Tag Archives: Tucson

Mayo Medical Schools Expands to Arizona

UA College of Medicine Accredited Through 2022

The medical education program at the University of Arizona College of Medicine – Tucson, designed to train the next generation of highly skilled physicians dedicated to improving patient care and advancing the state of medical knowledge, has earned accreditation through 2022, a full eight-year term.

The Liaison Committee on Medical Education (LCME), the accreditation authority for MD programs in the United States and Canada, announced the decision and identified a number of institutional strengths within the college that are distinctive and worthy of emulation. The LCME is jointly sponsored by the Association of American Medical Colleges (AAMC) and the Council on Medical Education of the American Medical Association (AMA).

The UA College of Medicine – Tucson graduates 115 medical doctors each year and is led by Interim Dean Joe G.N. “Skip” Garcia, MD, who also serves as UA senior vice president for health sciences. The college’s medical education program is led by Kevin Moynahan, MD, deputy dean of education.

In January, more than 100 faculty, students, administrators and staff from the UA College of Medicine – Tucson (UA COM – Tucson) met with the LCME survey team during its site visit to determine accreditation eligibility.

“This achievement would not have been possible were it not for the tremendous leadership, teamwork and effort put forth by all. We are grateful to our UA COM – Tucson LCME project leadership team, to those students, faculty and staff who participated in the survey visit, as well as to the numerous students, faculty and staff who participated in the COM self-study process,” said Dr. Moynahan.

In addition to awarding the college accreditation for a full cycle, the 19 LCME members, who are medical educators and administrators, practicing physicians, public members and medical students appointed by the AAMC and AMA, determined that the college has a number of institutional strengths:

· The LCME found that the student-developed and student-administered Commitment to Underserved People (CUP) program, implemented by the UA College of Medicine in 1979, provides an exceptional number and variety of community service and service-learning opportunities for medical students. The CUP program provides UA medical students the opportunity to gain clinical experience by working with medically underserved populations. CUP was described by numerous medical students as a major influence in their decision to attend the college.

· The LCME also noted the development and implementation of an effective system of confidential and easily accessible personal counseling for its students, assisting them in adjusting to the ongoing emotional demands of a medical education. The UA COM – Tucson counseling program received high praise from students in the 2013 AAMC Graduation Questionnaire, in the independent student analysis and in conversations with students during the survey visit.

· In addition, the UA COM – Tucson Societies Program provides a strong longitudinal experience with a trained faculty mentor. Mentors are chosen from among the college’s most distinguished clinician-educators who teach students interviewing, physical examination and patient care skills at the patient bedside, helping students to develop clinical thinking, documentation and presentations and professionalism skills.

The LCME defines areas of strengths as those that reflect an aspect of the medical education program that has been shown to be critical for the successful achievement of one or more of the program’s missions or goals or a truly distinctive activity or characteristic that would be worthy of emulation.

The UA College of Medicine – Tucson provides state-of-the-art programs of medical education, groundbreaking research opportunities and leading-edge patient care. Together with the UA College of Medicine – Phoenix, the two colleges are Arizona’s only MD degree-granting institutions serving as a health care resource for the state and its people.

Founded on the campus of the University of Arizona in 1967, with an initial class of just 32 students, the UA College of Medicine – Tucson today has graduated more than 3,900 physicians. College of Medicine students, faculty, staff and alumni continue more than 45 years of service in advancing medical care and knowledge in Arizona—and around the world.

58 W. Congress St., Tucson, Ariz.

CBRE reports recent Tucson transactions

CBRE’s Tucson office has released the following recent leasing transactions for the greater Tucson area:

Ridgewood Associates, a full-service public relations and integrated marketing communications firm, has leased 2,378 square feet of office space at the Pioneer Building located at 100 N. Stone Ave. in Tucson, Ariz. Ridgewood Associates was represented by David Montijo and Bruce Suppes with CBRE’s Tucson office. The landlord, Holualoa Pioneer, LLC, was also represented by Bruce Suppes in addition to David Volk of CBRE.

Street Taco and Beer Co. has leased 2,233 square feet of restaurant space at 58 W. Congress in downtown Tucson. The landlord, BC Limited, LLC, was represented by Buzz Isaacson with CBRE’s Tucson office. The tenant was self-represented.

Batteries Plus has leased 1,400 square feet of retail space at Tucson Spectrum shopping center located at 1725 W. Irving Rd. in Tucson. The landlord, DDR Tucson Spectrum II, LLC, was represented by CBRE’s Nancy McClure, Jayme Fabe and Michael Laatsch. The tenant was represented by Steffan Cione with Cione Company.

