Tag Archives: shopping center

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Construction employment stalls in August

Construction employment stagnated in August, while the industry unemployment rate fell and a majority of companies reported difficulty finding workers, according to an analysis of new government data and an industry survey by the Associated General Contractors of America. Association officials called for education and immigration reform measures needed to ensure an adequate supply of skilled workers.

“After a strong rebound in 2012, construction hiring and spending have been stuck in neutral through most of 2013,” said Ken Simonson, the association’s chief economist. “Yet the unemployment rate for former construction workers hit the lowest August level in five years, suggesting that experienced workers are leaving the industry rather than returning to it. As a result, firms are already having trouble finding workers.”

Construction employment totaled 5,798,000 in August, matching the July total, which was revised up by 5,000 from the initial estimate released four weeks ago. The August total is 3.0 percent higher than in August 2012 but has been nearly flat since March 2013. Similarly, a Census Bureau report on construction spending released on September 3 showed spending had changed little between May and July, the latest month available. Meanwhile, the unemployment rate for workers actively looking for jobs and last employed in construction declined from 11.3 percent in August 2012 to 9.1 percent last month—the lowest August rate since 2008.

“Over the past three years, the number of unemployed, experienced construction workers has dropped by half,” Simonson noted. “Unfortunately, the construction industry has been able to hire only about a third of those workers, while the rest have left construction for other industries, schooling, retirement or have dropped out of the labor force. The recent leveling-off of construction hiring means the industry risks losing more of its experienced workers, setting up a potentially grave shortfall when demand for construction resumes.”

Nearly three-fourths (74 percent) of the construction firms that responded to a survey that the association released on September 4 reported they are having difficulty filling some craft-worker positions. More than half (53 percent) of the respondents also said they are having difficulty filling professional positions.

Association officials said that the fact that hiring problems appear so widespread when overall construction employment is flat was particularly worrisome in light of the high demand for workers expected in the near future. They urged elected officials in Washington to support construction education and training programs and to treat construction equitably in guest worker provisions of immigration reform legislation.

“Construction employment has leveled off for now, but retirements and selected areas of demand mean there is still a need to address worker shortages before they become acute,” said Stephen E. Sandherr, the association’s chief executive officer. “We need to make sure there is an adequate supply of skilled construction labor to meet future demand.”

rossmore

Cooper, Cardinal and Company sell apartment complex

Cooper, Cardinal and Company LLC, a boutique multi-family investment brokerage firm with headquarters in Phoenix, Arizona, recently closed the transaction for Rossmore Apartments, an 26-unit multi-family community located in Glendale, Arizona near Westgate City Center and Historic Glendale District. The sale price of $635,000 represents a capitalization rate of 7.10% on Proforma income. It equates to $24,423 per unit or $42.50 per square foot.

Gary R. Cooper, a Managing Director and Jack A. Cardinal, a Managing Director of the firm, represented the Seller in the transaction. “Rossmore Apartments is a great example of the premise that commercial real estate is not a zero sum game. The Seller purchased the property in distress and did well by taking risks when others would not. The Buyers own in the area and have a great vision for the property and thus will be able to take the property to new heights creating a true win-win transaction’,” stated Cooper.

The 14,940-square foot apartment community, built in 1963 is situated on a 1.61-acre lot and was 85% occupied at the time of sale. Jack A. Cardinal added, “With recent capital improvements such as a new roof and ceramic tile flooring, the bones of this 1963 asset are rock solid. We were very pleased with the outcome of this transaction and in helping execute the exit strategy as the Exclusive Listing Agents for our opportunistic, Canadian based Seller. This was an important assignment for a repeat client in helping the client reach his market goals and reinvest the proceeds on the East Side.”

SanTan Village Furniture Center photo - August deals

De Rito Partners Announces Recent Transactions

New bike shop opening in Tempe

The Pedal Bike Shop signed a lease for 3,763 square feet at 405 W. University Drive, near the Arizona State University campus. The shopping center is located at the southeast corner of University Drive and Wilson Street in Tempe. De Rito Partners’ brokers John Palmieri and Chris Corso represented the landlord in the deal.

