Tag Archives: cb richard ellis

Dark Star Orchestra

Concerts Take The Center Stage At Musical Instrument Museum In April

Musical Instrument Museum marks the start of a series of events focusing on concerts, bringing performances by local and national artists to the Valley.

VladimirPleshakov&ElenaWinther_April26_MIM

Mini Music Makers Series
Mondays and Wednesdays in April (1, 3, 8, 10, 15, 17, 22, 24)
9:30-10 a.m. for children ages 0-18 months
10:15-10:50 a.m. for children ages 18 months-3 years
11-11:45 a.m. for children ages 3-5 years
Tickets: $12 per class or $40 for all four
Introduce your child to the wonderful world of music! MIM’s Mini Music Makers Series, an early childhood music-education program, aims to enrich children’s lives by providing a safe, interactive and engaging environment for children to explore a variety of music from around the world. Each class is structured around developmentally appropriate activities for children to interact with and create their own music. This session’s classes will focus on the sights and sounds of African music. Reservations required. To reserve a space, please contact Annabel Rimmer at 480-245-6919 or grouptours@MIM.org.

 

 

Dark Star Orchestra: Continuing the Grateful Dead Concert Experience
Monday, April 1, 7 p.m.
Tickets: $36.50-$39.50
Performing Grateful Dead classics in the same way that an orchestra interprets music of classical composers, Dark Star Orchestra selects from among the nearly 2,500 shows that the Grateful Dead performed during their 30-year tenure as fathers of improvisational rock. The composer spirit is derived and channeled as the musicians capture the excitement and innovation of the original performances and compositions. On most performances, Dark Star Orchestra presents the complete original set list, song by song and in consecutive order, while adapting their phrasing, voice arrangements, and specific musical equipment for the various eras of the Grateful Dead shows that they perform.

Colin Hay
Tuesday, April 2, 7 p.m. (SOLD OUT)
Wednesday, April 3, 7 p.m.
Tickets: $34.50-$39.50
Colin Hay wrote some of the quirkiest pop hits of the early 1980s as the principal songwriter of the Australian-based Men at Work (“Down Under,” “Overkill,” “Who Can It Be Now?”), which became an international pop sensation, seemed to dominate early MTV, and garnered a Grammy Award for Best New Band. As the band’s guitarist and lead singer, Hay’s voice and appearance are still familiar to millions. The past 20 years have found him quietly yet tenaciously reintroducing himself to new generations of fans. In the process, he’s become a respected songwriter whose stage humor and storytelling are nearly as renowned as his music. He’s now enjoying life as a masterful writer and vocalist who is at the peak of his craft.

Alpin Hong
Friday, April 5, 7:30 p.m.
Tickets: $37.50-$42.50
Whirlwind American tours and performances across the globe have earned pianist Alpin Hong the reputation as a modern-day Pied Piper. His combination of stunning technique, emotional range, and rare humor continues to bring audiences young and old to their feet. The New York Times lauded his “crystalline energy . . . clear and persuasive ideas . . . and remarkable breadth of coloration,” and called him “a pianistic firebrand” in a review of his standing-room-only New York recital debut at Carnegie Hall’s Weill Recital Hall.

Arizona Opera Up Close Series: Double Entendre
Thursday, April 11, 7 p.m.
Tickets: $37.50-$42.50
Enjoy this rare opportunity to hear the two lead couples from both casts of “The Marriage of Figaro” as they share the spotlight on stage for one night only at the MIM Music Theater. With an impressive collection of debuts and accolades spanning the globe, the quartet will perform from their signature operatic roles and other selections from a variety of genres. Featuring Sari Gruber, Jo駘le Harvey, Jason Hardy, and Daniel Okulitch with Arizona Opera Head of Music Allen Perriello on piano.

MIM Homeschool Day: Compass Guided Tour and Signature Workshop (West African Percussion and Dance)
Monday, April 15
Tickets: $10 per student, $10 per chaperone above the 1:5 ratio
Led by docents, this exciting “trip around the world” introduced students to the diversity of the world’s musical traditions, ranging from an Indonesian gong workshop to a re-created workshop featuring Martin acoustic guitars. Students learn ways that instruments have changed over time, as humans move around the globe and interact with each other. Content and curriculum align with Arizona State Standards in science, social studies, and music education. Students will also participate in a Signature Workshop on West African Percussion and Dance where they will be introduced to different drumming styles and traditions from several cultural groups in Ghana, Mali and Guinea. Students will play along using the djembe, agogo double bell and shekere. There will also be a family-friendly menu available at the MIM Caf・ Best for grades 3‒12. To register, please contact Annabel Rimmer at 480-245-6919 or grouptours@MIM.org.

I Am AZ Music: The Best of the Valley: Open Mic Showcase
Tuesday, April 16, 7 p.m.
Tickets: $10
Featuring Andrew Duncan Brown, Ruca (Haley Grigaitis), Tim Allyn, Amanda Morgan and Jason Messer for an evening of local and diverse music.

Bang a Gong: Balinese Gamelan Workshop Series
Saturday, April 20, 10:30 a.m.
Tickets: $12 per class ($10 per class when purchased with museum admission)
Learn to play a gong – and all the other instruments that make up the sounds of a Balinese gamelan at MIM’s workshop! Led by assistant curator Colin Pearson, these bimonthly workshops include an introduction to Indonesian culture and music and easy lessons to play authentic Balinese instruments. No experience is required, and musicians and non-musicians alike will enjoy this unique musical form, so come join us! Please note that each workshop is an introductory class but participants are welcome to register for more than one session and hone their musical skills. Best for ages 8 and older. To register, please contact Annabel Rimmer at 480-245-6919 or grouptours@MIM.org.

The Klezmatics
Sunday, April 21, 7 p.m.
Tickets: $39.50-$47.50
The Klezmatics take one of the wildest approaches to klezmer, the traditional dance music of Eastern European Jews. Although their music is heavily influenced by the recordings of Abraham Ellstein and Dave Tarras in the 1940s and 1950s, their lyrics comment on a wide variety of political and social issues and have led the group to be labeled “the planet’s radical Jewish roots band.”

I Am AZ Music: Local Singer-Songwriters in the Round
Tuesday, April 23, 7 p.m.
Tickets: $15
Five Arizona singers sitting on stage trading stories and songs. It’s like being invited into the living room with some of Arizona’s best musical talent. Featuring Hans Olson, Walt Richardson, Jesse Valenzuela and the Zubia Brothers.

MIM Musical Interludes Series Featuring ASU: French Chamber Music
Wednesday, April 24, 10:30 a.m.
Tickets: Free with museum admission or $7 performance only
Elizabeth Buck, playing flute, with Lynne Aspnes, playing harp, will perform both delightful and triumphant French chamber music in honor of “La Marseillaise,” national anthem of France, which was composed on April 24, 1792.

Molly Ringwald
Wednesday, April 24, 7 p.m.
Tickets: $37.50-$42.50
American actress, singer, dancer, and author Molly Ringwald is frequently named the greatest teen star of all time. The daughter of jazzman Bob Ringwald and the leader of the Great Pacific Jazz Band, Ringwald, will soon be releasing her new CD featuring the talents of Clayton Cameron (Tony Bennett, Nancy Wilson, B.B. King) Winston Byrd (Natalie Cole, Roy Hargrove, Charles Tolliver), Trevor Ware (Hubert Laws, Jimmy Heath) and Allen Mezquida (Brad Mehldau, Bill Charlap).

Music In Motion: Dry River Yacht Club
Thursday, April 25, 6-8:30 p.m.
Tickets: Free with museum admission or $7 performance only
Groove to the sounds of Arizona under the stars and take a musical journey around the world in MIM’s galleries! The last thing one would think of when it comes to Arizona would be yacht clubs. Yet, in the heart of the Valley of the Sun, the dry riverbed of the Salt River winds its way through the metropolis. If you follow it east, straight to the waters of Tempe Town Lake, a yacht club most certainly exists: the Dry River Yacht Club (DRYC). The band, using no amplification, plays an eclectic mix of instruments, including a bassoon, violin, tuba, accordion, acoustic guitar, and bass clarinet, to create a unique combination of gypsy, Western, folk and rock music.

Hayes Carll
Thursday, April 25, 7:30 p.m.
Tickets: $19.50-$24.50
Texas singer and songwriter Hayes Carll received his first guitar at age 15 and almost immediately began writing songs, influenced by the likes of Bob Dylan, John Prine, Kris Kristofferson, Dead Poets Society and the Beat novels and writings of Jack Kerouac, all of which continued to reverberate in his mature songwriting style. In 2002, he signed with Compadre Records and released his debut album “Flowers and Liquor,” which garnered him favorable comparisons to Townes Van Zandt. His song “Another Like You” was named #1 on AmericanSongwriter.com’s Top 50 Songs of 2011, and is now firmly established in the Van Zandt/Guy Clark/Ray Wylie Hubbard style of maverick country-folk.

Vladimir Pleshakov & Elena Winther: Rachmaninoff Anniversary Concert
Friday, April 26, 7:30 p.m.
Tickets: $27.50‒$37.50
Vladimir Pleshakov and Elena Winther, husband-and-wife pianists, have been hailed by the Russian press as “European heirs to the great Russian pianistic tradition.” Playing two nine-foot Steinway pianos, they will masterfully convey the history, drama and passion of the last great romantic composer.

Get the Beat! World Drumming Series: Rhythms of the Middle East
Saturday, April 27, 2:30‒3:30 p.m.
Tickets: $12 per class (museum admission may be purchased separately)
Join the circle and get the beat! Each month, Frank Thompson, founder of AZ Rhythm Connection, offers a chance to experience community drumming for all levels, from absolute beginners to enthusiastic professionals. Each fun, relaxing and family-friendly session will highlight a new culture or genre, plus provide plenty of time for making music and jam sessions. Guest artists and MIM curators will stop in to demonstrate or share information about instruments, cultures or rhythms. Bring your own drum or use one provided. To register, please contact Annabel Rimmer at 480-245-6919 or grouptours@MIM.org.

 

CB Richard Ellis Clothing Drive

CBRE Drive Nets 3,900 Articles Of Professional Clothing For Unemployed Job Seekers

CBRE collected more than 3,900 articles of professional clothing to donate to jobless people seeking employment in a Phoenix clothing drive held from Aug. 15-26.

“Business attire is one of those things most of us take for granted — until we don’t have it when we need it,” says Craig Henig, CBRE’s senior managing director. “It has truly been our privilege to be able to make a significant difference in the lives of these displaced workers by helping them get back on their feet and back to work through the donation of thousands of suits, ties, slacks and blouses.”

Local employees of the company, as well as 18 CBRE-managed buildings in Phoenix and their tenants, participated in the event, called PurSUIT of Success. CBRE donated the clothing to Fresh Start Women’s Foundation and St. Joseph the Worker.

Fresh Start is a non-profit organization that helps to build women’s self-sufficiency and self-esteem. St. Joseph the Worker helps homeless and low-income people become independent though good employment.

