Tag Archives: Arizona Market

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Construction employment stalls in August

Construction employment stagnated in August, while the industry unemployment rate fell and a majority of companies reported difficulty finding workers, according to an analysis of new government data and an industry survey by the Associated General Contractors of America. Association officials called for education and immigration reform measures needed to ensure an adequate supply of skilled workers.

“After a strong rebound in 2012, construction hiring and spending have been stuck in neutral through most of 2013,” said Ken Simonson, the association’s chief economist. “Yet the unemployment rate for former construction workers hit the lowest August level in five years, suggesting that experienced workers are leaving the industry rather than returning to it. As a result, firms are already having trouble finding workers.”

Construction employment totaled 5,798,000 in August, matching the July total, which was revised up by 5,000 from the initial estimate released four weeks ago. The August total is 3.0 percent higher than in August 2012 but has been nearly flat since March 2013. Similarly, a Census Bureau report on construction spending released on September 3 showed spending had changed little between May and July, the latest month available. Meanwhile, the unemployment rate for workers actively looking for jobs and last employed in construction declined from 11.3 percent in August 2012 to 9.1 percent last month—the lowest August rate since 2008.

“Over the past three years, the number of unemployed, experienced construction workers has dropped by half,” Simonson noted. “Unfortunately, the construction industry has been able to hire only about a third of those workers, while the rest have left construction for other industries, schooling, retirement or have dropped out of the labor force. The recent leveling-off of construction hiring means the industry risks losing more of its experienced workers, setting up a potentially grave shortfall when demand for construction resumes.”

Nearly three-fourths (74 percent) of the construction firms that responded to a survey that the association released on September 4 reported they are having difficulty filling some craft-worker positions. More than half (53 percent) of the respondents also said they are having difficulty filling professional positions.

Association officials said that the fact that hiring problems appear so widespread when overall construction employment is flat was particularly worrisome in light of the high demand for workers expected in the near future. They urged elected officials in Washington to support construction education and training programs and to treat construction equitably in guest worker provisions of immigration reform legislation.

“Construction employment has leveled off for now, but retirements and selected areas of demand mean there is still a need to address worker shortages before they become acute,” said Stephen E. Sandherr, the association’s chief executive officer. “We need to make sure there is an adequate supply of skilled construction labor to meet future demand.”

rossmore

Cooper, Cardinal and Company sell apartment complex

Cooper, Cardinal and Company LLC, a boutique multi-family investment brokerage firm with headquarters in Phoenix, Arizona, recently closed the transaction for Rossmore Apartments, an 26-unit multi-family community located in Glendale, Arizona near Westgate City Center and Historic Glendale District. The sale price of $635,000 represents a capitalization rate of 7.10% on Proforma income. It equates to $24,423 per unit or $42.50 per square foot.

Gary R. Cooper, a Managing Director and Jack A. Cardinal, a Managing Director of the firm, represented the Seller in the transaction. “Rossmore Apartments is a great example of the premise that commercial real estate is not a zero sum game. The Seller purchased the property in distress and did well by taking risks when others would not. The Buyers own in the area and have a great vision for the property and thus will be able to take the property to new heights creating a true win-win transaction’,” stated Cooper.

The 14,940-square foot apartment community, built in 1963 is situated on a 1.61-acre lot and was 85% occupied at the time of sale. Jack A. Cardinal added, “With recent capital improvements such as a new roof and ceramic tile flooring, the bones of this 1963 asset are rock solid. We were very pleased with the outcome of this transaction and in helping execute the exit strategy as the Exclusive Listing Agents for our opportunistic, Canadian based Seller. This was an important assignment for a repeat client in helping the client reach his market goals and reinvest the proceeds on the East Side.”

SanTan Village Furniture Center photo - August deals

De Rito Partners Announces Recent Transactions

New bike shop opening in Tempe

The Pedal Bike Shop signed a lease for 3,763 square feet at 405 W. University Drive, near the Arizona State University campus. The shopping center is located at the southeast corner of University Drive and Wilson Street in Tempe. De Rito Partners’ brokers John Palmieri and Chris Corso represented the landlord in the deal.

Dental Care of Mesa to open at the Village at Superstition Springs

De Rito Partners’ brokers Gordon Heckaman and Steve Berman represented the landlord in signing a lease for 2,615 square feet at the Village at Superstition Springs. Dental Care of Mesa will be joining the center located just west of the northwest corner of Power Road and Baseline Road.

