Tag Archives: business services

AZRE Digital Issue

AZRE Magazine September/October 2013

AZRE Magazine September/October 2013

‘When one door closes, another opens …’

AmandaVentura_web

There are many famous quotes and accomplishments that can be attributed to Alexander Graham Bell. One of his more famous lines reads: “When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.” In the commercial real estate industry, there were a lot of doors that were closed during the Great Recession. But thanks to the dogged determination, resiliency and leadership of Arizona’s commercial real estate companies — both big and small — the doors are once again opening and the industry is poised to capitalize on those opportunities. In this issue of AZRE, we look into:

  • Office and industrial: A panel of five experts size up two sectors that are gaining momentum once again. Also, a new and improved “Big Deals.”
  • Multi-family: This sector continues to sizzle. Check out our annual special section with the Arizona Multihousing Association.
  • Urban Land Institute: Arizona’s statewide convener for dialogue among industry leaders — true visionaries.
  • Coreslab Structures: Celebrating 25 years of excellence in Arizona.
  • Law: Social media becoming a new and necessary tool.

Finally, I’m sad to say that this is the last issue of AZRE to which former editor Peter Madrid will contribute. Peter helped build AZRE into the definitive publication for Arizona’s commercial real estate industry. So while we appreciate Peter’s contributions, we are happy that Amanda Ventura (pictured above) is taking the baton and bringing her award-winning journalism skills to AZRE. Amanda’s expertise, energy and commitment to excellence will make AZRE an even more authoritative voice for the industry.

When one door closes, another opens.

amanda-signature

Amanda Ventura, Editor

Take it with you! On your mobile, go to m.issuu.com to get started.

KEYSER-Final1

Chris Camacho Joins Keyser

Keyser — a commercial real estate advisory firm providing global real estate services to tenants and users of office, industrial, healthcare and educational space — announced today that Chris Camacho will be joining Keyser in a strategic leadership capacity to help grow and scale the organization.

“I am extremely pleased to be able to officially welcome Chris to the team,” stated founder Jonathan Keyser. “Chris is one of the most talented, knowledgeable, and service oriented individuals that I know, and his experience over the last 10 years working with CEOs, municipal leaders, and site selectors provide him with a skillset and perspective that is hard to find in our industry. In addition, his deep expertise in designing complex real estate and incentive solutions for both domestic and international corporations will be a huge value-add to Keyser’s clients going forward.”

Chris has more than 10 years of executive management experience in economic development, site selection, and cost optimization, tax analysis and state and local incentive strategies. He has served as an advisor in the real estate due diligence process for many Fortune 500 companies as well as emerging start-ups across the country. Prior to joining Keyser, Chris served as the Executive Vice President for Greater Phoenix Economic Council (GPEC) and oversaw the domestic and international business development strategies. He brings extensive experience in auditing and advising a wide diversity of industries including renewable energy, hardware and software, aerospace, industrial manufacturing, logistics and corporate back office. Chris has directly assisted more than 130 companies in their expansions or relocations to Greater Phoenix. Prior to GPEC, Chris served as the President/CEO of GYEDC, which focused on attracting new investment to a bi-national region in southwestern Arizona and Northern Mexico.

ConcertforaCauseLogoCropped

Cushman & Wakefield Future Leaders ‘Concert for a Cause’ to benefit Ryan House

Logo_2013Cushman & Wakefield Future Leaders “Concert for a Cause” benefiting Ryan House is scheduled for 6 p.m. on Oct. 24 at The Western, 6830 E. 5th Ave., Scottsdale.

The four-hour event will feature performances by Javier Garcia and Desert Dixie. During the show concertgoers will be able to enjoy the entertainment and also contribute much-needed funding that will help provide care, comfort and community to Arizona children and families at Ryan House. There will also be a raffle with items ranging from restaurant gift cards to hotel stays. Last year’s inaugural event raised almost $30,000.

