Tag Archives: Kevin Calihan


Phoenix ties San Francisco for No. 1 in tech job growth

Businesses looking for office space in the nation’s hottest tech markets should expect to pay a premium – and a hefty one in many of the top tech cities, according to a new research report by CBRE Group, Inc. The report, which analyzes the top 30 tech cities across the U.S. and Canada, showed an aggregate rent premium of 11 percent across all 30 markets. And while the numbers may have tech tenants in some markets cringing, companies located in or looking at metropolitan Phoenix should feel pretty good about two areas in particular: job growth momentum and rental rate growth.

Metropolitan Phoenix posted a two-year growth rate of 42.7 percent for high-tech services/software-centric jobs from 2012 to 2014. This translates to 12,662 new tech jobs added to the market over the two-year period. These jobs comprised 31.3 percent of overall new jobs added to the Valley’s office base. Comparatively, San Francisco also saw a high-tech services/software job growth rate of 42.7 percent from 2012 to 2014, which was 55.1 percent of that market’s overall office-job base. San Francisco’s actual number of new jobs in that time frame was 16,976.

In Phoenix, major high-tech leasing activity exceeded 1.0 million sq. ft. over the past two years; 40% was transacted through Q2 2015, making the current year tech companies’ most active yet in the metropolitan area. Tech firms employed 42,304 people Valley-wide at the end of 2014.

Rent growth across the Tech-Thirty markets display some of the biggest increases in office sectors across North America, with San Francisco and Silicon Valley topping the list with rental growth rates of 30.7 and 28.1 percent from Q2 2013 to Q2 2015, respectively. This growth translated to the two top tech markets posting average office rental rates of $67.99 and $49.20, respectively, in Q2 2015. In that same period, Phoenix saw rental growth rates of 8.3 percent and as of Q2 office lease rates were $22.06. Comparatively, Denver and Austin – two cities Phoenix regularly competes with in site selection bids for tech companies – have seen rental rate growth of 11.8 and 11.4 percent and posted Q2 rental rate averages of $24.15 and $31.33, respectively.

“Metropolitan Phoenix is undergoing major changes. We talk a lot about the diversification of the Phoenix and Arizona economies and reports like this one prove the investments that have been made towards economic expansion are paying off,” said Kevin Calihan, senior vice president with CBRE’s Phoenix office. “The Valley has a growing, young and educated workforce and an office market that’s attractively priced when compared to our competitors.”

Tempe came in as the Valley of the Sun’s hottest tech submarket, registering 18th on the Tech-Thirty list of the top tech submarkets in each market in terms of rent growth and 13th in net absorption. Tech occupiers’ demand for amenity-rich environments and quality office product has caused Tempe rental rates to appreciate when compared to overall market rates. And while current average rental rate in Tempe is $22.08, just two cents over the Valley wide average, premier properties can command rates nearing $40.00.

“Rental rates in Tempe can fluctuate depending on a number of factors, including location within the submarket,” said Calihan. “Rates in the more suburban parts of Tempe typically fall in the mid to upper $20.00 range, while rates in downtown Tempe are about $10.00 higher.”

In submarkets like Tempe, the lack of available space in blocks of 25,000 sq. ft. or more in buildings proximate to walkable amenities has developers jockeying to initiate new projects to chase this demand. Those developers that are successful in getting projects launched are being met with significant interest from tenants. Parkway Properties’ Hayden Ferry Lakeside is a prime example. The project’s third building broke ground in May 2014, and as it nears completion the property is already 85 percent pre-leased.

“There is definitely an urban migration happening in a variety of submarkets across the Valley,” said Calihan. “Companies, particularly tech companies, recognize employees want to work in amenity rich environments with access to public transit, multifamily housing options, and vibrant recreation and nightlife – submarkets like Tempe with projects like Hayden Ferry check all of those boxes.”

Kyrene Corporate Center, CBRE

Kyrene Corporate Center sells to retail mortgage lender

RMK Holdings, LLC has purchased Kyrene Corporate Center, a 30KSF building located at 9280 South Kyrene Road in Tempe. The sale price was $3.33 million.