Dental Care of Mesa to open at the Village at Superstition Springs

De Rito Partners’ brokers Gordon Heckaman and Steve Berman represented the landlord in signing a lease for 2,615 square feet at the Village at Superstition Springs. Dental Care of Mesa will be joining the center located just west of the northwest corner of Power Road and Baseline Road.

Verizon Premium Dealer set to open in Gilbert

MyBullfrog.com, a Verizon Wireless Premium Dealer, signed a lease for 2,000 square feet at the northwest corner of Gilbert Road and Warner Road in Gilbert. Gordon Heckaman and Morey Fischel of De Rito Partners represented the landlord in signing the lease.

Van’s Golf Shop coming to SanTan Village Furniture Center

Van’s Golf Shop signed a lease for 7,500 square feet at the northwest corner of SanTan Village Parkway and Market Street, in the SanTan Village Furniture Center. De Rito Partners’ broker Matt Morrell represented the landlord in completing the deal.

L’Mage Salon Suites adding location in Gilbert

One of Metro Phoenix’s top salons, L’Mage Salon Suites, signed a lease for 3,598 square feet at Gilbert Town Square. The center is located just south of the southwest corner of Gilbert Road and Warner Road. Stan Sanchez represented the tenant; and Bill Bones and Carl Jones, Jr. represented the landlord in completing the deal.

TitleMax opening a store in Sierra Vista

De Rito Partners’ broker Bill Bones represented TitleMax in signing a lease for a new 5,592-square-foot store in Sierra Vista, Arizona. The new store is located at 822 W. Frye Boulevard, near the corner of Frye Boulevard and Buffalo Soldier Trail.

Cabinets Beyond expanding at Cave Creek Plaza

Cabinets Beyond is relocating within the Cave Creek Plaza to a 2,793-square-foot space, an increase of 1,353 square feet from their previous location. Chris Corso and Lizette Fonseca of De Rito Partners represented the landlord in signing the lease at the center located at the southwest corner of Cave Creek Road and Bell Road.

Scottsdale adding a new bicycle shop

Javelina Cycles Owner Rick Marquis signed a lease to open Giant Scottsdale/Liv Giant Bicycle Shop at 68th Street and Thomas Road in Scottsdale. Morey Fischel of De Rito Partners represented the tenant in signing the lease for a 5,000-square-foot space.

Pet groomer to open first location in Chandler

Paws Attractions, a pet sitting and grooming service, is opening their first location at Monterey Vista Village in Chandler. The tenant leased a 1,265-square-foot space at the center located at the northwest corner of Pecos Road and McQueen Road. Steve Bonnell of De Rito Partners represented the tenant in the deal.

NexTech Repair coming to Scottsdale

NexTech Repair, a repair service of smartphones and personal communications electronics, is set to open a new location in Scottsdale at Loop 101 Freeway and Via de Ventura. Gordon Heckaman of De Rito Partners represented the tenant in signing the lease for a 1,000-square-foot space.

New furniture store being added to Verde Valley Plaza in Cottonwood

Classic Home Furnishings is opening a new furniture store in the Verde Valley Plaza. The tenant signed a lease for a 3,800-square-foot space at the center located at the southwest corner of Highway 89A and Highway 260 in Cottonwood, Arizona. De Rito Partners’ broker Dale Harsh represented the landlord in completing the deal.

Styles for Less adding new location in Scottsdale

Styles for Less will be opening a new location at Scottsdale Fiesta Shopping Center located at the southeast corner of the Loop 101 Freeway and Shea Boulevard. Paul Serafin of De Rito Partners represented the tenant in signing the lease for a 4,000-square-foot space.

