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Cushman & Wakefield Research Shows Continued Progress for U.S. Industrial Market

Construction Pipeline Ramps Up to Meet Strengthening Demand

Robust absorption, declining vacancies and rising rental rates reflect continued progress for the U.S. industrial real estate market through the first quarter of 2014, according to commercial real estate services firm Cushman & Wakefield’s latest research findings, released this week. And while tightening supply may have contributed to a slowdown in leasing velocity through January, February and March, the nation’s industrial construction pipeline has ramped up to meet strengthening demand.

 Cushman & Wakefield’s John Morris, leader of Industrial Services for the Americas

Cushman & Wakefield’s John Morris, leader of Industrial Services for the Americas

“First quarter performance continued the notable progress industrial real estate experienced in 2013,” noted Cushman & Wakefield’s John Morris, leader of Industrial Services for the Americas. “Domestic manufacturing continues to gain traction, driving increased production and shipments, and electronic fulfillment continued to expand. As a result, the economic environment for our sector is the best we have seen in many years.”

In fact, industrial space occupancy gains rose 31 percent year over year, with 30.5 million square feet of absorption, compared to 23.2 square feet in the first quarter of 2013. Atlanta led the nation, with 5.1 million square feet of absorption, followed by the Inland Empire, with 4.6 million square feet. The U.S. overall industrial vacancy rate continued to trend down, ending the quarter at 7.4 percent, 80 basis points lower than one year ago.

“Availabilities are dwindling, especially in the highly competitive big-box market,” Morris noted. “This is holding industrial leasing in check. Only 11 out of the 38 markets tracked by Cushman & Wakefield posted increased activity year-over-year.”

Greater Los Angeles continued to lead the nation in leasing volume, with 7.7 million square feet in activity through March (down 16 percent year over year), followed by Dallas/Fort Worth, with 6.8 million square feet (up 13 percent year over year). Seven markets posted double-digit gains during the first quarter, with Northern New Jersey up 43 percent year over year, and Philadelphia recording a 74 percent increase.

A shortage of top-tier industrial space has placed continued upward pressure on rents. Average asking rates grew in most major markets tracked by Cushman & Wakefield, with the national direct average climbing from $5.73 per square foot to $6.03 per square foot during the past 12 months. Houston led the way with a 10.3 percent year-over-year average rent increase.

“The supply/demand imbalance also continues to fuel construction activity, including both build-to-suit and speculative product,” Morris noted. “Virtually all of the top markets are seeing construction pipelines return to near pre-recession levels.”

Dallas/Fort Worth and California’s Inland Empire are leading the nation in construction, with 16.5 million square feet and 14.8 million square feet of total volume, respectively. In Dallas/Fort Worth, 14.4 million square feet of that total is being built on spec. Of the 85.8 million square feet of total development expected to be completed nationwide by year-end 2014, 51.7 million square feet is speculative.

“Moving forward, we are watching a number of private sector developments that will likely add near-term momentum to the industrial real estate market’s positive trending,” Morris said. “Among them, we anticipate a continuing revival of the housing sector, the activation of pent-up consumer demand and rising export volume. Most importantly, we are beginning to see a shift in business attitudes and a greater willingness to take risk, which will lead to stronger employment growth and increased investments in people and equipment.”

* Indicates change in “percentage points” from prior year (not percent).


Nexius Solutions Relocates to Gilbert

Cushman & Wakefield of Arizona, Inc. helped negotiate the relocation of Nexius Solutions to a 20,982-square-foot facility at 377 S. Hamilton Court.

Nexius Solutions, which provides end-to-end wireless services to prominent carriers and data-driven industries, will relocate from 2601 S. 37th St. in Phoenix. Nexius takes occupancy this month.

“The new site for Nexius provided them better access to their customers,” said John Grady. “Also, occupying the entire freestanding building was appealing to the company.”

Grady and Jackie Orcutt of Cushman & Wakefield represented the tenant. Eric Jones of Commercial Properties represented the landlord.

201 West, WEB

Cushman & Wakefield Sells $27.35M in Multi-Family Properties

Cushman & Wakefield of Arizona, Inc. negotiated the $27.35 million sale of Mill Pointe and 201 West, a pair of multifamily properties, located at 4130 S. Mill Ave. and 201 W. Hermosa Dr., respectively.


Mill Pointe was built in 1980 and contains 22 buildings and 218 units. 201 West was built in 1973 and contains 16 buildings and 223 units. The properties are a combined 346,476 square feet and were 94 percent occupied at the time of the sale.PR-Mill Point


Bank of America Community Development in Dallas sold the properties to Gelt Inc. of Los Angeles. The sale price brought $62,018 per unit, which equates to $78.94 per square foot.


“This strategic acquisition gives the buyer the opportunity to acquire an asset with strong existing cash flow and rental upside in a great, long-term location at value significantly below replacement cost,” said Jim Crews with Cushman & Wakefield.