“The PurSUIT of Success provided our job seeking clients much more than clothing,” says Amy Caffarello, executive director of St. Joseph the Worker. “It provided positive transformations of self-image, allowing them to gain confidence and pride, two things very necessary for a successful job search.

“CBRE went above and beyond by not only filling our clothing-closet shelves but saving the organization valuable time by delivering pre-sorted, pressed, ready-to-wear clothing which we could quickly get to our clients.”

“Fresh Start is so thankful to CBRE for this clothing drive,” added Barbara Ralston, CEO of Fresh Start Women’s Foundation. “Our self-esteem center wardrobes women every week for upcoming job interviews and court appearances; it is a major part of the services we provide to women.

“We were overwhelmed with the amount of business clothing that came to Fresh Start from the PurSUIT of Success and look forward to utilizing every piece for the ladies at Fresh Start.”

 

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CBRE

www.cbre.com

Fresh Start Women’s Foundation

phoenix.wehelpwomen.com

St. Joseph the Worker

www.sjwjobs.org

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Arizona Business People & Promotions

Arizona Business Promotions and People Moving Up

Arizona Business Promotions:

Arizona business is booming as important executives across the Valley are being appointed, promoted and honored. Major companies highlight their updates on essential leaders within their divisions.

Congratulations to the following who have shown excellence in their field:

American Heart Association (Western States Affiliate)

Kelly Grose:

Grose has been named senior vice president for the organization’s Greater Phoenix Division.


CB Richard Ellis

Mark Krison, Luke Denmon and Scott German:

The Phoenix-based brokerage sales professionals Krison, Denmon and German have joined the firm’s Critical Environment Practice, which provides transaction services, project management and facilities management for data centers and mission critical facilities.

Krison
Arizona Business Promotions: Mark Krison

 DenmonArizona Business Promotions: Luke Denmon

GermanArizona Business Promotions: Scott German

Arizona Bridge to Independent Living

Susan Webb:

Webb, Arizona Bridge to Independent Living’s director of employment services, received the Humanitarian Award from the Arizona Medical Association

Arizona Business Promotions: Susan Webb

Polsinelli Shughart

Jonathan Brohard:

Brohard has been added to the real estate department of Polsinelli Shughart and brings 17 years of experience as an attorney to the firm.


Everest College Phoenix

Dr. Edward Johnson:

Johnson – a veteran educator – has been appointed president of Everest College Phoenix.

 Arizona Business Promotions: Dr. Edward Johnson

Johnson Bank

Peter Engel:

Engel joins Johnson Bank as Executive Vice President – Consumer Banking.

Arizona Business Promotions: Peter Engel

Destination Hotels & Resorts

Chris Kenney:

Kenney is now regional vice president of sales and marketing of several properties in the Western region.


More Arizona Business Promotions

Previous: August 4, 2011 Promotions

Office-space-3

Office Makeovers: Office Tenants Are Doing More With Less

Space crunch

Office Makeovers: Change in workplace dynamics has office tenants doing more with less

If you think the recession is killing the corner office, you may be partially correct.

Younger-worker preferences and emerging technologies, including cell phones, laptops and video conferencing, are also behind a monumental shift in workplace dynamics that has business owners doing more with less – space, that is — with office makeovers.  In some cases, office tenants whose leases are up for renewal are finding it possible – even preferable – to get by with 15-25 percent less space than they needed even 10 years ago.

The trend is welcome news for budget-conscious business owners, based on the fact that the economy has put the squeeze on Corporate America and that real estate, and its related expenses, are traditionally among a company’s largest capital expenses.

Although private offices and the ubiquitous cubicle aren’t likely to ever completely disappear from the workplace landscape, they certainly are shrinking. Cubicles that once measured 10-feet-by-8-feet per employee now average 7-feet-by-6-feet. Corporations that typically outfitted their top executives in 300 SF offices have cut back to spaces that are half that size, if the office floor plans include offices at all.

Office Makeovers: Working with Less Space

As executives strive to reduce their real estate footprint and make workplaces more communal, office makeovers are featuring fewer private offices and more common areas. Designers are maximizing the smaller spaces with compact standardized workstations, docking stations where employees who spend most of their time working remotely can plug in when they’re in the office, comfortable “teaming” rooms where small groups can work together and reduced storage spaces formerly devoted to massive paper files.

One of the biggest factors influencing the evolving shape of the workplace is the invasion of the millennial generation, the workforce’s youngest members.  Raised on group sports and family activities, these younger workers are bringing their team-minded orientation into the workplace, and in turn, influencing office layouts that are more integrated than in the past.

Whereas the baby boomers embraced the hierarchical formality of traditional offices as a status symbol, younger workers view the four walls as isolating.  Equipped with a laptop, a cell phone and a pen, this new breed of employee is as comfortable working from the corner coffee shop as from a desk, and doesn’t need a lot of office real estate to be productive.

Technology advances also are having a major impact on office-space requirements. Laptop computers have eliminated the need for large cubicles housing a desktop computer and a large monitor. Digital file storage has replaced the need for paper files that once occupied precious space. And videoconferencing has made it possible for workers to stay in touch without actually having to occupy a spot in the office.

Technology even has reduced the personnel requirements in some companies, making it possible for the business to operate with fewer workers and to cut its overall square-footage needs.

Experts predict we are on the front end of these workplace trends and that as more Millennials enter the workforce, space allocations could dip to a mere 50 square feet per employee by 2015. In short, space sharing will become bigger and cubes will become smaller.

In the meantime, if you are considering office makeovers or looking for ways to do more with less (space), here are a few pointers:

  • Try to be sensitive to the needs of the different generations operating together in your workplace. Change can be painful, especially for some people, but by keeping an open mind, everyone can benefit in some way from the factors influencing new trends in office-space design.
  • Use technology to your advantage. Use it to create more physical space (digital file storage and shared workspaces) and to and to improve worker productivity.
  • Learn to utilize multifunction rooms to reduce square footage and increase productivity. The boardroom can also double as a training room and a social gathering area.
  • Realize that these trends are not only useful for reducing capital expenditures, they also can be helpful in attracting the best and brightest workers once the economy returns to full speed.

 

For more information about the trending of office makeovers, contact Susan LaGanke, managing director of CB Richard Ellis’ project management division in Arizona and Latin America. She can be reached at susan.laganke@cbre.com or 602-735-5555.

 

 

Arizona Business People & Promotions

Arizona Business Promotions and People Moving Up

Arizona Business Promotions - Arizona business is booming as important executives across the Valley are being appointed, promoted and honored. Major companies highlight their updates on essential leaders within their divisions.

Congratulations to the following who have shown excellence in their field:

Russ George Agency

Russ George:

George has been recognized as Allstate’s 2011 Best in Company after serving the Phoenix community for 32 years.


Clark Hill PLC

Abbie Shindler:

Shindler is a new addition to Clark Hill PLC, a law firm in Phoenix. Shindler focuses her practice on business law, estate planning, probate, trusts and business organizations.

Abbie Shindler, Clark Hill PLC

Arizona Citizens/Action for the Arts

Catherine Foley:

Foley has been named Executive Director of Arizona Citizens/Action for the Arts and will be in charge of the nonprofit statewide arts advocacy organization.

Catherine Foley, Arizona Citizens/Action for the Arts

Polsinelli Shughart

Jonathan Brohard:

Brohard has been added to the real estate department of Polsinelli Shughart and brings 17 years of experience as an attorney to the firm.


The Wellness Community-Arizona

Christy McClendon:

McClendon has been given the title of Executive Director, bringing outstanding community service and nonprofit leadership to the organization.

Christy McClendon, Wellness Community, Arizona

CB Richard Ellis

Dennis Firestone:

Firestone has joined the firm’s Assessment and Consulting Group in Phoenix. With more than 25 years of experience, Firestone will provide direct client support for the organization.

Dennis Firestone, CB Richard Ellis

Improving Chandler Area Neighborhoods (ICAN)

Becky Jackson:

Jackson has been appointed to the position of Chief Executive Officer for ICAN, bringing 20 years of leadership experience to the organization.

Becky Jackson, Improving Chandler Area Neighborhoods

More Arizona Business Promotions

Previous: July 28, 2011 Promotions
Next:

ASU Report, Commercial Real Estate, AZ Business Magazine July/August 2011

ASU Report Claims Commercial Real Estate On Upswing, Experts Still Cautious

Is Commercial Real Estate On the Upswing?

While many people have been watching the housing-market crisis in the Valley, fewer have paid attention to the situation in commercial real estate. Industrial and office space, retail and multi-family units are among the types of properties also affected by the recent real estate plunge. However, a recent report from the W. P. Carey School of Business at Arizona State University finds that although the housing market is still struggling, the commercial market may be starting to rebound.

“While the Phoenix-area residential housing market declined for more than three years, the commercial real estate market drop lasted less than a year and a half,” says Karl Guntermann, the Fred E. Taylor Professor of Real Estate at ASU, who authored the fourth quarter 2010 Repeat Sales Index Report (ASU-RSI) with research associate Adam Nowak.

However, Craig Henig, managing director for CB Richard Ellis, has a different take on the data.

“This report offers a clear picture of repeat sales for residential, commercial and segments of the multi-family market — on a macro-level,” he says. “However, the indices used to complete the study are trailing indicators and not necessarily what’s happening today.

“In addition, the report does not provide a breakdown or data about exact submarkets or residential and commercial property types, which would tell us which specific areas of the market or product types are still struggling or are in fact beginning to show signs of improvement,” he continues.

According to research by Cassidy Turley BRE, there have been some “glimpses” of recovery. However, the overall commercial real estate market is still relatively flat. Cassidy Turley BRE’s research adds that until significant job gains are made,
vacancies in the Greater Phoenix market cannot be absorbed because companies will not consider expanding, opening new locations or even starting new businesses.

The commercial real estate market first went negative in 2008, and by the end of 2009, commercial prices in Metro Phoenix had bottomed out at an unprecedented annual rate of decline of almost 40 percent. The new figures from ASU show that by the end of 2010, prices had already bounced back to almost a 13-percent annual rate of increase.

“Big investors are starting to buy up some of these commercial properties for 50 to 60 cents on the dollar,” Guntermann explains in his report. “Long term, the Phoenix market still has the fundamentals for growth, so they see real investment opportunities here.”

Guntermann’s report adds that developers aren’t building commercial properties right now, so no new supply is being added. This means that as the economy picks up and demand increases in the next few years, it will take a while for developers of new properties to catch up.

The ASU study is based on repeat sales and uses the same methodology as the S&P/Case-Shiller index, which was developed for 20 national housing markets. Repeat sales compare the prices of a single property against itself at different points in time, instead of comparing different properties with different quality factors.

Those in the industry put a lot of stock in the S&P/Case-Shiller index, but they say that it is a better gauge when discussing the single-family home market as opposed to commercial properties.

“This type of index only partially shows the overarching trends of the CRE industry,” says Daniel H. Pollack of Pollack Investments. “As a result of removing ‘sales with extremely high or low prices per square foot,’ the true market moving transactions are ignored. … Without these sales, the picture painted by the index is not a true representation of what is happening currently in this market.”

Pollack adds that the report does not explore factors such as large changes in supply, customer preferences and demographic shifts.