All the proceeds from the concertwill benefit the mission of the Ryan House, which is to provide respite and palliative care to children with life-threatening conditions and, as-needed, end-of-life care. From diagnosis through end-of-life and beyond, Ryan House provides Arizona families a comprehensive program of family-centered care including medical, emotional, social and spiritual support services and therapies to enhance quality of life.

Ryan House is a 501(c)(3) organization and all donations are tax deductible. Ryan House is supported 100 percent by charitable contributions.

For more information or to inquire about sponsorship opportunities, contact Bonnie Machen at bonnie.machen@cushwake.com or Matt Coxhead at matt.coxhead@cushwake.com.

Construction Employment - Welder

74% of construction firms have trouble finding qualified workers

Nearly three-fourths of construction firms across the country report they are having trouble finding qualified craft workers to fill key spots amid concerns that labor shortages will only get worse, according to the results of an industry-wide survey released today by the Associated General Contractors of America. Association officials called for immigration and education reform measures to help avoid worker shortages.

“Many construction firms are already having a hard time finding qualified workers and expect construction labor shortages will only get worse,” said Stephen E. Sandherr, chief executive officer of the Associated General Contractors of America. “We need to take short- and long-term steps to make sure there are enough workers to meet future demand and avoid the costly construction delays that would come with labor shortages.”

Of the 74 percent of responding firms that are having a hard time finding qualified craft workers, the most frequently reported difficulties are in filling such onsite construction jobs as carpenters, equipment operators and laborers, Sandherr said. Fifty-three percent are having a hard time filling professional positions – especially project supervisors, estimators and engineers.

The association official added that most firms expect labor shortages will continue and get worse for the next year. Eighty-six percent of respondents said they expect it will remain difficult or get harder to find qualified craft workers while 72 percent say the market for professional positions will remain hard or get worse. Seventy-four percent of respondents report there are not enough qualified craft workers available to meet future demand while 49 percent said there weren’t enough construction professionals available, he added.

Sandherr said that many firms report they are taking steps to prepare future construction workers. He noted that 48 percent of responding firms are mentoring future craft workers, 38 percent are participating in career fairs and 33 percent are supporting high school-level construction skills academies. In addition, 47 percent of responding firms are offering internships for construction professionals.

Sandherr cautioned that more needs to be done to address labor shortages. He said Congress needs to jettison arbitrary caps on construction workers that were included in immigration reform the Senate passed earlier this year. “Lifting those restrictions will go a long way to ensuring construction jobs left vacant by domestic labor shortages go to workers who are in the country legally.”

He urged elected and appointed officials to do more to ensure public school students have an opportunity to participate in programs that teach skills like construction. He added that skills-based programs offer students a more hands-on way to learn vital 21st century skills such as math and science. Such programs also have been proven to reduce dropout rates and give students an opportunity to earn the higher pay and benefits that come with construction jobs.

economy

Arizona Could Hit Full Economic Recovery in 3 Years

We’re finally on the path to full economic recovery, and Arizona may get there in about three years. That’s the main message from experts who spoke today at the 49th Annual Economic Forecast Luncheon co-sponsored by Arizona State University’s W. P. Carey School of Business and JPMorgan Chase.

About 1,000 people attended the event at the Phoenix Convention Center, where economists painted a generally brighter picture for 2013.

“As of September, Arizona ranked fifth among states for job growth, and the Phoenix area was fourth among large metropolitan areas,” said Research Professor Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. “Arizona is expected to add 60,000 jobs in 2013, led by professional and business services, retail, hospitality and health care. We should finally dip below 8-percent unemployment in 2013 — down to 7.6 percent.”

McPheters added, as long as the national economy doesn’t drag us down, Arizona may see 2.5-percent growth in its employment rate next year. The state had 2-percent growth this year. Despite the jump, Arizona has gained back less than a third of the jobs it lost during the recession. McPheters believes it will take another three years to return to pre-recession employment levels.

In 2013, McPheters expects improved 5-percent growth in personal income, up from just 4 percent this year. He projects retail sales will go up 6 percent, from 5 percent this year. He expects Arizona’s population to rise 1.5 percent, and he believes single-family housing permits will shoot up a whopping 50 percent, with the local housing market now on the mend.

