Tag Archives: Jones Lang LaSalle

Honorable Mention: CREST Specialty School

JLL Phoenix Office Gets First Retail Broker Team

Jones Lang LaSalle (JLL) announced Wednesday the expansion of its retail platform into Phoenix, with the addition of three brokerage specialists. Tyson Switzenberg will lead the firm’s newly formed Phoenix retail brokerage practice, along with Senior Associate John Reva and Associate Trask Switzenberg. Together they will partner with Craig Killman, JLL’s West Coast Retail Market Lead, to provide brokerage services to retail owners and tenants in the region.

“Phoenix is a target market for retail owners and tenants alike, and the addition of Tyson, John and Trask will allow us to better serve our clients’ growing demands in the region. Their acute knowledge of the Phoenix commercial real estate market and ability to recognize developing trends will provide our clients unmatched strategic planning and execution,” said Killman.

Steve Yenser, National Retail Brokerage Lead for Jones Lang LaSalle, added, “The trio’s ability to add value to retail owned assets and hone in on the right site selection options for our retailer clients is a tremendous addition to our platform. In the year ahead we’ll continue to add top-talent brokerage experts in key markets across the Southwest and United States.”
Tyson, John and Trask join JLL from SR Commercial Real Estate and bring with them a strong roster of local and national clients. In their new roles at JLL, they will be responsible for developing and executing strategies that maximize clients’ real estate needs to their full potential. Additionally, they’ll be focused on developing new business opportunities for current and future investor and retailer clients.

Prior to forming SR Commercial Real Estate, Tyson Switzenberg was a Senior Associate with Phoenix Commercial Advisors, where he managed more than 60 transactions each year. He also worked at D.L. Slaughter Company, where he facilitated more than 20 major U.S. drugstore transactions and leased eight ground-up grocery-anchored centers. Tyson earned a Bachelor of Arts degree from McNeese State University and is an active member of the International Council of Shopping Centers (ICSC).

Prior to forming SR Commercial Real Estate, John Reva served a Leasing Associate with Vestar Development Co., where he was responsible for the leasing of shop space at Tempe Marketplace, Oro Valley Marketplace and Canyon Trails Towne Center. Additionally, his experience includes working as a Retail Specialist with Retail Brokers, Inc., where he leased a retail portfolio of more than 35 assets totaling more than 300,000 square feet. John earned the degree of Juris Doctor from Thomas M. Cooley Law School in Lansing, Mich. and a Bachelor of Science degree from The University of Utah in Salt Lake City. He is a member of the State Bar of Arizona and the International Council of Shopping Centers (ICSC), and from 2010 – 2013 served as ICSC’s State Next Generation Chair for Arizona/New Mexico.

Trask Switzenberg previously served as an Associate at SR Commercial Real Estate, LLC, where he handled the leasing for a portfolio of 20-plus assets totalling more than one million square feet, and prior to that he worked at Pinnacle Development, LLC. Trask earned a Bachelor of Science degree from the University of Louisiana and is a member of the International Council of Shopping Centers (ICSC).

During the last two years, Jones Lang LaSalle Retail has added more than 50 retail brokerage experts in major markets including Atlanta, Austin, Boston, Charlotte, Chicago, Dallas, Florida, Hawaii, New York, San Antonio, Seattle and Southern California. During the first half 2013, the group added more than 60 new assignments and more than 30 retail clients to its network across the United States.

Latium, CushWake

Latium USA Trading Moves Into 43KSF Facility in Phoenix

Cushman & Wakefield of Arizona, Inc. has negotiated the relocation of Latium USA Trading, Inc.’s Phoenix operations to a 43,550-square-foot facility 1640 S. 39th Ave.

Latium USA, formerly Metals USA, is a manufacturer of metal building products and is based in Holbrook, N.Y. The company currently operates from a facility at 3602 W. Lincoln. Latium has leased 28 percent of the building, bringing the property to 100 percent occupancy. Plans call for the company to take occupancy of the space by the end of 2013.

“It’s great to see good quality space like 1640 S. 39th Avenue, which has been on the market for roughly three years, finally get absorbed as the market continues to rebound,” said John Grady. “There is still affordable space out there that gives tenants such as Latium the chance to upgrade to better quality and more functional buildings at a great rate.”

Grady and Jackie Orcutt of Cushman & Wakefield represented Latium USA in the transaction. The building is owned by DCT of Denver. Marc Hertzberg and Tony Lydon of Jones Lang LaSalle represented the landlord.

10 Lincoln, Lincoln Property Company

LPC Developments Bring 5,000 Jobs to West Valley

Just two weeks after unveiling its plans to develop a major new business park in Goodyear, Ariz., Lincoln Property Company (LPC) has announced another new business park project, 10 Lincoln.
10 Lincoln will total more than 1 MSF on 72 acres. The development consists of five buildings ranging in size from 80 KSF to 500 KSF, with anticipated uses of distribution, e-commerce, manufacturing assembly and retail.
Together with LPC’s just-announced Goodyear AirPark, the firm now offers approximately 340 acres of active West Valley industrial opportunities, with the potential to bring more than 5,000 new jobs to the Phoenix market.
“Phoenix’s West Valley submarkets are becoming increasingly well known as convenient, cost effective sites for some of the nation’s largest distribution and e-commerce firms,” said Lincoln Property Company’s Executive Vice President, David Krumwiede. “We expect this demand to only continue, and will approach these new business parks accordingly. Ultimately, we see both as multi-year projects—ones that will allow us to offer local and national clients with the best shovel-ready land in the Southwest.”
10 Lincoln is located at 83rd Avenue in Phoenix, directly fronted by Interstate 10 to the north and bordered by Van Buren Street to the south. The project is Foreign Trade Zone capable, offering the potential for a 75 percent reduction in real and personal (equipment) property tax. Immediate corporate neighbors include Amazon, PetSmart, Cardinal Health, Target, Bose, Home Depot, Costco, Living Spaces and Sysco. Butler Design group has provided the project site plans. The site sits at a full diamond interchange.
“This is one of the West Valley’s last close-in, still undeveloped industrial parcels,” said Jones Lang LaSalle Managing Director Marc Hertzberg, who along with Jones Lang LaSalle Managing Director Anthony J. Lydon serve as the exclusive marketing coordinators for the project. “It is surrounded by established commercial and residential development, giving incoming companies a built-in employment and amenities base, and allowing 10 Lincoln to immediately begin serving and employing those who live and work nearby.”
The announcement of 10 Lincoln falls just two weeks after plans were unveiled for Goodyear AirPark, a 267-acre business park located just south of the southwest corner of Litchfield Road and the newly widened Highway 85, and directly south of the Goodyear Airport. LPC is the exclusive developer for the project, which is a joint venture with Carefree Partners Investments.
PhoenixTechCenter, Cassidy Turley

Cassidy Turley Completes 11KSF Lease for Injured Workers Pharmacy in Phoenix

Cassidy Turley announced that it completed a 10,746 SF lease for Injured Workers Pharmacy, LLC (Methuen, MA) at Phoenix Tech Center, 5029 E. Sunrise Drive.