Crews and Brett Polachek of Cushman & Wakefield negotiated the transaction.

Farina,Patti, WEB

Cushman & Wakefield Promotes Patti Farina to Director

Patti Farina has been promoted to Director at Cushman & Wakefield of Arizona, Inc.

Farina, who joined Cushman & Wakefield in 2011 as Senior Portfolio Manager in the Property Management Division, will oversee the management of the office’s industrial property portfolio, said Greg Valladao, Market Leader of C&W of Arizona.

“We are pleased that Patti has accepted an expanded role in our organization.” Valladao said. “Her knowledge and experience with industrial property/asset management is unsurpassed in the industry.”

During her tenure at C&W, Farina has played an integral role in growing Arizona’s industrial property management portfolio to 13 million square feet. In her new role, which begins immediately, she will be working closely with Victoria Knudson, national lead of C&W’s Industrial Property Management portfolio.

“This is a tremendous opportunity and I couldn’t be more excited for Cushman & Wakefield and the industrial team,” said Farina, who has more than 18 years experience in the commercial real estate industry working with institutional and non-institutional clients primarily in industrial. “The passion within C&W to grow our industrial portfolio is amazing.”

Prior to joining Cushman & Wakefield, Farina was Senior Real Estate Manager at CBRE, overseeing its industrial portfolio. She held a similar position at The Trammell Crow Company.

Key assignments include the Clarion Partners industrial portfolio, the Industrial Income Trust portfolio, and the Cabot Properties portfolio.

Farina has an Arizona Real Estate License, Real Property Administrator (RPA) and LEED AP designations and is a member of the Building Owners and Managers Association (BOMA) Greater Phoenix chapter.

Cathy Teeter, WEB

Catharine Teeter joins CBRE as director of operations

CBRE has announced that Catharine Teeter has joined the firm as its Director of Operations for Arizona and the Intermountain Region. In this role she will partner with the firm’s market and regional leadership to develop and implement strategic priorities for operations.

”I am thrilled to welcome Cathy to the team. She is the perfect complement to our team of best-in-class professionals,” said Craig Henig, CBRE’s senior managing director and Arizona market leader. “Her years of experience coupled with deep market knowledge will make her a pivotal asset as we work to continue to provide unrivaled service to our clients. I’m looking forward to partnering with her as we develop and implement initiatives that will move us ever closer to our vision of making CBRE a world-class organization.”

Teeter comes to CBRE after more than 25 years with Cushman & Wakefield, where she most recently served as the senior operations manager for their offices in Arizona and Nevada. During that time, she gained considerable experience successfully running profitable operations while leveraging an effective administrative infrastructure that provided superior service to professionals in brokerage, asset services, project management and valuation advisory groups. Additionally, Teeter served on national committees for broker support and broker training programs and has worked with major clients including American Express, Symantec, Lucent, Citigroup, eBay and Prudential.

Teeter holds an MA degree in Organizational Management, a BA in business administration and a professional human resources (PHR) certification. She is an active member of the Society of Human Resources Management (SHRM) and NAIOP.

Agave Center

Cushman & Wakefield Sell Agave Center for $29.6M

Cushman & Wakefield of Arizona, Inc. has negotiated the $29,593,000 sale of the distinctive five-building office/flex development project known as Agave Center.

Agave Business Center (55,221 rentable square feet), located at 8945 S. Harl Ave., is 71 percent occupied and enjoys one of the largest remaining blocks of potential “creative” space along the I-10 corridor.

Agave Corporate Center, located at 1711 W. Greentree Dr., is a two-story professional office building containing 86,115 rentable square feet that is 98 percent occupied.  Agave Executive Center contains 78,405 RSF in three buildings, located at 17211, 1725 and 1729 W. Greentree Dr. The three buildings are 95 percent occupied.

Collectively, the five-building project was developed in 2000, accounts for 219,741 RSF, and is more than 90 percent occupied.

An entity owned by certain funds managed by Westport Capital Partners LLC, sold the project to Dornin Investment Group of Laguna Beach, Calif.

“Westport Capital Partners LLC did an exceptional job of executing its business plan several years ahead of schedule and Dornin Investment Group has been eyeing the Phoenix market for office acquisitions and was waiting for the right opportunity to enter the market,” said Chris Toci of Cushman & Wakefield.

Toci, Chad Littell, and Ryan Bartos of Cushman & Wakefield represented the seller in the transaction.

