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2012 Annual Economic Outlook

Industry Experts' Forecast On 2012 Economy

Recovery is on the horizon, but industry experts are cautious in their forecast as the 2012 economy slowly bounces back. 

Looking at Arizona’s recession-starved commercial real estate industry as a whole, 2011 was flat and 2012 is trending just slightly better. So say local experts.

But broken down into its various components, there is a wide divergence of attitude and optimism for the rest of this year.

AZRE tapped key players from a variety of real estate-related disciplines to check their crystal balls and predict whether commercial real estate will soar, slump or stagnate in 2012, and what factors could turn the tide.

Investment
A plethora of CMBS properties will come due in 2012, and private owners of distressed properties may be more willing to sell, says Jennifer Pescatore, who oversees commercial real estate loans for Bank of Arizona.

There is plenty of money available for the right property in the right submarket and investors with the right credentials, she says.

But except for the multi-family sector and some industrial opportunities, Pescatore isn’t sure values have slipped enough to generate a significant number of sales or new development in 2012.

She’s anticipating relatively small loans — $2M to $15M — on income properties as standard 2012 fare.

But substantial job growth and improvement in the global economic picture could change that relatively pessimistic outlook, says Ryan Suchala, Bank of Arizona president.

“Arizona offers a unique opportunity, and it’s a great place to do business,” Suchala says.

This year could be better than expected, Suchala notes, but for measurable improvement in real estate values and transactions, 2013 is a more realistic time frame.

Economic development
Economic development directors by nature are always upbeat about the future, and Chandler’s Christine Mackay has reason to be.

“Activity level since the first of the year has gone through the roof,” she says.

Intel is constructing a new fabrication plant scheduled for completion in 2013 but already keeping a virtual army of construction workers busy. And when Intel ramps up, so do the tech giant’s customers and clients, Mackay adds.

Other healthy growth signals: EBay/PayPal is expanding, building out the fourth floor of its Chandler facility.

In January, San Diego-based developer Doug Allred Company broke ground at the NEC of Price and Willis roads in Chandler for Park Place, the Valley’s first spec office complex to rise from the dust of the recession since 2009.

Phoenix has a lot more old office properties to fill up before any spec projects are likely to appear on its planning agenda, but virtually all the big warehousing/distribution center space has been snapped up, and the city is actively looking for “shovel ready” spots where developers can build more, says Bruce MacTurk, deputy director for economic development.

It’s a good news-bad news scenario, he says.

By mid-January, five large industrial users were looking at Phoenix, but the city had only two buildings with more than 500,000 SF of space available.

There’s even some good news about Phoenix’s languishing retail centers as owners are renovating to reposition the sites, MacTurk says.

While economic development leaders like MacTurk and Mackay are focused on job creation, the fallout from job growth is a healthier, more vibrant residential and commercial real estate scenario, they say.

Construction
“Compared to this time last year, it feels much better,” says Bo Calbert, McCarthy Building Cos. Southwest president. “There are a lot more opportunities to pursue.”

McCarthy’s revenue is up 10%, he says. Key drivers for that spike are healthcare, renewable energy, schools and Native American projects, especially in hospitality and gaming.

But Calbert says he believes there is “more pain to come” before Arizona’s construction industry is back on a solid uphill track.

“To be an Arizona-only contractor is not sustainable,” he says. “There is promise, and more opportunities are coming, but not enough.”

D.P. Electric vice president Scott Muller says he has a backlog of healthcare and military projects to keep workers busy in 2012 — primarily technology upgrades.

And the company is detecting more interest from local property owners and developers, some hoping to entice California data centers and manufacturing operations ready to make a move.

“We’re excited about 2012,” Muller says.

“Those in the real estate and construction industry understand that the current market, compared to three or four years ago, has created a great opportunity to build, move or expand at a significant cost savings,” he says. “In 2012, we’ve seen an increase in our Design-Build/Design-Assist projects because this is where the best value is brought to the owner/developer.”

Architecture
Data centers, specialized healthcare facilities and military installations are also on Mike Medici’s 2012 hot list.

“Technology is constantly pushing the limits of existing buildings,” says Medici, managing director of SmithGroupJJR Arizona Architects. “And a lot of hospitals are positioning for the future or catching up from the past.”

Architects are tapped for new projects at the conceptualizing stage, and Medici sees good news coming for all commercial real estate sectors, even if the bounty won’t happen in 2012.