“Overall, the ASU-RSI is a good general barometer of what is happening in the market, but it fails to capture what is going on at the street level or to give any indication of how the Phoenix market compares to the rest of the country,” Pollack says. “These are both critical factors for any serious CRE professional to consider when analyzing a market.”

Arizona Business Magazine July/August 2011

Market Analysis

CB Richard Ellis 2Q 2011 Market Analysis

CB Richard Ellis released its 2Q 2011 market analysis of the Phoenix area office, industrial and retail sectors and report highlights include:

Office

The office market vacancy rate decreased slightly in the second quarter, declining to 26.0 percent from 26.3 percent at the end of the first quarter. During the same time period, vacancy among class A buildings declined by one and a half percentage points to 22.8 percent.

The average asking lease rate for existing office space declined for the fifth consecutive quarter to $21.21 per square foot. However, market rents appear to have bottomed out and there is modest rental growth in class A space.

At the end of the second quarter, the Valley’s office market had 556,772 square feet of positive absorption. Class A and B assets accounted for 524,441 square feet and 127,082 square feet of occupied space, respectively, while class C properties had 94,751 square feet of negative absorption.

The office market will not be impacted by the addition of speculative product. The only reported construction are build-to-suits, consisting of two buildings totaling 439,070 square feet in Tempe and a 225,000-square-foot building in the Deer Valley submarket.

Industrial

The industrial market had its fifth consecutive quarter of positive absorption, recording 848,042 million square feet. This compares to 1.1 million square feet of positive absorption for the same period last year.

The industrial vacancy rate has dropped by more than a full percentage point in the past two years, declining to 13.9 percent from 15.2 percent in the second quarter of 2009.

An increasing number of companies are looking at the metro Phoenix industrial market as an alternative to locating or expanding in California. In addition to solar-related companies, there has been an increase in distribution and logistics activity primarily in the Southwest Valley.

There has been considerable improvement in the metropolitan Phoenix distribution market, pushing its vacancy down to 15.9 percent from 21.1 percent one year ago.

Retail

In the second quarter, the metropolitan Phoenix retail market posted 450,151 square feet of negative absorption. A contributing factor was the closing of a number of Borders Books and Ultimate Electronics stores, which collectively vacated 448,938 square feet of occupied space.

In the past 12 months, the retail vacancy rate has risen 40 basis points to end the second quarter at 12.6 percent. However, vacancy has increased 510 basis points from year-end 2008, when the rate was 7.5 percent.

The average net asking lease rate for existing retail space throughout the Phoenix area increased in the second quarter of 2011, up to $15.86 per square foot from $15.71 at the end of the first quarter and $15.53 per square foot at the end of 2010. Yet, the rate is 2.7 percent lower than one year ago when it was $15.95 per square foot.

The availability of big box space remains a concern for property owners Valley-wide. There were 326 big box spaces greater than 10,000 square feet, totaling 8.9 million square feet of available space at the end of the second quarter. This compares to 99 big box spaces and 2.4 million square feet of available space at the same time in 2006.

For more information about CB Richard Ellis, visit cbre.com.

Multi-Family Market - AZRE Magazine July/August 2011

Multi-Family Market Pumps Life Into The State's CRE Industry

The slowly recovering economy is revitalizing the multi-family market in Arizona, restoring the industry to robust health.

Rents are up, vacancies down, and, unlike most commercial real estate segments, any mid-level or upscale apartment property that hits the market attracts scores of investors hoping to make a deal.

After peaking at an alarming 15% in 2008, apartment unit vacancies in Metro Phoenix slipped to 9.7% at the end of 2010, says Marc Huisken, Cassidy Turley BRE Commercial senior vice president for the Multi Housing Investment Group.

And with no new supply in the pipeline, that trend will continue throughout 2011, regardless of any bumps or bruises to the overall economic recovery, he predicts.

In fact, the Valley’s apartment vacancy rate will dip to 7%, rental rates will soar 4% and another 11,000 units will fill up by year-end, says Brad Goff, Apartment Realty Advisors principal.

“Things are getting very healthy, very fast,” Goff says.

In Tucson, the supply of multi-family units remained low and demand high throughout the recession, according to Tim Prouty, managing director of CB Richard Ellis’ Tucson office.

“We have virtually no Class A rentals available,” Prouty says, a result of almost no construction for 10 years and a lack of in-fill space to build where the demand is strongest.

The rest of the state also escaped the volatility of Phoenix’s multi-family market because demand and supply, especially in areas with significant military or student populations, remained stable before and during the recession, says Arizona Multihousing Association CEO Tom Simplot.

Maricopa County accounts for about 80% of Arizona’s apartment inventory, Simplot says.

Multi-Family Market and Housing Shortage

So what’s driving all the demand that Goff says will lead to a “multi-family housing shortage until 2013” in Arizona?

According to Goff, four major factors are propelling the trend to rent: job growth, net in-migration to the state, decoupling of households and a major shift in the perceived value of home ownership. Virtually all of those factors were initiated or amplified by the recession or the just-starting recovery.

Job growth and in-migration were sluggish but positive in 2010, and are poised to pick up speed, according to Lee McPheters, director of the JP Morgan Chase Economic Outlook Center at ASU’s W. P. Carey School of Business. McPheters estimates the state will boost its population by 665,000 and add 300,000 jobs by 2015.

During the recession, many grown children moved in with parents or vice versa. With more jobs available and investments regaining value, those grown children and parents may be moving out now.

But the most important driver of the multi-housing boom is shifting priorities, fueled by the housing industry collapse.

“Buying a home used to be perceived as a vehicle for accumulating wealth, now young people see it as a vehicle for problems,” Goff says.

ST Residential CEO Wade Hundley agrees and says the trend to rent is a national phenomenon.

“It’s harder to get a loan to buy (a home),” he says. “But also, the younger generation is wondering ‘If real estate is where I want to invest.’ They are seeing a lot of people lose their wealth in their home.”

ST Residential, a Chicago-based public-private equity consortium, was founded in the middle of the housing collapse in order to rescue a portfolio of multi-housing assets from a failing bank.

That was in 2009, before a flood of would-be investors saw the value of doing the same. With rents rising and demand for rental units escalating, the scenario is enticing to investors willing to snag a bargain now but wait a while for a nearly guaranteed windfall, Goff says.

Since multi-housing is the only commercial real estate sector that can tap Freddie Mac and Fannie Mae funding, and lots more private money has been sitting out the recession on the sidelines, there is ample financing available, Goff says. Investors just waited until the bottom was well-defined to start shopping, he adds. That happened in 2Q 2010, when rents crept up a smidge for the first time in three years.

“Everybody believes in rent growth,” Goff says. “In summer 2010, the lights turned on. Optimism has returned, and right now, buyers want to be active.” Phoenix sales numbers paint the picture. There were

18 transactions of 100+ unit apartment complexes in 2008, 34 in 2009 and 80 in 2010, Huisken says.

Supply Limited

However, rising rents are not yet high enough to justify a flurry of new construction, Huisken says, so supply is limited.

“Investors can still buy properties for significantly below construction costs,” he says. “New properties won’t come out of the ground until (developers) think they can get the higher rents.”

In 2007, average Metro Phoenix apartment rents in properties with 100 or more units peaked at $802, or 96 cents per SF, but slipped to $771 in 2009. Rents have risen to $783, or 93 cents per SF, this year. That scenario has spawned the frenzy of activity among the wannabe buyers for existing properties, especially distressed luxury digs.

“We get 15 to 20 offers on any Class A building,” Goff says.

Among the Class A distressed properties recently changing hands is the partially completed Centerpoint Condominiums in Tempe. The languishing condo project is under construction — with a new name (West 6th Tempe) and a new focus.

“It’s a fantastic project” that lost its lending in the Mortgages Ltd. mess and watched the market collapse while the situation was resolved, says Tyler Anderson, CB Richard Ellis vice chairman. Anderson, who specializes in the sale of multi-family assets, brokered the sale of the Tempe property.

Also picked up for a song by savvy investors was 44 Monroe, a 196-unit luxury condo complex in Downtown Phoenix. ST Residential snagged not only 44 Monroe, but also the 155-unit 3rd Avenue Palms in Phoenix, the 89-unit Safari Drive condos in Scottsdale and 98 more properties nationwide for $2.7B.

To take advantage of the huge demand for apartments, the new owners are now leasing unsold condos at 44 Monroe, Hundley says.

“This allowed us to take advantage of a (condo) market that’s a couple of years away, “ he adds. “We feel better about leasing at today’s rates, and renting allows us to mothball the project for a while.”

Parsing Submarkets

While some of the best bargains have been for the distressed lender-owned properties, the investor demand is pushing valuations up and luring more sellers into the market to pay off loans or balance their portfolios, CBRE’s Anderson says.

“Value has recovered so that core Class A products are selling at replacement cost,” he says. “A seller may not get all (its) equity back, but can at least pay off the loans.” Still, the picture is skewed.

“The Class A and B product market is recovering quickly, with rent increases of 8% to 10%,” Anderson says. “The Class C market is work force housing, and it is showing early signs of recovery.”

The class differences become apparent in analysis of the submarkets. According to Goff, the apartment vacancy rate is an enviable 5.12% in Chandler, but tops out at 24.14% in the central Black Canyon corridor.

Construction Cycle Starting

At least one major player in the national and local multi-housing business thinks the time is ripe to build — if you can get the right deal.

Alliance Residential bought the 4.7 acres housing the long-empty Hard Rock Café and Marco Polo restaurants near 26th Street and Camelback Road in Phoenix for $10.5M, about a third of its mid-2000s value. The company already owns or manages 49,000 apartment units nationwide, 8,000 in the Valley under the Broadstone banner, and plans to build 270 ultra-upscale units in the tony Biltmore location, says Bob Hutt, managing director for Southwest operations.

Construction of Broadstone Camelback (its proposed name) is slated to start in the fall, with the first units opening in 4Q 2012, and the development completed in 2013, he says. Hutt says Alliance was positioned well to take advantage of recession-starved land prices, low construction costs due to the lack of competition, and fearful lenders.

“Clearly we wouldn’t have been able to touch this property if it hadn’t been for the recession,” Hutt says.

And since Alliance emerged from the economic downturn in excellent financial shape, it easily landed construction financing from lenders with ample cash but fear of spending it.

“It’s nice to get in early in the cycle,” Hutt says. “It’s a unique time when rentals are dominant. The opportunities today are very strong, and the outlook very healthy going forward. There is a lot to look forward to in the multi-family sector.”

For more information, visit the following links:

allresco.com
arausa.com
azama.org
cassidyturley.com
cbre.com
stresidential.com

AZRE Magazine July/August 2011

Valley Partnership Advocates and Allies, AZRE May/June 2011

Valley Partnership: Advocates And Allies

As Arizona emerges from a grueling global recession, business and civic leaders are focusing on creating jobs and jump-starting our economy. Valley Partnership, as the state’s only grass-roots organization devoted to promoting responsible development, is poised to play an important role in that process.