Tyler Wilson, Mark Stratz and Scott Baumgarten with Cassidy Turley’s Office Group represented the tenant while Dave Seeger, Karsten Peterson, Mark Gustin and Matt Gandolfo of Jones Lang LaSalle represented the landlord, Block Real Estate Services (Block Income Fund I, L.P.).

IWP is a national pharmacy service working as an advocate for injured individuals. It takes the financial burden out of the prescription process by shipping medications directly to patients and collecting payment from insurance companies. The Phoenix location is a new expansion office for IWP, and will be used as a customer service call center and fulfillment facility.

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Collaboration Leads to 267-Acre Goodyear AirPark Industrial Site

David Krumweide

David Krumweide

Lincoln Property Company and industrial specialists in the Phoenix office of Jones Lang LaSalle (JLL) have collaborated to attract corporate design/build projects to a major new, multi-employer business park named Goodyear AirPark in Goodyear, Ariz.

The announcement comes on the heels of a joint venture formed between LPC and property owner Carefree Partners Investments. LPC will be the project’s design-build developer, based on the firm’s national scope, local office accessibility and ability to deliver an array of high-end design-build products. Jones Lang LaSalle Managing Directors Anthony J. Lydon, SIOR, and Marc Hertzberg, SIOR, serve as the project’s exclusive marketing coordinators.

The project, at build-out, has the potential to add approximately 4,000 new jobs to the market.

We’re on the front end of the next wave of industrial building,” said Lincoln Property

Click for larger view.

Click for larger view.

Company Executive Vice President David Krumweide. “It is the opportune time to capture employer interest and make very big, very positive, very lasting contributions to the Valley’s job growth.”

Goodyear is the Valley’s gateway from Southern California. Employers seeking new space solutions in Arizona can take advantage of our 30 to 40 percent operational cost savings, and the 267 acres of shovel-ready land that Goodyear AirPark provides to respond to their demand,” said Lydon. “LPC also has the financial and construction expertise to build exactly what corporate employers need, whether it is office, industrial, flex or research space. That gives us tremendous leverage toward our mission: to attract businesses that will provide long-term value to the greater West Valley market.”

According to JLL, only 10 percent of Goodyear’s 189 square miles is currently developed, offering significant opportunity for site selection and design-build activity. Current nearby industrial employers include Amazon, Macys, SubZero, Cancer Treatment Centers of America and Dick’s Sporting Goods.

Goodyear AirPark is located just south of the southwest corner of Litchfield Road and the newly widened Highway 85, directly south of the Goodyear Airport. Its 267 acres include flexible/divisible lot sizes with Highway 85 frontage and direct access to I-10 (via the I-10 reliever highway), a bicoastal, federal corridor that serves as the metro area’s main transportation artery. The site is also in close proximity to I-8 and the proposed Loop 202 and under construction Loop 303 freeways.

Goodyear AirPark offers variable zoning and is Foreign Trade Zone capable, which translates into a potential 75 percent reduction in real property tax and personal property (equipment) tax and duty deferral or elimination.

Main St and Estrella FIN 0080

Local Investor Buys Main Street Lofts for $4.73M

Capital Markets experts in the Phoenix Office of Jones Lang LaSalle have completed the $4.73 million sale of Main Street Lofts at Verrado, a Class A, urban-style, condominium-quality multifamily property located at the center of the Verrado master-planned community in Buckeye, Ariz.

Jones Lang LaSalle’s Executive Vice President John Cunningham and Vice President Charles Steele represented the property developer and seller, DMB Associates. The buyer is Waitt Verrado LLC, a newly formed company involving WaittCorp Real Estate LLC of Omaha, Neb. (Norm Waitt, Chairman) and Arcadia Capital Group LLC of Phoenix, Ariz. (Jay Khor, Director of Acquisitions).

As is the case with Main Street Lofts, the companies continue to seek high quality, uniquely positioned real estate opportunities in the Phoenix market. They purchased Main Street Lofts because of the prime location within the Main Street District at Verrado, one of the Valley’s fastest growing and highest quality master-planned communities. In the near term, the company will work to improve efficiency, grow rental rates and occupancy.

“This is a truly unique urban-designed property for the West Valley that earned very broad buyer interest,” said Cunningham. “The transaction continues to demonstrate the investment community’s interest in the recovering single-family and multifamily markets, particularly in the West Valley.”

According to Michael Burke, Vice President of Development at DMB, “the Main Street Lofts has helped energize Main Street, and the strong return of the multifamily market signalled the right time for this planned sale.”

Located at 21068 W. Main St., Main Street Lofts is a 44,750-square-foot property that includes 45 apartment homes in nine, two- and three-story buildings. The structures border the north and south sides of Main Street in Verrado’s town center, and sit above ground floor retail that is 100 percent leased to Bashas’ grocery store, CVS Pharmacy, Bank of America, Ciao, Grazie Pizzeria, Tempo Urban Bistro and Anderson Institute of Music.

Completed in 2004, Main Street Lofts is a collection of townhome, loft and apartment residences averaging 994 square feet. Units range from 736 square feet to 1,692 square feet (average 994 square feet) in studio, one-, two- and three-bedroom floorplans. The property additionally includes 16 private garages and 29 covered, lighted parking spaces.

Broadway Ind Portfolio

Jones Lang LaSalle Closes $22 Million Portfolio Sale

Capital Markets experts in the Phoenix office of Jones Lang LaSalle (JLL) have completed a $22.1 million sale of Broadway Industrial Portfolio, totalling three Class A buildings and 308,038 square feet in Tempe, Ariz. The deal is JLL’s second investment sale in the area this quarter, accentuating the strength and draw of the submarket’s commercial real estate inventory.

Jones Lang LaSalle Managing Directors Mark Detmer and Bo Mills represented the property seller, San Francisco-based Prologis, Inc. The buyer is DCT Industrial Trust.

Broadway Industrial Portfolio encompasses an 110,000-square-foot building at 1005 W. Alameda Dr; a 96,437-square-foot building at 2910 S. Hardy Drive; and a 101,601-square-foot building at 2925 S. Roosevelt St., all in Tempe. Each building is a Class A, institutional quality asset offering manufacturing, distribution and office space. The properties are also all located directly off of Interstate 10 and fully occupied, with no near-term rollover, to tenants including United Stationers Supply Co., ACI Plastics, Inc., Misty Mate, Inc. and Triumph Group, Inc.

