collaborative innovation. This change favors a renewed demand for office space. The TIM (tenant in market) index in a key market like Phoenix has increased to the same level as in early 2014, where it shows tenants willing to actually increase their required space, quite the opposite of what we have seen over the last 3 years. The withdrawal from remote work policies and the return to physical offices are driving this return.” Younan added.

Phoenix’s selection for this strategic investment is based on its strong labor market performance and attractiveness in the Sun Belt region, which has seen significant business migration and tenant interest. The local unemployment rate in February was 90 basis points below the national average, and more importantly, office employment was 5.1% higher than before the pandemic, distinguishing Phoenix as one of only three cities in the country with such strong demand and market stabilization after pandemic.

“3200 Central, currently 68% leased, not only is cash flow positive, but also offers significant growth potential through leasing opportunities.” Mr. Younan added. The building’s excellent location close to major hospitals and public utility facilities makes it particularly attractive for tenants engaged in medical activities, which meets market requirements and strategic development goals. The building’s design, location and amenities are tailored to meet the requirements of modern tenants, combining health, sustainability and efficiency to redefine the office experience. This approach not only meets the current needs of tenants, but also puts Younan Properties at the forefront of market development.

Younan Properties is optimistic about the future of the Phoenix office market and plans to continue to focus on high-potential investments in this and other growing markets across the country.

About Younan

Younan Company is a global private equity firm specializing in the acquisition and management of various assets and businesses in the luxury consumer space. The company’s strategy is to build a portfolio of luxury products and properties, as well as lifestyle companies and services. Today, Younan Company is recognized as a global luxury brand, managing over $5.8 billion in assets through its subsidiaries Younan Properties and La Maison Younan.

Younan Properties, Inc. is a commercial real estate investment and management company based in Los Angeles, California, with offices in the 10 largest markets in the USA, with over twenty years of experience in the effective acquisition, repositioning and management of high-rise real estate, class “A” high- and mid-level office buildings.

La Maison Younan owns and manages various businesses, including three Saint-Émilion Grand Cru wineries, Chateau la Croix Younan, Chateau Zaya and Chateau Ascumbas. The company recently entered the spirits sector with El Septimo cognac, El Septimo vodka and El Septimo wines. The private equity firm owns El Septimo Premium Cigars based in Geneva, Cigar showrooms around the world, 7 Global Distribution Tobacco Wholesale, and MPA Studio de Création based 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 the Malibu Foz Hotel and Beach Resort located in Figueira da Foz in Portugal and four French golf courses – Golf des Forges, Golf du Petit Chêne, Golf d’Avrillé and Golf de Vaugouard.