CFA Cabinetry, WEB

Cabinet Supplier Leases Remaining 63,840 SF at SW Phoenix Warehouse

CFA Cabinetry, LLC, a wholesale seller of kitchen and bathroom cabinetry, signed a five-year-plus lease for the remaining 63,840 SF at Freeport Center, 420 S. 53rd Ave., Phoenix.
The Koss/Louer Team, featuring principals Stein Koss and Tom Louer of Lee & Associates Arizona represented the landlord, Overton Moore Properties. Keri Amrhein Scott with Cushman & Wakefi eld represented the tenant, CFA Cabinetry.
The Koss/Louer team assisted Overton Moore Properties (OMP), a Gardena, CA-based development company with the purchase of the property earlier this year. OMP acquired this asset under its newly formed venture with Pacifi c Coast Capital Partners and an institutional partner. The venture is committed to acquire $80M to $100M of industrial real estate in the Phoenix market within the next two to three years. The recently closed transaction marked Overton Moore’s entry into the Phoenix commercial real estate market.

The building features 30-foot clear height, dock high loading, heavy industrial (A-2) zoning and a secured yard with fencing around the entire property. The Freeport Center is located in the heart of the Southwest Valley industrial market with proximity to Interstate 10.

CFA Cabinetry, WEB

CFA Cabinetry Relocates to 64KSF Space in Southwest Phoenix

CFA Cabinetry, a wholesaler of kitchen and bathroom cabinetry, is nearly doubling its warehouse and distribution space with a relocation to 420 S. 53RD Ave.


Cushman & Wakefield of Arizona, Inc. negotiated a five-year lease relocating CFA to a 63,840 SF facility. The company is expanding and relocating on May 1 from its 32KSF facility in Deer Valley at 1725 E. Williams Rd.


“The relocation to a larger facility will allow CFA Cabinetry to grow its business,” said Keri AmRhein-Scott of Cushman & Wakefield. “With the continued rebounding of the housing industry, the Southwest Valley will continue to do well as companies like CFA absorb more space.”


AmRhein-Scott and John Grady of Cushman & Wakefield represented CFA Cabinetry in the lease transaction. Overton Moore Properties of Gardena, Calif., the landlord, was represented by Stein Koss of Lee & Associates. The lease brings the property to 100 percent occupancy.

1002EUniversity, Creative Interiors, WEB

Creative Touch Interiors Signs 37KSF Lease

Cushman & Wakefield has inked a 37KSF, three-year lease with Creative Touch Interiors, dba HD Supply, at EastGroup Properties’ 1002 E. University Drive in Phoenix. The firm’s Phoenix-based team of Jackie Orcutt, John Grady and Jim Wilson represented EastGroup, a Jackson, MS-based self-administered equity REIT. The tenant was represented by Pat Feeney of CBRE.

The tenant, which has relocated within the Phoenix marketplace, is a provider of interior finish solutions, as well as maintenance, repair, infrastructure and power services for the construction industry. The location will be utilized as a showroom and design center.

“The building provided an ideal location and build-out for the tenant’s needs,” said Orcutt. “EastGroup has an incredibly streamlined negotiation and lease preparation process, enabling us to move through the transaction very efficiently.”

With the signing, the 73,080-square-foot 1002 E. University Drive is fully leased. “We are pleased to have reached 100 percent occupancy on behalf of EastGroup,” said Orcutt.

Creative Touch Interiors’ new location is part of a three-building complex totaling 177,000 square feet. Located in the heart of Phoenix near a full interchange of University Drive and 7th Street, 1002 E. University Drive’s features include a 7,200-square-foot office component and 26-foot ceiling heights. Its design and location have positioned it for will-call and showroom requirements.

The metro Phoenix industrial market itself posted a positive net absorption in 2013, with a particularly strong showing in the southwest Phoenix submarket. “It’s exciting to see industrial commerce reinvent itself in this market,” said Orcutt. “The local economy is seeing employment growth in such diverse industries as trade and transportation, and the professional, scientific and technical industries — and that has started to pay off.”

“We have also seen the vacancy rate drop below 10 percent, and that has sparked new construction activity,” she said.

Mesa CC

Mesa Corporate Center Sells for $13.2M

Cushman & Wakefield of Arizona, Inc. has negotiated the $13.2M sale of Mesa Corporate Center, located at 1001 W. Southern Ave.

The 106,077-square-foot office building was constructed in 2000 and was 89 percent occupied at the time of the sale. Tenants include Allstate Insurance Company, DeVry University and Allied Barton Security.

Parkway Properties of Orlando, Fla. sold the property to Buchanan Street Partners of Newport Beach, Calif.

“Mesa Corporate Center has proven to be one of the leading office developments in the Southeast Valley since its completion,” said Chris Toci. “It is representative of a growing demand for freeway-located office space with above-standard parking ratios and immediate access to a deep amenity base.

“Office and vacancy rates along the Southeast Valley freeway system are rapidly tightening to the single digits, which is indicative of near-term rent growth and increased build-to-suit activity,” Toci said.

Toci, Chad Littell, Jerry Noble and Ryan Bartos of Cushman & Wakefield represented the seller in the transaction.

MaryVaughn, WEB

Cushman & Wakefield National Property Tax Service Group Expands to Phoenix

Cushman & Wakefield announced the expansion of its National Property Tax Service group, adding Phoenix-based coverage of the Southwest.