“These buildings are exceptional in that they combine outstanding functionality and full occupancy with a true Class A image in an infill location,” said Detmer. “This includes access—within minutes—to many of the key amenities that a high-end industrial user might need: an extensive freeway network, international airport, deep labor pool and host of retail opportunities.”

In addition, the project is located within the Southeast Valley, an area that over the last decade has remained one of the nation’s fastest growing regions for industrial and technology companies, and according to JLL is well situated for long-term stability.

Jones Lang LaSalle Executive Vice Presidents Pat Harlan and Steve Sayre, and Associate Kyle Westfall, will serve as the exclusive leasing brokers for the property buyer on behalf of DCT Industrial Trust.

This is the second investment sale closed by JLL in the Tempe submarket this quarter. In July, the firm completed a $27.1 million sale of Broadway 101 Office Park, a deal that was driven by high market demand and fundamentals reminiscent of pre-recession transactions.

Jones Lang LaSalle is a leader in the Phoenix commercial real estate market. Employing nearly 400 of the region’s most recognized industry experts, the firm offers office and industrial brokerage, tenant representation, facility and investment management, capital markets and development services. In 2012, the Phoenix team completed 9 million square feet in lease transactions valued at $458 million, directed $63 million in project management and currently leases and/or manages a 19.8 million-square-foot portfolio. For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s U.S. media center webpage.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2012 alone, Jones Lang LaSalle Capital Markets completed $63 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $60 billion in global investment sales and buy-side transactions, equating to nearly $240 million of investment trades completed every working day around the globe. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.

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JLL Completes Deer Valley Land Purchase; Announces Plans For 169,000 SF Industrial Project

 

The Phoenix office of Jones Lang LaSalle completed a 9.4-acre land purchase for The MACK Company. The buyer will soon kick off construction at the site for the development of MACK Pinnacle, a new 169,000 SF, Class A industrial development.

Located just west of the SWC of Pinnacle Peak Road and 7th St. in north Phoenix, the land for MACK Pinnacle sold for $2.685M. The new project is scheduled to complete in May 2014.

The Jones Lang LaSalle team of Executive Vice Presidents Steve Sayre and Pat Harlan, and Associate Kyle Westfall, along with Jones Lang LaSalle Managing Directors Mark Detmer and Bo Mills, represented The MACK Company. Luke Lewis of Luke Land Realty represented the seller, 7th Street & Airport Drive II, LLC.

According to JLL, MACK developed approximately 500,000 SF of industrial product in the submarket almost a decade ago. Its new project, MACK Pinnacle, will encompass two Class A industrial buildings, one at 90,575 SF and 30-foot clear height and the other at 78,281 SF and 24-foot clear height.

Additional features include A-1 light industrial zoning, ESFR sprinkler system and a location on a major intersection with immediate access to the two main transportation corridors in the submarket, I-17 and the Loop 101 freeway.

 

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Demand Drives Sale Of Broadway 101 Office Campus In Tempe

 

Jones Lang LaSalle’s Capital Markets team today announced the firm has completed the sale of Broadway 101 in Tempe on behalf of Broadway 101 Office Park, Inc. Sale price was reportedly $23.1M.

GLL Real Estate Partners, Inc. purchased the property in a sale that brokers say was driven by high market demand and fundamentals reminiscent of pre-recession transactions.

Senior Managing Director Dennis Desmond, Senior Vice President Brian Ackerman and Managing Director Dave Seeger led the Jones Lang LaSalle team on this transaction.

“This is an attractive, highly visible, institutionally maintained office project that sits at the center of Tempe’s talented employment pool. These are qualities that create true sustainable value and to which investors responded quickly and very favorably,”  Desmond said.

According to JLL’s Q2 Phoenix Office Statistics Report, Tempe’s Class A office inventory has enjoyed a steady recovery and continues to maintain its competitive position, with positive net absorption and a competitive 12.8% total vacancy rate.

“Broadway 101 exemplifies the strength of the recovering market and the type of high-caliber assets that investors can expect to find in the Valley,” Ackerman said. “This particular building has averaged a sub-8% vacancy rate throughout its history. Combined with very strong sale metrics, this transaction is reminiscent of the pre-recession sales of 2005 to 2007.”

Totalling 162,484 SF, Broadway 101 is a Class A multi-tenant office campus directly adjacent to the Loop 101/Price Freeway at 2141 and 2151 E. Broadway Rd. in Tempe. The project is currently 94% leased to tenants including MOOG/Broad Reach Engineering, Amerifirst Financial, Inc. and the Arizona corporate headquarters for Quantum Integrated Solutions.

In addition to location and occupancy, Broadway 101 offers underground parking, a card-key access system, on-site deli and property management, and insta-suites ready for immediate occupancy.

Seeger has been the project’s exclusive leasing broker since 2000 and is actively marketing the small vacancy remaining at the property.

 

Greg McMillan

Jones Lang LaSalle Positions For Office Market Uptick; Adds Greg McMillan to Phoenix Brokerage Team

 

As the office market continues to heat up, the Phoenix office of Jones Lang LaSalle is positioning for new opportunity with the addition of Greg McMillan as vice president in the firm’s local brokerage team.

The latest addition to JLL’s rapidly growing Phoenix brokerage roster, McMillan is charged with enhancing the firm’s market coverage and strengthening the expertise provided to JLL clients.

“Greg has deep roots in the Valley and the industry,” said Jones Lang LaSalle Senior Managing Director Dennis Desmond. “Like JLL, his primary goal is to serve his clients with knowledge and integrity. We look forward to his help as our office sector rebounds and new opportunities arise for JLL to serve its clients in the market.”

A 12-year industry veteran and recognized CoStar Power Broker, McMillan most recently served as a Vice President at Colliers International, where his primary responsibilities included negotiating lease and sale transactions, coordinating marketing strategies, providing market insight, and building strong relationships with clients and the brokerage community.

McMillan holds a bachelor’s degree in Real Estate Brokerage from St. Cloud State University and is pursuing the Certified Commercial Investment Member (CCIM) and Society of Industrial and Office Realtors (SIOR) designations.

He is the latest in JLL’s steady and aggressive expansion in the Phoenix market — the most recent of which was the early 2013 addition of veteran brokers Mark Detmer, Mark Gustin, Pat Harlan, Bo Mills, Karsten Peterson, Steve Sayre and Dave Seeger.