Arizona Pizza, Inc. has leased 1,500 square feet of retail space at Southgate Shopping Center located at 3346 S. 6th Ave. in Tucson. The landlord, Red Mountain Asset Fund, LLC, was represented by CBRE’s Jayme Fabe. Arizona Pizza, Inc. was represented by Debbie Heslop with Volk Co.

Community Extension Programs, Inc. (CEP) has purchased a 2,760-square-foot office space at La Cholla Corporate Center in Tucson. The Tucson-based non-profit organization, which provides extended care and education and enrichment for schools in Tucson and Oro Valley, purchased the property from Orca, LLC. CBRE’s David Montijo and Jeff Casper represented the seller in the $469,200 transaction. CEP was represented by Esther Empens with Tierra Antiqua Realty.

Staying Innovative as a One Man Operation

Innovators get boost from Arizona Commerce Authority

The Arizona Commerce Authority (ACA) has selected 18 recipients for AZ Fast Grant, a highly competitive grant program that provides qualified Arizona-based, early stage technology companies with intensive training and technical assistance to help them commercialize their innovations, grow their businesses and create quality jobs.

“Early stage companies play a key role in developing innovations that fuel our state’s economy,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “The AZ Fast Grant program helps companies with critical training, technical expertise and the ‘know how’ to secure additional funding and commercialization opportunities to propel their businesses.”

Companies may use AZ Fast Grant awards for professional consulting services (that may include an expert review of technology under development); a commercialization feasibility study; or other commercialization assistance such as training to compete more effectively for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding programs.

More than 50 Arizona small businesses applied for this round of the AZ Fast Grant program and awardees represent a variety of target industries.

AZ Fast Grant Recipients include (Total: $141,000, plus an additional $134,000 in leveraged funds):

* Arbsource, Tempe – Bio & Life Sciences
* Arizona Medical Systems, Peoria – Bio & Life Science
* Elliptical Mobile, Chandler – Advanced Manufacturing
* Engineering Science Analysis Corp., Tempe – Aerospace/Defense
* Grannus, Tucson – Cleantech/Renewable Energy
* Hildeez Enterprises, Peoria – Bio & Life Science
* MediCoventures, Peoria – Bio & Life Science
* Movement Interactive, Laveen – Bio & Life Science
* Kulira, Peoria – Bio & Life Science
* Prime Solutions Group, Goodyear – Aerospace/Defense
* QuantTera, Scottsdale – Advanced Materials
* Saccadous, Scottsdale – Bio & Life Science
* Score Algae, Scottsdale – Cleantech/Renewable Energy
* SiO2 Nanotech, Phoenix – Advanced Materials
* StatTransfers, Flagstaff – IT-Software
* Verve, Peoria – Bio & Life Sciences
* Vicinity Health, Chandler – Bio & Life Sciences
* YourLabs, Tucson – IT-Software

“I can honestly say the AZ Fast Grant really helped us get over the hump,” said Joe Marvin, Founder and President of Prime Solutions Group, a systems engineering and IT services company providing consulting expertise to government and defense contractors. Prime Solutions Group received AZ Fast Grant awards this year and in 2013.

With the help of AZ Fast Grant program support and technical expertise, the company recently secured $1 million in federal funding from the U.S. Department of Defense for its SBIR/STTR program submission this past fall. “We used our last AZ Fast Grant for commercialization strategy development, and that went directly into our federal proposal,” said Marvin.

kids.money

Arizona Central Credit Union Launches Kids’ Website

ACCU smallArizona Central Credit Union is launching a new initiative to encourage financial literacy among children. Designed for children between the ages of 8 and 12, this program is intended to encourage sound financial habits and further an awareness of positive saving and spending practices.

Molly and Moe are the official mascots of the Monkey Money program, which incorporates an interactive website, children’s savings account and club member benefits. Games, stories, contests, jokes, definitions of financial terms, and information about the special Monkey Money savings program, can all be found on the website. Each month a new article and correlating activity will address a different financial theme. A coloring contest, which began at the launch of the website on June 21, 2014, will be held until July 31, 2014. Children don’t have to be Monkey Money members to enter, but can win cash prizes, and fun monkey items. Coloring sheets and the official rules for the contest can be found on the website.

“Arizona Central Credit Union is passionate about helping the children in our communities reach a higher level of financial literacy. By investing in creative and fun educational methods, we hope to encourage positive lifestyle patterns that will then translate into adulthood,” said Todd Pearson, President and CEO of Arizona Central Credit Union­.

Following the launch of the website on June 21st, Arizona Central Credit Union branches will be hosting a week-long youth event. Free gift basket raffle tickets and refreshments will be available at all branches. Arizona Central Credit Union will contribute a $10 deposit into Monkey Money accounts opened during this celebration week.