Verizon Premium Dealer set to open in Gilbert

MyBullfrog.com, a Verizon Wireless Premium Dealer, signed a lease for 2,000 square feet at the northwest corner of Gilbert Road and Warner Road in Gilbert. Gordon Heckaman and Morey Fischel of De Rito Partners represented the landlord in signing the lease.

Van’s Golf Shop coming to SanTan Village Furniture Center

Van’s Golf Shop signed a lease for 7,500 square feet at the northwest corner of SanTan Village Parkway and Market Street, in the SanTan Village Furniture Center. De Rito Partners’ broker Matt Morrell represented the landlord in completing the deal.

L’Mage Salon Suites adding location in Gilbert

One of Metro Phoenix’s top salons, L’Mage Salon Suites, signed a lease for 3,598 square feet at Gilbert Town Square. The center is located just south of the southwest corner of Gilbert Road and Warner Road. Stan Sanchez represented the tenant; and Bill Bones and Carl Jones, Jr. represented the landlord in completing the deal.

TitleMax opening a store in Sierra Vista

De Rito Partners’ broker Bill Bones represented TitleMax in signing a lease for a new 5,592-square-foot store in Sierra Vista, Arizona. The new store is located at 822 W. Frye Boulevard, near the corner of Frye Boulevard and Buffalo Soldier Trail.

Cabinets Beyond expanding at Cave Creek Plaza

Cabinets Beyond is relocating within the Cave Creek Plaza to a 2,793-square-foot space, an increase of 1,353 square feet from their previous location. Chris Corso and Lizette Fonseca of De Rito Partners represented the landlord in signing the lease at the center located at the southwest corner of Cave Creek Road and Bell Road.

Scottsdale adding a new bicycle shop

Javelina Cycles Owner Rick Marquis signed a lease to open Giant Scottsdale/Liv Giant Bicycle Shop at 68th Street and Thomas Road in Scottsdale. Morey Fischel of De Rito Partners represented the tenant in signing the lease for a 5,000-square-foot space.

Pet groomer to open first location in Chandler

Paws Attractions, a pet sitting and grooming service, is opening their first location at Monterey Vista Village in Chandler. The tenant leased a 1,265-square-foot space at the center located at the northwest corner of Pecos Road and McQueen Road. Steve Bonnell of De Rito Partners represented the tenant in the deal.

NexTech Repair coming to Scottsdale

NexTech Repair, a repair service of smartphones and personal communications electronics, is set to open a new location in Scottsdale at Loop 101 Freeway and Via de Ventura. Gordon Heckaman of De Rito Partners represented the tenant in signing the lease for a 1,000-square-foot space.

New furniture store being added to Verde Valley Plaza in Cottonwood

Classic Home Furnishings is opening a new furniture store in the Verde Valley Plaza. The tenant signed a lease for a 3,800-square-foot space at the center located at the southwest corner of Highway 89A and Highway 260 in Cottonwood, Arizona. De Rito Partners’ broker Dale Harsh represented the landlord in completing the deal.

Styles for Less adding new location in Scottsdale

Styles for Less will be opening a new location at Scottsdale Fiesta Shopping Center located at the southeast corner of the Loop 101 Freeway and Shea Boulevard. Paul Serafin of De Rito Partners represented the tenant in signing the lease for a 4,000-square-foot space.

Public charter school to open in Downtown Phoenix

Arizona School for Integrated Academics and Technologies, part of a nationwide network of public charter schools, will be adding a new school at the southwest corner of 12th Street and Washington Street in Downtown Phoenix. Carl Jones Jr. of De Rito Partners represented the landlord in signing the lease for a 10,194-square-foot space.

lease

Metro North Corporate Park Signs 2 New Leases

Metro North Corporate Park recently signed the following two new Leases at their 13450 N. Black Canyon Highway facility in Phoenix, Arizona.

  • The State of Arizona signed a 30,000 s.f. five-year Lease and will be utilizing the space for its Department of Economic Security – Child Protective Services Division.  The space will be used primarily for administrative activities.
  • Peckham, Inc. (Lansing, Michigan) signed a 40,000 s.f. five-year Lease.  Peckham, Inc., a nonprofit vocational rehabilitation organization, provides job training opportunities for persons with significant disabilities and other barriers to employment.  Initially, Peckham plans to employ approximately 100 people and eventually they should have approximately 250 employees within the facility.

The Leases were negotiated by Cashen Realty Advisors, Inc.