Kevin Calihan with CBRE’s Phoenix office represented Phoenix-based RMK Holdings. DTZ’s Eric Wichterman and Mike Coover represented the seller, Phoenix-based Kyrene 919280, LLC.

“The metro office market continues to improve and Tempe, especially, continues to be a place in which office users want to locate,” said Calihan. “This purchase allows RMK Holdings to not only enter a highly sought-after submarket from an investor standpoint, but also gives the company more control over their own operations as well.”

RMK Holdings is a joint venture between Kent Nielson, Ryan Sandell and Michael Jones, the local principals of Primary Residential Mortgage, Inc. (PRMI), one of the largest retail mortgage lenders in the nation. RMK Holdings will lease 15,000 square feet of Kyrene Corporate Center to PRMI. This location will serve as PRMI’s primary office for the Arizona market, which is being relocated from San Tan Corporate Center II in Chandler. PRMI has four offices through out the Valley and one in Flagstaff.

“Kyrene Corporate Center is in an excellent location and offers us the ability to continue to grow our business while having better control over our operating expenses for PRMI,” said Kent Nielson. “We are anticipating the metro Phoenix housing market will continue to strengthen in 2015 and this purchase and lease with PRMI means we will be well-positioned to better serve our clients as this demand increases.”

Kyrene Corporate Center is located just a mile and a half from the full-diamond interchange at Warner Road and the I-10 freeway. The property was approximately 50 percent leased at time of sale. Tenants include enChoice, Inc., Triton Medical Solutions and Great American Title Agency.

Low Level Aerial view of Downtown Tucson, Arizona

One South Church attracts 22KSF of new office tenants

CBRE recently negotiated long-term office leases with major tenants at One South Church, the landmark building in downtown Tucson, Ariz. Global engineering firm HDR has leased 9,659 square feet of space, while Regus, the world’s largest provider of flexible work space, has inked a deal for the entire 12,659-square-foot 12th floor.

Buzz Isaacson with CBRE’s Tucson office represented the landlord, Chicago, IL-based Equity Commonwealth. Kevin Calihan with CBRE’s Phoenix office represented Regus, and Pat Williams with JLL’s Phoenix office represented HDR.

Regus’s lease marks its entrance to the Tucson market. The company has an expansive presence in Phoenix with 21 locations Valley-wide in the best office building in almost every submarket in the metropolitan area.

We’re very excited about the Tucson market,” said Rob Downing, Regional Director of Real Estate for Regus. “The Southwest, and Arizona, in particular, has been a focus for us over the past several quarters. Our Phoenix centers are performing exceptionally well, but our clients were regularly inquiring about locations in Tucson. With the space at One South Church we will finally be able to meet that demand.”

Regus’s new center is currently undergoing tenant improvements to ensure the company will be able to offer its full suite of flexible workspace solutions to the Tucson market. The new work center is slated to open in mid December. Regus is also in the process of identifying a second location in north Tucson with hopes to open that work center sometime in 2015.

HDR relocates to One South Church from their previous location at Williams Centre. The global engineering firm played a major role in bringing the Sun Link Modern Streetcar project to fruition and this move brings the company right onto the streetcar’s 3.9-mile route.

Regus and HDR are excellent examples of companies seeing the value of locating in amenity-rich downtown Tucson,” said CBRE’s Isaacson, who has held the marketing and leasing assignment for One South Church since 1986 and has brokered the sale of the building twice. “There has definitely been a demographic shift toward urban, live-work-play environments. Smart employers recognize that in order to attract and retain top talent they need to locate in areas that offer the “lifestyle” type of work environments employees want.”

Built in 1986, One South Church is Tucson’s premier high-rise office building. Located in the heart of downtown Tucson, the 23-story office tower is located in one of Tucson’s three major employment centers, along with the University of Arizona and Tucson International Airport. Located along the new Sun Link Modern Streetcar route and within minutes of Interstate-10, which boarders the west side of downtown, the property benefits from easy accessibility as well as the numerous retail amenities located in the area.