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Jones Lang LaSalle Closes Sale Of Buckeye Logistics Center For $44.3M

 

Months after joining Jones Lang LaSalle’s Capital Markets group, the veteran broker team of Managing Directors Mark Detmer and Bo Mills has completed the $44.3M sale of Buckeye Logistics Center, a two-building institutional-quality industrial project in the sought-after Southwest Phoenix submarket.

Detmer and Mills represented both the seller, Principal Real Estate Investors, and the buyer, IIT Acquisitions LLC. As the project’s exclusive leasing brokers, Jones Lang LaSalle Executive Vice Presidents Pat Harlan and Steve Sayre, and Associate Kyle Westfall brought the property from zero to 100 percent leased and well-positioned for sale.

“This is hands down one of the best institutional-quality projects sold in Phoenix this year,” Detmer said. “It is fully leased to five strong credit tenants, has been institutionally owned and maintained since its delivery to the market, and sits at a high profile location. These features — along with the submarket’s rapid absorption rate and the property’s tremendous upside potential through rent growth — create a scenario that’s extremely hard to replicate.”

Built in 2008, Buckeye Logistics Center totals 684,064 SF at 6825 and 6913 W. Buckeye Rd. The 6825 building totals 380,569 SF on 14 acres and is fully leased to HD Supply, Victory Packaging and Mor Furniture for Less.

The 6913 building totals 303,495 SF on 17 acres and is fully leased to Philosophy and Kellogg. Both buildings offer state-of-the-art distribution features including 32-foot clear, trailer storage and cross dock loading.

Located directly on Buckeye Road in Phoenix, Buckeye Logistics Center is minutes from Interstates 10 and 17, the 101 freeway, and Sky Harbor International Airport. The property is also within a six-hour drive to the Ports of Los Angeles and Long Beach. It is situated within Southwest Phoenix, which is home to more than 25% of the entire Phoenix industrial market inventory.

“These are the kind of fundamentals that hit the high points of an investor’s checklist,”  Mills said. “They make for long-term viability that is unrivalled in any other part of the Valley.”

 

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Strength of Occupancy, Submarket Attract Canadian Investment For $4.4M Mesa Building

 

Strong market performance and local improvements ranging from new light rail development to senior housing construction have helped prompt Canadian-based BOSA Development to invest $4.4M in a downtown Mesa office property listed by the Phoenix office of Jones Lang LaSalle.

Located at 159 W. First Ave., the 64,298 SF, single-story flex building contains approximately 55,800 SF of industrial space and 8,500 SF of office space, built in three phases between 1987 and 2012. The property is occupied by a single tenant specializing in the manufacturing of high-visibility consumer packaging.

Jones Lang LaSalle’s Senior Vice President Brian Ackerman and Senior Managing Director Dennis Desmond, both in the Phoenix office, represented BOSA and the property seller, Hogue Ventures LLC. Jones Lang LaSalle Managing Director Bill Honsaker and Vice President Steve Larsen served as leasing specialists.

“There are very few competing properties like this in the area,” Ackerman said. “BOSA credits the stability of the downtown Mesa submarket market and the stability of the building’s long-term occupancy as important factors in their decision to buy.”

According to JLL research, the Southeast Valley has enjoyed four consecutive quarters of positive net absorption and absorbed a more than 2 MSF over the past 18 months. This consistently outpaces other parts of the Valley and accounts for more than 30% of total net absorption across the overall Metro Phoenix market.

 

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Jones Lang LaSalle Completes Lease Expansion for Silicon Valley Bank in Tempe

 

 

On behalf of California-based Silicon Valley Bank (SVB), the Phoenix office of Jones Lang LaSalle completed a 25,579 SF lease expansion in the Hayden Ferry Lakeside I office building in downtown Tempe.

The announcement brings SVB’s total leased space at the building to approximately 75,000 SF across three floors and currently makes it the largest tenant in the 10-story, Class A office property.

“Silicon Valley Bank is fulfilling its original expansion plans, which are going well and ahead of schedule,” said JLL Vice President Keith Lammersen, who represented SVB in the lease transaction along with JLL Vice President Jason Moore and Executive Vice President Jim Sadler.

The building owner, Parkway Properties, Inc., was represented by its Vice President and Managing Director Mat Mooney and Senior Property Manager Mark Sanford.

SVB signed its original lease at Hayden Ferry Lakeside I in early 2013, moving into 49,374 SF by mid-year. It uses the space for an IT and operations center and will use the additional space to continue to build the teams that are now located there.

“Our local talent, affordability and quality of life helped attract SVB to the Valley. Those factors continue to support the company’s local growth plan,” Lammersen said.

 

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On Earth Day: Jones Lang LaSalle's 10 Reasons to Sign a Green Lease

 

Each year when April 22 rolls around, thousands of companies trumpet their sustainability initiatives.

Rising in popularity with corporate tenants and their landlords (and even municipalities like New York City and San Francisco), green leases are one way to both validate a company’s dedication to sustainability and achieve green victories throughout the year via improved environmental performance of a leased office space and an assurance that the company occupying this space — and the landlord that owns the building — are operating in a sustainable manner from the inside out.

“Green leases combine the productivity, comfort and sustainability features that tenants are looking for in office space while supporting landlord priorities of improving the triple bottom line and occupancy rates,” said Michael Jordan, Executive Vice President of Sustainability Strategy for Jones Lang LaSalle (JLL), a global leader in green lease administration.

“In addition to achieving both tenant and landlord objectives, green leases have social, economic and environmental implications for companies operating in today’s global economy. Green leases truly are the future of commercial real estate.”

Jordan and the JLL Energy and Sustainability Services team recommend that tenants and landlords collaborate to develop a green lease that benefits each party, typically including the following 10 benefits:

>> Reduce Utility Consumption and Save Money

>> Improve Working Relationships Between Tenants and Landlords

>> Support Corporate Sustainability Initiatives

>> Enhance Corporate Image/Brand

>> Demonstrate Vision and Thought Leadership

>> Improve Civic Relations

>> Contribute to LEED and Other Green Certifications

>> Improve Employee Productivity, Recruitment and Retention

>> Generate Additional Savings Through Waste Stream Diversions

>> Do the Right Thing for the Environment and its People

To make a lease “green,” the terms must be structured to drive sustainable cost savings without negatively impacting building performance or comfort. As with every lease, the green criteria should undergo careful evaluation to maximize effectiveness, sustainable success and cost savings.

“When weighing the costs and benefits of a green lease, consider completing an in-depth green lease site assessment and integrating RFP language that incorporates benchmarked green criteria applicable to both new leaseholds and renewing/renegotiating existing ones,” said Meaghan Farrell, Vice President of Strategic Consulting for JLL.