Mary Vaughn has been hired as Director of Property Tax Services in the Phoenix office. She will lead the property tax function for the company’s existing client base, as well as focus on business development opportunities, according to Mark Kline, Senior Managing Director and U.S. Practice Leader for the group.

“Strong property tax representation, including administration, tax management and, when appropriate, tax appeals, requires extensive knowledge of specific real estate markets and their cycles. We utilize a robust database to support the effort,” says Mr. Kline. “Cushman & Wakefield is the only major multi-disciplined real estate firm to create a nationwide property tax service group. Our research team, brokerage professionals, property management staff and valuation & advisory experts all contribute as resources for property tax services. Utilizing our comprehensive real estate expertise brings stronger representation for our investor clients. Cushman & Wakefield operates on a global platform, so we are able to assist investors not just within the United States, but throughout the world.”

Cushman & Wakefield’s property tax work for New Mexico, Nevada and Arizona will be based in the Phoenix office. Ms. Vaughn will lead the efforts, utilizing her extensive national property tax experience. Ms. Vaughn is a native of Baltimore and a graduate of Northern Arizona University. She also has a Masters of Legal Studies with an emphasis on real estate from the Sandra Day O’Connor College of Law at Arizona State University. Ms. Vaughn previously served in the national property tax division of Republic Services.

In addition to providing property tax appeal work, Cushman & Wakefield assists with audits and consults with clients on both business and personal property tax issues. The company plans to quickly grow the Property Tax Services group in Phoenix under Ms. Vaughn’s leadership. Cushman & Wakefield’s strong client base of institutional investors and major corporations are benefitting from the company’s addition of tax appeal services.

“Property taxes represent a major fixed cost for real estate owners,” said Mr. Kline. “Real estate markets are cyclical, with property values changing on a continuous basis. Typically, assessors find it difficult to keep up with these values and we are committed to making sure our clients pay the appropriate taxes for the accurate value of their properties. For example, as the economy is improving we have found that assessed values are escalating at a faster pace than the actual values in many areas. The knowledge we bring to these cases can potentially create significant savings for our property owner clients.”

Ms. Vaughn will work with Jo Dance, the Managing Director and Regional Manager of the Valuation & Advisory group and her appraisal professionals.

USA Place rendering, WEB

Cushman & Wakefield Awarded USA Place Leasing Assignment

Cushman & Wakefield of Arizona, Inc. has been awarded the exclusive retail leasing assignment of 180,000 SF at USA Place, a 10.7-acre mixed-use development that will serve as the new home of USA Basketball.

“This project will be a draw to a diverse group of consumers,” said Summer Jackson, associate director with Cushman & Wakefield’s Retail Advisors.  “Appealing to the professional, business traveler, sports enthusiast, athlete, student, resident or tourist, it will be one of a kind to the Arizona market.”

At 1.4 MSF, USA Place is expected to break ground next month at one of the busiest and most desirable business locations in the Valley – along Tempe’s historic Mill Avenue and University Drive.

At full build out, USA Place will feature amenities including:
>> 180,000 SF of retail space to include restaurants, shops and service oriented uses;
>> More than 240,000 SF of Class-A office space, including the new headquarters of USA Basketball.
>> A 390-room, 14-story, Four Diamond Omni Hotel and Conference Center;
>> 4,500-seat Event Center that will play host to USA Basketball, the Arizona Interscholastic Association, and community events;
>> More than 500 luxury apartments and lofts atop street-level retail.

The developer of the project is USA Place, LLC, which is comprised of three entities led by Susan Eastridge of Concord Eastridge, Inc., Michael Hallmark of Future Cities LLC, and Rob Harris of Harris Sports and Entertainment LLC.

“The Cushman Wakefield team was most responsive in understanding our retail goals for USA Place,” said Susan Eastridge, CEO of Concord Eastridge. “USA Place is an urban gathering place for retailers that will find synergies with one another within the major objectives of USA Place to showcase amateur sports, wellness, fitness with both national and local ‘best in class’ food and beverage and soft goods purveyors.”

High-end national tenants are expected to occupy the prominent retail spaces. Other retail options will include trendy wine bars and coffee houses, restaurants, an urban grocer and soft goods.

Adjacent to ASU and the Mill Avenue district, USA Place will also capitalize on a thriving arts and culture district that includes the Tempe Center for the Arts, Gammage Auditorium, local art galleries, cinemas, and concert venues.

In addition, the 50,000 SF event center floor will allow the Omni to stage exhibitions, banquets, and presentations – doubling conference center capacity.

“Specializing in mixed-use developments and the Mill Avenue district, Cushman & Wakefield is excited to be a part of this landmark project,” Jackson said.
Responsible for more than 4 MSF of product in Metro Phoenix, the Cushman & Wakefield team of Jackson, Courtney Auther and Brian Kocour will handle the retail leasing assignment at USA Place.

