Tag Archives: cushman wakefield

Monster Paint FX

Monster Paint FX relocates to Avondale

Cushman & Wakefield of Arizona, Inc. negotiated a long-term lease for the relocation of Monster Paint FX to 1422 N. Eliseo C. Felix Jr. Way.

The lease is for 13,230 square feet. Monster Paint FX, which previously was at 7115 N. 110th Ave. in Glendale, is a locally owned company that provides custom auto body and paint work.

“It took more than one and half years for us to find the right facility for Monster Paint,” said Keri Scott, Associate with Cushman & Wakefield’s Industrial Properties group. “It was important to not only find a facility that could accommodate their current needs but give them the ability to grow quickly and efficiently. I think we accomplished that with this facility.”

Scott represented Monster Paint FX in the transaction. The landlord is Denali National Trust XXV LLC of Scottsdale.

The property is 100 leased. Monster Paint FX took occupancy June 1.


4011 E. Columbia

C & W | PICOR recent transactions: June 25, 2015


GMSK Properties, LLC purchased a retail pad at the southeast corner of Mission and Irvington Roads in Tucson from Charford, Inc. for $150,000.  Aaron LaPrise, Retail Specialist with Cushman & Wakefield | PICOR, represented the buyer and the seller in this transaction.

Magee Marquez, LLC purchased a 1,271 square foot office building at 2292 W. Magee Rd., Suites 130 and 140 in Tucson from J.P. Morgan Chase Bank, NA for $122,000.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the seller and Tom Nieman, Office Specialist with Cushman & Wakefield | PICOR, represented the buyer in this transaction.


UBS Financial Services, Inc. leased 11,314 square feet at 2840 E. Skyline Drive, Suite 200 in Tucson from Plaza Colonial Development Limited Partnership. Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant and John Yarborough with Romano Real Estate Corporation, represented the landlord in this transaction.

Surfacenet, LLC, dba SolidSurface.com, leased 11,250 square feet at 4011 E. Columbia St., Suite 105 in Tucson from Dybvig White Mountain, LLC.  Rob Glaser, SIOR, CCIM, and Brandon Rodgers, CCIM, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord and Gordon Wagner with Coldwell Banker, represented the tenant in this transaction.

Red Hawk Fire & Security, LLC leased 2,635 square feet at 2420 W. Ruthrauff Rd., Suite 160 in Tucson from Presson Scottsdale, LLC.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Tim Healy and Bob DeLaney with CBRE, represented the tenant in this transaction.

Corbins Service Electric, LLC leased 2,400 square feet at 4595 S. Palo Verde Rd., Suite 509 in Tucson from Presson Equity Partners, LLP.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Tim Healy and Bob DeLaney with CBRE, represented the tenant in this transaction.

AAA Driving School Corporation leased 1,440 square feet at 1870 W. Prince Rd., Suite 6 in Tucson from Presson Corporation.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction.


Cushman & Wakefield settles Dept. of Child Services lease

Cushman & Wakefield of Arizona, Inc. negotiated a long-term lease for the Arizona Department of Child Safety (DCS) at Mesa Financial Plaza, 1201 S. Alma School Road.

The lease, for 46,401 square feet spanning 2 1/2 floors, is new operating office space for DCS. Mesa Financial Plaza, a 16-story high-rise office tower, was built in 1985.

“This tenant, combined with the three or four latest professional firms, will be a wonderful addition to Mesa Financial Plaza,” said Matt Nebeker, a Director with Cushman & Wakefield’s Office Properties group. “The building is a great location for a new tenant to rebrand it with its own signage as Bank of America prepares to vacate.”

Nebeker represented the landlord, Wilson Property Services of Phoenix.


Jack Travis Logistics receives long-term relocation lease

Cushman & Wakefield of Arizona, Inc. negotiated a long-term relocation lease for Jack Travis Logistics at Pima Distribution Center #1, located at 236 E. Pima St.

The lease is for 20,000 square feet of industrial space, to relocate the company from Tempe, on July 1.  Jack Travis Logistics is a modern freight shipping and logistics company that provides domestic and Canadian cargo shipping.

“Pima Center offered Jack Travis Logistics the opportunity to find functional and affordable distribution space in the airport market,” said John Grady, Senior Director with Cushman & Wakefield’s Industrial Properties group. “There is a dwindling supply of that type of distribution space. The airport market is getting tight with mostly new product available.”

Cushman & Wakefield’s 1Q 2015 Industrial report showed that sized spaces are in short supply and that developers are stepping up to fill the need.

Grady and Jackie Orcutt represented Jack Travis Logistics. The landlord, TPRF II/Pima Industrial LLC, was represented by Stein Koss and Tom Louer of Lee & Associates.


John Kirby joins Cushman & Wakefield of Arizona

John Kirby has joined the Valuation & Advisory group at Cushman & Wakefield of Arizona, Inc. as Director.

Kirby has 11 years of experience in commercial real estate appraisal-related work, including litigation support. He previously worked at CBRE, where he was a Senior Appraiser for six years. Kirby also was a commercial appraiser with the Scott Niebling Valuation Group in Phoenix.