“We are seeing several developers looking at mixed-use office/retail/multi-family, especially along the light rail line,” he says. “It’s not as much activity as in 2004, 2005 and 2006, but there are opportunities bubbling up. For two years previously developers were not talking to us. Now modestly they are coming out of the woodwork.”

LEO A DALY architectural firm just completed the Casino Del Sol Resort in Tucson and is currently working on a project with Davis-Monthan Air Force base, says senior architect Rod Armstrong.

There is no pent-up demand for shopping centers or new office buildings, Armstrong says, but the international architecture firm is “always in business development mode,” and the signs are positive.

“We feel the increased level of commitment with potential clients. People are loosening up, and things will happen quickly. We’re hopeful for 2012,” he says.

Multi-family
While interest in and financing for new development remains limited in Metro Phoenix, one sector finding favor is multi-family, fueled by a limited supply and the single-family housing market collapse, says Tom Simplot, Arizona Multihousing Association president.

“Apartment owners are cautiously optimistic due to a rebound in values and rents,” Simplot says.

He doesn’t envision a lot more product coming online in 2012, but in select markets — in Scottsdale, Ahwatukee, and along the light rail line — some projects are moving forward and could be under construction this year and available by 2013.

Luxury condo developer Optima is betting Scottsdale is ready for more downtown-living opportunities.

“Optima Sonoran Village is in an advantageous position because it is the first new residential development in several years and builds on the economic, architecture, and marketing success of Optima Camelview Village,” says David Hovey Jr., Optima vice president. “Construction has started on Optima Sonoran Village with occupancy second quarter of 2013.”

Hovey says financing is still tight and mixed-use projects are iffy because of existing over-supply of office and retail components, but, if there is “only a gradual increase in new product over the next few years, the luxury unit market will remain healthy.”

Healthcare
Medical facilities needing upgrades or expansions to keep up with changing technologies, aging baby boomer needs and unsettled health coverage issues, are providing work for local real estate trades — a trend that will continue throughout 2012.

Cancer- and pediatric-focused projects are already in progress, as are several clinics and rehabilitation centers aimed at bringing cost-effective healthcare into communities, says Sundt Construction’s Russ Korcuska, who has been piloting hospital construction projects in Arizona for two decades.

Still, some of the big players will “sit on the sidelines until the (November) election because of the tremendous effect that could have on healthcare and Medicare. The new congress will be pivotal,” Korcuska says.

Some upgrades can’t wait.

“Healthcare construction is tied to population, and there is a great need to accommodate the baby boomer generation,” says Steve Whitworth, Kitchell’s Healthcare Division manager.

Healthcare construction will see a “slight increase in 2012, as larger organizations prepare for healthcare reform,” he says.

Whitworth predicts a sharper focus on cost-cutting delivery methods and energy efficiency in 2012 both in new development and upgrades to existing facilities.

“Healthcare will remain healthy,” he says.

Solar
Solar power was Arizona’s red-hot growth topic a year ago, with government leaders proffering incentives and touting the state’s virtues to the clean-energy companies looking for a place to grow and prosper.

Then mid-year, solar panel makers Solyndra and Stirling Energy Systems failed, and in December industry giant First Solar said it would slow progress of its under-construction Mesa plant.

So how do some of the state’s solar experts envision their industry’s 2012 prospects?

SRP sees strong demand for solar upgrades in both commercial and residential uses even though it “slowed somewhat” from 2011 when monetary inducements were greater, says Debbie Kimberly, director of customer programs and marketing.

“It’s encouraging to see this demand even at reduced incentive levels,” Kimberly says.

She says she expects interest in solar to continue apace throughout 2012, especially in leased rather than purchased systems.

And APS’ 2012 outlook for solar is “overwhelmingly positive” based on continued strong customer demand, says Barbara Lockwood, the utility company’s director of energy innovation.

“We asked our customers,” she notes. “The customers want solar.”

Installers could second that.

“Our forecast is 100 percent growth over last year,” says Gary Held, Harmon Solar sales and marketing manager. “And last year was the biggest year we ever had on the commercial side.”

But that’s from the perspective of the companies that purchase and distribute solar energy.

While solar demand remains strong, supply is growing faster as solar producers and manufacturers ramp up, boosting competition and sending prices plummeting, Lockwood says.

The growing global glut in solar manufacturers is squeezing the industry from that perspective, she says, as evident by First Solar’s slowdown and some companies folding.