“Our goal is to help stimulate the local economy by our actions,” says this year’s board chair Mindy Korth, an executive vice president and capital markets broker at CB Richard Ellis.

With its extensive ties throughout the development community, as well as into municipal and state offices, Korth says Valley Partnership is in a unique position to help get the economy moving again.

To say the past two years have been challenging for the commercial real estate industry would be an understatement.

Speculative construction in the office, industrial and retail sectors just about ground to a halt, with most construction occurring on build-to-suit projects or others already in the pipeline.

And as the Valley begins to see an uptick in business activity and employment, it is more crucial than ever that the principles of responsible development and job creation come to the forefront — something Valley Partnership has been promoting for 24 years.

As in the past, the linchpin of Valley Partnership’s efforts will be its advocacy, Korth says. Historically, the organization has been remarkably successful in rallying its partners — either against measures that would impose onerous restrictions on development, or on behalf of measures that would promote good growth.

“That’s an ongoing effort,” says Richard Hubbard, president and CEO of Valley Partnership. “We’ve always advocated against over-burdensome regulations at the local and state level.”

This year, Hubbard says Valley Partnership also will emphasize partner-to-partner relationships, as well as those between private and public entities.

Standing Apart

Valley Partnership’s more than 500 partners include representatives from all tiers of commercial real estate — from developers to attorneys to general contractors and engineers. Two important characteristics set it apart from other organizations: its relationships with public sector and government representatives and its emphasis on local stakeholders advocating on behalf of local issues.

“We are specific to the Valley,” says Rick Hearn, director of leasing for Vestar, one of Valley Partnership’s original corporate partners. Hearn has served on the board of directors for six years, and in that time has witnessed the organization’s partners tackle thorny local issues.

“We advocate on behalf of this industry better than anyone else,” he says, adding, “Not one of the national organizations comes close to touching the value proposition of what we do. We work at so many levels and have so many relationships.”

Not only does Valley Partnership share information and expertise with municipal and state leaders, it also has ties to federal officials and even someone at Luke Air Force Base.

City, state and federal partners can dip into Valley Partnership’s brain trust and glean important information on many pressing issues, Korth says.

For example, a municipality that is re-examining its city plan can garner feedback from Valley Partnership. The organization’s task forces dig deeper into issues, then forwards recommendations to a committee before the organization arrives at a public stance.

Some of the measures its committees are examining include:

  • The Maricopa Association of Government’s efforts to design a dark-sky ordinance to reduce excessive light, while also addressing safety issues for tenants and customers.
  • Maricopa County drainage permits and other building permit issues.
  • Incorporating Green Building Codes within Valley cities’ building codes.
  • Proposed city general plans.

Valley Partnership Value Proposition

Another important initiative this year is to make partners more aware of the value that Valley Partnership adds to their efforts. Korth says the communications committee is working hard to articulate back to all partners on what is being accomplished.

“We need to let them know that there is no one else like us here and if we did go away there’d be a gaping hole,” she says.

While membership did drop some during the recession, it is starting to tick back up, Hubbard says. As it does, Valley Partnership also is setting goals for its other key functions: education, networking and public service.

Hubbard said the organization surveyed its members to see what issues they would like to see addressed at educational events and Friday breakfast meetings, a staple for many partners.

Respondents said they would like to hear from industry leaders in the community and those involved in important development issues.

Signs are evident, Hubbard says, that their message is resonating with people in the commercial real estate community. More than 50 people attended the first January meeting of the committee that oversees city and county issues, a big jump from the usual six to eight attendees.

Partners recognize that advocacy on behalf of responsible development reaps dividends for everyone. Korth says: “If you go alone, you may go faster, but if you go together, you go farther.”

AZRE Magazine May/June 2011

Newsmakers, AZRE Magazine March/April 20111

Newsmakers: AZRE Magazine May-June 2011

Newsmakers in Arizona Real Estate

Newsmakers in the commercial real estate industry are featured each issue. Here are the movers and shakers for May – June 2011:

Shelly Cramer joined GPE Commercial Advisors as associate vice president in sales and leasing, with an emphasis in dental and veterinary properties. Her past professional experience includes positions at CB Richard Ellis and Julien J. Studley.

Trisha Ramsey joined GPE Commercial Advisors as an associate in sales and leasing. Ramsey secured her broker’s license in 2010 after acquiring more than a decade of experience in B-to-B sales and procurement for the semiconductor and furniture industries.

Sundt Construction promoted Wayne Einbinder to vice president to spearhead the company’s new special projects division. The recently launched division will focus on large-scale projects ($100M or more) with external joint-venture partnerships. Einbinder will be responsible for the management, identification, pursuit and acquisition of special projects.

Mike Merk joined Grubb & Ellis as senior vice president, Office Group. Merk joins Grubb & Ellis from BAX Global Inc., where since 2002 he was director of real estate, responsible for the company’s 4.1 MSF North American office and industrial portfolio.

Justin Miller joined the Alter Group as vice president in the firm’s Scottsdale office. Miller’s focus will be on the planning, marketing and development of several Phoenix-area business parks.

Brian Woods was promoted to vice president-Retail Properties at Colliers International. Woods joined Colliers in 2003, and specializes in leasing regional power centers and represents national retail tenants throughout Arizona. Developers and landlords represented include Vestar Development, Nexus Development and Vertical Holdings.

Eight real estate professionals from the CB Richard Ellis Phoenix office are ranked among the company’s top 225 producers in North America. Tom Adelson, Brad Anderson, Tyler Anderson, Sean Cunningham, Jim Fijan, Rob Marsh, Jim Trobaugh and Bryan Taute are among the list of exceptional performers in 2010.

John Glassmoyer and Neil Glassmoyer joined Colliers International’s Scottsdale office as senior vice presidents specializing in investment sales. John has more than 30 years experience in sales, leasing and development of industrial, office and retail properties. Neil has more than 20 years experience as an institutional investment consultant.

Mark Seale joined the office division at Cassidy Turley BRE Commercial. Seale joins the company with more than 26 years of commercial real estate experience. Seale previously worked at Lee & Associates, where he was part of the firm’s Top Producing team in 2008, 2009 and 2010.

Dan Pierce was named senior vice president at Kitchell. He joined Kitchell 30 years ago and has been involved with the construction of numerous hospitals and healthcare facilities throughout the Southwest.

Arizona’s Finest Lawyers honored five members of the firm of Jennings, Haug & Cunningham. Those honored include Bill Haug, Curtis Jennings, D. Kim Lough, Chad Schexnayder and Mark Barker. The five have more than a century of combined experience in various areas of commercial real estate law.

Berens, Kozub & Kloberdanz PLC has changed its name to Berens, Kozub, Kloberdanz & Blonstein PLC, adding 3-year member Marc Blonstein to the firm’s name. Berens, Kozub, Kloberdanz & Blonstein PLC is a boutique commercial and residential real estate and business law firm. It has been in business in the Valley since 2001.

Land Advisors Organization in Scottsdale added Ryan Semro, Bret Rinehart and Ben Heglie to its firm as land specialists. Semro, Rinehart and Heglie’s previous roles include stints with Grubb & Ellis, Hogan & Associates, and most recently as principals with Lee & Associates.

Rider Levett Bucknall promoted John Jozwick (general counsel) to senior vice president and Scott Macpherson (principal) to vice president. Jozwick also was elected to the Rider Levett Bucknall North American Board of Directors.

Bryan Taute was promoted to senior vice president and Greg Mayer and Scott German were promoted to vice president at CB Richard Ellis. Taute is involved in all aspects of the commercial office market, including landlord and tenant representation, investment and user building sales, land sales and ground-up development. Mayer specializes in the representation of institutional and private owners of commercial office buildings in Metro Phoenix. German represents corporate clients in site selection and lease negotiations in Metro Phoenix and the Southwest.

Joe Snell, president and CEO of Tucson Regional Economic Opportunities (TREO) was named co-chair of the Economic Development Committee of the Arizona-Mexico Commission.

Daniel Dobric joined Grubb & Ellis’ Office Group as senior vice president. He will team with Michael Myrick, vice president, Office Group, who joined the company in July. Dobric joins Grubb & Ellis with 29 years of commercial real estate experience. He previously spent five years with BRE Commercial as a senior vice president.

Valerie Kelly joined Kitchell as director of Client Services for the Healthcare Division. A 20-year veteran of the local construction and development community, Kelly most recently was with McCarthy Building Companies, where she led business development efforts for the Southwest region.

Colliers International promoted Cindy Cooke to executive vice president-multifamily investments. Cooke has 30 years experience specializing in multi-family investments and leads an investment team that consists of 12 Colliers professionals throughout the Western U.S.

Chris Gerow, senior vice president at NAI Horizon’s Phoenix office, was honored by NAI Global with its Council Appreciation Award.

AZRE Magazine May/June 2011

Ranking Arizona presents Best of the Best Awards 2011

2011 Best of the Best Awards Photo Gallery

Ranking Arizona hosted it’s special awards reception, recognizing the companies that Arizona’s public ranks as their favorites with which to do business.

Some of the Companies recognized this year include Donovan’s Steak & Chop House, St. Joseph’s Hospital & Medical Center, National Bank of Arizona, The Go Daddy Group Inc., Rossmar & Graham, Scottsdale Fashion Square, CB Richard Ellis, Phoenix Convention Center, KPNX-TV – Channel 12 and  Wist Office Products.


Check out the full Gallery on Flickr…


Cheryl Green AZ Big Media Publisher









http://farm6.static.flickr.com/5177/5579193345_217308ab32_z.jpg

[slickr-flickr tag="Best of the Best 2011" items="106" type="galleria" use_key="y"]

2010 Best of the Best Awards

2011 Best of the Best Winners

On March 31st, the 2011 Best of the Best Awards reception and dinner was held at Camelback Inn where Ranking Arizona recognized the companies that Arizona’s public ranked as their favorites to do business with.

During this special night of networking and celebrations, Ranking Arizona presented awards to its 2010 B.O.B. winners, 2010 and 2011 Platinum Hall of Fame honorees and the 2011 B.O.B. winners.

View photos of the event on Flickr.


Video by Nick Cervi

Congratulations to the 2011 Best of the Best Winners!

Advertising, Marketing & Media

Winner
KPNX-TV Channel 12

Finalists
News Talk 92.3 KTAR

The Lavidge Company

Business Services

Winner
Wist Office Products

Finalists
O’Neil Printing
Jani-King Southwest

Entertainment

Winner
Donovan’s Steak & Chop House

Finalists
T. Cook’s at Royal Palms
Vincent’s on Camelback

Finance & Professional

Winner
National Bank of Arizona

Finalists
Arizona State Credit Union

Farmers Insurance Co.

Health Care

Winner
St. Joseph’s Hospital & Medical Center

Finalists
Chandler Regional Medical Center
Delta Dental of Arizona

Manufacturing & Technology

Winner
The Go Daddy Group Inc.