“John is an integral addition to our V&A group in the Phoenix office,” said Jo Dance, MAI, CCIM, Managing Director | Regional Manager for Cushman & Wakefield of Arizona. “His skills enhance our existing staff of experienced appraisers as we strive to provide best in class services to our clients.”

Kirby is a Certified General Real Estate Appraiser in Arizona, New Mexico and Nevada, and holds an Arizona State Real Estate license.

A native of California, Kirby earned a Bachelor of Arts degree in Anthropology from California State University in Fullerton.

Arizona Community Surgeons, PC
630 N. Alvernon Way, Suite 351

C&W | PICOR announce more recent transactions

Cushman & Wakeman Picor announced the following transactions:

Rodgers Investment Fund II Limited Partnership, LLLP purchased a 17,400 square foot industrial building at 3755 E. 34th St. in Tucson from Alvernon South, LLC for $550,000.  Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the buyer and Dean Cotlow with Cotlow Company, represented the seller in this transaction.

Schaffer Land Holdings, LLC purchased a 12,700 square foot industrial building on (±) 0.86 acres at 4045 N. Highway Dr. in Tucson from J H Associates, LLC for $550,000. Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the seller and Brandon Rodgers, Commercial Specialist with Cushman & Wakefield | PICOR, represented the buyer in this transaction.


Arizona Community Surgeons, PC renewed their lease for 4,801 square feet at 630 N. Alvernon Way, Suite 351 in Tucson from Tucson I MOB Owner, LLC.  Tom Knox, SIOR, and Rick Kleiner, MBA, Office Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

Monster Signs, LLC renewed their lease for 4,560 square feet at 1131 W. Grant Rd., Suite 121 in Tucson from Sloat Family Partnership, LLLP.  Stephen D. Cohen and Russell W. Hall, SIOR, GSCS, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord and the tenant in this transaction.

Air Express International USA, Inc., dba DHL Global Forwarding, renewed their lease for 4,000 square feet at 2949 E. Elvira Rd. in Tucson from Holualoa Arizona.   Stephen D. Cohen and Russell W. Hall, SIOR, GSCS, Industrial Specialists with Cushman & Wakefield | PICOR, represented the tenant and Jesse Blum with CBRE, represented the landlord in this transaction.

Gecko Pest Management, Inc. leased 2,360 square feet at 1991 E. Ajo Way, Suite 161 in Tucson from Bobaganoosh, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Deborah Bryant with Sunrise Ridge Realty & Development, LLC, represented the tenant in this transaction.

Jerusalem Café leased 1,500 square feet in Swanway Plaza in Tucson from TSP LP I.  Greg Furrier, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

Pallaton Brazilian Jiu Jitsu, LLC. leased 1,200 square feet at 4145 W. Ina Rd., Suite 121 in Marana from Tin Cup Properties, LLC., dba Regency Plaza.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Dan Wesson with The Waterfall Group, LLC, represented the tenant in this transaction.

Chandler Tech Center

Cushman & Wakefield negotiates long-term lease for Daifuku

Cushman & Wakefield of Arizona, Inc. helped negotiate a long-term lease renewal and expansion at Chandler Tech Center, 7406 W. Detroit St., for a material handling and automation solutions firm headquartered in Japan.

The renewal and expansion transaction for Daifuku of Osaka, Japan, is for 30,247 square feet at Chandler Tech Center, which is owned by Buchanan Street Partners of Newport Beach, California.

Daifuku develops material handling systems used in manufacturing facilities, warehouse/distribution centers, automotive plants, airports and cleanrooms.

The Southeast Valley industrial submarket of Chandler been particularly popular with highly specialized tenants. The demand from tenants who want space south of US 60 and east of the Loop 101 has been strong.

“Chandler Technology Center is the perfect location for technology companies such as Daifuku,” said Jackie Orcutt, Market Leader | Investor Services for Cushman & Wakefield. “It has been a pleasure working with them as they continue to grow within the complex.”

Orcutt and John Grady of Cushman & Wakefield represented the landlord. Conner Lee and Marc Pierce of Lee & Associates represented the tenant.

3961 E. Speedway Blvd., Suite 412

Cushman & Wakeman Picor recent transactions

Cushman & Wakeman Picor announced the following transactions:


Retirement II, LLC purchased a 44,450 square foot land parcel at 2815 E. Ganley Rd. in Tucson from Innovations Holdings, Inc. for $88,500.  Pat Welchert, SIOR, Industrial Specialist with Cushman & Wakefield | PICOR, represented the seller and Russell W. Hall, SIOR, GSCS and Stephen D. Cohen, Industrial Specialists with Cushman & Wakefield | PICOR, represented the buyer in this transaction.


2700 E. Executive DriveGW Plastics, Inc. leased 28,971 square feet at 2700 E. Executive Dr., Suites 130, 140 and 150, in Tucson from 2700 Executive Properties, LLC.  Brandon Rodgers, CCIM, Russell Hall, SIOR, GSCS and Stephen Cohen, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction.