Bernards & Construction

Construction Spending Rises 0.6 Percent in July

The nation’s builders were busy in July as construction spending increased 0.6 percent to $900.8 billion—the largest upswing in four years—according to the Sept. 3 report by the U.S. Commerce Department.

Nonresidential construction spending also rose 0.6 percent in July, but is down 0.8 percent compared to one year ago.

Private nonresidential construction spending grew 1.3 percent, only to be offset by a 0.2 percent decline in public nonresidential construction spending. On a year-over-year basis, private nonresidential construction is up 2 percent while public nonresidential construction spending has dipped 3.7 percent.

Eleven of 16 construction sectors posted monthly gains in spending. The largest gains were in lodging, up 5.8 percent; conservation and development, up 3.6 percent; manufacturing, up 3.3 percent; and transportation, up 2.4 percent. Six subsectors experienced higher spending on a year-over-year basis, including lodging, up 29.9 percent; commercial, up 1.6 percent; power, up 6.1 percent; sewage and waste disposal, up 3.8 percent; water supply, up 9.5 percent; and manufacturing, up 0.2 percent.

In contrast, spending in five nonresidential construction sectors declined in July, including educational, down 0.7 percent; religious, down 3.1 percent; public safety, down 8.1 percent; amusement and recreation, down 2.7 percent; and highway and street, down 1.1 percent. On a year-over-year basis, construction spending has softened in 10 subsectors. The largest losses occurred in religious, down 18.1 percent; public safety, down 14.1 percent; amusement and recreation, down 12.6 percent; and communication, down 12.5 percent.

Residential construction spending increased 0.5 percent for the month and is 16.8 percent higher than the same time last year.

Deloitte-Jonas McCormick

Deloitte LLP Names New Managing Principal Of Its Phoenix Office

One of the largest accounting and consulting organizations in Arizona, Deloitte LLP, named a new managing principal of its Phoenix office Nov. 15.

Jonas McCormick, principal, Deloitte Consulting LLP, is now managing principal of Deloitte’s Phoenix office. McCormick succeeds Michelle Kerrick, who was recently appointed managing partner of Deloitte’s Los Angeles office.

After graduating from the University of Notre Dame with a Bachelor’s degree in business administration, McCormick has spent the majority of his career serving the Arizona market.

“Having spent the majority of my career serving some of Arizona’s largest companies, I am familiar with this marketplace and the complex business challenges local companies are facing,” McCormick notes. “In my role, I can help align Deloitte’s diverse offerings – which include audit, tax, financial advisory and consulting services – to address the needs of the organizations we serve.”

As a lead client service principal at Deloitte, McCormick helps companies across a range of industries implement operational excellence and performance improvement programs in their organizations. He assists clients in achieving strategic cost reduction and enhancing revenue and performance management with his vast knowledge in the areas of organizational design and development, human resource management and change enablement.

“One of my key objectives as managing principal of Deloitte’s Phoenix office is to build on the momentum we’ve established in Arizona, where we are currently ranked as the largest professional services firm, and grow our footprint in the local market,” McCormick says. “We will maintain our focus on delivering quality and value to our clients, while continuing to invest in our people and the community in which we live and work.”

Tony Buzzelli, vice chairman and regional managing partner of Deloitte LLP Pacific Southwest, commends McCormick for his competent leadership skills and looks forward to McCormick leading the Phoenix office.

“Having served some of the largest companies in Arizona over the last decade, Jonas has demonstrated strong leadership and success in driving value for our clients,” Buzzelli states. “Jonas’s focus on growing our business, developing our people and representing Deloitte positively in the marketplace position him well to serve as managing principal of our Phoenix office.”

Tawil in front of Kmart

First Job: Mark El-Tawil, President of Arizona Market, Humana Inc.

Mark El-Tawil
President, Arizona Market, Humana Inc.

Describe your very first job and what lessons you learned from it.
My first job was as a pre-opening stock clerk at Kmart. It was in the small town where I grew up and went to college, and Kmart was about the only place an unskilled worker like myself could get a good job! That job paid 30 cents over minimum wage, the shift started at 7 a.m. — or earlier — daily, we could be scheduled for any day (weekends and holidays included), and we were considered the bottom of the Kmart totem pole — but it was a great first job. I learned the value of money, the importance of working hard and of having a good attitude about work, and that everyone wins when you try to deliver great customer service, as well as the power of positive reinforcement through my Employee of the Month awards (I don’t usually gloat, but that was “awards” — three of ‘em!).