Public charter school to open in Downtown Phoenix

Arizona School for Integrated Academics and Technologies, part of a nationwide network of public charter schools, will be adding a new school at the southwest corner of 12th Street and Washington Street in Downtown Phoenix. Carl Jones Jr. of De Rito Partners represented the landlord in signing the lease for a 10,194-square-foot space.

lease

Metro North Corporate Park Signs 2 New Leases

Metro North Corporate Park recently signed the following two new Leases at their 13450 N. Black Canyon Highway facility in Phoenix, Arizona.

  • The State of Arizona signed a 30,000 s.f. five-year Lease and will be utilizing the space for its Department of Economic Security – Child Protective Services Division.  The space will be used primarily for administrative activities.
  • Peckham, Inc. (Lansing, Michigan) signed a 40,000 s.f. five-year Lease.  Peckham, Inc., a nonprofit vocational rehabilitation organization, provides job training opportunities for persons with significant disabilities and other barriers to employment.  Initially, Peckham plans to employ approximately 100 people and eventually they should have approximately 250 employees within the facility.

The Leases were negotiated by Cashen Realty Advisors, Inc.

Bernards & Construction

Construction Spending Rises 0.6 Percent in July

The nation’s builders were busy in July as construction spending increased 0.6 percent to $900.8 billion—the largest upswing in four years—according to the Sept. 3 report by the U.S. Commerce Department.

Nonresidential construction spending also rose 0.6 percent in July, but is down 0.8 percent compared to one year ago.

Private nonresidential construction spending grew 1.3 percent, only to be offset by a 0.2 percent decline in public nonresidential construction spending. On a year-over-year basis, private nonresidential construction is up 2 percent while public nonresidential construction spending has dipped 3.7 percent.

Eleven of 16 construction sectors posted monthly gains in spending. The largest gains were in lodging, up 5.8 percent; conservation and development, up 3.6 percent; manufacturing, up 3.3 percent; and transportation, up 2.4 percent. Six subsectors experienced higher spending on a year-over-year basis, including lodging, up 29.9 percent; commercial, up 1.6 percent; power, up 6.1 percent; sewage and waste disposal, up 3.8 percent; water supply, up 9.5 percent; and manufacturing, up 0.2 percent.

In contrast, spending in five nonresidential construction sectors declined in July, including educational, down 0.7 percent; religious, down 3.1 percent; public safety, down 8.1 percent; amusement and recreation, down 2.7 percent; and highway and street, down 1.1 percent. On a year-over-year basis, construction spending has softened in 10 subsectors. The largest losses occurred in religious, down 18.1 percent; public safety, down 14.1 percent; amusement and recreation, down 12.6 percent; and communication, down 12.5 percent.

Residential construction spending increased 0.5 percent for the month and is 16.8 percent higher than the same time last year.

Tucson Spectrum

Tucson Spectrum Shopping Center Sold To Investment Trust For $125.4M

The Tucson Spectrum Shopping Center sold to a publicly-traded investment trust for $125.4M. DDR Corp. purchased the 709,811 SF and seven developable finished retail pads of the Phase II portion of the regional retail center located at Irvington Road and Interstate 19. Price per square foot for this transaction was calculated at $177.00.

Tucson Spectrum Phase I and Phase II consist of more than 1 MSF of retail space and situated on 122 acres of land.

The sellers were an affiliate of the Phoenix-based Barclay Group along with Creswin Properties Inc, a Canadian real estate company.

“This transaction is the culmination of over a decade of meticulous planning and development, said Scott T. Archer, Managing Director of Barclay Group. “Our partners, relationships, and company’s dedication were essential in creating this institutional quality asset. With the stabilization of the center and the improvement in market conditions, it proved to be an opportune time to sell. With DDR’s reputation and proven track record, they provide a natural fit to ensure the future success of Tucson Spectrum.”

Investment brokers Jan Fincham and Patrick Dempsey, both principals with Lee & Associates Arizona, represented the seller and procured the buyer.

