Tag Archives: property management

1715 S. Holbrook Ln.

IPT assigns property manager at Normal Junction

Cushman & Wakefield of Arizona, Inc. has been selected by Industrial Property Trust (IPT) to handle leasing and property management for two industrial properties at Normal Junction.

The properties, located at 1715 S. Holbrook Lane and 1895 S. Los Feliz Drive, contain a total of 140,314 square feet of industrial space. Approximately 29,471 square feet within the properties are currently available for lease.

Cushman & Wakefield recently assisted HFF, LP, in the sale of these two industrial properties at Normal Junction.  HFF enlisted Cushman & Wakefield on behalf of property sellers American Realty Advisors and BlackRidge Real Estate Group.   IPT purchased the Holbrook Lane building for $7.86 million and the Los Feliz Drive property for $4.59 million.

The Normal Junction submarket consists of 17 properties totaling 614,000 SF. During 2014, the Cushman & Wakefield team of Market Leader | Investor Services Jackie Orcutt, Senior Director John Grady and Associate Mackenzie Ford has been responsible for more than 93,000 SF of leases in Normal Junction, accounting for 15 percent of the overall absorption. Currently, the submarket has less than five percent vacancy.

“We are thrilled to be working with IPT on the leasing and management of Normal Junction,” said Orcutt. “We have experienced great absorption in the Normal Junction submarket this year and look forward to many more successes with the new ownership.” The team of Orcutt, Grady, and Ford will handle leasing for the properties.

Cassidy Turley’s Ellis promoted to associate vice president

Phil EllisCassidy Turley, a leading commercial real estate services provider in the U.S., today announced that Phil Ellis has been promoted to Associate Vice President with the firm’s Property Management division in the Phoenix office.

Mr. Ellis will be responsible for the oversight and supervision of the Phoenix engineering staff. He will also focus on increasing the operating efficiency of all management assignments, including the integration and implementation of emerging technologies. His responsibilities include assisting with Capital Improvements and the construction management of Tenant Improvements.

“Phil’s a proven leader,” said Sue Cannon, Vice President with Cassidy Turley’s Property Management group in Phoenix. “Having someone with his knowledge and experience is a tremendous asset to our clients and to the staff that he oversees.”

Mr. Ellis joined Cassidy Turley’s Property Management group in 2013. He has over 26 years of experience in commercial real estate and engineering services, including capital improvement and construction management projects.

5055 E. Washington St., Courtesy of Irgens

Irgens Expands Property Management Portfolio

Irgens Partners, LLC recently announced its investment into Robert F. Knight & Associates, LLC, (K&A). In the new partnership, Irgens and K&A will each hold a membership interest in the company, which will continue to operate as Robert F. Knight & Associates, LLC. The company’s management portfolio will total more than 3 MSF of commercial office space in the Valley, making it one of the largest in the market.
“Our investment and partnership in a property and facility management firm with a reputation as both reliable and high-performing strengthens Irgens’ commitment to the Phoenix market,” said Mark F. Irgens, CEO/President & Manager of Irgens. “With our growing development and ownership portfolio, including Ascend at Chandler Airport Center in Chandler and the 979 Playa del Norte office project in Tempe, our partnership with K&A will allow us to focus on bringing our key development projects out of the ground in 2014.”
“There will be no changes in the leadership, operations, and management of K&A. Our investment in the partnership brings resources and a new platform for growth, continuity, and success,” Irgens added.
“Through investments in client-focused initiatives including technology-based efficiency enhancements, environmental sustainability, and the expansion to our expert staff of management professionals, and by aligning K&A with a firm of Irgens’ resources, we are focused on enhancing our services for our clients for years to come,” said Robert F. Knight, CPM, President and Founder of K&A. “By building upon our mutual expertise, we will elevate the level of property management for Phoenix area real estate investors and for commercial property owners who outsource their management services.”

Lincoln Property Company’s Desert West Region manages 6 MSF of commercial space, including the 52-acre, 11-building Broadway 101 Commercial Park in Mesa.

Forever Changed: Since recession, CRE owners drive property management issues

A decade or so ago, commercial real estate property managers might be considered a generic lot.
Not that they didn’t have a full roster of responsibilities. They kept the buildings looking spiffy, made sure the trees were trimmed and the elevators inspected, and they provided standard financial reports of income and expenses to often faceless pension plan accountants or other absentee building owners.
To those investors, the bottom line was the only determinant of how well the property manager was caring for their assets.
Then the recession happened.