Barnet Dulaney Perkins Eye Center leased 8,966 square feet at 698 E. Wetmore Rd. in Tucson from First Ave. / Wetmore Office Plaza, LLC.  Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant and Town West Realty, Inc., represented the landlord in this transaction.

2424 E. Aragon RdNathan Consulting, LLC, dba Absolute Turning and Machine, leased 8,803 square feet at 2424 E. Aragon Rd. in Tucson from 2424 Aragon Road, LLC.  Brandon Rodgers, CCIM, Russell Hall, SIOR, GSCS and Stephen Cohen, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

6565 Carondelet EXTERIOR PHOTOAmerican Dental Partners of Arizona, LLC leased 8,595 square feet at 6565 E. Carondelet Dr., Suite 355 in Tucson from Tucson II MOB Owner, LLC.  Rick Kleiner, MBA, and Tom Knox, SIOR, Office Specialists with Cushman & Wakefield | PICOR, represented the landlord and Mohr Partners, Inc., represented the tenant in this transaction.

Spartan Plumbing, Inc. leased 7,298 square feet at 6211 E. Speedway in Tucson from Ma’s Enterprises, LLC.  Aaron LaPrise and Greg Furrier, Retail Specialists with Cushman & Wakefield | PICOR, handled this transaction.

Sonora Designs Cabinets & Granite, LLC leased 5,000 square feet at 2704 E. Ganley Rd. in Tucson from KCT Lease & Property Company.  With over forty years in the industry, the company continues to provide quality custom granite countertops, cabinets and furniture in Tucson and surrounding areas.  Stephen D. Cohen and Russell W. Hall, SIOR, GSCS, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction.

VFAMCO, LLC leased 2,787 square feet at 5151 E. Broadway Blvd., Suite 1500 in Tucson from KCI-Broadway, LLC, Scott Seldin-Broadway, LLC, Belmont-Broadway, LLC and Tucson 5151 Investments, LLC.  Tom Nieman, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant and Sandra Alter with Rein & Grossoehme Commercial Real Estate, represented the landlord in this transaction.

Abbott Media Productions, LLC renewed their lease for 1,919 square feet at 3131 N. Country Club Dr., Suites 204 and 205 in Tucson from MLCFC 2007-9 Office 3131, LLC. Rick Kleiner, MBA, and Isaac Figueroa, Office Specialists with Cushman & Wakefield | PICOR handled this transaction.

Sentage Corporation, dba Dental Services Group, leased 1,200 square feet in Central Point Business Plaza at 3961 E. Speedway Blvd., Suite 412 in Tucson from Central Point Tucson, LLC.  Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the tenant and the landlord in this transaction.

Charles P. Stirton, Attorney-At-Law, leased 856 square feet at 800 N. Swan Rd., Suite 110 in Tucson from 800 N. Swan, Inc.  Jeff Zellet, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction.


Megan Druding joins Cushman & Wakefield

Megan Druding has joined Corporate Occupier & Investor Services (CIS) at Cushman & Wakefield of Arizona, Inc. as a general manager.

Her primary responsibility will be to focus on C&W’s office and retail portfolios. Druding previously was Senior Real Estate Manager at CBRE. She is a 7-year veteran of the commercial real estate industry.

“Megan is a strategic and dynamic hire for C&W, as she is a key component to growing our office and retail management team and portfolio,” said Jackie Orcutt, Market Leader|Investor Services at Cushman & Wakefield of Arizona. “Megan brings an exceptional depth in the management of Class A office buildings and has maintained unparalleled reviews from both owners and tenants.  Her professional standard of excellence and remarkable personality will augment our team and benefit a great number of C&W clients.”

Druding was born and raised in Phoenix. She graduated from St. Mary’s High School and received a Bachelor of Science in Regional Development from the University of Arizona. She earned her Arizona State Real Estate license in 2008.

Crossroads of Tempe

97KSF office at Crossroads of Tempe sells for $17.25M

ViaWest Group has sold 96,691 SF of office space within the commercial complex, Crossroads of Tempe. Phoenix-based ViaWest Group acquired the nearly vacant office-retail property in 2011 for $4.055 and sold the retail portion shortly after for $1.3M. Four years later, after investing in the two remaining vacant, shell condition office buildings, ViaWest Group (in a joint venture with Southwest Value Partners) has sold the project for $17.25M. The buyer was Los Angeles, CA-based Held Properties, Inc, represented by Chris Toci and Chad Littell of Cushman & Wakefield of Arizona Inc. in Phoenix and Mark Gustin, Karsten Petersen and Dave Seeger of Jones Lang LaSalle in Phoenix. Located at 303 & 309 W. Elliot Road on the northwest corner of Elliot Road and Kyrene Road in Tempe, the property is now 96 percent occupied.

“The new buyer of this project recognized the strength of the tenants, the quality of the property and the prime location for technology-based and other companies. This project is indicative of the vision and efforts of our team. We purchased an asset that was completely vacant during a very difficult period and negotiated for additional parking, built-out high end space, and positioned the buildings perfectly for tenants in the market,” says Steven Schwarz, co-founder at ViaWest Group.