“Working with an advisor that understands both commercial leasing and green leases is critical to achieving both your real estate goals and your sustainability target.”

Jones Lang LaSalle employs 1,500 energy and sustainability accredited professionals in more than 30 countries around the world with skills in facility and property management, energy assessments, retro-commissioning, retrofits, project management, LEED and other certifications, renewable energy, sustainability consulting, renewable power solutions, workplace strategy, green lease programs, employee engagement and sustainability program design.

JLL is an ENERGY STAR Sustained Excellence Partner and a lead sponsor of the Carbon Disclosure Project (CDP) Cities program.

 

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Jones Lang LaSalle Signs Lease to Expand BSE Group’s Arizona Office Presence

 

 

On behalf of Boston Semi Equipment, the Phoenix office of Jones Lang LaSalle  completed a 54,900 SF lease in Tempe that allows BSE to expand its local market presence and increase its production capacity.

“BSE recognized its growth potential in Phoenix and conducted an extensive multi-market search to find a location that supports this important move in the company’s history,” said Jones Lang LaSalle Executive Vice President Jim Sadler, who brokered the deal with Jones Lang LaSalle Vice Presidents Keith Lammersen and Jason Moore on behalf of BSE Group.

“They have done a thorough job of researching and selecting a new home that fulfils a requirement for state-of-the-art engineering space, provides a central location for employees and offers space for expansion. We were honored to be selected to help them in this effort.”

Previously operating out of multiple Phoenix-area locations, BSE and its subsidiary, Test Advantage Hardware (Test Advantage), will locate into one industrial/office property at 1000 S. Priest Dr. in Tempe.

The company will occupy the entire building, which includes 6,340 SF of office space and 48,560 SF of engineering/industrial space. It will use the space for administrative, testing/diagnostics and warehouse/distribution for semiconductor manufacturing equipment.

“Our company has continued on a steady growth path since its founding in 2010,” said Bryan Banish, Boston Semi Equipment CEO. “Our new location increases the company’s capacity to reconfigure and refurbish equipment to support our expanding business.”

BSE is a semiconductor equipment company that provides fab tools, back end test equipment and service solutions for semiconductor manufacturers and OSATs worldwide. The company’s business strategy lowers equipment costs and gives customers flexibility with their production capacity to respond to changing business conditions.

 

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U.S. Skyline Report: Supply and Demand to Tip Scales in 2013 as Office Rents, Future Construction Prospects Increase

 

Constrained construction and heated demand for office space in the most active segments of the U.S. office market are already fueling prospects of rental increases and new office property development in 2013 and into 2014.

An expansion period is approaching for the high-quality urbanized office sector of trophy skyscrapers known as the Skyline, according to Jones Lang LaSalle’s Spring 2013 United States Skyline Review.

“In all but a handful of the Skyline markets, large tenants will have few existing options to consider and thus will be forced to look at proposed development options if they desire to explore relocation options,” said John Sikaitis, Senior Vice President of Research at Jones Lang LaSalle.

>> Phoenix featured as Jones Lang LaSalle Skyline market

The Phoenix Skyline inventory represents the top 22 urban office properties in the heart of the sixth largest city in the country. The area serves as Arizona’s center of government, commerce and culture, with more than $4B in recent investment making it an increasingly desirable place to live, work and play.

“The Phoenix Skyline is a unique combination of two established but divergent submarkets,” said John Bonnell, who with team member Don Mudd are Managing Directors and office market experts at Jones Lang LaSalle in Phoenix.

“On one hand you have Downtown, which has seen positive net absorption and appreciating rents since the end of the recession. On the other hand you have Midtown, which has languished over the last six years as tenants have downsized or moved to neighboring submarkets in a flight to quality. This year, however, both submarkets have seen an uptick in tenant requirements and activity, which bodes well for positive occupancy growth in 2013 and beyond.”

After a solid occupancy gain of 140,000 SF in 2011, the Phoenix Skyline backtracked somewhat in 2012, putting 61,000 SF of losses on the board as it struggled to combat a still-recovering office market and retain tenants opting for suburban submarkets.

After these give-backs, direct vacancy in the Skyline market now sits at 21.9% between Downtown and Midtown. On a positive note, the market posted just more than 40,000 SF of new occupancy gains in the fourth quarter and forecasts for 2013 point to increased demand for office space thanks to improving overall economic and demographic fundamentals. The Phoenix Skyline may finally be at the bottom, though the recovery may remain bifurcated between Downtown and Midtown for the time being.

>> Leasing highlights indicate most Skyline markets will reach equilibrium by mid-2014

Vacancy rates are in the single digits in 10 Skyline markets, including Pittsburgh, Richmond, Bellevue, Houston, Portland, the New Jersey Hudson Waterfront, Raleigh, San Francisco, Philadelphia and Boston.

Additions to supply are only beginning to appear, with office construction in eight, or 24.2%, of the Skyline markets, including speculative construction in three markets. By mid-2014, all of the Skyline markets, including Phoenix, will have reached equilibrium, where the balance of supply and demand has historically made rents pop and new construction feasible, Jones Lang LaSalle’s researchers predict.

Three large office tenants that returned space to the market in 2012 skewed overall leasing totals across the Skyline, with a minimal net change from the previous year. Excluding those deals, however, Skyline absorption would have tipped the scales at more than 4.6 MSF. Energy and tech companies will continue leading absorption in 2013, counterbalanced by right-sizing among law, financial and consulting firms that seek greater efficiency by cutting back space, typically between 15% and 20%.

Landlords offered fewer concessions to tenants in 2012, increasing effective rents by 4.5%, compared with just 1.6% effective rent growth the previous year. More than 85% of Skyline markets will see rent increase in 2013, with compression of tenant incentives in 90 percent of markets as landlords gain pricing control. In some Skyline markets, asking rents even surpassed prior market cycles’ peaks in four markets (San Francisco; the New Jersey Hudson Waterfront; Washington, D.C.; and Cincinnati).

>> Investment sales slowly migrate to pre-recessionary peaks in select top Skyline markets

Skyline sales volume fell to less than 40 MSF in 2012, down 29.3% from 55.7 MSF sold the previous year, chiefly due to limited Skyline Trophy activity in New York. Despite reduced volume, investor appetite for the high-quality product and favorable fundamentals is pushing sales prices nearer to pre-recessionary peaks in the top five Skyline markets (New York, San Francisco, Washington D.C., Boston, and Seattle-Bellevue), and even in top energy markets like Houston and Denver.