John Orsak, Hines

John Orsak, Hines

Tenants foundered and moved out or moved home. New businesses available to snatch up their suites or shop spaces were few, and vacancy rates shot up in all sectors of commercial real estate.
Building owners started paying attention to the detail above the bottom line, and property management changed forever, said John Orsak, director at international real estate firm Hines.
Increasingly, the building owners drive the business, determine how their properties are managed, what kind of reports they receive and when they get them, and have a say in just about every management aspect down to the light bulbs and landscaping — or at least how eco-friendly they are.
Savvy property management companies are meeting the newly involved building owners’ demands and tailoring boutique services for each client, from organizing food truck parties to developing “green” programs to feeding financial data into the owners’ proprietary reporting systems.
“It used to be the property manager had to make sure the trash was taken out, the lights were on, the tenants were comfortable and the owner got the reports,” said Orsak, who has been with Hines for 12 years. “That was enough then.”
Now sophisticated business owners want reports “their way” and on their reporting cycles, he said.
Hines manages 406 properties totaling 148.5 MSF, more than half of that for third-party owners. Among its Arizona properties are US Airways headquarters in Tempe, the Renaissance Square office complex in downtown Phoenix, and 24th and Camelback , two luxury office buildings with a combined 600,000 SF of space in the prestigious Camelback Corridor.

Alisa Timm

Alisa Timm, Lincoln Property Company

All have different management criteria and in common only the ultimate goal: to maximize property values by keeping the buildings full of contented tenants, Orsak said.
“In a recession, you focus inward,” he said. “That’s when everybody refocused.”
Alisa Timm, director of management services for Lincoln Property Company, which manages more than 150 MSF nationally, agreed. Lincoln’s Desert West Region, which includes Arizona, manages 6 MSF of commercial space, including the 52-acre, 11-building Broadway 101 Commercial Park in Mesa.
“The recession was a big factor,“ Timm said. The competition for tenants changed the playing field, and building owners, still eyeing the bottom line, saw the need for differentiating their buildings  from the many other nice but too-empty properties in the marketplace.
Instead of providing building owners with a checklist of services it offers, property management providers are sitting down with the owners to listen to their demands and tailor a plan to meet their needs, Timm said,
“There was a growing recognition that a property is nothing but a liability without tenants,” she said.
Before, especially in a desirable market, the issue was “what the landlord would give” in terms of tenant improvements and other incentives to woo a would-be business to the building, Timm said. “Now it’s a much different negotiation. I don’t think we’ll ever go back to that disconnect between landlord and tenant.”
Timm said the emergence of large, experienced building buyers, such as the big national REITs, has also changed the focus.
“Ownership of commercial real estate is different now. Owners are more sophisticated,” said Timm, who has been in the industry since 1986. “Almost anybody going into a building is looking at resale, maybe exiting in seven to 10 years.
“The sophisticated owners understand that property management is the key.”

Andi St. John, CBRE

Andi St. John, CBRE

Andi St. John, senior director of asset services at CBRE, has spent 17 years in property management. CBRE manages 22 MSF in 140 buildings throughout Arizona, including Biltmore Commerce Center in Phoenix and Raintree Corporate Center in Scottsdale.
“I see a change in property management because what a client needs has changed,” St. John said.
She agreed that a client’s goals— that is, whether to hold property for the short- or long-term— is a factor, as is a property’s desirability to tenants based on a host of factors from location to age to technology to sustainability.
“Government leases require sustainability (standards) and certain other tenants have that requirement in their leases,” she said. “Sustainability is critical in the market now. It’s the number one way to reduce expenses, which increases value.”
If an owner doesn’t see a return on investment in upgrades within the time frame they plan to hold a property, that’s a non-starter.
Instead of offering a standard contract for management services, CBRE approaches a building owner first in a consulting capacity to determine what the owner’s goals, budget and needs are, and then, in a collaborative effort, to devise  the sphere and direction of the management services, she said.

Cathy Zoccoli, The Muller Company

Cathy Zoccoli, The Muller Company

Cathy Zoccoli, senior property manager at Phoenix Corporate Tower at 300 N. Central Ave., sees it the same way.
“We have an owner’s perspective,” she said. “If they want X, we give them X. Building owners expect us to understand the building, get our arms around it.”
One owner may be into maximizing efficiency, another not willing to spend the upfront cash, she said.
The property manager’s job is to work with the owner to determine how to re-brand, revitalize and tweak a building’s operation to meet the owner’s goals, said Zoccoli , who has been in the business for 15 years, 11 of them in Arizona, the last five with California-based The Muller Company.
“It’s The Muller Company culture,” she said. “We are more of a boutique company.”

Sheryl Brisbin

Sheryl Brisbin

Not all building owners want to pilot their own portfolio.
Sheryl Brisbin, of Cushman & Wakefield, has spent the last 19 years in property management. She now oversees the Camelback Esplanade’s expansive mixed-use property.
Brisbin said a greater number of building owners want to inject their initiatives, but many still want to tap a solid property management company’s broad experience and expertise to determine standards for everything from budgeting to reporting to marketing.
“It’s very owner specific, depending on the type of asset and the type of owner, from small mom and pop (owners) to large institutional owners,” she said.
Brisbin said recent ups and downs of the economy have made property management issues “increasingly complex.”