Describe your first job in your industry and what you learned from it.
My introduction to the health care industry came in my first professional position after moving to Arizona. I was an auditor with Deloitte predecessor, Touche Ross, in Phoenix. That was a great first professional job. It introduced me to many industries, one of which was health care, while working among an incredibly talented group of highly motivated, fun-loving individuals. From Deloitte, I left to help build a financial analysis team at a health care client of mine, and after some time advancing through finance roles, including CFO, I moved into the lead general management role. In that position I gained a broader perspective of the industry and the companies in it, and ultimately decided to make the move to Humana in 2008.

What were your salaries at both of these jobs?
Kmart paid $3.65 an hour to start, with a raise to $3.90 an hour after 90 days if you had a favorable review of your probationary period (which I did, thankfully!). As an auditor at Touche Ross, my starting salary was $25,000 a year, and I got company-paid health insurance benefits for the first time.

Who is your biggest mentor and what role did he or she play?
My parents, grandparents and in-laws all played crucial roles in my development as a person, which has enabled me to be a good businessperson. Beyond mentors though, I believe that I have learned, and will continue to learn, from everyone for whom I have worked, as well as from everyone who has worked for me.

What advice would you give to a person just entering your industry?
Be open to and ready for change! This is a dynamic, fast-moving industry in a constantly changing environment, so the ability to foresee changes, the impact of change and to adapt to new environments is critical.

If you weren’t doing this, what would you be doing instead?
I’d either be playing basketball full time (for love or money — this is a fantasy question, right?) or be deep(er) into wine, either as a winemaker myself or … as a buyer for an international beverage conglomerate.

Scottsdale Fashion Square - Best of the Best Awards 2009 presented by Ranking Arizona

Best of the Best Awards 2009: Retail

Retail Honoree Shopping Centers

Scottsdale Fashion Square



Scottsdale Fashion Square - Best of the Best Awards 2009 presented by Ranking Arizona

Photograph by Duane Darling



Scottsdale Fashion Square is the premier luxury center in the Southwest, attracting visitors who seek elegance, quality and sophistication. An unparalleled retail experience, Scottsdale Fashion Square has a unique style and atmosphere that make it Arizona’s epicenter of elite and exclusive brands. Comprised of more than 225 shops and restaurants, the center boasts more than 40 stores exclusive to Arizona, including Neiman Marcus, kate spade, Burberry, Jimmy Choo, Salvatore Ferragamo, MaxMara, Gucci and Michael Kors, to name a few. Recent additions to the center include Bottega Veneta, Grand Lux Cafe, AIX Armani Exchange, Metropark, Puma and CH Carolina Herrera. Just as style never stands still, neither does Scottsdale Fashion Square. A multiphased renovation and expansion, projected to open fall 2009, will introduce Barneys New York to the Arizona market.

A multiphased renovation and expansion, projected to open fall 2009, will introduce Barneys New York to the Arizona market.

7014 E. Camelback Road, Scottsdale
480-945-5495
www.westcor.com

Year Est: 1964
Total SQFT: 1.8M
Principal(s): Westcor


Retail Finalist Car Dealers: $39K or less

Camelback Volkswagen Subaru Mazda

Camelback Volkswagen Subaru and Mazda, for the 10th year in a row, congratulates its customers, employees and award winning lineup of fuel efficient top models for safety- and crashtested Volkswagen, Subaru and Mazda products for 2009. Its great service staff provides extended hours, free service loaner cars and a pleasant environment for valued customers. Browse its interactive Web site at www.camelbackdifference. Its entire inventory is listed for your streamlined-buying process, as well as its weekly specials. You are encouraged to feel at home on the site.

1499 E. Camelback Road, Phoenix
602-265-6600
www.camelbackdifference.com


Retail Finalist Jewelers

Molina Fine Jewelers

It is not a mirage. It is an oasis, one where you can acquire the most magnificent and spectacular gems in the world. Molina Fine Jewelers is the “Jewel of The Desert” with 12 generations of expertise. Entering Molina, you are transported to the Old World traditions of personalized service, where they exceed your every expectation. Molina designs are handmade by master jewelers, where every detail, including the execution of its internal structure, embodies flawless design and wearability. Its one-of-a-kind collections will captivate and inspire you, bringing your emotions and desires to life.

3134 E. Camelback Road, Phoenix
602-955-2055
www.molinafinejewelers.com


Best of the Best Awards 2009 presented by Ranking Arizona