Lockwood predicts prices will stabilize in 2012, and solar supply and demand will reach equilibrium.

Brokerage
Nobody has a handle on the intricacies of the local commercial real estate industry like the brokers who buy, sell, market and lease properties. Their outlook for 2012 is guardedly upbeat, depending on the type of property and its location.

Phoenix’s overbuilt office market remains too over-supplied for new development, says Craig Henig, CBRE senior managing director.

In 2011, 1.8 MSF of office space was absorbed, dropping the vacancy rate to 25.5%, Henig adds.

And overall there was 5.9 MSF of “gross activity,” as plummeting rents prompted tenants to move to classier digs.

Most of the Valley’s Class A offices filled up in 2011, and Class B and C space could see an occupancy boost in 2012, whittling away at the surplus supply, says Chris Jantz, Cassidy Turley/BRE Commercial vice president of research.

But neither Henig or Jantz envision a big drop in overall office vacancy this year.

Empty industrial space was gobbled up in 2011, and that could spur development, Jantz says, but new properties likely won’t come online until 2013.

Retail real estate has been the big laggard throughout the recession, and while Henig doesn’t expect much overall absorption in 2012, he foresees “musical chairs” as retailers reexamine their footprints based on recent consumer trends. For example, the surge in online sales may result in smaller, or at least different, brick-and-mortar space usage and bigger warehousing needs.

Henig also predicts that Phoenix area retailers will take advantage of still-sinking rents to move into better locations in 2012.

Tucson’s prospects are rosy.

“All signals are pointing up for Tucson in 2012,” says CBRE Tucson managing director Tim Prouty. “Our vacancies have improved. We see a positive absorption in industrial certainly, office probably, and some improvement in retail as well.”

A recent University of Arizona study predicting 2.35% average job growth in Tucson for the next five years — a boost of more than 52,000 jobs overall — is nurturing Prouty’s confidence.

And Tucson’s successful wooing of biotech businesses, such as Roche Group’s planned major expansion, “will be a big story in 2012,” Prouty says.

Land
After bottoming in 2009, land sales nationally picked up modestly in 2012 and remained level in 2011, according to Grubb & Ellis.

Through 3Q 2011, land sales were just about even with the same period in 2012 at $13.6B, but the sales mix was different. Through 3Q 2011, industrial land sales were up 133% as the industrial leasing and user-sale market improved to the point where developers began ramping up for the next expansion cycle.

In 2012, according to Grubb & Ellis, expect a modest increase inland sales led by development sites for multi-family projects and distribution centers, which are further along the recovery cycle.

Key concerns
While all the players envision a slight, if spotty, up tick in Arizona’s commercial real estate market, they say job growth and the global economy are key concerns determining 2012′s prospects.

A couple of local legislative issues also factor into the mix, says Nick Wood of Snell & Wilmer.

Tax assessments paid in arrears for commercial structures built in the mid-2000s that experienced severely plunging values in recent years could hamper sales and renovations of languishing real estate, Wood says.

“If you look at values for 2007, some offices have lost 60% to 70% of their value, and there hasn’t been a corresponding reduction in taxes,” Wood says.

And recent revisions to government property lease excise tax (GPLET) rates for new commercial structures can act as a deterrent to economic development, especially in downtown areas, he says.

AZRE Magazine March/April 2012

Healthcare Reform Impacting Healthcare Real Estate

How Healthcare Reform Will Impact Healthcare Real Estate

How Healthcare Reform Will Impact Healthcare Real Estate

The Patient Protection and Affordable Care Act (ACA) which becomes fully effective in 2014 is the most ambitious undertaking in the American medical field since Medicare’s highly controversial passage in 1965.

The law, which expands healthcare coverage to as many as 52 million Americans who are currently uninsured, goes into effect at a time when the nation’s 68 million Baby Boomers – many of whom have pre-existing medical conditions – celebrate their 65th birthdays at the rate of one every eight seconds. And it’s these patients that the ACA addresses – those with four or more chronic conditions who are poised to account for 96 percent of healthcare costs going forward.

The impact of reform on healthcare real estate will be significant because there is a robust requirement for new mixed-use campuses and outpatient facilities where preventive care can be delivered to millions of newly insured Americans. Sg2, a Chicago firm that works with more than 1,000 hospitals and health systems, estimates that the use of outpatient services will grow by 21.6 percent between 2009 and 2019. In comparison, during that same time period, inpatient care will grow by just 1.7 percent.