Both McPheters and Beth Ann Bovino, deputy chief economist at Standard & Poor’s, hinged their forecasts on whether the national economy can really pull forward; otherwise, Arizona will go down, too. The biggest question out there is whether Congress can avoid the “fiscal cliff” – where automatic spending cuts would kick in, just as various tax cuts expire. Bovino says that could plunge the United States back into recession and push national unemployment back above 9 percent by the end of the year.

“If we can avoid the fiscal cliff, then it looks like the economy could finally be in a self-sustaining recovery,” said Bovino. “We expect this year’s gross domestic product (GDP) to hit 2.1 percent, stronger than previously projected. For 2013, we’re looking at about 2.3 percent. Reports also show a stronger jobs market and signs that households are willing to buy big items, such as cars and homes.”

Bovino adds the U.S. unemployment rate was at 7.9 percent in October, and she sees signs more people are joining the workforce and getting jobs. However, she says the labor participation rate is still near a 30-year low, meaning more people will still be coming back to the workforce to look for jobs, keeping the unemployment rate low for a quite a while. Despite this, Bovino expects the national unemployment rate to drop to 7.6 percent next year.

She also has a good outlook for the national housing market, with housing starts already up 45 percent this September over last September. Bovino referenced a report that 1.3 million homes rose above water – with the value going higher than what was owed – in the first half of this year alone. She expects residential construction to go up almost 19 percent in 2013.

In the financial sector, Anthony Chan, chief economist for private wealth management at JPMorgan Chase & Co., says corporations remain flush with cash. They’re waiting for some clarity on where the market will go as a result of the fiscal-cliff situation and other factors.

“U.S. corporations are reluctant to go through global mergers and acquisitions or make big investments until they have a clearer picture,” said Chan. “Corporations are keeping high cash balances, in order to deal with the uncertainty. They’re making near-record profits in some cases, and many values on the stock market look good. However, everyone’s waiting to see what will happen.”

He said high-yield investments, such as bonds, and gold remain relatively attractive. The U.S. dollar keeps falling against currencies from emerging markets, as monetary agencies work through different strategies of dealing with the rough economy.

In the local housing market, Elliott D. Pollack, chief executive officer of Scottsdale-based economic and real estate consulting firm Elliott D. Pollack and Company, also drew some conclusions.

“Even though about 40 percent of Arizona homeowners are underwater on their mortgages, we’re starting to see a recovery,” said Pollack. “The single-family-home and apartment markets look great. Industrial real estate has improved quite a bit. Only office and retail have quite a way to go.”

Pollack adds new residential foreclosure notices are down almost 70 percent from the peak in 2008. Phoenix-area home prices are up more than 35 percent over last year. New-home sales are also doing well, with 67 percent of the local subdivisions active today projected to be sold out in less than a year. Builders are going to have to work to meet the demand, with less land and labor available.

Pollack sees a strong rental presence, with about 22 percent of local single-family homes being used as rentals right now. That’s up from less than 12 percent just a decade ago. Landlords appear to be buying up many single-family homes, and more people are moving to the area.

“In the absence of a fiscal cliff, things should continue to improve over the next several years,” said Pollack. “By 2015, things should be normalized. As I like to say, we’re only one decent population-flow year away from the issue being resolved.”

More details and analysis from the event, including the presentation slides, are available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com.

4692_CRA_f

Clinical Research Advantage VP earns Silver Stevie

Kim Kundert, RN, BSN, CCRC, has received the 2012 Silver Stevie Award for Female Executive of the Year in the Business Services category. Kundert was honored for her achievements as Vice President of Clinical Operations for Clinical Research Advantage, an integrated network of clinical trial sites.

The Stevie Awards for Women in Business are the world’s top honors for female entrepreneurs, executives, and the organizations they run. All individuals and organizations worldwide are eligible to submit nominations – public and private, for-profit and non-profit, large and small. The 2012 awards received entries from 17 nations and territories.

Stevie Award winners were selected by more than 200 executives worldwide who participated in the judging process this year.