“The Tucson Spectrum is one of the largest and most successful open-air retail power shopping centers in the Western United States and serves Tucson, Southern Arizona and Northern Mexico,” Fincham said. “Many of the tenants in the Tucson Spectrum have some of the highest sales volumes in the country for their stores”

The retail center is home to many national and regional tenants such as Target, Home Depot, Ross, PetSmart, Marshalls, Michaels, J.C. Penney, Best Buy, Old Navy, Bed Bath & Beyond, Harkins Theatres and LA Fitness.

luxury movie theater lobby

Luxury At UltraLuxe Scottsdale Theater

Going to the movies will never be the same thanks to the newly remodeled luxury theater UltraLuxe, owned by San Diego-based UltraStar Cinemas. Located on Indian Bend Road and the 101 in Scottsdale, the renovation of the former United Artists theater was completed by DeRito Partners, an Arizona brokerage firm specializing in retail.

The grand opening was Nov. 16 with former Diamondbacks star Luis Gonzales serving as the guest of honor to cut the “film” to open the theater.

The theater, know as UltraLuxe, is located in the Scottsdale Pavilions Shopping Center just behind the new Diamondbacks spring training facility in Scottsdale. It will feature 11 auditoriums showcasing state-of-the-art Pure Digital Cinema, which UltraStar Cinemas describes as the crispest motion picture technology available. Each house will have stadium or luxury VIP seating in high-back reclining chairs.

UltaLuxe also will include special D-BOX enhanced motion chair technology, which moves the seats with the motion of the screen. For example, if there is an explosion in the movie that occurs on the left side of the screen, the seats move to the right to simulate the blast — creating a true movie experience.

There will also be five “Star Class” auditoriums, which will include seating reserved for guests 21 and older, special VIP viewing rooms with extra large leather chairs, menus and a call button for servers. Menu items include flavored popcorns, hummus, pizza and a selection of panini sandwiches. Specialty coffees, Italian sodas, beer and wine, and desserts will also be available in the Café and Star Class auditoriums.

If these delicious incentives and exciting amenities don’t get you into the theater, maybe the affordable prices will further entice you. Ticket prices are $7.50 for an adult matinee; $9.75 for an adult evening ticket; $7 for seniors and ages 12 and under; $8.75 for students and military with I.D.; and $5.50 for “early bird” tickets to the first matinee showing of each movie. 3-D, D-BOX seats or star class auditoriums add $2 to $8 to each ticket price.

Medical Marijuana Where Will The Dispensaries Go

Arizona’s Medical Marijuana Proposition Passes, But Where Will The Dispensaries Go?

Arizona voters made history again this month, narrowly approving Proposition 203, the ballot initiative allowing one medical marijuana dispensary for every 10 pharmacies in the state (which translates to about 120 statewide). Under Prop. 203, patients suffering from a wide range of painful medical conditions will be able to buy small amounts of marijuana from state-approved dispensaries with a doctor’s prescription. Those living more than 25 miles from an outlet will be allowed to grow their own.

Needless to say, residents, cities and landlords are facing some interesting dilemmas before the first outlets potentially open in March 2011 … in a neighborhood near you.

Under the approved Prop. 203, the Arizona Department of Health Services must issue licenses to the so-called “medical marijuana clinics,” but it’s the local municipalities that must adopt zoning restrictions that regulate the size and location of such clinics. Cities are expressly forbidden under Prop. 203 from prohibiting them outright.

So who will ultimately win the “Not In My Back Yard” tug-of-war? Cities such as Phoenix, Tucson and Mesa, are grappling with commercial landlords, their constituents and zoning restrictions to keep the centers away from schools, churches and residential areas.

On the commercial real estate front, with the marketplace hard hit by the recession and Phoenix retail vacancy rates at 13 percent, many landlords are looking to fill empty space. But tenants such as medical marijuana clinics would cause some considerable controversy with residential neighbors and fellow commercial tenants.

“There are some landlords that will definitely have an issue with it,” said Pete Bolton, executive vice president and managing director of the commercial real estate brokerage firm Grubb & Ellis in Phoenix.