“Crossroads of Tempe is located in the epicenter of metro Phoenix’s high-growth technology
trade area, the Southeast Valley, and is directly linked to the surrounding supply chain,” said
Chris Toci. “At 96 percent occupancy, the Property is leased to a mix of technology-focused tenants, each integrally connected to their nearby technology based clients.”

Tech companies have been relocating to the Southeast Valley in large numbers in order to compete for the local talent that comprises the region’s most well-educated labor pool. Numerous household names have settled in the Southeast Valley including Go Daddy, AVNET, Qualcomm, Iridium Satellite, Intel, Motorola, Honeywell, Xerox, Microsoft, Bank of America, Wells Fargo, eBay/PayPal, and AT&T.

“The property also offers immediate access to local executive housing and high-end demographics with median household incomes of more than $100,000 per year” said Chad Littell. High paying employment opportunities in technology-based fields are luring skilled workers to the area to avoid the congested commutes into Phoenix and Scottsdale.

Crossroads of Tempe meets the needs of the Southeast Valley workforce through its high-end design, on-site amenities, abundant parking, prominent identity, and convenient tenant access. The property has emerged as the ideal open office solution in a submarket currently short on

Mark Gustin, Karsten Petersen and Dave Seeger of JLL will serve as the leasing brokers on the property and ViaWest Group will continue to serve as the property manager.

CBRE Cathy Teeter, WEB

Cathy Teeter promoted at CBRE

CBRE has announced that Catharine Teeter has been promoted to the position of regional sales director for the Southwest Region. In this role, she will work closely with the managing directors in CBRE’s Phoenix, Tucson, Salt Lake City, Las Vegas and Albuquerque offices on reporting business and market share activity, new business pursuits, pipelines and follow-up requirements. Her key objectives will include increasing opportunities and improving win rates for CBRE’s sales professionals. Teeter will also serve as a conduit for assisting professionals with identifying resources and information within the enterprise platform.

”I am pleased to announce Cathy’s promotion to regional sales director,” said Craig Henig, CBRE’s senior managing director and Arizona market leader. “Cathy has been instrumental in working towards our goal of achieving operational excellence, and I know she will bring the same focus and dedication to her new role. Cathy’s deep market knowledge and professional relationships coupled with her 25+ years of industry experience make her an ideal fit as our new Regional Sales Director.”

Teeter joined CBRE last spring as the director of operations for the Southwest Region. In this role, she has been responsible for the implementation and oversight of the firm’s new local market operations structure, which is designed to drive a deeper level of support to local offices and employees across markets.

Prior to joining CBRE, Teeter spent 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, Ms. 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.

Tempe Warner Self Storage

Tempe Warner Self Storage sells for $6.7M

Cushman & Wakefield announced the sale of Tempe Warner Self Storage at 1835 E. Warner Rd. in Tempe for $6.7M. Greg Wells of Cushman & Wakefield, director of the Self-Storage Industry Group represented the seller, Hibernia Tempe, LLC, and procured the buyer, StorQuest Self Storage

The 52,200 SF self-storage building offers 100 percent drive-up access units and is located on a major commercial thoroughfare in Tempe.

“The self-storage investment market is incredibly active right now. An abundance of capital from multiple sources, outstanding operating fundamentals and a lack of new supply have all contributed to this level of activity,” said Wells.

This sale is the third closing in the past 30 days for the Cushman & Wakefield Self Storage Industry Group. The three transactions included 26 properties totaling approximately 1,850,000 SF spread across seven states with a combined transaction value in excess of $150M.

Phil Jones

Phil Jones joins Cushman & Wakefield

Phil Jones has joined the Valuation & Advisory group at Cushman & Wakefield of Arizona as a managing director.

Jones will be a member of the Dispute Analysis & Litigation Support Practice (DALS). Jones is a Certified Public Accountant (CPA) specializing in forensic and fraud investigations, damage calculations, and business valuation. He is an expert in these areas and has extensive experience in contract and construction disputes.

“Phil adds a totally new dimension to our DALS group andcomplements those services we currently offer,” said Jo Dance, MAI, CCIM, Managing Director | Regional Manager for Cushman & Wakefield of Arizona. “We are pleased to add Phil’s talents to our team and to be able to broaden our platform of services to our clients.”

Prior to joining Cushman & Wakefield, Jones was Managing Director of Jones Business Advisory, LLC. He has more than 15 years of experience in financial consulting and accounting, specializing in assessing financial damages for litigation and business valuation.

Jones is a Certified Fraud Examiner (CFE), Accredited Senior Appraiser (ASA) and is accredited in Business Valuation (ABV). He is certified in Financial Forensics through the American Institute of CPAs.

A native of Iowa, Jones earned a Bachelor of Business Administration in Accounting from the University of Iowa. He is a CPA in Arizona, Illinois and Iowa.

Courtesy of Cushman & Wakefield

New Corner Bakery to open at Tempe Gateway

Cushman & Wakefield of Arizona is delivering a new Corner Bakery to Tempe Gateway, 222 S. Mill Ave.

The 4,777-square-foot café/deli/bakery joins tenants that include Limelight Networks, Allstate, Waste Management, and Amazon at Tempe Gateway, which is now 99-percent occupied.