“In 2012, Clinical Research Advantage became the largest integrated site network in the United States, and Kim Kundert has been a driving force behind the company’s rapid growth and expansion. We are thrilled that she has received national recognition for her executive leadership,” said Mark S. Hanley, CEO of Clinical Research Advantage.

This year marked the 9th Annual Celebration of the Stevie Awards for Women in Business. “This year’s Stevie Award-winning women are the most accomplished, impressive group we’ve ever had. Their stories of success will be an inspiration to women around the globe who dream of starting and growing a business and making a difference in the world,” said Michael Gallagher, president and founder of the Stevie Awards.

Unemployment

Arizona’s Unemployment Rate Drops in November

The state’s unemployment rate dropped one-tenth of a percent to 9.4 percent in November, as the economy added 12,800 jobs. The Arizona Commerce Authority (ACA) reports today that the private sector generated 9,300 jobs, while government added 3,500. Traditional holiday hiring boosted the November job gains.



Nov. ’10Oct. ’10Nov. ’09
United States9.8%9.6%10%
Arizona9.4%9.5%9.3%



This is the fourth consecutive month of over-the-year gains in total nonfarm employment. The state’s 1 percent year-over-year gain in November was higher than the nation’s gain of 0.6 percent. Arizona’s 1 percent gain totals about 24,900 jobs added since the previous November.

“Overall, Arizona’s employment situation continues to improve,” according to the ACA employment report.



Nov. ’10
Oct. ’10
Nov. ’09
Overall 2,4482,435.22,423.1
Monthly Change0.5%1.3%0.6%
Annual Change1%1.1%-6.5%



Over the month, six out of the state’s 11 major sectors saw job gains. The sector that had the most gains for the month was trade, transportation and utilities, with 9,900, mostly due to the 8,700 jobs gained in the retail sector.

Gains were reported in: professional and business services (2,300); educational and health services (1,700); government (3,500); manufacturing (600); and information (400).

Losses were reported in: construction (-3,000); financial activities (-900); leisure and hospitality (-900); other services (-700); and natural resources and mining (-100).

Construction lost the most jobs of any sector in November, but it still is recording net job gains for 2010.

The unemployment rates climbed in almost all of the state’s largest metro areas.


Nov. ’10
Oct. ’10
Nov. ’09
Phoenix Metro8.9%8.4%8.7%
Tucson Metro8.8%8.3%8.5%
Yuma Metro26.8%25.7%22.4%
Flagstaff Metro8.1%7.8%8.1%
Prescott Metro10.2%9.7%9.8%
LHC-Kingman Metro10.9%10.9%9.8%
E012850

Greater Phoenix Economic Forecast 2011: “Painfully Slow”

The economy may be better in 2011 than it was in 2010, but the road to full recovery will remain long and full of potholes. But hey, it could be worse. It could be 2009.

That’s according to economist Elliott D. Pollack, CEO of Elliot D. Pollack & Company. Pollack was speaking at the Greater Phoenix Chamber of Commerce’s Economic Outlook 2011 breakfast today at the Arizona Biltmore Resort & Spa.

Pollack said population growth in the Valley should settle at 1 percent this year and rise to 2 percent in 2011. Net job growth will contract by 1 percent in 2010 and climb by 2 percent in 2011. Retail sales will increase 1 percent this year and rise by 8 percent next year. Building permits will increase by 20 percent in 2010 before jumping 50 percent in 2011.

In summarizing his 2011 forecast for the Valley, Pollack read a laundry list of good news and bad news:

  • The housing market is at or past bottom, but there are many negatives still trumping a full recovery, most notably slower migration flows.
  • The commercial real estate market is at or past bottom, but recovery will be slow and “take a long time.”
  • Sales tax revenues are no longer falling, but they aren’t growing quickly enough to fix the state’s battered budget.
  • Retail sales have past bottom and there is pent-up demand among consumers, however, those same consumers are still so worried about personal debt that they will continue to curb spending, thus thwarting a big recovery.