As the Affordable Care Act Kicks In

Even if healthcare reform had not been passed, demographic trends were already supporting the outpatient sector, says Alan Pontius, managing director of the healthcare real estate group at Marcus & Millichap Real Estate Investment Services. According to Pontius, reform makes a good thing even better.

Although reform will definitely boost demand for space, investment principles for the healthcare sector are likely to remain unchanged. Supply is tagged to demand. “I don’t think spec development in medical office is the right thing to do,” Pontius said. “We’ve seen a lot of spec development fail in the past 24 months. And the impact of this healthcare reform isn’t going to show up overnight anyway.” There is still uncertainty over how healthcare reform will impact the overall economy, which drives demand for all types of outpatient facilities.

The Physician Shortage and Its Impact

Demand for space will be impacted by the supply of healthcare providers, according to Robert Bach, chief economist at Grubb & Ellis. “Do we have enough doctors, nurses and other professionals to accommodate the rising demand? Over time, we will see greater demand for healthcare facilities, but the rate of increase will be constrained by how quickly medical schools can ramp up the supply of healthcare professionals.”

Cecil B. Wilson, M.D., president of the American Medical Association (AMA), says that “This is not a surprise, of course, but I hope that the oft-repeated statistic will force our nation and our government to face the harsh reality of America’s current physician shortage, our growing underserved populations, and the dismal issue of access for those newly insured after 2014 under provisions of the Patient Protection and Affordable Care Act.” According to Wilson, the AMA anticipates that the nation will be short by at least 125,000 physicians by 2025. Complicating the situation is the fact that the Department of Health and Human Services estimates that as many as one-third of physicians practicing today will retire over the next 10 years.

How Much Outpatient Space Is Needed?

Jeffrey H. Cooper, an investment banker who specializes in healthcare facilities with Savills, believes the potential exists to develop as much as 60 million SF of new medical office buildings nationally over the next few years. Using the standard multiplier that calculates that each new outpatient requires 1.9 SF of medical office space, Cooper says that a low-ball figure of 30 million newly insured individuals will require the construction of approximately 57 million SF.

In Massachusetts from 2006 through 2009 — as a direct consequence of the introduction of the Commonwealth Care Health Insurance Program — an additional 1.8 million SF of medical office space was developed and absorbed, a 14 percent increase. CoStar reports that national medical office building space construction peaked at 19.5 million SF in the 4th quarter of 2006, and plummeted to 6.7 million in the 1st quarter of 2009. The Massachusetts numbers bucked the national trend and are a direct result of RomneyCare.

The Growth of Outpatient Care

Outpatient care – which accounts for 40 percent of a hospital’s total revenues – will surge as newly insured people seek healthcare services. Currently, the U.S. delivers 65 percent of healthcare services in outpatient facilities, a significant increase over the 43 percent reported in 1980.

A study by McKinsey & Company’s Global Institute found that outpatient spending is growing at a rate of 7.5 percent annually, adding $166 billion between 2003 and 2006. Outpatient spending is expected to total $163 billion in 2011 alone and is likely to grow by 30 percent over the next decade. With more than 600 million outpatient visits every year, inpatient admissions will continue to decline. As the number of annual outpatient visits increases dramatically, hospitals will shift their resources to more dynamic and integrated ways of delivering healthcare to their patients.

According to the McKinsey report, “In theory, this shift (to outpatient care) should help to save money, since fixed costs in outpatient settings tend to be lower than the cost of overnight hospital stays. In reality, however, the shift to outpatient care has added to – not taken away from – total system costs because of the higher utilization of outpatient care in the United States.”

Focus on Wellness

Healthcare villages – a campus-type environment that we’ve helped to pioneer, featuring primary-care, imaging, diagnostics, outpatient surgery and free-standing emergency departments– are becoming destinations of choice for people in the community. For practices looking to reduce their overhead and debt service, healthcare villages offer enormous growth opportunities. These include access to electronic health-record services, as well as service-line managers who help practices enhance growth of their revenue streams.

In my estimation, one of the most important components of the new paradigm will be wellness centers. Just five years ago, wellness was an emerging $200 billion a year industry; today, it totals $500 billion and is growing rapidly. These facilities usually include a state-of-the-art medically-based wellness center including clinical departments that promote health prevention, lifestyle modification, disease management programs and rehabilitation. Wellness centers typically house a fitness center with an indoor aquatics center; spa services; indoor walking track; group exercise rooms; cardio and strength-training equipment; and well-appointed men’s, women’s and family locker rooms.

