Tag Archives: brokerage

The interior of the "Net Zero" DPR Construction office in Phoenix

Out of the Gate FAST

With the Valley’s housing market healthy again, developers and builders of industrial and office properties are hoping to ride the wave.
With the recession (hopefully) a distant memory, the industrial sector has sprinted out to the lead.
“Industrial projects have significantly outpaced office projects in our pipeline,” says Andrew Geier, executive vice president at Layton Construction. “Since finishing the Cigna Phoenix Central Multi-Specialty Center in late 2012 with Clarius Partners, most of our office portfolio has been comprised of tenant improvement projects.
In regard to industrial construction, Layton is 70% complete with its 1.5 MSF Marshalls Distribution Center. The Marshalls project has several unique features, Geier says. Other than its sheer size, it also boasts 52-foot clear heights and 6,500 kilowatt of generator back up power.
“We are also currently building out 80,000 SF of space for Maxwell Technologies,” Geier says. “The facility will produce carbon film used in capacitor production.”
In addition, Layton was recently awarded a 400,000 SF expansion to Macy’s Fulfillment Center in Goodyear. Also in Goodyear, Layton has been awarded the new 160,000 SF foot facility for The Cookson Company, Inc., an industrial door manufacturer.
“Our outlook for industrial projects remains very positive,” Geier says. “Obviously a strong backlog of projects helps shape that opinion, but we also think that the Valley offers several advantages for companies searching for a new location. Our positive outlook includes new speculative buildings, but we think the majority of the spec buildings will be industrial — with spec office lagging well behind.”
The West Valley appears the hot spot for industrial projects, says Tammy Carr, vice president business development for Howard S. Wright Construction, a Balfour Beatty company.
“Clearly it (the West Valley) has seen significant planning efforts in the speculative industrial sector and all of our industrial developer clients are seeking the appropriate timing to bring more product online,” Carr says. “Most seem to be continuing forward with design of facilities around the 400,000 SF range, but with a very watchful eye on the leasing results of those currently under construction.”
Balfour Beatty Construction just delivered to market a 185,834 SF refurbished cross dock distribution facility for Liberty Property Trust. The facility, Liberty Sky Harbor Center, is at 2626 S. 7th St. in Phoenix. This same client, Carr adds, is also partnered with the City of Tempe on a 100-acre, 10-year development plan for the construction of office, industrial and commercial flex space named Liberty Center at Rio Salado which will kick off later this year with a possible speculative office building.
“Additional new to market industrial projects for Balfour Beatty includes a process facility in the East Valley,” she says. “Whereas the West Valley seems to be the speculative king, the East Valley seems to have captured the hearts and commitments of the end users.”
From Sundt Construction’s perspective, speculative development is still not something it is seeing a lot of in the office sector.
“We have, however, seen good activity in the private office market, including projects related to tenant improvements, renovations, and build-to-suits,” says Ian McDowell, pre-construction manager Southwest District.
“We recently completed tenant improvements for Allstate Insurance and in the Fountainhead Corporate Park as well as a renovation at the Arizona Public Service Deer Valley campus,” McDowell says.
Sundt also has secured three additional office projects in the past three months: a renovation for a public utility company, a tenant improvement for a private company, and a new build on an existing campus for a private client. Total value of these projects approaches $90M, McDowell says. Jobs for Sundt’s office clients comprise nearly 40% of its new work this year and McDowell says the company expects that trend continuing into 2014.
“We have also seen a big uptick in developer activity in the office market,” McDowell says. “Many of the developers we are working with are seeking key anchor tenants which will be the catalyst to kick off some very attractive office projects in the next year. We believe private developers are among our best business prospects and plan to closely monitor that market for opportunities.”
When it comes to office projects in the Valley, DPR Construction is keeping busy. Tenant improvement clients include Willis North America, Digital Realty Trust, eBay, Morgan Stanley & Co., and Alliance Project Advisors.
“I feel we (the Valley) are returning from the recession a little better than other areas,” says Michael Rauschenberger, commercial office leader for DPR. “What’s happening now is office space is getting gobbled up by larger tenants. There are more and larger users coming to town. They are looking for 100,000 SF to 150,000 SF in a building, or in a couple of buildings.
“It may be 6 to 8 months before settling on a building and then it’s not what they want. Then it’s a TI, and they end up on two floors. Trying to find Class A office space on contiguous floors is getting harder and harder.”
What’s fueling the office trend? Phoenix is the third fastest growing city in the U.S. coming out of the recession. California is facing tax issues. Lease and rental rates are low. Deals are getting made. And has a pretty stable economy.
Rauschenberger predicts there will be more product on the market in the next year to year and a half. He also says there is an increased demand for renovated and repurposed buildings in Metro Phoenix. And DPR has perhaps the best example of this: its award-winning headquarters at 222 N. 44th St. in Phoenix.
According to industry experts, sustainable features are consistently and steadily being requested by businesses seeking space in existing renovated, repurposed and updated buildings. Tenants, apparently, are willing to pay for sustainable features. As a key player in corporate office renovations and repurposing, DPR is leading the charge with its LEED Platinum office which was recently certified as the world’s largest Net-Zero Energy Building (NZEB) by the International Living Future Institute (ILFI) through its Living Building Challenge (SM) program.
“Our office is a living, breathing lab, and a showcase for sustainability,” says Rauschenberger, who adds DPR conducts four to five HQ tours a week. “Whether it’s a TI or ground up, users are incorporating more and more sustainable features. Some of these companies have a sense of pride and care about the people that work there.
“People should like to come to work,” he says, “and we’re seeing that more and more. It’s amazing to see how these new projects are starting to embrace a change in office design.”