He expects dispensary operators to seek retail center locations with public exposure and easy parking. But, he added that some commercial landlords are hesitant to sign a marijuana outlet, especially if they have other tenants that cater to families or conservative customers.

Prior to the ballot passing, a number of nonprofit groups already were eying Phoenix-area shopping centers as possible dispensary locations. Even before the election earlier this month, more than 14 medical marijuana groups had reserved business names with the Arizona Corporation Commission. Some others were incorporating and looking for investors, dispensary locations and even growing sites.

Marketing manager for Medical Marijuana Dispensaries of Arizona Inc., Allan Sobol, says that like any other business, location is key.

“I want to be at a high-exposure location. I envision them just being like a CVS or Walgreens,” Sobol said.

He expects most marijuana outlets will be located in strip malls and other high-traffic locations near hospitals and medical centers. But with the dispensaries intermingled with other more conservative businesses, there could be some concerns.

So landlords will have some choices to make, and for Arizona cities facing these same dilemmas, the clock is ticking. Mesa, like Phoenix, will likely vote on where to locate the dispensaries by the end of the year.

This is likely the first time in history that a Mesa mayor has ever joked about collecting sales taxes on bongs or marijuana paraphernalia. But then, it’s probably also the first time in history that Mesa has come face-to-face with the prospect of stores legally selling marijuana. Given its size, Mesa could land between eight and 10 of the 120 dispensaries.

“This is not something we can prohibit,” Mesa Mayor Scott Smith said during a city council study session last month.

Under its proposed zoning regulations, Mesa would limit the dispensaries from residential, industrial and employment areas. Also, they could not locate within 2,400 feet of other medicinal marijuana shops and drug/alcohol rehab facilities. They would have to stay 1,200 feet away from churches, parks, open spaces in homeowner associations and libraries. They could be no closer than 500 feet from schools or group homes for the handicapped.

Arizona Department of Health Services Director Will Humble says cities need to act fast.

“Cities can’t wait,” he said. “If they don’t get it done in time, I’ve got no choice but to approve a dispensary if they don’t have a zoning restriction in place.”

In other words, the state bureaucrats will act if the mayors and councils haven’t.

So, while a razor thin majority celebrates the approval of Prop. 203, mayors and city councils around the state not only must act fast, but also wrestle with moral, political and economic issues before the first medical marijuana clinic opens on a corner — possibly in your neighborhood.

stk32899bsr

The Future Of Shopping Centers

In the U.S. and around the world, the recession is forcing shopping center developers and retailers to re-think the design of the places where we spend our money. Some say the very nature of shopping has changed. Recently the International Council of Shopping Centers held a meeting of its North America Research Advisory Task Force in Phoenix. Mark Stapp, director of the W. P. Carey School’s Master of Real Estate Development program caught up with Michael Niemira, ICSC’s director of research, after the meeting. Listen as Stapp poses the key question. (22:06)

Scottsdale Fashion Square - Best of the Best Awards 2009 presented by Ranking Arizona

Best of the Best Awards 2009: Retail

Retail Honoree Shopping Centers

Scottsdale Fashion Square



Scottsdale Fashion Square - Best of the Best Awards 2009 presented by Ranking Arizona

Photograph by Duane Darling



Scottsdale Fashion Square is the premier luxury center in the Southwest, attracting visitors who seek elegance, quality and sophistication. An unparalleled retail experience, Scottsdale Fashion Square has a unique style and atmosphere that make it Arizona’s epicenter of elite and exclusive brands. Comprised of more than 225 shops and restaurants, the center boasts more than 40 stores exclusive to Arizona, including Neiman Marcus, kate spade, Burberry, Jimmy Choo, Salvatore Ferragamo, MaxMara, Gucci and Michael Kors, to name a few. Recent additions to the center include Bottega Veneta, Grand Lux Cafe, AIX Armani Exchange, Metropark, Puma and CH Carolina Herrera. Just as style never stands still, neither does Scottsdale Fashion Square. A multiphased renovation and expansion, projected to open fall 2009, will introduce Barneys New York to the Arizona market.