While Pollack said the Valley’s economic recovery will be “painfully slow,” he points out that a recovery is indeed underway. For example, the state’s standing in employment growth compared to the rest of the nation is gradually improving — but only after a precipitous decline. In 2006, Arizona ranked second in the nation in job growth; that dropped to 22nd in 2007; 47th in 2008; and 49th in 2009. Up to July of this year, the state had moved up to 42nd in job growth.

Another indication that the Valley’s economy is showing improvement is in the number of economic sectors that have shown net job gains. Of the state’s 12 major economic sectors, five have shown net job gains so far this year (education and health services; trade; leisure and hospitality; professional and business services; other services). That compares to the same time last year, when no economic sectors reported net job gains.

But, Pollack pointed out again, the Valley and state can’t expect the robust and recoveries that have accompanied past recessions.

He says the Valley’s housing market continues to be weighed down by:

  • Weak job growth
  • Tough underwriting standards
  • Negative home equity
  • Loan modification failures
  • High foreclosures
  • Option ARMs (adjustable rate mortgages) peaking in 2011

In terms of equity, 51 percent of houses in the state have negative equity. The national average is 23 percent. Such negative equity severely curtails people’s ability to buy and sell homes. In addition, supply still outstrips demand in the single-family home market, with an excess inventory of houses somewhere between 40,000 to 50,000 units, Pollack said. A balance between supply and demand will not be fully achieved until about 2014, he added.

The picture is bleaker for the commercial real estate market, with delinquencies on loans still very high. In the office market, Pollack cited forecasts from CB Richard Ellis that said vacancy rates would peak at 25.6 percent in 2010 before dropping to 23.9 percent in 2011. As Pollack pointed out, there currently is no multi-tenant office space under construction in the Valley. In fact, he expects “no significant office building in Greater Phoenix for the next five years.”

Industrial space vacancy rates are faring only slightly better, with CB Richard Ellis predicting year-end vacancy rates of 16.4 percent for 2010 before falling to 15.2 percent in 2011. As for the retail market, the vacancy rate will rise to 12.3 percent in 2010 and hit 12.9 percent in 2011.

For office, industrial and retail commercial real estate, Pollack said he did not expect vacancy rates to reach normal levels until 2014-2015.

Still, Pollack maintained that the economic outlook for the Valley “remains favorable,” thanks to the recovering national economy, increased affordable housing in the Valley, a rise in single-family home building permits, unemployment bottoming out, consumer spending improving and continued problems in California.

Phoenix-area employment picture for the fourth quarter of 2010 appears positive

Survey: Valley Companies Plan To Hire More Employees This Quarter

The Phoenix-area employment picture for the fourth quarter of 2010 appears positive, as hiring is expected to increase slightly, according to the latest Manpower Employment Outlook Survey released today.

Between October and December, 15 percent of the companies interviewed plan to hire more employees. For the same period, 9 percent expect to reduce their payrolls. About 74 percent say they will maintain current staffing levels and 2 percent are not certain of their hiring plans.

Figures for the Phoenix-Mesa-Scottsdale area point to a net employment outlook of 6 percent, according to the survey, making the Valley employment outlook a bit brighter compared to the rest of the nation and the rest of the state.

“Employers are more optimistic about hiring plans for the final three months of the year compared to (the third quarter) when the net employment outlook was 2 percent,” says Frank Amendariz Arizona regional director at Manpower. “Employers expect a much faster hiring pace compared with one year ago, when the net employment outlook was minus 4 percent.”

According to the survey, prospects in Phoenix-Mesa-Scottsdale are particularly strong in durable goods manufacturing, information, financial activities, professional and business services, and leisure and hospitality.

Hiring figures for the rest of the state show a mild increase as well, according to the survey.  For the fourth quarter of the year, 14 percent of the companies interviewed plan to hire more employees, and 10 percent expect to reduce their work force. Another 73 percent say they will maintain current staffing levels and 3 percent are uncertain of their hiring plans. The state’s net employment outlook is 4 percent.

“Employers expect to slightly slow down the hiring pace compared to (third quarter 2010) when the net employment outlook was 6 percent,” says Sunny Ackerman, a spokesperson for Manpower.