Summer Jackson of C&W’s retail group represented the landlord, Parkway Properties Inc., in the long-term lease transaction. Richard Francis of HeinzRich Companies LLC represented the tenant.  Jerry Noble, Greg Mayer and Patrick Devine of C&W’s office group represent the landlord in leasing the office space at the property.

“We are very excited to announce the addition of Corner Bakery,” said Jackson, associate director at Cushman & Wakefield. “They will be an excellent amenity to the project and surrounding office complexes.”

Corner Bakery will occupy the northern end-cap of the retail space that fronts Mill Avenue. Plans call for a large patio to the north and east sides of the space.  Corner Bakery offers freshly baked breads, a breakfast menu, homemade soups, pasta, salads, sandwiches as well as coffee and espresso.

Cushman & Wakefield has two additional retail spaces for lease at Tempe Gateway, 1,614 SF and 1,805 SF.   Occupancy date of Corner Bakery is Oct. 1.


DTZ will buy Cushman & Wakefield for $2B

Commercial real estate services firm DTZ is buying Cushman & Wakefield for $2 billion, according to a Wall Street Journal report.

Combined, the firm will have more than $5 billion in annual revenue, the  Journal reported. The combined firm will keep the Cushman & Wakefield name and will have more than 250 offices in 50 different countries, including its Phoenix office. The firm will also create a real competitor for CBRE and JLL, the two commercial real estate services firms that have been dominating the field.

CBRE has $9 billion in annual revenue and JLL has $5.4 billion, according to the Journal.

Stay tuned to AZRE for more information as it develops.

Metro Phoenix 1Q Market Analysis

Cushman & Wakefield: Industrial developers take action

Developers are taking action in Phoenix’ industrial market, constructing on land that has been held in wait.  This is according to the first quarter industrial report released by Cushman & Wakefield of Arizona, Inc.

“Mid-sized spaces are in short supply and developers are stepping up to fill the need,” says Jackie Orcutt, Senior Director with Cushman & Wakefield.  “The Deer Valley and Southeast Valley submarkets are particularly active with planned projects and construction.  Developers are benefitting from significant pre-lease commitments.”

Throughout the Metro Phoenix area, nearly three million square feet of space are under construction.  Approximately 1,855,179 square feet have already been completed and delivered to the market in 2015.  The majority of the new space delivered in first quarter is found in Southwest Phoenix, known for its sizable warehouse/distribution facilities.  “Developers such as Trammel Crow will be building three projects in the Valley, one in Gilbert, one in Avondale and the other in Deer Valley,” says Orcutt.  “These are experiencing some nice pre-leasing activity.”

Overall vacancy of industrial sits at just 12.5 percent, up slightly from a year ago because Metro Phoenix added approximately 6,457,851 square feet to its inventory in 2014.  Year-to-date net absorption totals 904,600 square feet, keeping pace with the rate of absorption from last year.  The largest lease signed this year  was Tuesday Morning’s commitment for 593,600 square feet at the Liberty Logistics Center at 563 S. 63rd Ave.in Southwest Phoenix on Interstate 10.  This lease was posted following the close of first quarter, so will appear in second quarter figures.

“Known for its large users, the Southwest Valley is now seeing strong demand from the smaller users,” says Orcutt.  “Many of these users are tied to the housing industry, which indicates a confidence in the resurgence of homebuilding.  While demand from these users is very positive, the Southwest area has overbuilt its facilities for users 200,000 square feet and larger.  Several new projects of that magnitude were recently constructed and we now have 15 properties available that can accommodate 200,000-square-foot users.  There simply hasn’t been the demand to fill them.  Absorption of those larger facilities will take time and patience.”

Rental rates have responded to market conditions, rising in areas of low supply and remaining low in categories of overabundant inventory.  “The larger users can still exercise leverage in their transactions, but submarket pockets with very low vacancy are commanding rate increases,” says Orcutt.  Southeast Valley submarkets of Chandler and Gilbert have been particularly popular with highly specialized tenants, such as pharmaceutical companies.  The demand from tenants who want space south of US 60 and east of the Loop 101 has been strong.  The Southeast Valley cities of Chandler, Gilbert and Mesa now have more than a million square feet under construction.  “This is a remarkable event since the vast majority of industrial construction for the past few years has been focused in the big-box Southwest Valley,” according to Orcutt.

Leasing activity for the first three months of 2015 has been strong and is anticipated to remain so for the rest of the year.  “Our economy is strong.  Local users are growing and we continue attracting companies from outside the state.  We will keep our eye on California to see if users from that area are drawn to Arizona in the wake of the state’s water crisis.  If that situation is not resolved, it may create a new wave of demand in Phoenix,” says Orcutt.

Office Market

Office market poised for near term growth

The economic environment over the next three years will be the best for the office real estate sector in more than a decade, according to Cushman & Wakefield’s 2015-2017 U.S. Office Review & Forecast, released today. In fact, the commercial real estate services firm anticipates that the combination of rising employment and incomes, strong consumer spending and business investment growth will likely lead to strong demand across all property types.