Walt Danley Realty Launches Commercial Brokerage Division

Scottsdale-based luxury residential real estate brokerage Walt Danley Realty announced the formal launch of its boutique commercial brokerage division, Walt Danley Commercial.

“We chose to launch the division now because we see great opportunities,” said Tom Snyder, designated broker of Walt Danley Realty. “Across all spectrums of metro-Phoenix’s commercial real estate industry, we are experiencing a recovery cycle after several years of downturn.”

Snyder adds that unemployment is down to a four year low, new housing starts are the highest in four years and homebuilder confidence is up.

“With conditions such as record low interest rates, multifamily prices rising, considerable activity in investment grade properties and home foreclosures declining, we feel confident that now is the right time to enter the commercial real estate market,” he says.

“Our commercial division is an extension of our residential real estate brand,” says Walt Danley, president of Walt Danley Realty. “Commercial is the natural progression for us as many of our clients are investors and business owners. We look forward to servicing our clients in all of their real estate needs with our signature customer approach.”

Notably, Danley has made business decisions like this throughout his career to ensure his clients receive “white glove treatment.” When Danley was a single real estate agent, he referred business to agents outside his market area.

Then, according to Danley, rather than risk clients not receiving his high standards in service, he decided to establish a team of agents to cover a larger market area and keep that business; which later led to the founding of Walt Danley Realty.

Danley will remain at the helm of the firm’s luxury residential real estate offering, and Snyder will head its commercial division.

Snyder has experience in both commercial and residential real estate, and previously owned his own real estate brokerage for nearly 30 years. He has served as a CFO, as well as in other executive roles for national and international corporations. Snyder has serviced clients across the U.S. in site selection, planning and zoning, financial analysis, construction and leasing.

Walt Danley Commercial recently hired Guy Donahue, a real estate veteran with more than 30 years experience, as its Commercial Realtor. Previously, he was instrumental in the planning, implementing and building of the 1,000-acre master-planned community, The Ocotillo Community and Golf Course.

“It’s an honor to join such a prestigious and well-known brand,” Donahue said. “The marketing support is second to none and we’re looking forward to assisting Danley’s current clientele with their commercial real estate needs.”

Services through Walt Danley Commercial include:

• Commercial land sales

• Office building sales

• Office leasing

• Medical building sales

• Apartment sales

• Residential land sales

• Retail center sales

• Industrial land sales

• Industrial building sales

“Our commercial division will follow the same customer-centric business model that has been so successful in our residential space,” Danley added.

For more information, visit www.waltdanley.com.

Larry Downey

Larry Downey Named Vice Chairman at Cushman & Wakefield

Cushman & Wakefield announced Larry Downey has been named Vice Chairman, a title reserved for an elite few throughout the firm’s worldwide offices.

The distinction marks the first time in the 25-year history of the company’s Phoenix office that an individual has been assigned that designation.

“The Vice Chairman title honors Cushman & Wakefield professionals who stand out as top performers, both in production and fulfilling the core values of our firm,” says Tom Johnston, senior managing director of Cushman & Wakefield of Arizona, Inc.