A multiphased renovation and expansion, projected to open fall 2009, will introduce Barneys New York to the Arizona market.

7014 E. Camelback Road, Scottsdale
480-945-5495
www.westcor.com

Year Est: 1964
Total SQFT: 1.8M
Principal(s): Westcor


Retail Finalist Car Dealers: $39K or less

Camelback Volkswagen Subaru Mazda

Camelback Volkswagen Subaru and Mazda, for the 10th year in a row, congratulates its customers, employees and award winning lineup of fuel efficient top models for safety- and crashtested Volkswagen, Subaru and Mazda products for 2009. Its great service staff provides extended hours, free service loaner cars and a pleasant environment for valued customers. Browse its interactive Web site at www.camelbackdifference. Its entire inventory is listed for your streamlined-buying process, as well as its weekly specials. You are encouraged to feel at home on the site.

1499 E. Camelback Road, Phoenix
602-265-6600
www.camelbackdifference.com


Retail Finalist Jewelers

Molina Fine Jewelers

It is not a mirage. It is an oasis, one where you can acquire the most magnificent and spectacular gems in the world. Molina Fine Jewelers is the “Jewel of The Desert” with 12 generations of expertise. Entering Molina, you are transported to the Old World traditions of personalized service, where they exceed your every expectation. Molina designs are handmade by master jewelers, where every detail, including the execution of its internal structure, embodies flawless design and wearability. Its one-of-a-kind collections will captivate and inspire you, bringing your emotions and desires to life.

3134 E. Camelback Road, Phoenix
602-955-2055
www.molinafinejewelers.com


Best of the Best Awards 2009 presented by Ranking Arizona

Jeff Roberts Opus West

Jeff Roberts – Vice President Of Real Estate Development At Opus West

About 10 years after its Phoenix headquarters opened in 1979, Opus West came up against a major recession in the Valley. It survived that test and is weathering today’s economic downturn with the same tactics.

A division of the Minneapolis-based Opus Group real estate development company, Opus West is going head-to-head with Arizona’s moribund economy with its corporate structure, diverse product base and a development philosophy that has served it well.

“We are vertically integrated and that allows us to react quickly in good times and bad,” says Jeff Roberts, vice president of real estate development.

Opus West has in-house property management, construction, design and development services. Presently, the company’s design-build staff is opening new revenue streams by offering its services to outside clients, such as corporations and governments.

The company still looks for opportunities and is more likely to find them within its broad line of products — retail, industrial, office and residential, including condos, apartments and senior housing.

As part of its approach to development, Opus West does not hinder its flexibility with a sizeable property portfolio and keeps its land inventory low, Roberts says.

“In the late ’80s and early ’90s (recession), many companies accumulated a large portfolio and were much more affected, while we had built our buildings and sold them for a profit,” he says. “That makes us much less subject to market cycles.”

In these tough times, Opus West is again focused on finishing existing projects to get new tenants moved in, taking care of existing tenants and keeping the door open to build-to-suit projects for tenants that are willing to commit, Roberts says. Projects on its plate include the 263,000-square-foot mixed-use Tempe Gateway building in downtown Tempe and the 170,000-square-foot Mill Crossing shopping center in Chandler.

One bit of good news Roberts sees in today’s economy is a “reasonably strong amount of large tenant activity” as companies move for economic reasons or to take advantage of a down market and upgrade to nicer space. Roberts expects little new construction in 2009.

“I don’t look at it as a year where there will be any major projects,” he says. “It will be a year of people working through leasing up what they’ve got and, hopefully, a year we hit bottom and see things heading back up. The big question is whether the economy picks up enough where we can get some significant net absorption.”

Roberts has more than 17 years of real estate experience in eight different cities. Prior to joining Opus West, he was an asset manager for Beta West in Denver. Roberts holds a bachelor of science degree in real estate from Arizona State University.

www.opuscorp.com