Nationally, of the more than 18,000 employers surveyed, 15 percent anticipate an increase in staffing, and 11 percent expect a decrease for a net employment outlook of 4 percent.

2010 Best of the Best Awards

2010 BOB Awards: Business Services

The following companies won the Gold, Silver and Bronze rankings in the Business Services category of the 2010 BOB Awards.

2010 Best Of The Best Awards: Business Services


2010 Best of the Best AwardsWist Office Products
Office: Supply Companies

 

2010 Best of the BestYear Est.: 1955
Principal(s): Robert Wist, Ian Wist
wist.com

Wist Office Products, well known for award-winning service and exceptionally low prices, continues to be your No. 1 office supplier since 1955. When choosing Wist, your business will have a partner committed to cost containment without sacrificing service excellence. Clients expect professional advice, personalized service, prompt deliveries, low prices and a team they can count on. As the largest independent office supplier in the Southwest, you can be confident of receiving the highest overall value in products and service, while also reducing costs.


2010 BOB AwardsCorporate Job
Bank Personnel Services

Employment: Temporary

2010 BOB AwardsYear Est.: 1985
Working Temps: 2,100
Principal(s): Paul Boca, John Kemper
corporatejobbank.com

2010 BOB AwardsTarget Commercial
Interiors (formerly Walsh Bros. and USBI)

Office: Furniture 17 staff or more

2010 BOB AwardsYear Est.: 1919
AZ Staff: 116
Principal(s): Joseph M. Perdew
targetcommercialinteriors.com

2010 Best of the Best Hall of Fame

Wist Office Products - Best of the Best 2009 presented by Ranking Arizona

Best of the Best Awards 2009: Business Services

Business Services Honoree: Office: Supply Companies

Wist Office Products


Wist Office Products - Best of the Best Awards 2009 presented by Ranking Arizona

Photograph by Duane Darling


Wist Office Products has been providing superior service and the highest-quality products to Arizona businesses since 1955. The office supply industry has changed significantly since that time, and through the changes, Wist has emphasized keeping the focus on the customer. It strives to be a solution provider for its customers. As the largest independent office supplier in the Southwest, Wist has been a leader in developing the technology needed to efficiently manage inventory, as well as process and track orders. It has also incorporated various green product lines featuring both supplies and furniture. Many companies are looking for environmentally safe products, which is why Wist incorporated them.

The Wist name has been synonymous with the office product industry in Arizona, when founder Martin Wist started the business in 1922. The present company has been active since 1955. As a locally owned business, Wist is positioned to meet customers’ needs, as well as directly support the local economy.

107 W. Julie Drive, Tempe
480-921-2900
www.wist.com

Year Est: 1955 AZ Staff: 57
Principal(s): Ileene Wist,
Robert Wist, Ian Wist


Business Services Finalist: Employment: Temporary Large

Corporate Job Bank Personnel Services

In a time when technology has replaced the personal touch, Corporate Job Bank Personnel Services continues to grow and is dedicated to finding a job for every person who walks through its doors. They understand the value in creating a lasting relationship, not only with their clients, but with all candidates as they change and grow in their careers. Corporate Job Bank Personnel’s core competencies are in mortgage and banking, accounting and finance, call centers, office and clerical staff, municipalities, IT, distribution and warehousing.

1955 E. Broadway Road, Tempe
480-966-0709
www.corporatejobbank.com


Business Services Finalist: Employment: Leasing/PEOs

Diversified Human Resources Inc.

The perennial market leader in Arizona and one of the premier PEOs in the U.S., Diversified Human Resources (DHR) helps simplify client businesses by handling much of the administrative functions and paperwork associated with having employees. Services include human resources administration, payroll processing and management, employee benefits planning and administration, and workers’ compensation services for many industries within the business community. The key to DHR’s success is an intense focus on service and the ability to tailor programs specifically for each client.

3020 E. Camelback Road, #213, Phoenix
480-941-5588
www.dhr.net


Best of the Best Awards 2009 presented by Ranking Arizona