Finalists
Ping
The Boeing Company

Real Estate Commercial

Winner
CB Richard Ellis

Finalists
Ryan Companies US Inc.
Adolfson & Peterson Construction

Real Estate Residential

Winner
Rossmar & Graham

Finalists
Fireside at Norterra by Del Webb
Legacy Design Build Remodeling

Retail

Winner
Scottsdale Fashion Square

Finalists
Molina Fine Jewelers
Camelback VOLKSWAGEN Subaru Mazda

Tourism

Winner
Phoenix Convention Center

Finalists
Loews Ventana Canyon Resort
Four Seasons Resort Scottsdale at Troon North

2009 Best of the Best Winners


Best of the Best Awards 2011, AZ Business Magazine Mar/Apr 2011

Best of the Best Awards 2011: Real Estate Commercial

Winner: CB Richard Ellis

CBRE, AZ Business Magazine Mar/Apr 2011 CB Richard Ellis has been serving clients in Arizona since 1952, growing to become a dominant player in the commercial real estate market. From landlord and tenant leasing to the acquisition and sale of all property types, the company has earned a reputation as a respected leader in the business community with its vast market knowledge and enduring culture of client service. CBRE believes that the truest measure of its success comes from providing superior service to its clients — delivered by knowledgeable, creative and tenured employees, many boasting more than 20 years in the marketplace. It is this dedication to teamwork and commitment to excellence that makes it possible to serve the diverse needs of clients.
Year Est: 1952  Brokers: 101
Principal(s):
Craig Henig (Arizona/Phoenix),
Tim Prouty (Tucson)
CBRE logo, AZ Business Magazine Mar/Apr 2011 2415 E. Camelback Rd.
Phoenix, AZ 85016
602-735-5555
www.cbre.com/phoenix



Finalist: Ryan Companies US Inc.

Ryan Companies US, AZ Business Magazine Mar/Apr 2011

Ryan Companies US Inc. is a 73-year-old family-owned business whose reputation for building high-quality projects and positive customer experiences has earned it repeat business with customers, subcontractors and business partners. Since opening its Southwest regional office in Phoenix in 1994, Ryan has developed and constructed more than 16 million square feet of office, retail and industrial space in Arizona. Its 80 employees are committed to exceeding expectations of customers that include UniSource Energy (Tucson Gas & Electric), W.L. Gore and Associates, The Musical Instrument Museum, Target, Avnet, AT&T, Humana, US Bank, ConocoPhillips, Taser International and more.


Year Est: 1994
Principal(s): J. Strittmatter, T. Holzer, M. Ryan Carson, C. Carefoot, A. Riley, M. McGowne, S. Jordan

Ryan logo, AZ Business Magazine Mar/Apr 2011

3900 E. Camelback Rd., #100
Phoenix, AZ 85018
602-322-6100 www.ryancompanies.com



Finalist: Adolfson & Peterson Construction

Adolphson & Peterson Construction, AZ Business Magazine Mar/Apr 2011 Over the past 20 years, Adolfson & Peterson Construction (A&P) has been committed to building sustainable projects throughout the Southwest. A&P is an industry leader in delivering Leadership in Energy and Environmental Design (LEED) certified projects and high performance green buildings. Going beyond green building, A&P takes into account the purpose of the projects it undertakes, the communities impacted by its operations and A&P’s own business practices. Sustainable is much more than building green. It defines A&P’s business practices with a LEED Gold office, hybrid vehicles in the fleet, in-house carbon reduction programs, and job-site recycling on all of its projects.
Year Est: 1946
AZ Staff: 66
Principal(s): Bryan Dunn, SVP
Adolfson Logo, AZ Business Magazine Mar/Apr 2011 5002 S. Ash Ave.,
Tempe, AZ 85282
480-345-8700
www.a-p.com


Arizona Business Magazine Mar/Apr 2011

Construction Projects, AZRE Magazine March/April 2011

CRE Industry Gains Momentum Thanks To New Construction Projects

As 2010 ended, Arizona’s commercial real estate industry gained some much-needed momentum entering the new year, thanks to a slew of new construction projects just completed or scheduled for completion in 2011.

The much-anticipated opening of CityScape signaled a resurgence for Downtown Phoenix, and as the year ended, it boasted a 90% occupancy rate. Rising in the shadow of CityScape is the new Maricopa County Superior Court Tower, scheduled to open later this year.

Elsewhere, Fountainhead Office Plaza in Tempe (439,070 SF); Banner MD Anderson Cancer Center in Gilbert (130,000 SF); and the new FBI building in Phoenix (210,000 SF) are scheduled for completion this year. The new spring training facility in Scottsdale for the Arizona Diamondbacks and Colorado Rockies opened in February.

Although a few new high-rise offices buildings, a hospital and a federal building won’t cure the industry’s ills, still, there is optimism in 2011 that the markets will pick up. The keys, according to experts are business attraction, quality jobs and the loosening of capital.

“I’m really bullish on this year that equity is coming back,” says Barry Broome, president and CEO of the Greater Phoenix Economic Council. “If Arizona shows growth in the third and fourth quarters, it could be a great year for jobs. Once capital frees up, we can start going somewhere.”

Adds Barry Albrecht, CEO of the Central Arizona Regional Economic Development Foundation: “Once the lending marketplace returns to funding 75% projects, we will see new construction respond. When state leadership designs a meaningful and competitive tax base, existing Arizona companies will expand and occupy available properties.

Additionally, once the Arizona Commerce Authority develops incentive programs that compete with other states’ programs, we will see business attraction. When we, as a state, create a competitive operating environment for industry to prosper, we will see a commercial real estate recovery.”

Here’s the outlook for 2011 from industry experts:

ECONOMY

“By far the biggest influence on current conditions is the status of the national economy. The Arizona economy will improve as the U.S. economy improves and as people continue to get their financial houses in order. Even without action, Arizona will again lead the nation in growth before mid-decade. However, we want to create more than lower value added jobs in retail and real estate. We want to expand our deteriorated economic base with higher value added jobs and industries. Arizona no longer makes anything of higher value. This is critical to not only grow, but to grow well. While conditions will continue to improve in commercial real estate, Arizona is still two to three years away from normal vacancy rates. The good news though, things are not getting any worse and expect improvement in 2011 and 2012.

John Lenio, economist & managing director, CB Richard Ellis Economic Incentives Group
cbre.com

“Employment will drive the business expansion needed to create material positive absorption in the office markets and reduce existing supply (vacancy) and eventually have upward pressure on rents (both critical elements to increasing asset values). These newly created jobs will add disposable income to the local economy and will drive sales activity in both residential housing and disposable products. The retail industry will get the much needed boost in increased spending via this new addition to disposable income, which will in turn drive demand for retail space, reduce existing supply and increase rents and eventually asset values.”

Scott Holland, partner, Keystone Commercial Capital
keystonecommercialcapital.com

“2010 was our year for healing. 2011 will be our transition year. We’re moving in to full recovery mode. Our development cycle officially ended in 2010, which means that the landscape of our commercial market and inventory will, by-and-large, remain static the next two, three, even four years.”

Don Mudd, managing director, Jones Lang LaSalle
us.am.joneslanglasalle.com

INDUSTRIAL

“What’s not being talked about nationally is that Phoenix is a preferred strategic location for value-add industrial employers. Last year, the Phoenix industrial market topped 4 MSF of absorption. That puts us in at least the top five — and possibly higher — of all U.S. markets. We may even have a shortage of larger space beginning as early as the end of this year. Mid-size clients typically have two or three dozen options to choose from at very soft pricing, but larger clients are having a harder time. In December, for example, we had an industrial client looking for 500,000 to 630,000 SF and only had three possible local solutions. In the same time period, we had a client looking for 250,000 SF of industrial space and had nine solutions Valleywide.”

Tony Lydon, managing director, Jones Lang LaSalle
us.am.joneslanglasalle.com

OFFICE & RETAIL

“There still exists an over-supply of space in office and retail. The existing inventories will take several years to absorb prior to any major new development taking place. During any down real estate cycle, tenants take advantage of the ability to move up in class. We have seen that happen locally, which has had some effect on the Class A product. As things begin to gain momentum, we will experience a shortage of Class A product in core areas, which then leads to rental growth and eventually allows new development to once again be warranted. Multi-family is still a strong sector due to the economic downturn forcing many home owners out of their homes and into the rental market.”

Kurt Rosene, senior vice president, The Alter Group
altergroup.com

ARCHITECTURE

“The industry will begin to see a slow but steady climb out of the recession. Most of us have been bouncing along the bottom with good and not-so-good months. The thaw has begun for owners with capital and they are ready to enter the market cautiously. Deals on real estate are prevalent and owners are beginning to take advantage, which is great for architects.

“Lending will continue to be difficult, therefore cash is critical to any new project. Architects should be cautious and assess the level of risk when a project is dependent on bank financing.

“Medical facilities are still being developed due to aging baby boomers in tandem with technological advances. Physical facilities will either require renovations to accommodate the new technology or additions to accommodate the older population.

“Retail will be the last market to recover and will see a very slow start. There will be a balancing act between keeping rent rates low for recovering tenants and keeping retail centers attractive to tenants and visitors alike.”

Jill Hamblen, AIA, triARC Architecture & Design
triARCdesign.com

PROPERTY MANAGEMENT

“2011 is shaping up to be another year of great challenge to the commercial real estate industry. A sampling of BOMA Greater Phoenix property managers gave similar results to 2010. Some of their concerns:

“Vacancy rates are high, and competition for available tenants is serious. Deals are all over the map, and it is essential to make a building stand out in the market in order to be able to justify a lease at or above break-even. Keeping a building in Class A condition with the budget constraints from owners and lenders is extremely difficult. Negotiating with current vendors to lower contract costs and rebidding when contracts come up is absolutely essential.

“Banks are not working with owner on market rate and/or tenant improvement allowances as they have historically. Tenants’ businesses are vulnerable to market swings. Many tenants are asking for rent relief or not paying as they should, as well as just defaulting. This is another challenge that owners and managers need to work together to meet.
“Smart, energetic management is always important, but under current conditions is critical. A manager will need all of the tools available, and the knowledge to use them well, to successfully meet the new year.

Mark Covington, executive director, BOMA Greater Phoenix
www.bomaphoenix.org

TUCSON MARKET

There is also some momentum in the Tucson market entering 2011 as construction projects include the UniSource Energy Corporate Headquarters (200,000 SF) and a new FBI building (84,353 SF).

In the office market, Tucson experienced a slight, but noticeable, uptick in lease activity at year-end, largely attributed to a more pro-business sentiment and the extension of tax cuts, according to PICOR Commercial Real Estate Services. Following a 25% to 40% drop in rents since the market peak, landlords have been more creative in length of lease and structure of concessions. Renewal activity has, accordingly, been very high.

Office building sales activity remained low by historic standards, as 75% of 2010 sales were to users. The overall volume for 2010 totaled just 628,000 SF. The outlook for 2011 appears to mirror 2010. Expect similar activity and slightly negative absorption.

The Tucson industrial market showed a slow recovery, with positive absorption advancing at a very slow pace. Companies that delayed expansions and relocations during the past two years are now moving forward, however, this activity is limited. Rents are continuing to decline, according to PICOR, although many property owners are reluctant to recognize this and are losing deals as a result.