6811 E Mayo ELC Export030

Phoenix Office Market Posts 2MSF Net Absorption in 2013

Cushman & Wakefield of Arizona reported the following analysis of the Phoenix office market in 2013.

Phoenix Industrial Market Statistics

Click for enlarged view of Phoenix office market statistics.

The Metro Phoenix office market posted net absorption of 1,955,355 SF in 2013, compared to net absorption totaling 2,217,348 SF in 2012. The best-performing office submarkets were the Scottsdale Airpark with 461,616 SF, the Camelback Corridor with 389,394 SF, and Tempe with 385,306 SF of positive net absorption.

Those three submarkets collectively posted 1.236 MSF of positive net absorption, which translated to 63 percent of the entire Metro Phoenix market activity for 2013. Top of market rental rates in each of these submarkets exceeded $30 per SF.

“Two consecutive years of solid net absorption have helped decrease the overall vacancy rate in the Phoenix office market,” said Jerry Noble of Cushman & Wakefield’s Office Properties Group. “We continue to see improved activity on the street, and there are several large office requirements in the market. Tech and insurance companies have been significant drivers of demand. We expect 2014 to be another good year.”

Notable Metro Phoenix office sales included 111 W. Rio Salado Parkway, Tempe, $41.765M; 4343 N. Scottsdale Road, Scottsdale, $68.6M; and 6811 E. Mayo Blvd., Scottsdale, $38.6M. Notable Metro Phoenix office leases included 15111 N. Pima Road., Scottsdale, 148,732 SF; 16260 N. 71st Street, Scottsdale, 121,123 SF; and 60 E. Rio Salado Parkway, Tempe, 85,000 SF.

The Metro Phoenix office market vacancy rate decreased as well in 2013. The direct vacancy rate fell from 23.0 percent at year-end 2012 to 20.8 percent at the end of 2013.

The lowest direct vacancy rates in 2013 were posted in North Tempe and South Scottsdale at 6.9 percent and 12.8 percent, respectively.

The direct average asking rental rate for office space in Metro Phoenix increased year-over-year from $20.25 per SF in 2012 to $20.60 per SF in 2013.

Looking ahead to 2014, the most active construction will continue in the Tempe submarket as Marina Heights (the State Farm Insurance campus) and Hayden Ferry Lakeside III come out of the ground.

“Scottsdale, Tempe, and Camelback are rapidly improving,” said Noble, who added that properties along the Loop 101 are some of the more sought after in the Valley. “The real story line for 2014 is already underway.  With very little new construction underway, tenants seeking efficient large blocks of space in these areas have limited options available. This will drive rents, help support new construction, and also drive activity to other submarkets. Rents in these pockets have already increased and will continue to do so.  It has been over 10 years since tenants have been forced to look for space more than a year in advance of their target occupancy dates due to limited supply.”


Jeems Lochridge, WEB

Jeems Lochridge Joins Cushman & Wakefield

Jeems Lochridge has joined the Valuation & Advisory Group at Cushman & Wakefield of Arizona, Inc.

Lochridge, a graduate of the Eller College of Management at the University of Arizona, has been named Junior Commercial Appraiser. A 2012 graduate, he earned an MBA with a concentration in marketing and a focus in finance. Lochridge is a native of Pacific Grove, Calif.

“Cushman & Wakefield continues to add high-caliber talent to our Valuation & Advisory team,” said Jo Dance, Managing Director and Regional Manager of the Valuation and Advisory Group. “Jeems Lochridge is a welcome addition to our team, and his banking and entrepreneurial backgrounds make him well suited for the appraisal field.”

Good Samaritan Hospital - AZ Business Magazine Mar/Apr 2011

Avnet Building Sells for $21.5M

Cushman & Wakefield of Arizona, Inc. has negotiated the $21.5M sale of the AVNET Building, a Class-A office property located at 8700 S. Price Rd.

The two-story building, which was constructed in 2000, totals 132,070 SF and was 100 percent occupied by AVNET, Inc. at the time of the sale. It is located in the 320-acre Arizona State University Research Park with direct frontage on the Loop 101 freeway. 

Atlanta-based Piedmont Office Realty Trust sold the property to AVASU (AZ) LLC of New York.

“W. P. Carey of New York, on behalf of one of its managed REITs, won the bid in a highly competitive process,” said Chris Toci. “W. P. Carey was drawn to the investment-grade nature of the tenant, AVNET, which will occupy the property under a long-term, net lease with annual scheduled rental increases.

“This asset within the ASU Research Park is the corporate headquarters for the AVNET Technology Solutions group, one of two operating groups of AVNET, Inc. The building is positioned within the ‘white hot’ technology corridor of the Southeast Valley.”

Toci, Chad Littell and Michael White of Cushman & Wakefield represented the seller in the transaction.