Real estate investment trusts topped the list of buyers in 2012, accounting for 29.6% of sales transactions, closely followed by institutional domestic buyers at 29.1%, with global buyers coming in a distant third at 11.9%. An increasingly diversified economic and leasing recovery are expected to push activity levels up more than 20 percent in 2013 for the “Super Seven” primary markets (Boston, Chicago, Los Angeles, New York, San Francisco, Seattle-Bellevue and Washington, D.C.). Stronger investment activity will be based on increasingly difficult barriers to entry.

“Look for markets like Denver, Indianapolis, Minneapolis, Orlando and Portland, among others, to capture enhanced institutional demand over the next few years based on aligned supply and demand and an increased institutional focus,” said Marisha Clinton, Director of Capital Markets Research, Jones Lang LaSalle.

>> Major market highlights

 · New York: Near-term, large blocks of space weigh on the market, including 3 MSF that a financial services firm returned to Downtown Manhattan in 2012.

 · San Francisco: Sizzling leasing velocity drove up asking rents by 27.4% in 2012 from the previous year. New projects are breaking ground in the South Financial District.

 · Washington, D.C.: Tenants’ flight to quality bolstered the Skyline, bucking the malaise of the market. Concession packages hovered near record levels in 2012, however.

· Boston: Rapid technology growth and recovering legal and financial services contributed to full recovery of jobs lost during the recession. Widespread absorption and built-to-suit construction in the Back Bay is accompanied by pre-recession rent levels in premier properties.

· Seattle-Bellevue: The highest price paid per square foot for an office building here in 2012 reached $642, an all-time high.

 

Cobolt

Jones Lang LaSalle Completes $9.8M in Phoenix Multi-Family Sales

 

The Jones Lang LaSalle Phoenix Capital Markets Team completed two multi-family investment sales that will move the local Cobalt and Indigo rental properties from a “stalled” and distressed position on to a new track for quick completion and delivery to the Phoenix rental pool.

“The recession stopped many local multifamily and condo construction projects in their tracks, and some of these distressed sites have been sitting, unfinished, for years,” said Jones Lang LaSalle Executive Vice President John Cunningham.

“As our market fundamentals improve, we’re seeing properties like Cobalt and Indigo come under new ownership, gaining the capital resources they need to transition from a community eyesore to a completed, active rental complex. It is a very positive trend.”

Seattle-based Goodman Real Estate purchased Cobalt for $5.6M and Indigo for $4.2M. Cunningham, along with Jones Lang LaSalle Vice President Charles Steele, represented the properties’ seller, Newport Beach, Calif.-based Sabal Financial Group, which specializes in the acquisition of distressed real estate loans and bank credit advisory services.

Located at 32nd St. and Union Hills in Phoenix, Cobalt is a gated Class A multi-family property that includes 24 completed units and land for a 66-unit expansion.

Indigo is a fractured Class A condominium asset totalling 30 units at 16160 S. 50th St., near I-10 and Chandler Blvd. in Ahwatukee. Seventeen of Indigo’s units were previously sold as condominiums, however the new owner is pursuing acquisition of these sold units as part of its de-fracturing strategy. Indigo also has infrastructure in place to build an additional 78 units.

In the coming months, Goodman plans to begin construction on the outstanding units at both Cobalt and Indigo.

“These projects are not only operating at 90 to 100 percent occupied, which means they are providing current cash flow, they are also development opportunities. That is a unique mix that attracted significant private capital interest,” said Cunningham, who leads the multi-family investment practice for JLL in Phoenix.

“It also points to a Phoenix Class A apartment market that investors view as stable, with the renter demand needed to fill new units and keep us on the road to recovery.”

According to JLL, average occupancy for Phoenix Class A multi-family space experienced a steady rise in 2012, reaching between 90 and 95 percent occupancy at year end and continuing that positive performance into 2013.

“Market fundamentals support the completion of both Cobalt and Indigo,” Steele said. “By completing these projects, the new owner will build value at both sites, further demonstrating the strength of Phoenix’s economic recovery.”

A 25-year industry veteran, Cunningham joined Jones Lang LaSalle in late 2011, in response to a surge in multifamily transactions and client demand not seen in greater Phoenix for years. He is charged with establishing and expanding the firm’s multifamily investment sales practice in Phoenix and throughout the region.

Steele joined the practice in April 2012. Together, the team has already closed almost $40M in local multi-family investment sales.

Dave Seeger, Karsten Peterson & Mark Gustin

Jones Lang LaSalle Adds Trio of Veteran Office Brokers

With the addition of veteran office leasing brokers Dave Seeger, Karsten Peterson and Mark Gustin, the Phoenix office of Jones Lang LaSalle hired its third major local broker team in less than two weeks as it cements plans for a larger and deeper presence in the Valley.

“I’ve known and worked with Dave, Karsten and Mark for more than 20 years, and in that time have watched them dedicate themselves to learning every facet of the Southeast Valley real estate environment,” said Dennis Desmond, senior managing director of Jones Lang LaSalle in Phoenix.

“They are consummate professionals and the submarket’s most respected ‘go-to’ office brokerage team. We are very pleased to welcome them and know they will be a great catalyst in our effort to serve landlord clients in the Southeast Valley market.”

Seeger, Peterson and Gustin join the firm as managing directors. They move to JLL along with team member Matt Gandolfo, who will serve as an associate. Together they are charged with enhancing and expanding JLL’s presence in the burgeoning Southeast Valley, which includes submarkets such as Tempe, Mesa, Chandler and Gilbert.

According to JLL research, the Southeast Valley cluster is one of the strongest in the entire Phoenix MSA and will continue to draw top-shelf corporate occupiers and investors given its strengthening fundamentals. This includes positive net office absorption of 860,000 SF in 2012, resulting in the lowest market cluster vacancy rate in Phoenix at 21.2%.

Seeger, Peterson and Guston are top producing Phoenix brokers with almost 70 years of collective experience and who annually participate in approximately 100 transactions totaling roughly 1.5 MSF to 2 MSF of office and back office space.

They have earned Top Broker recognitions for their broad market knowledge, as well as their deep geographic understanding of the East Valley and their focus on office and back office leasing and investment sales.

As part of the JLL Phoenix office, they join five other newly hired brokers — Bo Mills and Mark Detmer, who specialize in industrial real estate investment sales, and industrial leasing experts Pat Harlan, Steve Sayre and Kyle Westfall.

Seeger, Peterson and Gustin are all members of NAIOP. Gustin is also a member of the Society of Industrial and Office Realtors (SIOR) and is a Certified Commercial Investment Member (CCIM).

Seeger holds a bachelor’s degree in finance from the University of Arizona. Peterson holds a bachelor’s degree in Business Administration from Northern Arizona University and an MBA from Arizona State University. Gustin holds a bachelor’s degree in Business Real Estate from Arizona University. Prior to entering commercial real estate, Gustin served in the U.S. Army.