Land sales were at a standstill in 2010, with no demand for new construction. Lender requirements and restrictions stifled the sale of leased investments as well, and few owners wanted to sell into the current environment. It is likely to be an uneventful year in 2011, with the local economy limping along toward recovery.

AZRE Magazine March/April 2011

Newsmakers, AZRE Magazine March/April 20111

Newsmakers: AZRE Magazine March/April 2011

Newsmakers: March/April 2011

Rommie Mojahedand Mary Ridberg were appointed directors of leasing for the Phoenix office of Sperry Van Ness. Mojahed and Ridberg will be responsible for recruiting, business development and growth of the leasing team.

Brian Smuckler and Jeff Seaman joined CB Richard Ellis’ Multi-Housing Private Client Group in Phoenix. Smuckler, senior vice president, and Seaman, senior associate, will form a new team working with private-capital multi-family investors. Smuckler, who leads the team, comes to CBRE from Marcus & Millichap, where he was a director of the National Multi-Housing Group. Seaman also joins CBRE from Marcus & Millichap, where he was a senior associate. CBRE also hired Timothy Keating as senior office operations manager.

The Plaza Companies announced it is opening a new Tucson office and hired a leasing professional. Plaza Companies currently provides property management and leasing services to three medical office properties in the Tucson area: Academy Medical, Desert Medical Center, and LaCholla Medical Center. Plaza Companies has hired Lauri Abbinante, a Tucson resident who has worked in the Tucson brokerage community for more than nine years, as senior portfolio manager and leasing specialist.

Commercial Properties Inc. (CPI) has added 11 new agents over the past few months at its Tempe and Scottsdale locations. They are: John Soldo, Trent Rustan, Josh Gosnell and Brandon Koplin, Tempe; and Nicholas Miner, David Verwer, Homer Savard, Donn Kinzle, Sam Walker, Phill Tomlinson and Bob Deininger, Scottsdale

Quarles & Brady announced that Brian Booker, a partner in the firm’s Phoenix office, has been appointed to the board of directors of The Wellness Community. Booker’s practice focuses on commercial litigation with emphasis in commercial and professional liability, real estate, securities fraud and products liability.

Grubb & Ellis announced that Robert Stephens has joined the company as vice president, Industrial Group. Specializing in the representation of industrial tenants and landlords, Stephens joins Grubb & Ellis from Cushman & Wakefield, where he spent 15 years as a senior director. Grubb & Ellis also announced that Andrew Banister and Alan Gillespie joined the company’s Investment Services group as senior vice president and vice president, respectively. They will specialize in the sale of office and industrial properties.

DLR Group recognized seven individuals at its regional annual meeting. They were rewarded for their commitment to the firm and willingness to accept and excel in leadership roles. David Boehm was appointed as senior principal; Scott Shively was promoted to principal; Elizabeth Rendon and Eric Loos were promoted to senior associates; and Karen Heck, Rickey Austin, Andrew Dunlap and Jason Hocking were promoted to associates.

CB Richard Ellis promoted Gavin McPhie to managing director of its Valuation & Advisory Services (VAS) Group in Phoenix. McPhie, who has nearly 10 years of real estate appraisal and consulting experience, joined CBRE in 2005. CBRE also hired Timothy Keating as senior office operations manager.

NAI Horizon added Rick Foss to its Industrial Properties Group. He has spent the past 10 years representing a wide range of industries in the acquisition of their real estate facilities. Prior to joining NAI, Foss worked at Insignia ESG, Grubb & Ellis and Cassidy Turley | BRE Commercial in Phoenix.

Grubb & Ellis announced that Jeffrey Chalfin has joined the company as vice president, Investment Services. Chalfin specializes in the sale of multi-tenant retail assets and joins Grubb & Ellis from Sperry Van Ness, where he began his career in 1998.

Mortenson Construction promoted Paul Kitching to director of operations. Kitching has been with Mortenson since 1997 through the joint venture project, Minnesota Correctional Facility in Rush City, Minn. He became an official Mortenson team member in the Minneapolis office in 2000, with a focus in sports and healthcare

Gilbane Building Company named D. Thomas Goderre district operations manager in its Phoenix office. Goderre will manage all of Gilbane’s business and construction operations throughout the district.

Cassidy Turley | BRE Commercial announced that Scott Boardman has joined the company’s Office Services Group as a senior associate. Boardman will be partnering with senior VPs Trevor Klinkhamer and Jeff Hartland to form a new Office Services Group team.

Cushman & Wakefield promoted Will Strong to the senior associate post within the Bo Mills and Mark Detmer Industrial Specialty Group. Strong specializes in representing and consulting corporate tenants, institutional landlords and developers in the acquisition, development and disposition of industrial real estate.

Sundt Construction promoted three employees: Thomas Mertz to senior vice president and manager of Sundt’s federal division (formerly vice president of business development); Herbert Chong to vice president of business development (formerly project director); and Gregory Ayres to area manager (formerly senior project manager).

Vince Lujan accepted the position of president and CEO of Salt River Devco, the asset management and commercial development company for the Salt River Pima-Maricopa Indian Community. Lujan, a Pueblo Indian from New Mexico, served as interim president and CEO of Devco since March 2010. Jeff Roberts was appointed asset manager and will oversee management of six commercial office buildings totaling 370,000 SF in Chaparral Business Park.

Jones Lang LaSalle vice president Jason Moore moved from the agency to the tenant representation team in the company’s Phoenix office. Moore will specialize exclusively on tenant representation and consultation for corporate clients in Phoenix.

AZRE Magazine March/April 2011

Winners & Finalists for RED Awards 2010

2010 RED Awards Winners & Honorees

2010 RED Awards Winners & Honorees

The RED Awards, Real Estate and Development Awards, are Arizona’s most comprehensive annual real estate awards. The biggest, best and most notable commercial real estate projects and transactions for the previous year are honored each year by the RED Awards. Awards are given to developer, general contractor, architect and broker/teams. All award winners and honorable mentions are featured within a special awards section of AZRE Magazine as well as honored at an annual awards ceremony.



Congratulations to all the 2010 RED Awards Winners

Best Hospitality Project

Winner:

Wild Horse Pass Hotel & Casino

Honorable Mention:

aloft Hotel

Best Industrial Project:

Winner:

Rockefeller Group Distribution Center

Honorable Mention:

Spectrum Ridge, Phase I

Best Medical Project:

Winner:

Banner Ironwood Medical Center

Honorable Mention:

Banner Thunderbird Medical Center Tower

Most Challenging Project:

Winner:

Moenkopi Legacy Inn & Suites

Honorable Mention:

3900 Camelback Center

Best Office Project:

Winner:

One Central Park East

Honorable Mention:

Orbital Sciences Corp.

Best Multi-Family Project:

Winner:

Grigio Metro

Honorable Mention:

Ninety Degrees Paradise Ridge

Brokerage Team: Leasing

Winner:

Tom Adelson, Kevin Calihan, Jim Fijan & Jerry Roberts

CB Richard Ellis

Brokerage Team: Sales

Winner:

Cushman & Wakefield

General Contractor of the Year:

Winner:

McCarthy Building Companies

Best Retail Project:

Winner:

Scottsdale Quarter

Honorable Mention:

Aspen Place at the Saw Mill

Most Sustainable Project:

Winner:

Appaloosa Branch Library

Honorable Mention:

Flagstaff Courtyard by Marriott

Best Redevelopment Project:

Winner:

300 M, Studio Darek

Honorable Mention:

Phoenix Country Club Modernization

Best Public Project:

Winner:

Surprise City Hall

Honorable Mention:

Camelback Ranch Spring Training Facility

Best Education Project:

Winner:

ASU College of Nursing & Health Innovation

Honorable Mention:

Ironwood Hall

Best Tenant Improvement Project:

Winner:

Barneys New York Interior Build-Out

Honorable Mention:

Arcadia Gateway Reimaging

Developer of the Year:

Winner:

Ryan Companies US Inc.

Architect of the Year:

Winner:

SmithGroup

 

For information on sponsorship opportunities, corporate tables or attendance, please email events@azbigmedia.com or call (602) 277-6045.

2010 RED Awards Winners & Honorees

Discovery Triangle - AZRE Magazine March/April 2011

Discover The Discovery Triangle

In the current economic environment, even small strategic advantages can have significant rewards. For an initiative such as the Discovery Triangle,which leverages the resources and potential of the geographic center of our region, expect those advantages and rewards to be considerable and vital to the Valley’s future economy.

The Discovery Triangle will enable the area to compete in the global marketplace by more effectively packaging assets, highlighting opportunities and creating an environment that will attract investment to the area. Spanning 25 square miles, 16,000 acres and two municipalities, this urban planning approach creates new opportunities for citizens, business owners and other stakeholders in the region to participate in shaping the characteristics of their community.

The Triangle is anchored by Downtown Phoenix and the Biomedical District to the west; Tempe and the Arizona State University Tempe campus to the southeast; and Papago Park in the northeast corner. Organizations participating in the public-private initiative include the City of Phoenix, City of Tempe, APS, SRP, Schaller Anderson, ASU, the University of Arizona, Gateway Community College, Cox Communications, Apollo Group, Support Sky Harbor Coalition, Sundt and CB Richard Ellis.

BEGINNINGS

Twenty-five years ago, there was no Loop 101 or 202, Chase Field, Tempe Center for the Arts, a state-of-the-art Phoenix Convention Center or TGen. These landmark initiatives required public and private sector leadership, regional collaboration and determination — the same characteristics driving the Discovery Triangle today.

The Triangle started as Phoenix Mayor Phil Gordon’s proposed Opportunity Corridor four years ago. With the support of Tempe Mayor Hugh Hallman, it has expanded in scope and participation.

“I applaud the regional cooperation that is taking place and am encouraged by the thoughtful approach of our leaders in setting forth a promising vision for our future,” says Martin Shultz, chairman for the initiative and vice president of Government Affairs for Pinnacle West Capital Corporation.

OPPORTUNITIES

Within the Discovery Triangle are 3,296 properties. Of those, more than 330 are vacant parcels and 510 are classified as properties with potential.

These properties are located within a thriving community, rich in the arts, culture, recreation and employment. One of first initiatives of the Discovery Triangle Development Corporation was to develop an asset inventory of the area. This CBRE-developed database, which can be viewed on Google Earth, documents information on the Triangle’s commercially zoned properties, transportation corridors, recreational and cultural amenities, schools and educational institutions. This database is an important new tool that will be used by the economic development teams from the cities, GPEC, chambers and state to attract industries.

Additionally, the asset inventory served as a demographic analysis of the region. Who lives in the area? Do we have the lifestyle, cultural and educational opportunities that can attract and retain technology-oriented companies and their employees? Do we have the raw space and type of facilities required by these companies? What educational facilities are located in the region?

Following are a few key discoveries:

The region has a young and diverse population.

There are 20 venues for the performing arts, 21 museums, 25 parks and more than 50 miles of bike paths.

More than 7,000 businesses are located in the region, with more than 150,000 employees.

Eighty-one businesses are bio-tech or solar power-related companies.

The employment density in the region is high relative to the entire Valley.