Executive Q-and-A: Gregory Valladao

Gregory Valladao
Senior Managing Direct/Market Leader, Cushman & Wakefield Arizona

Years in CRE: 17
Years at company: 3.5

What was it about the industry that attracted you?  
I heard how great “closing dinners” were, and I was hooked. Seriously, in the mid-1990s I was grinding out billable hours as a litigation attorney when I had a relative suggest I look into commercial real estate. Knowing that Phoenix was going to continue to grow, I was intrigued by the idea. After quickly realizing how entrepreneurial the business was, I was convinced it was the place for me. Within a matter of days I left my well-compensated law firm job to take a runnership at Grubb & Ellis that paid $16,000 a year. It was one of the most frightening, but best decisions I ever made.

How has the industry changed since you started?
The industry has become more data driven than it was originally. Real estate decisions today are often made based upon pure “metrics” rather than the gut instinct that many developers tended to rely upon. This has been driven by the large amount of available data on the internet as well as the lending institution demands. While personal relationships still play a large role in the industry, these changes have forced everyone to become a little smarter, which is great for the industry.

Of what professional achievement are you most proud?
Having had the opportunity to participate in brokerage, development and management over a 17-year career, and the long-standing relationships I have developed are my proudest achievements. From my perspective, I am very fortunate to be in a strong, collegial market where I can still consider some of my fiercest competitors good friends. There are very few places that can be found, especially in the hyper-competitive real estate industry.

Playa del Norte, CushWake

CushWake to handle leasing of new Playa Del Norte office in Tempe

Cushman & Wakefield of Arizona, Inc. has been awarded the leasing for the proposed Playa Del Norte development at 979 E. Playa del Norte Drive.

The assignment is a build-to-suit by Irgens Partners and is planned for nine stories and approximately 103,000 SF of Class-A office space.

Play Del Norte offers convenient access to the Southeast and Northeast valleys, Sky Harbor International Airport and the loops 101 and 202. The site is ideal for any headquarters use or large tenant, offering unobstructed Valley views on Tempe Town Lake.

Cushman & Wakefield and Irgens are pursuing various corporate of office tenants. Plans call for the project to be completed as early as mid-2015.

Playa Del Norte offers space from 25,000 to 100,000 square feet with efficient 25,000-square-foot floor plates and ample parking. The team of Pat Devine, Greg Mayer and Jerry Noble of Cushman and Wakefield of Arizona, Inc. has been awarded the leasing assignment for Playa Del Norte.

The Tempe submarket has been very active over the past year, and has seen some of the most notable tenant activity in Metro Phoenix. State Farm made a sizable commitment at Marina Heights, a 2-million-square-foot, five-building campus on the bank of Tempe Town Lake.

LifeLock and Silicon Valley Bank have expanded their presence in the Tempe submarket. This bolsters an already impressive lineup of corporations in the area, including MetLife, Limelight, KPMG, Microsoft and Morgan Stanley at Hayden Ferry Lakeside.

“We are pleased to represent Irgens on their north Tempe site,” Noble said. “Tempe has become a very desirable business address in Phoenix and is in need of additional large blocks of office space to support the growing number of companies that want to be in the area.”

“With its premier location in one of the Valley’s most active submarkets, connectivity to the region and progressive design concepts, the market-relevant design presents a high-profile opportunity for Class A, build-to-suit corporate users in Tempe,” said Jason Meszaros, Vice President and Arizona Market Manager for Irgens.

Jabil Circuit, CushWake

Cushman & Wakefield Awarded Sale of Former Jabil Circuit Flex Building

Cushman & Wakefield of Arizona, Inc. has been awarded the sale of a former electronics manufacturing/warehouse flex building at 615 E. River Dr.

The 193,000 SF property includes 176,000 SFof fully air-conditioned manufacturing and warehouse space and 17,000 SF of office space. It sits on 16.5 acres with direct frontage on the Loop 101 and close proximity to the Scottsdale and Chandler submarkets.

“We are excited to bring the Jabil facility to the market at a time when the technology industry is booming in the Southeast Valley,” said Jackie Orcutt. “We feel the asset is well positioned with exposure along the Loop 101 corridor, heavy parking and ample power for a wide variety of users.”

Orcutt, Chad Littell, John Grady and Chris Toci of Cushman & Wakefield are handling the sale of the property.

“The Jabil facility is entering the market at a critical time when large blocks of space are in limited supply,” said Littell. “A scarcity of existing options for large tenants further elevates the Jabil facility as one of the most attractive opportunities in the Southeast Valley.”

St. Petersburg, Fla.-based Jabil Circuit closed the facility last September. Jabil moved into the building in 2005 when it took over an electronics manufacturing business. The facility was built in 1982 and expanded in 1994 and 1997.