“The U.S. economy entered 2015 with strong positive momentum,” noted Maria T. Sicola, Cushman & Wakefield’s head of Research for the Americas. “Businesses are more optimistic than they have been since 2007, anticipating strong sales growth. As their focus shifts from concerns about costs, to growing top line revenue, they are hiring more aggressively.”

The U.S. office market ended 2014 on solid footing and is poised for even stronger growth through 2017. A relatively limited construction pipeline and tenant demand for modern space translated into a lack of quality space in several markets, tipping the scales back in favor of the landlord. Some market indicators ended the year at levels not seen since the recession.

According to the Cushman & Wakefield U.S. Office Review & Forecast:

  • Although the occupier trend toward efficiencies is expected to continue, with fewer square footage allocated per employee, job growth will be strong enough to drive down vacancies.
  • Absorption over the next three years is forecast to total 175 million square feet, which is more than the past eight years combined.
  • Through 2017, 131 million square feet of new supply is anticipated, hitting annual growth rates not seen since 2008. While older-generation office buildings sit empty in many markets across the country, occupiers’ appetites for new or completely rehabbed properties show no signs of abating.
  • Average asking rent growth in the United States is expected to come in at just under 5.0 percent in 2015 and 2016, and 3.6 percent in 2017, well above the 10-year average of 2.8 percent. Markets expected to experience double-digit annual rent growth at least once over the forecast horizon include Boston, Seattle and Silicon Valley.


Occupiers continue to flock to the urban cores across the U.S., with talent attraction and retention their top priorities. “The millennial population, in particular, has demonstrated its preference for an urban environment in all facets of their lives,” Sicola said. “Working, living and playing have become a more seamless experience for this generation, which continues to enter, and will soon dominate, the labor market.”

Unsurprisingly then, the nation’s CBD markets are performing better than their non-CBD counterparts by nearly every measure. Yet while the exodus of businesses and residents alike from the suburbs to the urban core has been well-documented, many non-CBD markets across the country are thriving and are expected to continue to do so over the next several years.

“While it is true that the old-school, auto-centric suburban office park with few amenities has fallen out of favor with tenants, properties along transit lines outside of traditional downtown areas continue to attract occupiers,” Sicola said. “The best-positioned suburban properties are those that offer an ‘urban’ feel, offering a mix of office, retail, residential and recreational space.”

According to the Cushman & Wakefield report, most market indicators will be at or close to their pre-recession levels by 2017. “Growth in occupied space will continue to be muted somewhat by the large-scale trend of tenants taking less space,” Sicola explained. “Still, the removal of antiquated properties to other uses will keep vacancy rates in check even as more and more construction completes. As occupiers and investors adjust to this new ‘normal,’ we expect more markets to return to equilibrium, well ahead of the next cycle.”

In addition to covering market fundamentals and trends, the 2015-2017 U.S. Office Review & Forecast offers rankings of top CBD and non-CBD markets according to vacancy rate declines, rent increases and absorption, along with three-year vacancy and rental rate forecasts for major markets nationwide. The full report can be accessed at:  http://www.cushmanwakefield.us/en/research-and-insight/2015/2015-2017-us-office-overview-and-forecast/ .


Jeff Banks joins Cushman & Wakefield

Jeffrey A. Banks has joined the Industrial Properties Division of Cushman & Wakefield of Arizona, Inc. as an Associate.

Banks’ primary responsibilities at C&W will be to focus on tenant and agency leasing for industrial properties.  Banks previously was Vice President of Business Development for Facto Express, a freight shipping and trucking company. Prior to that he was Assistant Vice President of Institutional Fixed Income for DA Davidson and Co., and FTN Financial.

“Jeff is a perfect complement to our industrial division,” said Jackie Orcutt, Market Leader | Investor Services at C&W of Arizona. “He brings great perspective from the occupier side of the business and his background in commercial lending makes him extremely well-rounded.

“He is well-poised to launch a very successful career in industrial brokerage and we are happy to be working with him,” Orcutt said.

Banks was born in Heidelberg, Germany, but was raised in the southern California area. He attended high school in Brea Olinda, Calif.  He received a Bachelor of Business Administration in Finance, Real Estate and Law from Cal Poly Pomona, in Pomona, Calif.

Dan Casey joins Cushman & Wakefield

Dan Casey has joined the Industrial Property group at Cushman & Wakefield of Arizona, Inc. as an Associate.

Casey will be responsible for industrial leasing and sales, and tenant and landlord representation focusing on the North Phoenix/Scottsdale submarkets.

Casey joins C&W of Arizona from Rein & Grossoehme Commercial Real Estate, where he served as Senior Industrial Associate. Prior to moving to Phoenix in 2011 he worked for Inland Companies in Milwaukee, Wisconsin, as an industrial brokerage assistant.

“Dan is a great addition to our Cushman & Wakefield family in Phoenix,” said Jerry Noble, Market Leader and Managing Broker at Cushman & Wakefield of Arizona. “His specialization in the Deer Valley and Scottsdale Airpark industrial markets will significantly enhance our coverage of those very active submarkets.  2015 promises to be a big year for those areas, especially along the Loop 101 corridor.”