 

Bo Mills & Mark Detmer

Jones Lang LaSalle Adds Bo Mills and Mark Detmer to Bolster its West Coast Industrial Efforts

National investment sales experts Bo Mills and Mark Detmer are joining Jones Lang LaSalle to lead its West Coast practice.

In response to increased client demand for broader expertise in the industrial sector, JLL’s Capital Markets made the move. Mills and Detmer joined the firm as managing directors and will partner with JLL’s industrial capital markets leader, John Huguenard, to help grow the firm’s industrial capital markets presence throughout the West Coast.

Mills and Detmer won the 2012 RED Award for Brokerage Team of the Year-Leasing with Cushman & Wakefield. They are finalists for the 2013 RED Awards

In addition, the firm has also hired two industrial brokerage experts in Phoenix. Pat Harlan and Steve Sayre are joining JLL as executive vice presidents to partner with market-leading managing directors Tony Lydon, Marc Hertzberg and Bill Honsaker to expand the firm’s leasing expertise in that city.

“Over the past several years, we’ve been committed to growing a strong and vibrant Industrial Capital Markets practice and we’ve achieved considerable success,”  Huguenard. “Clients have been clamoring for deep market knowledge on the West Coast as well, and bringing Bo and Mark on board allows us to provide the best-in-class leadership they’ve come to expect from JLL.

“Bo and Mark have long been recognized as two of the nation’s leading industrial experts and we are confident their deep client contacts will significantly drive our business growth in this critical part of the country.”

Detmer, who will be based in Phoenix, brings more than 18 years of expertise to the team, specializing in all facets of industrial real estate. He has completed more than 1,000 transactions, totalling more than 25 MSF of property.

He is a member of the Society of Industrial and Office Realtors (SIOR), a Certified Commercial Investment Member (CCIM) and a member of the Urban Land Institute (ULI). He is also active in  NAIOP, serving as the Phoenix 2011 Chairman of Night at the Fights for the third consecutive year and the current Associate Member of the Year for the Arizona Chapter of the organization.

Mills, who will be based in Los Angeles, has more than 17 years of experience, specializing in all facets of industrial real estate including acquisitions, developments, leasing and sales. He has completed more than 1,000 transactions during his career, totalling more than 25 MSF of property.

He is a member of SIOR, CCIM, ULI and also serves on the Board of Directors of  NAIOP.

“We look forward to seeing great results for our clients through the combination of this team’s knowledge and capability, and the resources of JLL’s global platform,” said Peter Belisle, JLL’s Southwest Market Director. “Los Angeles, and in particular the Inland Empire, is considered the hotbed of the country for industrial acquisitions and the site where investors most wish to expand.

“Having a leader like Bo on the ground in this market gives us a huge advantage and offers our clients expertise in every facet of the industrial spectrum; while Mark’s long-standing client relationships in Phoenix will continue to strengthen our stature there.”

Harlan brings more than 15 years of experience to the team, representing owners and tenants in sales, leasing and master-planned developments of industrial product. He is a member of NAIOP, Council of Supply Chain Management and ULI.

Sayre has more than 17 years of experience in the industrial sector, also representing owners and tenants in sales, leasing and master-planned developments. He is a member of NAIOP and CCIM.

“Pat and Steve are known as one of the city’s top industrial leasing teams, regularly facilitating significant industrial lease transactions year after year. Adding this level of capability and strength will give us the most comprehensive industrial expertise in the region, from logistics, agency leasing and tenant representation all the way to the buying and selling of properties and land services,” said Craig Meyer, Executive Managing Director and leader of JLL’s Industrial and Logistics Americas.

This team complements the recent hires of Harvey Beeson, Luke Staubitz and Andrew Difler to the Los Angeles industrial team earlier this month. Beeson and Staubitz specifically focus on the South Bay submarket and will partner with the new team to provide a holistic industrial and logistic perspective to the region.

 

rsz_brokers_for_kids_poster

Valley Professional Holding Annual Raffle For Brokers for Kids

 

Valley commercial real estate professionals are holding  an annual Brokers for Kids car raffle and tickets are now on sale.

Tickets are one for $25 or six for $100. The Brokers for Kids Olympiad event is Feb. 15 at Tempe Town Lake.

The drawing will be held on Feb. 15. You do not need to be present to win. This year you’ll have a choice of one of three vehicle options or the cash option of $15,000.

Tickets may be purchased at scottsdale2030.org/raffle_brokersforkids.

For a list of all companies raising money go to scottsdale2030.org/brokersforkids

 

rsz_papago_spectrum

Jones Lang LaSalle Rings In New Year With $21.6M Sale of Tempe Office Building

 

Beginning the year on a positive note, the Phoenix office of Jones Lang LaSalle  completed the sale of Papago Spectrum to German-based investor GLL Real Estate Partners, reportedly for $21.6M.

According to Jones Lang LaSalle, the sale of the 159,764 SF Class A multi-tenant office building in Tempe points to continued optimism for buyer interest and activity in 2013.

“Investors see tremendous promise in the Phoenix commercial office market,” said JLL Senior Managing Director Dennis Desmond, who with Senior Vice President Brian Ackerman served as the property’s exclusive listing brokers. “We have a strong inventory of well occupied, stabilized opportunities and — for good reason — buyers from across the globe have an overarching interest in placing capital here.”

GLL was represented internally by Senior Vice President Christopher Quiett and Senior Associate Eric Ramm.

Papago Spectrum sits at the geographic center of the Metro Phoenix, at Priest and University drives, just off of the Loop 202 Freeway in Tempe. The building is 91% occupied, with the University of Phoenix taking the top two floors. Recent leases filled an additional 27,000 SF in five-year deals.

“Close proximity to Arizona State University and a strong local employment pool ensures that vacancy rates around Papago Spectrum are almost always in the single digits,” Ackerman said. “However, submarket rents are also still slightly depressed. With this building’s strong occupancy, it makes for a very stabilized core asset with solid room for improvement.”

According to JLL’s 2013 Outlook report, Phoenix office leasing velocity and stability is forecasted to improve and bring positive gains well into the first half of 2013. This is based on factors including, but not limited to:

>> A development pipeline that will remain empty as the market burns through vacancies.

>> A closing window of opportunity for securing low rents and concessions, especially in Class A properties.

>> A number of large tenants in the market, spurring anticipation for back-office and customer service-related leases in 2013.