“In order to be considered for this distinction, professionals must not only be perennial top producers, but exhibit leadership, a genuine commitment to collaboration, mentorship of our future leaders, exemplary client reviews, and a strong history of dedication to charitable causes. Over the years, Larry has excelled in each category and elevated the importance of the Phoenix market to the firm.”

Larry Downey is a 28-year veteran of the commercial real estate industry. He represents both tenants and building owners.

Ensemble Real Estate Solutions - Autumn Storm

Storm Joins Ensemble Real Estate Solutions As Healthcare Landlord Rep

Ensemble Real Estate Solutions hired Autumn Storm as the company’s Healthcare Brokerage Services Landlord Representative responsible for securing and managing landlord representation listings.

Storm brings extensive real estate experience, most recently holding an Analyst position at Lefevers Viewpoint Group Advisors where she analyzed and appraised large-scale commercial real estate projects.

Prior to Lefevers, Storm was an Analyst/Researcher with Canterra Consultants, Synthesis Development and ESI Corporation where she worked on projects such as analyzing market and financial feasibility for the redevelopment of a hotel site owned by the City of Albuquerque, conducting a comprehensive supply and demand analysis for the redevelopment of the City of Apache Junction’s downtown and analyzing the best use and financial feasibility for a redevelopment project owned by the Housing Authority of Maricopa County.

Storm’s diverse experience will bring value to Ensemble’s clients with the analyses of buy and/or lease scenarios, preparing annual property budgets, securing and managing listings, and negotiating lease rates and terms.

Storm holds a master of Real Estate Development degree from Arizona State University and became an LEED Accredited Professional in 2008.

Storm can be reached directly at (602) 385-2854 or via email at: astorm@ensemblere.com.

Roosevelt Point

Roosevelt Point Launches Website and Leasing Office

The buildings at Third Street along Roosevelt Row have been steadily rising into the Downtown Phoenix skyline since breaking ground in March.

Now the project has a name reflecting its geographical and social place in the community: Roosevelt Point.

In addition to the new name, Memphis-based EdR and Scottsdale-based Concord Eastridge are launching the public website for potential residents to find more information on the project:  RooseveltPoint.com.

The temporary leasing office will open in the Arizona Center next to the AMC movie theater on Oct. 3, but the staff is available to answer calls now at (877) 804-7115. The leasing office address is 455 E. 3rd St., Suite #1080, Phoenix, 85004.

The project’s completion date is targeted for July 2013. The two apartment buildings are designed to be attractive options for students and new graduates affiliated with Arizona State University Downtown Phoenix Campus, University of Arizona’s College of Medicine and the Phoenix Biomedical Campus and other young urban professionals.

Upon completion Roosevelt Point will include approximately 326 apartments with studios, one-, two-, three- and four-bedrooms. Each bedroom will have a private bathroom.  The community will also feature a parking garage and other upscale amenities such as common areas, fitness and tanning facilities and swimming pools.

Rent levels have not been determined, but will include all utilities, high speed Internet and basic cable service.

7,500 SF of retail space fronts Roosevelt and Fourth streets and will be subdivided depending on future tenant needs. The company will seek retailers that will appeal to all downtown residents.

Concord Eastridge is developing the project, which will be owned jointly with EdR.  EdR is the majority owner and managing member of the joint venture and will manage the community. Hardison/downey is the general contractor.

CBRE - Rusty Kennedy

CBRE's Rusty Kennedy Receives National NAIOP Award

CBRE Senior Associate Rusty Kennedy has been named one of the recipients of NAIOP’s 2012 Developing Leader Award.

The annual award is presented to 13 exceptional young professionals from across the country based on their achievement in their field, as well as their outstanding contribution to the industry and the NAIOP organization.

Kennedy, who began his career at CBRE in 2007, focuses his business on the industrial market. Earlier this year, the Arizona NAIOP chapter recognized him among its Industrial Brokerage Team of the Year and named him its Developing Leader.

Kennedy is also active in industry and community organizations including vice chairperson of NAIOP Arizona’s Developing Leaders Steering Committee, a member of the Council of Supply Chain Management Professionals, Southwest region leader of CBRE’s National Associate Industrial Broker Network, Young Life leader at Camelback High School and a board member of the Junior Golf Association of Arizona.

The developing leaders will receive their awards at a presentation at NAIOP’s national conference, which will be held in October 2012 in Washington, D.C.