Casey is a native of Menomonee Falls, Wisconsin. He is a graduate of the University of Wisconsin-Milwaukee, where he earned a degree in finance and real estate. He received his Arizona real estate license in August 2011 to focus on industrial sales and leasing.

Oblique & Renderings of Airport I-10-1

Airport I-10 announces three national tenant leases

Just as Airport I-10’s 600KSF Phase I approaches completion, Wentworth Property Company/Clarion Partners and the Phoenix office of JLL have announced the signing of three major, national tenant leases that bring one of the largest speculative office projects in Phoenix history to more than 35 percent pre-leased.

The new tenants at Airport I-10 include:

• DLS Worldwide, a major, volume-leveraged third-party logistics provider, leasing 78,843 square feet in Building B for a new headquarters, light manufacturing, assembly and distribution facility.

• DHL, the world’s leading postal and logistics group, leasing 40,529 square feet in Building E for a regional parcel delivery hub.

• Pilot Freight Services, a worldwide provider of transportation and logistics services, leasing 31,824 square feet in Building E for centralized pick-up and delivery service operations.

JLL Executive Vice Presidents Pat Harlan and Steve Sayre, and JLL Associate Kyle Westfall represented Wentworth/Clarion in all three leases. Mike Gordon of Cresa represented DLS. John Werstler, Jerry McCormick and Cooper Fratt of CBRE represented Pilot. Jim Wilson of Cushman & Wakefield represented DHL.

The new leases join with a 63,470-square-foot pre-lease completed by JLL in mid-2014 with Anixter International, Inc., a leading global distributor of enterprise cabling and security solutions, electrical and electronic wire and cable, and OEM supply fasteners and other small parts.

Inclusive of Anixter, this brings JLL’s new lease commitments at Airport I-10 to 215,000 total square feet, leaving the project’s three-building, 600,000-square-foot Phase I at 35 percent leased, before construction is even finalized.

“Modern companies want modern buildings. This is making all types of users more sophisticated about what they look for in an industrial location,” said Harlan. “They are requiring the kind of improved function that you get from features like higher clear heights, better overall building layout and better truck maneuverability. Airport I-10 checks all of these boxes, and because of this is attracting tenants making an overall flight to quality – a trend that is happening across the entire industrial market.”

“Airport I-10 was designed to give modern industrial tenants a home in the heart of Phoenix’s industrial distribution network. We couldn’t be more pleased with the companies that have committed to space here,” said Wentworth Property Company Principal James R. Wentworth. “They are a barometer of the types of businesses that we believe will continue to chose Airport I-10 and build out one of the submarket’s best and last industrial parcels.”

Located at the northwest corner of 24th Street and Rio Salado, Airport I-10 Business Park represents the last large, developable parcel left in the Sky Harbor International Airport submarket. Phase I includes three Class A industrial buildings totalling more than 600,000 square feet (277,954 square feet, 169,109 square feet and 156,000 square feet). This portion of the project is 35 percent pre-leased to Anixter, DHL, DLS and Pilot.

At build out, the 58-acre Airport I-10 property will include five Class A industrial buildings totalling 920,584 square feet, with a modern environment for corporate users and fully equipped with state-of-the-art features such as ESFR sprinkler systems, 30- to 32-foot clear heights, cross-dock loading and 140- to 200-foot truck courts.

Rosie Keller joins Cushman & Wakefield

Rosie Keller has joined the Corporate Occupier & Investor Services Division of Cushman & Wakefield of Arizona, Inc. as portfolio manager.

Keller joins Cushman & Wakefield after 15 years at Ryan Companies, where she began her career in the construction and development departments. Her background includes experience as a property manager and senior property manager.

Keller has managed an average of 2 million square feet of office, industrial and retail space in Phoenix, and 500,000 SF in San Francisco and Washington, D.C. Her clients have ranged from institutional (Mitsubishi Estate, Rockefeller Group Investment Management, and Sumitomo Corporation of America) to high-net worth individuals (Ryan Funds). Keller worked with Sumitomo to develop/implement a commercial real estate management platform for 2.1 MSF of Class A office product from San Francisco (123 Mission) to Miami (Miami Center).

Keller will be responsible for managing Cushman & Wakefield’s office and retail property management portfolio. She will work alongside Patti Farina, Director, who has been instrumental in growing Cushman & Wakefield’s industrial property management division to more than 12 MSF, the largest industrial management portfolio in Arizona.

“When we started our search for a Portfolio Manager, we knew we were looking for a dynamic, well-respected, and highly experienced individual,” said Jackie Orcutt, Market Leader | Investor Services for C&W of Arizona. “Rosie has a roll-up-your-sleeves mentality with an infectious competitive energy that has proven to be an outstanding complement our team.”

Keller is a member of BOMA Greater Phoenix and Valley Partnership. She is a native of El Paso, Texas. She attended Northern Arizona University and Arizona State University, where she received a Bachelor of Arts in Spanish and Literature.


Chris Toci named top producer at Cushman & Wakefield

Cushman & Wakefield of Arizona, Inc. has announced its top producers for 2014.  For the second straight year, Chris Toci, executive director in the Capital Markets group, led the Phoenix office.