Similar transactions by the JLL Phoenix office include the $20.8M sale of Scottsdale Centre, a 164,000 SF building on Scottsdale Rd. near Camelback Rd.; the $16.6M sale of Camelback Arboleda, a 179,751 SF, multi-tenant office building at 16th St. and Camelback  in the heart of the Camelback Corridor; and the $23.3M sale of Agave Center, a 27-acre, mixed-use property at Warner Rd. and I-10 in Tempe that includes four office buildings, a flex industrial building and 4.6 acres of land ready for development.

 

Eli Gilbert - Matt Kolano

Jones Lang LaSalle Adds Pair to Phoenix Research Group

Spurred by a recovering real estate market and the firm’s growing Phoenix brokerage team, the Phoenix office of Jones Lang LaSalle has expanded its local research department with two new members: Eli Gilbert as Senior Research Manager and Matt Kolano as Research Analyst.

Gilbert and Kolano are charged with increasing research and analytical support for the firm’s expanding lineup of Phoenix brokerage experts. This includes delivering trademark Jones Lang LaSalle research tools such as multi-level industry data, proactive market insight and custom research collateral ranging from local and national market reports to the identification and analysis of industry trends.

“Jones Lang LaSalle’s research platform is one of the best in the business. It differentiates our people and it elevates the level of service we provide to our clients,” said Dennis Desmond, Senior Managing Director for the Phoenix office of Jones Lang LaSalle. “Eli and Matt bring that advantage to Phoenix. They provide the data we need to accurately advise our clients and then achieve outstanding leasing and investment results for them.”

Gilbert previously served as Senior Research Analyst for Jones Lang LaSalle in San Diego. With his promotion to Research Manager, Gilbert now divides his time equally between San Diego and Phoenix, serving brokers and clients in both markets with more than 12 years of research experience, industry connections and best practices.

Kolano is the new Research Analyst for the Phoenix office, working closely with Gilbert to refine and expand the Phoenix research platform and support Jones Lang LaSalle’s client base.

Prior to joining Jones Lang LaSalle, Gilbert served in research roles with Grubb & Ellis, The CoStar Group and Cushman & Wakefield. He graduated cum laude with a bachelor’s degree in history from San Diego State University, is a LEED Green Associate and has been honored as a 2011 NAIOP Developing Leader Award winner. Gilbert is currently pursuing a CCIM designation and is a licensed real estate salesperson in California.

Kolano is a recent graduate of the W.P. Carey School of Business at Arizona State University, where he double-majored and graduated with honors with bachelor’s degrees in both economics and finance. While at ASU, Kolano completed an intense entrepreneurship program at the Heller School of Management at the University of Arizona and served as consultant, strategist and intern at firms including On Semiconductor, the New Venture Group and InnovationSpace. He is a licensed real estate salesperson in the state of Arizona.

rsz_estrella_logistics_center

Jones Lang LaSalle Completes Land Sale For 600K SF Spec Industrial Building

The Phoenix office of Jones Lang LaSalle has completed a 38-acre land sale in Phoenix’s Southwest Valley that, by early 2013, will be home to approximately 600,000 SF of speculative, state-of-the-art industrial space.

Managing Directors Anthony J. Lydon, SIOR, and Marc Hertzberg, SIOR, of Jones Lang LaSalle represented the property buyer, Seefried Industrial Properties, Inc. The seller’s agent is Rich Sica of Daum Commercial.

The site, located at the NEC of 63rd Ave. and Sherman Way in Phoenix, was acquired by a venture between USAA Real Estate Company and Seefried Industrial Properties. The venture will proceed with the development of Estrella Logistics Center, a speculative $30M, 592,500 SF, cross-dock distribution building.

“Seefried and USAA are specialists in developing, leasing and managing premier industrial logistics projects,” Lydon said. “They are experts at knowing what to build and where to build it, and they have chosen an exceptional time to deliver speculative industrial product in Phoenix.”

According to Jones Lang LaSalle research, there is approximately 6 MSF of current user demand in Phoenix for requirements of 100,000 SF or more; however, supply has not kept up with demand. As such, the market experienced an anaemic first quarter, with just 92,598 SF of net industrial absorption as compared to a total 6.9 MSF of net industrial absorption in 2011.

“The only local industrial construction that we’ve seen completed this year falls in the single-tenant, build-to-suit category,” Hertzberg said. “This does little to satisfy this market’s broader demand for large blocks of space. This will be the key driver for new Phoenix speculative industrial development in 2012.”

Jones Lang LaSalle reports that demand for larger industrial spaces in the Southwest is the strongest among national retailers, food and beverage distributors, solar and e-commerce businesses. This is due in large part to Phoenix’s proximity to California, its 30 to 40% lower business costs, and the availability of quality land that is also near the market’s many accessible transportation lines.

The future Estrella Logistics Center site will be fully improved with all of the modern logistics amenities expected by the supply chain industry. The project sits just south of Interstate 10, between the 59th and 67th avenues full interchanges.

Construction on Estrella Logistics Center is slated to begin in October and will be completed by May 2013. For occupancy, Seefried and USAA plan to pursue corporate employers seeking a scalable space solution.

JLL - W. Buckeye

JLL completes 240,000 SF industrial lease for CTDI

The Phoenix office of Jones Lang LaSalle completed a 240,000 SF industrial lease in Tolleson for Pennsylvania-based Communications Test Design, Inc. (CTDI).

The long-term lease is part of a national third-party service contract with Cox Communications that will generate approximately 200 new local jobs and fill one of the last three existing, scalable industrial building solutions in the Phoenix market.

“Demand is filling Phoenix’s larger blocks of available industrial space,” said Jones Lang LaSalle Managing Director Marc Hertzberg. “When we evaluated CTDI’s market options, there were really only three viable spaces that could fill their needs. Now that this lease has been executed, there are only two such spaces left in Phoenix for similar users.”

Hertzberg, SIOR, represented CTDI in the lease negotiations with industrial team partner Anthony J. Lydon, SIOR and also a Managing Director in the Phoenix office of Jones Lang LaSalle, and Jackson Cross Partners, which represents CTDI nationally.

The Phoenix CTDI lease is one that will allow the company to service, repair or recycle Cox Communications network equipment, creating jobs ranging from operations to engineering to warehousing, and supporting a centralization/standardization process for Cox.

“Being just 1.5 miles off of I-10 was a major draw for CTDI, who needs efficient Valleywide access to serve Cox customers and business lines,” Lydon said. “LBA’s creativity and financial strength was another deciding factor. It will allow CTDI to occupy their new building very quickly.”

CTDI will take possession of its new space by 4Q 2012. The building is at 8602 W. Buckeye Rd. and is comprised of 238,000 SF of warehouse space and 2,695 SF of speculative office space. It is part of the Westside Business Park, a 66-acre, 1.1 MSF project that is home to other leading warehouse tenants including Staples, CostCo, Bose and International Paper.