Tag Archives: Andrew Cheney

Plaza-Skysong-3

Sights Are Set On Speculative Office

Speculative office buildings are making their way back into the market, says Lee & Associates’ Andrew Cheney.

“As of the end of Q1, 18 percent of the 2 MSF we had under construction is speculative,” he says. “Since then, a few notable projects including Hayden Ferry Lakeside III have kicked off 100 percent speculative. Where markets are tight, like Tempe and Chandler, developers are going spec. South Scottsdale is the only other place speculative office is happening. I lease SkySong 3 which is delivering 70 percent pre-leased in July.”

These buildings are attractive to tech companies and financial and professional services, says Cheney. When it comes to speculative office suites, Hines Managing Director Chris Anderson says small businesses are flocking to building in the Camelback Corridor for economic and time-saving purposes.

Generally, small business owners and smaller tenants do not have the time or resources to endure the process of designing space, selecting finishes and absorbing any cost overrun. Hines’ spec suite at 2375 E. Camelback Road is currently attracting several users who need less than 5KSF… Smaller tenants are trying to build or rebuild their businesses and want a fresh new look that matches their business image.”

Hines recently completed a 3,500 SF speculative suite at 24th at Camelback I and leased it prior to completion of construction. With that success, Hines started another 2,900 SF speculative suite on the third floor that Anderson says will be delivered by summer’s end. Tenants are ignoring office suites in buildings that are not central to employment pools, says Cheney, adding that speculative suites are more attractive between the two. Speculative office suites have faster leasing velocity and a reusable design, however, Cheney says, tenants may still require changes from a finished spec suite. It’s a leap of faith for the landlord, Anderson agrees.

What is your best advice for those who are considering speculative office suites?

Chris Anderson Hines

Chris Anderson Hines

“My best advice is to spend money wisely. Pick a few areas to add some ‘wow’ factor, such as upgraded lighting in the conference room or wall coverings that stand out from the crowd. Keep other areas like offices, open work areas and break rooms generic so tenants can add their own furniture and customized touches later.”

Andrew Cheney

Andrew Cheney

“Build them and tenants will come, and make sure they are cool spec suites.”
SkySong III

Online advertising co-op signs lease at SkySong 3

An advertising innovator changing the way companies advertise online will set up shop at SkySong 3 early next year.

The company, adhesive.co, is relocating from east Indian School Road and will begin its five-year lease at SkySong on January 1, 2015. The layout of the space will be in line with the online ad company’s philosophy of a creative and collaborative environment.

The performance display online advertising company—where they like to say “the geeks are in charge”—helps drive incremental business for clients and is regarded as an industry leader with a fresh approach to online advertising. The adhesive team turns pages of code into advertising solutions for advertisers and publishers.

With the leasing agreement, adhesive.co’s presence at SkySong will help enhance its brand and a perfect fit for its collaborative environment.

“The innovative environment at SkySong will become even more dynamic with the addition of adhesive,” said Sharon Harper, President & CEO of Plaza Companies, the developer of the project. “They are online ad innovators and model collaborators who represent the best in entrepreneurial striving. We are thrilled they decided to come to SkySong, where their unique view of the world will be welcomed with open arms.”

Chad Little, one of the adhesive.co founders alongside Patrick Schwind, said: “Serial entrepreneurialism needs the right place to grow and prosper. Fortunately for Patrick and I, and our clients, we have found that place—SkySong. It’s the perfect fit for our approach, for who we are and for what adhesive is all about. We can’t wait to move in and meet our new neighbors and potential collaborators.”

The addition of adhesive.co is the latest addition to the growing SkySong project, which recently saw the completion of the SkySong Apartments and is nearing the completion of SkySong 3, the third office building at the property. With the adhesive.co lease, SkySong 3 is now at 88 percent leasing occupancy even before opening its doors. Leasing is currently ongoing for SkySong 4, the next office building at the project, with construction anticipated to begin by the end of 2014.

Mark Seale of Cassidy Turley was the leasing agent handling the transaction for adhesive.co. The Lee & Associates team of Craig Coppola, Andrew Cheney and Gregg Kafka represented the SkySong ownership group.

SkySong, the ASU Scottsdale Innovation Center is a home to a global business community that links technology, entrepreneurship, innovation, and education to position ASU and Greater Phoenix as global leaders of the knowledge economy.

SkySong is a 42-acre mixed use development designed to:

• Create an ecology of collaboration and innovation among high-profile technology enterprises and related researchers;
• Advance global business objectives of on-site enterprises;
• Raise Arizona’s profile as a global center of innovation through co-location of ASU’s strategic global partners; and
• Create a unique regional economic and social asset.

Companies located at SkySong enjoy a special relationship with Arizona State University, which has more than 73,000 students at four metropolitan Phoenix campuses. Its campus in Tempe is the single largest campus in the U.S., and is located less than three miles from SkySong.

In addition to locating its own innovative research units at the center, ASU provides tenants with direct access to relevant research, educational opportunities and cultural events on its campuses. Through ASU’s on-site operations, tenant companies have a single point of contact for introductions to researchers, faculty and programs to address their specific needs.

Kafka, WEB

Gregg Kafka Promoted at Lee & Associates

Gregg Kafka has been promoted to associate at Lee & Associates Arizona. He was a Runner with The Coppola Cheney Group for 30 months and will now join the team as a broker.

Kafka specializes in the representation of office landlords and tenants in the leasing and sales of offi ce properties in the metropolitan Phoenix real estate market. His extensive knowledge of the Phoenix market is complemented through analysis and marketing skills involving tenant relocation, tenant expansion, lease negotiations, market analysis and property marketing. These qualities, along with a strong work ethic, have earned him respect from the brokerage community.

Kafka, under the guidance of Principals Craig Coppola and Andrew Cheney, has worked with the team to assist with developing new opportunities and all related activities.

“With his construction background, Gregg adds a unique perspective our clients highly value,” said Andrew Cheney, Principal with Lee & Associates. “The rest of the firm values Gregg as a dynamic broker and is excited to have him aboard as an associate.”

He previously worked for Macerich, one of the largest retail REITs in the U.S. where he provided construction and lease analysis for the company. Kafka holds an Arizona Real Estate License and a Bachelor of Science in Construction Management from Arizona State University.