The concept of integrating aligned services across the continuum is also creating new models for co-locating medical providers with R&D and even education. Take the Arizona Health & Technology Park, an alliance between The Alter Group and the Mesa Campus of A.T. Still University of Health Sciences, featuring a spectrum of complex facilities from a nationally recognized university to medical office buildings to a specialty hospital to biomedical research facilities. The East Valley park, situated in the state’s largest and fastest growing metro area, allows a new alignment of services that fosters the education of future healthcare providers, the expansion of chronic care, and new medical innovations with the presence major pharmaceutical and medical equipment companies.

[stextbox id="grey"]For more information about healthcare real estate or Alter+Care, visit www.altercare.net.[/stextbox]

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

Property Taxes, AZRE Magazine May/June 2011

Property Taxes: Keep A Keen Eye On County Valuation Notices

What if your business was overcharged for its electricity, natural gas, or perhaps new computers or furniture? Most of us would take a look at our bills, determine where the mistakes occurred and then take the needed steps to resolve the discrepancies. But what if your business is being overcharged for its property taxes by thousands of dollars each year? Is there a course of action to fix this potentially costly problem? The answer is yes.

Each year, typically in February, the county assessor releases “postcard” valuations for each property in the county. In some cases, these valuations exceed the properties’ market value. The problem that we see in Arizona is that many people do not take notice of their property taxes until the county treasurer’s office mails its annual tax bill. But in Arizona, you cannot protest your taxes — only the postcard valuation. Therefore, the time to review your property taxes is when your values are mailed in February, not when you receive your tax bills in October.

What does this mean for local business owners?

Without protesting a postcard valuation, a business owner’s taxes may be substantially higher. In many cases, they need not be. If a business owner paid $4M for an office building last year, on average, the owner will owe approximately $100,000 in real property taxes. However, if the county assessor values the property at $7M based on its computerized mass appraisal, and the business owner does not protest, the owner’s taxes may exceed $175,000.

Why would my property be overvalued?

Over the past several years we have seen significant changes in commercial values, with prices quickly rising in 2005 and 2006, and falling over the past couple of years. Today, however, there are signs of hope. According to William Spart, senior vice president of Wells Fargo Bank, “some submarkets and property types, including apartments, are showing signs of firming up.”

These drastic changes in the market over the past several years have made it difficult for county assessors to determine property value. It is not feasible for the assessors to separately analyze the unique characteristics of each and every parcel. Therefore, the assessor must rely on a blanket formulary approach that attempts to classify buildings and land into various categories to produce a valuation.

The positive is that many people, including Pete Bolton, executive vice president and managing director of Grubb & Ellis, says he believe that we are at the bottom of the market. According to Bolton, the “market has definitely stabilized and we are seeing five to seven main groups, including the FDIC, national banks, CMBS special servicers and others slowly releasing property to the market with market values bouncing along the bottom.”

What if I recently acquired my property?

In Arizona, real property is assessed on an annual basis by the assessor’s office of the county, where the property is physically located. Property tax values are released around February prior to the tax year. While existing owners of real property are required to file all administrative protests within 60 days of release of the postcard values, Arizona has special rules for new owners.

Under Arizona law, new owners have the ability to either take over the old owners’ appeal or if an appeal was not filed, they can typically appeal their valuation to the County Superior Court until Dec. 15 of the valuation year. If the prior owner did not appeal the current year taxes (prior year’s postcard values), you may be able to appeal these taxes as well.

For more information about property taxes, visit wwptax.com.

AZRE Magazine May/June 2011

 

Newsmakers, AZRE Magazine September/October 2010

Newsmakers: AZRE Magazine September/October 2010

The newsmakers of September and October 2010.

Paul Klink, Alisa Timm and Sarah Searight joined the Cassidy Turley BRE Commercial property management division. Klink was named managing director Southwest Region; Timm was named associate vice president and Searight joined the company as property manager. Justin LeMaster joined the industrial group as senior associate. LeMaster previously was with NAI Horizon.

Dick Crowley was promoted to vice president of Kitchell Construction’s healthcare division. Crowley joined Kitchell six years ago as director of client services.