2011 RED Awards Winners & Honorable Mentions

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

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

2011 winners can order Awards, Plaques & Reprints

The project categories include:

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

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

Congratulations to all the 2011 RED Awards Winners

Best Hospitality Project, Small:


The Phoenician Ballroom Expansion

Best Hospitality Project, Large:


Talking Stick Resort

Best Industrial Project:


Keller Electrical

Honorable Mention:

Power-One (Phase I & II)

Best Medical Project:


Diamond Children’s Medical Center at UMC

Honorable Mention:

Ryan House at St. Joseph’s Medical Center

Best Mixed-Use Project:



Honorable Mention:

Gila River Indian Community, District One Service Center

Most Challenging Project:


Soleri Bridge & Plaza

Honorable Mention:

Maricopa County Security Building

Best Office Project:


Chandler City Hall

Honorable Mention:

Mercy Medical Commons

Best Multi-Family Project:


Vi at Silverstone

Honorable Mention:

Sagewood, Phase 1

Brokerage Team: Leasing


Tom Adelson, Kevin Calihan

Jim Fijan, Jerry Roberts

CB Richard Ellis

Brokerage Team: Sales


Tyler Anderson, Sean Cunningham

CB Richard Ellis

General Contractor of the Year:


Sundt Construction

Best Retail Project:


Mountain Ranch Marketplace

Honorable Mention:

Scottsdale Pavilions – Theater/Food Court Renovation

Most Sustainable Project:


White Tank Branch Library & Nature Center

Honorable Mention:

CREST Specialty School

Best Redevelopment Project:


Phoenix-Mesa Gateway Airport

West Terminal Expansion Phase I

Honorable Mention:

Cowley Companies Warehouse Office

Best Public Project:


Musical Instrument Museum

Honorable Mention:

Randall McDaniel Sports Complex

Best Education Project:


Sedona-Oak Creek

Red Rock High School

Performing Arts Center

Honorable Mention:

Mesa Community College Red Mountain Campus

Best Tenant Improvement Project:


Lumberyard Tap Room

Honorable Mention:

Polsinelli Shughart

Special Merit:


Schuff Perini Climber

Broker – Leasing:


Andy Kroot

Velocity Retail Group

Broker – Sales:


Eric J. Wichterman

Cassidy Turley BRE Commercial

Developer of the Year:


RED Development

Architect of the Year:


RSP Architects

Presented by:

APS Solutions Logo
Squire Sanders Logo



Sponsored by:

D.P. Electric Logo
Weitz Logo
Clark Hill Logo


Brokerage Team of the Year for Leasing 2010

Tom Adelson, CB Richard Ellis
Kevin Calihan, CB Richard Ellis
Jim Fijan, CB Richard Ellis
Jerry Roberts, CB Richard Ellis
Tom Adelson
Kevin Calihan
Jim Fijan
Jerry Roberts

CB Richard Ellis

• Jim Fijan, Exec. VP
• Tom Adelson, Exec. VP
• Jerry Roberts, Exec. VP
• Kevin Calihan, Sr. VP

• 97 Lease Transactions
• Totaling, 1.3 MSF
• $215.9M in Value

Four men and more than $215.9M in leases for 2009 — an amazing feat in the Valley of the Sun, during one of the most difficult times the commercial real estate industry has encountered. Executive Vice Presidents Jim Fijan, Tom Adelson and Jerry Roberts, along with Senior Vice President Kevin Calihan, conducted 97 transactions totaling more than 1.3 MSF.

Their largest single transaction that closed in 2009 was a long-term lease with a law firm for 54,000 SF at CityScape, a 27-story office tower located at One E. Washington St. in Phoenix. CBRE’s sales team represented the landlord, and the value of the transaction exceeded $28 million in consideration.AZRE March 2010 Front Cover

Fijan, Adelson, Roberts and Calihan are recognized as industry leaders and encompass an unmatched level of professionalism, comprehensive market knowledge and strict adherence to high ethical standards. While they are often acknowledged as the top brokers in their field, these four individuals are involved in numerous community and charity organizations, including the Juvenile Diabetes Research Center, Sun Angel Foundation, Downtown Phoenix Community Development Corporation and the Southwest Autism Research Center.


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