Keri Amrhein-Scott Promoted at Cushman & Wakefield

Keri AmRhein-Scott has been promoted to associate in the Industrial Properties Group at Cushman & Wakefield of Arizona, Inc.

AmRhein-Scott previously was a Client Coordinator in the firm’s Industrial Properties Group. She joined Cushman & Wakefield in 2012 from CBRE and Capital Asset Management. She has five years experience in property management.

She is actively involved with Cushman & Wakefield’s Future Leaders, NAIOP and Brokers for Kids. AmRhein-Scott is a graduate of the University of Arizona.

Graham, Chandra, WEB

Chandra Graham Joins Cushman & Wakefield’s Capital Markets Group

Chandra Graham has joined Chris Toci and Chad Littell in the Capital Markets Group at Cushman & Wakefield of Arizona, Inc.

Graham previously was a Director in the firm’s Valuation & Advisory Services Group.

“With her deep experience in the valuation world, Chandra brings a diverse, analytical background to the team that will be instrumental as our investment sale volume continues to increase and as we move through the Phoenix recovery cycle,” said Toci. “Chandra’s training as an MAI candidate will serve her well on ‘Team Toci’ as she brings experience in market analysis, cash flow preparation, valuation analysis and a host of other detail-oriented skills to bear on this team.”

Graham is a nationally-recognized commercial real estate appraiser with more than 15 years of experience in the Southwest and Mid-Atlantic regions, including Arizona, Nevada, Virginia, Maryland, West Virginia and Washington, D.C. She specializes in office, industrial and medical office properties.

Graham served as Director of Research and Marketing for Ensemble Real Estate. She served as a top producer at CBRE Valuation and Advisory Services from 1999-2008. She also has handled valuations for Colliers International and Newmark Grubb Knight Frank.

Coopers DIY, LLC purchased a 12,640 square foot retail building at 3366 N. Dodge Boulevard in Tucson from Commerce Bank of Arizona for $906,000.

PICOR Releases Recent Transaction List

PICOR | Cushman & Wakefield announced the following transactions:

Friendly Park, LLC purchased 4.1 acres of land at 701 E. 36th Street in Tucson from Bike Family Trust for $313,000.   Bob Kaplan, Investment Specialist and Rob Glaser, SIOR CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the buyer in this transaction.

Butterfield photoMaxServ, Inc. renewed their lease for 64,982 square feet at 4755 South Butterfield Drive in Tucson from the 3430 Sunrise, LLC.  Rob Glaser, SIOR CCIM, Industrial Specialists with Cushman & Wakefield | PICOR, and Chris Sido with Swearingen Realty Group represented the tenant in this transaction.  The landlord was represented by Rob Fischrupof with Vast Real Estate Solutions.

Coopers DIY, LLC purchased a 12,640 square foot retail building at 3366 N. Dodge Boulevard in Tucson from Commerce Bank of Arizona for $906,000.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction while Ryan McGregor with Keller Williams Southern Arizona represented the buyer.

Kerry Seidenglanz purchased Stone Leaf Apartments, a 60 unit apartment complex, at 334 W. Valencia in Tucson from Wayne Gould for $1,250,000.  Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction.

SVP Holdings, LLC purchased Bellevue Apartments, a 20 unit apartment complex, at 3414 E. Bellevue in Tucson from Richard Kupinski for $642,000.  Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction.

Crossfit Tucson leased 2,923 square feet at 3820 S. Palo Verde, Suites 107 and 108 in Tucson from Palo Verde Trust Partners, LLC.  Rob Glaser, SIOR CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

Tawheed Community Center leased 1,600 square feet at 4500 E. Speedway, Suite 15 in Tucson from Presson Midway, LLC.  Rob Glaser, SIOR CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

Maureen Erhardt, CPA, PC leased 1,085 square feet at 1955 W. Grant, Suite 165 in Tucson from WestGrant Limited Partnership.  Ron Zimmerman, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

Holy Cross Presbyterian Church leased 1,293 square feet at 7730 N. Cortaro, Suite 103 in Tucson from Cortaro Retail, LLC.  Aaron LaPrise, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord and Steve Nissen with Long Realty represented the tenant.

Crossfit Fixx, LLC leased 3,600 square feet at 8987 E. Tanque Verde in Tucson from Bear Canyon Associates, LLC.  Patrick Welchert, SIOR, Industrial Specialist with Cushman & Wakefield | PICOR, represented the tenant and Pete Villaescusa of CBRE represented the landlord in this transaction.

ChelseaMaddox, Cushman and Wakefield

Chelsea Maddox Joins Cushman & Wakefield

Cushman & Wakefield of Arizona announced that Chelsea Maddox has joined the company as director of brokerage services for its Healthcare Practice Group. Maddox will provide comprehensive healthcare real estate consulting services including representation on the leasing and sales of medical office space to owners and tenants.