Toci negotiated investment sales totaling $290.4 million and approximately two million square feet in a variety of property types, including corporate campuses, Class A office buildings and a notable adaptive reuse project in Tempe.

The largest single transaction closed by Toci was an $85.1 million, 332,815-square-foot sale of Anchor Centre in the Camelback Corridor. Another significant deal was the $51 million, 337,439-square-foot sale of an office portfolio for American Express.

Other top producers include:

• Multifamily Advisory Group: Jim Crews;

• Office Group: Larry Downey and Mike Sayre;

• Investment Properties: Chad Littell and Chris Toci;

• Industrial Group: Jackie Orcutt and John Grady;

• Tenant Representation: Don Rodie, Blaine Black and Sam Murik.

“We are very proud of all our Top Producers this year,” said Jerry Noble, Market Leader and Managing Broker for C&W of Arizona.  “In 2014 Cushman & Wakefield participated in several transactions that helped shape the market. We are privileged to serve so many great clients and look forward to a strong market in 2015.”

Tablerock Apartments in Flagstaff sell for $14.35M

Cushman & Wakefield of Arizona, Inc. has negotiated the $14.35 million sale of Table Rock Apartments, located at 3400 S. Lake Mary Rd.

The property, which was built in 1998, contains 100 apartment units in five buildings and was 98 percent occupied at the time of the sale.

Virtu Investments of Venice, Calif., sold the property to Red Rock Investment Management, also of Venice, Calif. The sale price brought $143,500 per unit, which equates to $139 per square foot.

“A student-oriented property with strong operations and proven rent increases, Table Rock Apartments are one mile from the Northern Arizona University campus,” said Jim Crews, Senior Director with the Multifamily Property Group at Cushman and Wakefield. “The property features an interior value-add opportunity.”
Crews and Brett Polachek of Cushman & Wakefield represented the seller in the transaction.


Uber opens headquarters in downtown Phoenix

monroe1One of Phoenix’s most recognizable mid-century modern landmarks is undergoing a significant renovation project aimed at embracing the building’s vintage design features with a modern twist of style and technology. With the improvements already underway, the new digs are attracting a  premier set of technology, design and entertainment tenants to Downtown Phoenix in addition the traditional mix of government, legal, financial and administrative uses.

111 West Monroe has signed three high-profile tenants that add to the unique tenant mix, proving the office tower to be one of Downtown Phoenix’s hippest addresses. Uber, Cannon Design and Mornin’ Moonshine were attracted to the building for its distinctive design and renovations to the exterior ground floor, interior lobby, landscaping, signage and valet parking garage.

Rialto Capital, a national real estate investment and asset management company, in a joint venture with Ironline Partners, a Phoenix-based commercial real estate group (principals, Tim O’Neil and Robert Karber), are delivering a best in class, amenity rich property with 5 star customer service, at competitive pricing. The new ownership acquired the 50-year-old office tower in April 2014, admiring the property’s core urban location and functional configuration, which is ideal for both large corporations and small, entrepreneurial businesses.

Uber, a $40 billion company, will use this location as their Arizona operations office. A social juggernaut, Uber has become a household name by delivering on-demand car service at the touch of a button. The company demonstrated monstrous growth in 2014 and is constantly offering new employment opportunities in Arizona that continue to have a positive impact on the local economy.

Cannon Design, an international design firm, offers a range of services from architecture and engineering, to product design, graphics and interior design. With an award-winning creative work culture, the company utilizes the most advanced virtual technologies to fully integrate Cannon designers from all of their offices into a single unified firm without walls.

Mornin’ Moonshine is a boutique “grab and go” coffee concept created by DJ Fernandes, a local architect and restaurateur whose other projects include hotspots Vovomeena and Tuck Shop.  As one of the pioneers of small batch and cold brew coffee in Phoenix, Mornin’ Moonshine will fuel Downtown Phoenix with specialty craft java. .

111 W. Monroe’s exciting new tenants were drawn to the architecturally-unique building by its premier downtown location, proximity to light rail, bike sharing, valet visitor parking, and responsive local ownership. Uber and Cannon Design have already opened for business in the building. Mornin’ Moonshine will be open by Valentine’s Day.

“We are thrilled with the business community finding its way to 111 W. Monroe,” said Tim O’Neil of Ironline Partners. “The restoration is designed to raise the bar for architecturally significant properties in Downtown Phoenix, offering a destination for people who demand both institutional grade facilities and a local, boutique experience.”

Charles Miscio and Danny Plapp at Colliers International (602.222.5071) have the office leasing assignment and are welcoming  smaller niche businesses by providing small, entrepreneurial, flexible ‘spec suite’ options while ensuring larger businesses’ needs are met through responsive ownership and custom interior space improvements.  Some of  the most desirable space at 111 W. Monroe remains available, as the penthouse boasts 27,000 square feet available with naming rights and spectacular city views. Although filling quickly, the building also has available ground floor retail space.  Courtney Auther and Brian Kocour at Cushman & Wakefield (602.229.5967) have the retail leasing assignment.