Neal Churney joined Johnson Capital as senior vice president. Prior to joining Johnson Capital, Churney was a director with Marcus & Millichap Capital, where he financed multi-family, office, industrial and retail properties.

Luke Snell joined Western Technologies as senior construction materials engineer. Snell formerly was with the Concrete Industry Management program at ASU’s Del E. Webb School of Construction.

Brian Ackerman joined Jones Lang LaSalle as senior vice president. He will specialize in the acquisition and disposition of office and industrial property throughout Arizona.

Anthony Lydon and Marc Hertzberg joined the industrial brokerage team as managing directors. Most recently with Cassidy Turley, the duo has a combined 50 years of experience in industrial real estate.

GPE Management Services added Mark Carrell and Shirley Hawley as senior commercial real estate professionals. Carrell is responsible for managing the 200,000 SF local portfolio of West Coast Capital Partners.

Grubb & Ellis expanded its Phoenix operation with the addition of the office and medical condo team of Sheila Bale, Colleen McPherson and Ryan O’Connor. David Cravath joined the multi-housing group as vice president. Also joining Grubb & Ellis are Steve Julius (senior associate) and Jesse Goldsmith (associate). Previously with Marcus & Millichap, they will specialize in retail investments.

ICSC appointed six Arizonans as volunteer officers for Arizona and New Mexico: Gordon A. Keig, Kornwasser Shopping Center Properties, state director; Jeff Manelis, The Pederson Group, Inc., government relations committee chair; Steven R. Helm, Macerich, alliance private sector co-chair; Jim Brennan, Vestar Development Co., operations chair; Dennis Barr, The Kroger Co., retail chair; and John C. Reva, SR Commercial Real Estate, next generation chair. All appointments are for the 2010-2011 term.

Dave Headstream and Mike Ratliff were named to the land services group of CB Richard Ellis in Phoenix. They join Jason Hyams, another CBRE first vice president, to form a new land services team.

James Abell, FAIA of James Abell & Associates Architects in Tempe received the Edward C. Kemper Award at the AIA convention in Miami. The Kemper Award is given annually to an architect who has contributed significantly to the profession through service to AIA.

Rowland Luxury Homes hired Mary Norton as director of marketing and business development.

MODE Real Estate Management Services hired Ryan King as tenant services coordinator to its commercial property management staff.

Voit Real Estate Services opened an Arizona regional office in Phoenix. Jason Quintel was named managing director for the area. Voit also announced the hiring of Robert A. Freund as COO. Phoenix is one of the operations he will oversee.

SmithGroup hired Michelle Romero as senior interior designer for the firm’s Workplace Studio. Romero formerly worked for Tempe-based DAVIS.

Brock Huttenmeyer was named director of pre-construction services for Haydon Building Corporation’s building division. Denise Arredondo joins Haydon’s building division as a junior estimator.

Boe Bergeson was named leader of business development in the Southwest Region for the Weitz Company. Bergeson will focus on mtunicipal, commercial, industrial, higher education, hospitality, federal, senior living, tenant improvements, renovations, retail and distressed properties.

CB Richard Ellis’ 12th Annual Charity Golf Tournament at Grayhawk Golf Club in Scottsdale raised nearly $35,000 for Valley charities and local chapters of national nonprofit organizations. Three charitable organizations will receive a sizable portion of the money: Childhelp, Phoenix Children’s Hospital and the Boys & Girls Clubs of Metropolitan Phoenix.

The Phoenix Asset Services Division of CB Richard Ellis announced that Camelback Esplanade III achieved Gold certification under the USGBC LEED rating system for Existing Buildings (EB). The 218,254 SF building at 24th St. and Camelback Rd. is the third CBRE-managed office building to earn the LEED-EB rating.

AZRE Magazine September/October 2010

Southwest Valley Commerce Center, AZRE July/August 2008

Industrial: Southwest Valley Commerce Center


SOUTHWEST VALLEY COMMERCE CENTER

Developer: Panattoni Development Co.
General contractor: Nitti Brothers
Architect: Ware Malcomb
Location: Buckeye Road & 83rd Ave., Phoenix
Size: 241,325 SF on 17.28 acres

The $25 million, industrial project consists of two large buildings, which being built for small to mid-size bay warehouse/distribution space. Panattoni broke ground on the project April 2008 for a January 2009 completion. Broker: Grubb & Ellis

AZRE July/August 2008