Maddox spent the past year with Healthcare Trust of America, a publically traded real estate investment trust with a 13.6-million-square-foot medical office portfolio. She oversaw leasing activities for its South/Southwest portfolios, including more than 1.2 MSF in Arizona.

We are thrilled to have Chelsea rejoin Cushman & Wakefield,” said Gregory B. Valladao, Cushman & Wakefield’s Arizona Market Leader. “Her experience at HTA has made her one of the strongest medical office experts in the Southwest. We look forward to her expanding her Phoenix-based practice to include other cities in the area including Tucson, Albuquerque and Las Vegas. Her high level of professionalism and the expertise she brings to the table will be a huge benefit to the medical groups she consults with.”

Before joining HTA, Maddox was a senior associate with Cushman & Wakefield in the firm’s healthcare division where she represented a national tenant base. Prior to that, she was an associate with Grubb & Ellis, responsible for medical office leasing. Maddox began her career in 2007 with commercial real estate brokerage firm Landmark TCN as an associate.

She holds a B.A. in Public Relations & Strategic Media and Communications from the Cronkite School of Journalism and Mass Communications at Arizona State University.

Parkway Fountains Construction, CushWake

Parkway Fountains Office Building Undergoes $600,000 in Renovations

Parkway Fountains, a four-story Camelback Corridor office building is getting a $600,000 renovation and being reintroduced to the market.
New owner and operator Griffin Partners of Houston is making a foray into the Metro Phoenix office market. The company is starting with Parkway Fountains, located at 1702 E. Highland Ave.  The 80,315-square-foot property was built in 1986. This will be the first renovation work since it opened.  Plans call for completion of renovations in February.

Renovations include:

  • Fountain removal in building lobby;
  • New travertine marble tile in building lobby;
  • Antiquated brass fixtures and surfaces replaced or re-finished;
  • New modern stainless steel and glass guardrails;
  • New fresh, light overall paint throughout all common areas;
  • Impactful accent paints;
  • Warm wood elevator cab walls;
  • Stainless steel elevator rails;
  • Warm, contemporary main lobby carpet, with coordinating corridor carpet;
  • New energy efficient light fixtures throughout remodel;
  • New modern ceiling tiles throughout corridors;
  • Modern interactive directory;
  • New fire alarm system.

“Griffin is excited to reintroduce Parkway Fountains to the Phoenix office market,” said Lee Moreland, Griffin Executive Vice President. “It’s an entirely new product and we are pleased to offer our current and future clients a more efficient, modern and stylish office experience. Parkway Fountains is the first of several planned value-add acquisitions in the Valley, and we look forward to expanding our local footprint.”
“The new common area corridors and fountain-less lobby are refreshing and breathe new life into the project,” said Chris Nord of Cushman & Wakefield of Arizona. “With the building upgrades, immediate freeway access and rich amenity base, we’re excited to reintroduce Parkway Fountains to the market.”
Griffin Partners worked with architect Tricia Johannes and Cushman & Wakefield’s leasing team to renovate the property it purchased in June. Stevens Leinweber Construction has been selected as general contractor for the project.
Parkway Fountains is located in the bustling Camelback Corridor with immediate access to SR 51. It is also within walking distance to numerous retail amenities including restaurants, shopping, banks and health clubs located at the Camelback Colonnade and Town & Country Shopping Center.

Tenants include First Investors Corporation, DAUM Commercial and Environ International Corporation.
Nord and Michael White of Cushman & Wakefield serve as exclusive leasing agents for Parkway Fountains.

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Cushman & Wakefield|PICOR release recent transactions

Cushman & Wakefield | PICOR announced the following transactions in December:

Ftita, LLC purchased the 3,522 square foot office building located at 7370 N. La Cholla in Tucson, from Shakaz, LLC for $840,000.  Rob Glaser, SIOR, CCIM, with Cushman & Wakefield | PICOR, represented the buyer while Jordan Simon with Venture West represented the seller in this transaction.

NCS Pearson, Inc. leased 25,000 square feet at 4690 N Oracle Rd, Suite 50 in Tucson from The Tanager Company.  Greg Furrier, Principal and Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction while Pat Darcy with Tucson Realty & Trust represented the tenant.

Vision Church purchased a 10,091 square foot building at 7511 N. Benet Drive in Marana, Arizona, from South Pacific District of the Christian & Missionary Alliance for $1,200,000.  Rob Tomlinson, Retail Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction along with Robert Fletcher and Eric Knowles with Cushman & Wakefield San Diego.

The Starbucks Corporation leased 2,000 square feet at the southwest corner of Speedway & Pantano in Tucson from First Pioneer Properties.  Greg Furrier, Principal and Retail Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction.

Guillermo Madariaga purchased the 10 unit apartment complex at 1741 E. Hedrick Drive in Tucson, from Rodos Apartments LLC for $800,000. Bob Kaplan and Allan Mendelsberg, Investment Specialists with Cushman & Wakefield | PICOR, handled this transaction.