The 10th busiest airport in the U.S. is located at the center of the Triangle.

Half of the current 20-mile Valley Metro Light Rail system runs directly through the Triangle.

EXPERT GROUPS

The Discovery Triangle has undertaken a visioning process with 10 expert groups in areas ranging from sustainability and education to entrepreneurship and transportation. More than 120 experts — all public and private sector volunteers — are creating a 20- to 30-year vision for the region. An initiative of this magnitude, incorporating many of Arizona’s best minds, would be cost prohibitive for any single municipality.

“In the short term, the Discovery Triangle will have a streamlined and expedited development approval process spanning several jurisdictional boundaries,” says Darin Sender of Sender Associates, who also is chair of the Development and Planning expert group.

This expert group is developing plans to establish Discovery Triangle-specific zoning codes to encourage creativity and drive reinvestment, create a quasi-public entity to support city planning efforts, and prepare suitability studies and plans for land use, infrastructure and transportation.

“The Discovery Triangle will be transformed from a place that people drive through to a place where people want to live,” says Paul Johnson, former mayor of Phoenix and chair of the Neighborhood Revitalization expert group.

The group’s recommendations include the creation of a market-driven housing plan based on surveys of stakeholders to determine what would encourage them to move into the area, and assistance to Phoenix and Tempe in the creation of flexible processes for urban development that allow for constant market fluctuations.

Tools recommended by the Public Policy expert group include the use of the new Revitalization District to support development of key infrastructure in the Triangle, the creation of tools to establish and support dedicated funding sources for the Discovery Triangle infrastructure improvements, and the cataloguing and packaging of existing development tools to make them accessible to businesses of all sizes.

AREAS OF FOCUS

Initial areas of focus have been initiated and include:

Serving as the catalyst for regional collaborations to stimulate high-value projects with Triangle partners.

Analyzing current Arizona public policy for urban redevelopment, researching the best practices of other urban areas nationally to ensure competitiveness with other regions, and working to advance a comprehensive urban public policy for the region.

Promoting and packaging the assets of the area, celebrating the history and diversity of the neighborhoods within the Triangle.

Engaging expert groups and their stakeholders to create short- and long-term plans and collaborate toward a shared long-term vision for the area. The areas of focus include: public policy, sustainability, job creation, entrepreneurship, education, neighborhood revitalization, transportation, health and nature, and planning and development.

LOOKING AHEAD

The Discovery Triangle is not a short-term project nor a stopgap measure designed to temporarily boost the Valley’s economy. It is a long-term vision designed to create a transformative urban model for redevelopment, foster regional planning and encourage partnerships that will grow. In time, the Triangle will become a hub for international, discovery-based companies, a showpiece for the region and an urban core connector.

Who’s Who Discovery Triangle Experts

Development and Planning Expert Group
Darin Sender, Sender Associates, Chair

Education Expert Group
Pearl Esau, Teach for America, Chair

Entrepreneurial Expert Group
Kimber Lanning, Local First Arizona, Chair

Health and Nature Expert Group
Darren Petrucci, ASU, Chair

Neighborhood Revitalization Expert Group
Paul Johnson, Old World Homes, Chair

Public Policy Expert Group
Grady Gammage, Gammage & Burnham, Chair

Sustainability Expert Group
Ed Fox, APS, Chair

Transportation Expert Group
Marc Soronson, HDR, Chair

Job Creation Expert Group
Barry Broome, GPEC, Chair

Social Sustainability Expert Group
Debra Freidman, ASU, Chair

AZRE Magazine March/April 2011

Commercial Real Estate Market - AZRE Magazine March/April 2011

Arizona’s Commercial Real Estate Market On Path To Slow-Going Recovery

Arizona’s commercial real estate market is on the path to recovery, but the climb is steep and slow-going, local brokers predict.

The Phoenix market experienced slight positive absorption of space in its too-many, too-empty properties last year, and the plodding progress will continue through 2011, says Craig Henig, senior managing director at CB Richard Ellis.

“I see modest improvements in each sector, but no gold rush,” Henig predicts. “We will be slower coming out of this recession (compared with the 1990s slump) because we can’t rely on construction and tourism.”

Those industries fueled Arizona’s economy for decades, generating jobs and spending throughout the marketplace.

But industry experts agree that with commercial and residential property vacancies at such a high level, construction won’t restart in the short term. And tourism, double-slammed by the recession and Arizona’s national image issues, has a slow, uphill slog back to normalcy.

All commercial real estate sectors suffered from the recession as rents plummeted, vacancies soared and foreclosures mounted, leaving lots of properties in limbo, Henig says.

The retail sector was hurt the most, followed by office and industrial, Henig says, and recuperation will happen in reverse order.

Retail commercial real estate in Metro Phoenix bottomed out in 2010, as local retailers shuttered locations and national companies put expansion plans on hold, says Cliff Johnston, Cassidy Turley | BRE Commercial senior vice president.

Vacancies, which historically hovered below 5%, sank to an alarming 12.3%, Johnston says. He expects that rate to near 11% by year-end.

“We’ve turned the corner,” Johnston says. “We expect a fairly slow but steady improvement this year.”

Denser areas of the Valley will fare best, while fringe communities, where retailers relied on rooftops that never materialized, will continue to founder, he adds.

Office properties saw a flurry of transactions in 2010, but flat, net absorption, says Bryon Carney, Cassidy Turley | BRE Commercial president.

Low rents prompted a “flight to quality,” Carney says, as Class B office users moved into more luxurious Class A digs.

In 2010, Phoenix Class A net absorption topped 500,000 SF, offset by 600,000 SF negative absorption of Class B and C space, he says.

For 2011, Carney expects smaller tenants to move into newly vacant Class B space. But he’s not expecting the 27% overall office vacancy to improve much this year. The good news, he says, is rents that continued to decline in 2010 should stabilize.

The industrial sector will continue to lead the recovery in 2011, says Andy Markham, Cassidy Turley | BRE Commercial executive vice president.

“In 2010, we had 4 MSF absorption, and we’ll see more in 2011,” Markham says.
The vacancy rate will improve from 14% “to low double digits by the end of 2011,” he predicts.

While Phoenix sorts out its skewed recovery, Tucson waits for the spillover, says Tim Prouty, managing director of CB Richard Ellis’ Tucson office.

Tucson has fewer vacancies and higher rents than Phoenix because it was not overbuilt prior to the recession, Prouty says. But Phoenix’s excess capacity and lower rents appear more attractive to companies looking to expand or locate new regional offices or industrial operations in Arizona, he adds. “We’re glad we’re not Phoenix, but Phoenix is our biggest challenge,” Prouty says.

He doesn’t expect much movement in Tucson’s office or industrial sectors in 2011. But retail is already showing “some select growth,” including new locations for big-box retailers Costco and Walmart.

Arizona’s commercial real estate experts cite several factors for their modestly positive outlook for 2011.

They include improvement in the national economy, a favorable tax structure compared with that of California and pressure for lenders and CMBS special servicers to shake loose desirable properties at current market value.

“There was anemic investment sales activity in 2010, but now more properties are coming to the market,” Henig says. “We’re hoping investment sales and leasing will balance out in late second quarter.”

There is pent-up demand for investors to purchase the lender-owned properties at the right price and enough tenants willing to lease space if rents are significantly low, says Pat Dempsey, Lee & Associates principal.

“Now we are seeing properties (for sale) in every corner of the Valley and in all property types,” Dempsey says. “We’re more bullish than we have been in two or three years.”
Still, Stanton Shafer, Cassidy Turley | BRE Commercial executive vice president, predicts sales of those properties will be more like a trickle than a flood in 2011, despite buyer interest.

Many lenders and CMBS servicers remember the RTC fire sales of the 1990s and are hesitant to lose potential money by selling too soon and too low, he says.

“There is an abundance of capital out there now,” Shafer says. “And there is more pressure to sell, and more properties in the pipeline. But there is no way to generalize (lender action). What we can say is there hasn’t been much so far, and in 2011 we expect more.”
Jeffrey Hartland, Cassidy Turley | BRE Commercial senior vice president, sums up the overall 2011 outlook: “The light at the end of the tunnel is no longer the train.”

For more information about Arizona’s commercial real estate market and the CRE companies mentioned in this story, visit:

cbre.com
brephoenix.com
lee-associates.com

AZRE Magazine March/April 2011

 

red-awards-2012

2011 RED Awards Winners & Honorable Mentions

On Feb. 22, AZRE hosted the 6th Annual, 2011 RED Awards reception at the Ritz-Carlton in Phoenix to recognize the most notable commercial real estate projects of 2010 and the construction teams involved. AZRE held an open call for nominations and more than 100 architects, contractors, developers and brokerage firms participated in the process. All the winning projects and brokers are featured on the following pages.

View pictures from the 2011 RED Awards.
View the 2011 RED Awards candid shots as well.

2011 winners can order Awards, Plaques & Reprints


The project categories include:

  • Office
  • Industrial
  • Medical
  • Mixed-Use
  • Most Challenging
  • Hospitality
  • Multi-Family
  • Retail
  • Sustainable
  • Redevelopment
  • Public
  • Education
  • Tenant Improvement
PLUS:

  • Developer of the Year
  • Architect of the Year
  • General Contractor of the Year
  • Broker/Broker Team of the Year

Congratulations to all the 2011 RED Awards Winners

Best Hospitality Project, Small:

Winner:

The Phoenician Ballroom Expansion

Best Hospitality Project, Large:

Winner:

Talking Stick Resort

Best Industrial Project:

Winner:

Keller Electrical

Honorable Mention:

Power-One (Phase I & II)

Best Medical Project:

Winner:

Diamond Children’s Medical Center at UMC

Honorable Mention:

Ryan House at St. Joseph’s Medical Center

Best Mixed-Use Project:

Winner:

CityScape

Honorable Mention:

Gila River Indian Community, District One Service Center

Most Challenging Project:

Winner:

Soleri Bridge & Plaza

Honorable Mention:

Maricopa County Security Building

Best Office Project:

Winner:

Chandler City Hall

Honorable Mention:

Mercy Medical Commons

Best Multi-Family Project:

Winner:

Vi at Silverstone

Honorable Mention:

Sagewood, Phase 1

Brokerage Team: Leasing

Winner:

Tom Adelson, Kevin Calihan

Jim Fijan, Jerry Roberts

CB Richard Ellis

Brokerage Team: Sales

Winner:

Tyler Anderson, Sean Cunningham

CB Richard Ellis

General Contractor of the Year:

Winner:

Sundt Construction

Best Retail Project:

Winner:

Mountain Ranch Marketplace

Honorable Mention:

Scottsdale Pavilions – Theater/Food Court Renovation

Most Sustainable Project:

Winner:

White Tank Branch Library & Nature Center

Honorable Mention:

CREST Specialty School

Best Redevelopment Project:

Winner:

Phoenix-Mesa Gateway Airport

West Terminal Expansion Phase I

Honorable Mention:

Cowley Companies Warehouse Office

Best Public Project:

Winner:

Musical Instrument Museum

Honorable Mention:

Randall McDaniel Sports Complex

Best Education Project:

Winner:

Sedona-Oak Creek

Red Rock High School

Performing Arts Center

Honorable Mention:

Mesa Community College Red Mountain Campus

Best Tenant Improvement Project:

Winner:

Lumberyard Tap Room

Honorable Mention:

Polsinelli Shughart

Special Merit:

Winner:

Schuff Perini Climber

Broker – Leasing:

Winner:

Andy Kroot

Velocity Retail Group

Broker – Sales:

Winner:

Eric J. Wichterman

Cassidy Turley BRE Commercial

Developer of the Year:

Winner:

RED Development

Architect of the Year:

Winner:

RSP Architects


Presented by:

APS Solutions Logo
Squire Sanders Logo
CBIZ Logo

AZRE Logo

 

Sponsored by:

D.P. Electric Logo
Weitz Logo
Clark Hill Logo

red-banner

Brokerage Team Of The Year For Sales 2011

CB Richard Ellis

Tyler Anderson, CB Richard Ellis

The Team:

Tyler Anderson, Vice Chairman

Sean Cunningham, Vice Chairman

Sales Details:

19 sale transactions in Arizona

$442M in value in Arizona

Sean Cunningham, CB Richard Ellis

Tyler Anderson and Sean Cunningham lead a dynamic, 9-person multi-family team in CBRE’s Phoenix office. Anderson and Cunningham have more than 57 years combined experience. Their team also consists of a sales associate, a senior financial analyst, three research analysts and two client service specialists. Their largest single transaction closed in 2010 was The Canyons, a 629-unit (475,524 SF) multi-family community in Phoenix. The property sold for $45.5M. Anderson and Cunningham are also involved in a number of industry groups and community organizations including the National Multi-Housing Council, Urban Land Institute, Phoenix Thunderbirds and Childhelp USA. Both are vice chairmen at CBRE.

[stextbox id="grey"]www.cbre.com[/stextbox]

RED Awards Banner

Best Industrial Project 2011

Keller Electrical

Best Industrial Project: Keller Electrical

Developer: Chamberlain Development
Contractor: Sun State Builders
Architect: Winton Architects
Broker: DAUM Commercial
Size: 105,000 SF
Location: 1881 E. University, Phoenix
Completed: August 2010

The Keller Electrical project was one of the first buildings in Arizona to complete a solar rooftop energy system with APS. The 270KW system is capable of powering a substantial amount of the total building demand. Keller employs more than 100 workers at its state-of-the-art manufacturing, testing and office headquarters. Keller’s clients include APS, the City of Phoenix, the City of Scottsdale and most large motor companies worldwide. Keller is located on 6.55 acres at Sky Harbor Business Park. The project received new markets tax credit financing, a program designed to spur investment into low-income communities.



Honorable Mention: Power-One (Phase I & II)

Honorable Mention Industrial Project: Power One - Wespac

Developer: Power-One
C
ontractor: Wespac Construction
Architect:
SmithGroup
Broker: CB Richard Ellis
Size:
120,000
Location:
3201 Harbour Dr., Phoenix
Completed:
January 2010

RED Awards Banner

Best Mixed-Use Project 2011

CityScape

Best Mixed-Use 2011: CityScape, RED DevelopmentDeveloper: RED Development
Contractor:
The Weitz Company
Architect:
Callison Architecture
Broker:
CB Richard Ellis
Size:
1.12M SF
Location:
One E. Washington St., Phoenix
Completed:
April 2010

CityScape is Downtown Phoenix’s newest, urban mixed-use development. CityScape added needed (and desired) retail uses and jobs in the downtown core and linkages to development on adjacent blocks. The project addresses the significant lack of retail/commercial space in Downtown Phoenix. That need was met through the completion of 200,000 SF of new retail shops. Retail and office space is more than 90% leased in the 28-story building. Tenants include Lucky Strike Lanes, Gold’s Gym, UnitedHealthcare of Arizona, Alliance Bank, Urban Outfitters and Squire, Sanders & Dempsey. Rounding out the mix is the 242-room, 4-Star Kimpton Palomar Hotel, which is scheduled to open later this year. CityScape’s construction includes the use of high-efficiency glass.




Honorable Mention: Gila River Indian Community, District One Service Center

Honorable Mention: Gila River Indian Community, District One Service CenterDeveloper: Gila River Indian Community
Contractor:
W.E. O’Neil Construction
Architect:
DLR Group-KKE
Size:
30,347 SF
Location:
15722 N. Toki Rd., Coolidge
Completed:
June 2010

PTK Top Industry Leaders 2010

People To Know’s Top Industry Leaders Of The Year Announced

AZRE: Arizona Commercial Real Estate Magazine’s latest edition of Top People to Know (PTK) in Commercial Real Estate has just been published, and last night the winners of the PTK Top Industry Leaders were announced at a special event.

PTK showcases the most influential people working in commercial real estate in Arizona in the categories of developers and investors, brokers, architects and engineers, general contractors, sub-contractors, financiers and accountants, attorneys, city planners, property managers, and economic developers.

A committee of CRE professionals and the editorial staff of AZRE picked the people profiled in the 2010-2011 edition of PTK. Of those selected to be in the publication, the committee chose one person in each category as a Top Industry Leader.

A full profile on each of the Top Industry Leaders will be published in the January/February edition of AZRE.

Developers &Investors  Mike Ebert Managing Partner, Development RED DevelopmentDevelopers &Investors

Mike Ebert
Managing Partner, Development
RED Development



Brokers  Mike Haenel Executive Vice President Cassidy Turley | BRE CommercialBrokers

Mike Haenel
Executive Vice President
Cassidy Turley | BRE Commercial



Architects & Engineers  John F. Kane, AIA Partner ArchitektonArchitects & Engineers

John F. Kane, AIA
Partner
Architekton


General Contractors  Bryan Dunn, LEED AP Senior Vice President Adolfson & Peterson ConstructionGeneral Contractors

Bryan Dunn, LEED AP
Senior Vice President
Adolfson & Peterson Construction


Sub-Contractors  Tim Drexler President & CEO Ace Asphalt of ArizonaSub-Contractors

Tim Drexler
President & CEO
Ace Asphalt of Arizona


Financiers & Accountants  Mark Winkleman Chief Operating Officer ML ManagerFinanciers & Accountants

Mark Winkleman
Chief Operating Officer
ML Manager


Attorneys  Jordan Rich Rose Founder & President Rose Law Group pcAttorneys

Jordan Rich Rose
Founder & President
Rose Law Group pc


City Planners  Chris Anaradian Community Development Director City of TempeCity Planners

Chris Anaradian
Community Development Director
City of Tempe


Property Managers  Afton Trail Managing Director CB Richard EllisProperty Managers

Afton Trail
Managing Director
CB Richard Ellis


Economic Developers  Barry Broome President & CEO Greater Phoenix Economic CouncilEconomic Developers

Barry Broome
President & CEO
Greater Phoenix Economic Council

BOMA - AZRE Magazine November/December 2010

BOMA: Bad Times Call For Good Managment

Building Owners and Managers Association ( BOMA ) suggests energy conservation and retention can help commercial property managers ride out a tough economy.

Dwindling capital budgets. Old mechanical systems that don’t stop aging because the economy is in a recession. Tenants lured away by cheaper lease offers. Buildings in receivership.

While good management practices may have helped position some properties to better withstand the economic turmoil, today they are more important than ever in helping managers find solutions to these problems. That means retaining tenants and keeping a property well maintained, despite fewer dollars.

“Retention is absolutely key in a down market,” says Marii Covington-Jones, a real estate manager for CB Richard Ellis’ asset services division, and BOMA member.

Covington-Jones manages the Mesa Financial Plaza at 1201 S. Alma School Rd., which is wending its way through receivership. When she began managing the high-rise, it was 75 percent occupied. Today, occupancy is at 50 percent.

Real estate professionals across the Valley are facing similarly declining rates. According to figures from CBRE, the vacancy rate for Metro Phoenix went from 12.62% in 2005 to 26% in 2010.

Declining tenancy rates mean declining dollars.

“The first thing that happens in an economic downturn is your capital budget goes away,” says Susan Engstrom, senior real estate manager of The Great American Tower, a 24-story building at 3200 N. Central Ave. Engstrom manages the 25-year-old tower for Tiarna Real Estate Services.

Covington-Jones and Engstrom say good property management practices are helping to shave operating costs and do what it takes to keep tenants.

BOMA – Saving Energy Is Good Business

Covington-Jones estimates that efforts to reduce energy consumption have saved $2 a square foot in the 323,000 SF building. When she began managing the tower, it scored in the 30s on the U.S. government’s Energy Star scale. It now scores in the 90s.

Management professionals, particularly those overseeing older buildings, can look into:

  • Installing a variable frequency drive on major motors to regulate start-up and start-down based on usage.
  • Installing energy-management controls on boxes in each suite, so they can be remotely turned off during non-business hours.
  • Establishing programs for after-hours energy use. Covington-Jones says she implemented an “On-demand Saturday” scheduling system, which regulates after-hours usage. “… only using what someone actually needs,” she says.
  • Getting serious about recycling. Engstrom says taking cardboard out of the trash pickup reduced the tower’s trash bill by 35%, from about $1,700 a month to just less than $1,000 a month.

Do What It Takes To Lease

Property managers must continue leasing in a down market, Engstrom says. When ownership recognized that prospective tenants were tightening their budgets, it cut $3 or $4 a square foot from the pro forma lease agreement, helping them continue leasing throughout the previous year. Today, the tower is 83% occupied.

Getting approval for such changes is more difficult when a property is in receivership, Covington-Jones says, but fortunately there are steps a manager can take that don’t require outlays of capital or everyone’s signature.

It is particularly important to work closely with leasing agents, even joining them on walkthroughs with prospective clients. Covington-Jones says it is wise to walk through “every inch” of a building at least once a month to assess what can be done to a suite to make it more attractive or to ensure it is clean enough to show.

Retention, Retention, Retention

Being responsive to tenants’ needs is paramount and doesn’t always cost money. That means property managers must be vigilant to avoid the trap of deferred maintenance, Engstrom says. Hiring a good chief engineer is worth the cost, she says, particularly one who knows the building’s operating systems inside and out, and has the expertise to keep them maintained.

While it may be more difficult to keep a building clean and secure during lean times, it can be done. Engstrom recommends keeping long-time vendors, such as a janitorial firm, to prevent disruptions to service and having to work through learning curves with new vendors. That may mean a manager has to renegotiate a contract, but good vendors often are willing to do that in order to hold onto business.

If a manager must hire a cheaper contractor for landscaping or cleaning, he or she should insist on monthly inspections.

“Sometimes you may have to be a little more on top of people,” Covington-Jones says.

She has had to get creative to lower maintenance costs, even picking up a paintbrush to help spruce up some worn planters. Replacing perennials that needed lots of water with lantana also saved about $4,500 a year.

Being attentive to tenants’ needs always has been important, and it doesn’t always cost money, Engstrom says. But in today’s market, it is one more tool in her arsenal that helps keep the property viable.

AZRE Magazine November/December 2010