Founded in 1939, Arizona Central Credit Union has been serving members for over 75 years at 10 full-service branches, with offices in Phoenix, Tucson, Glendale, Chandler, Tempe, Flagstaff and Show Low. Visit www.azcentralcu.org or their Facebook Page, www.facebook.com/azcentralcu for more information.

health.innovation

RCT Ventures Announces MedTech Innovator Winner

RCT Ventures, an early-stage biomedical investment program of Tucson-based Research Corporation Technologies Inc., announced that Fibralign Corporation is the winner of the 2014 MedTech Innovator competition held during the 22nd Annual Medical Device Conference, hosted by law firm Wilson Sonsini Goodrich & Rosati (WSGR). As the first place winner, Fibralign Corporation won prizes valued at $150,000, including $100,000 in cash provided by RCT Ventures, $25,000 in cash provided by Johnson & Johnson Development Corporation (JJDC) and $25,000 worth of state-of-the-art lab space at Janssen Labs. The second place winner, Francis Lamont Innovations (FLI), won a $25,000 cash prize provided by JJDC.

MedTech Innovator is an annual medical device-focused venture competition that allows the audience to choose the winner. The 2014 competition began in April, when 267 companies submitted their business plans. A panel of investor judges reviewed the entries to select the MedTech Innovator Top 10 semi-finalists and Top 4 finalists. The panel of judges included Christopher P. Martin, President, RCT Ventures; Ned Scheetz, Founder & Managing Director, Aphelion Capital; James Dreher, Managing Partner, Option 3; and Brad H. Vale, Ph.D., D.V.M., Head, JJDC. The Master of Ceremonies was Paul Grand, Managing Director, RCT Ventures. The WSGR conference audience voted in real time for the winner, Fibralign, using their mobile devices.

Fibralign’s first product, BioBridge, is developed to address Secondary Lymphedema, a global chronic debilitating disease that affects over 120 million people and has no cure. The Company successfully completed a large animal study that validated BioBridge-treated diseased lymphatic tissue. Fibralign is now preparing for 510(k) submission and a clinical study.

“It was a real honor to be chosen from among our peers as this year’s MedTech Innovator winner,” said Greg King, COO of Fibralign. “This award provides Fibralign needed visibility to better address this significant opportunity. The competition was a fantastic experience, because it put a much-deserved spotlight on great startups selected from around the world. These companies provide a diverse range of breakthrough products that offer creative ways to improve patient care.”

RCT Ventures produced the competition and contributed a $100,000 cash prize for the winner. “I was thrilled to see an innovative company like Fibralign win the 2014 MedTech Innovator competition, which seeks to identify outstanding early-stage MedTech opportunities and help them succeed,” said Grand. “Fibralign was voted the winner by an audience made up of over 600 venture capitalists, corporates, and industry professionals. That kind of exposure and engagement would typically take months or years and has the potential to result in a financing or key industry partnership.”

In addition to RCT’s $100,000 contribution, several of the Johnson & Johnson family of companies contributed $25,000 to Fibralign’s prize, and the second place winner, FLI, also received $25,000. Additionally, Janssen Labs, a life science incubator, is providing entry to the Janssen Labs community for Fibralign for one year, valued at $25,000. “Across the Johnson & Johnson Family of Companies, we take pride in supporting innovators and entrepreneurs in the life science community,” notes Dr. Brad Vale, Head of Johnson & Johnson Development Corporation. “We work with emerging companies to help advance their science and technology into products that change people’s lives.”

In addition to the cash prizes, Fibralign received several prizes designed to give the company broad exposure to investors and industry. The company will be profiled in an upcoming issue of the MedTech Innovation Report. Fibralign will also get a presentation slot and complimentary full access registration to this October’s AdvaMed 2014 conference in Chicago, which is expected to attract more than 2,500 investors and MedTech industry professionals.

For detailed information on Fibralign, FLI and each of the MedTech Innovator Top 10 semi-finalist companies, see http://www.medtechInnovator.com.

Posada Del Rio

Legacy Capital finances 160-unit multi-housing property in Tucson

Legacy Capital Advisors, Phoenix, recently financed the sale of Posada Del Rio, a 160-unit multifamily property located in Tucson, Ariz. The building is approximately 99,280 square feet and was built in 1980. The property was sold to Radium Investments I, LLC (an entity formed by Jim and Kevin Szymanski of James Associates Management Equity Services, LLC). The seller was HSL Properties.  The sales price was $8.1 million, which equates to $50,625/unit.

“Kevin and Jim Szymanski had a tight time frame on the Posada Del Rio acquisition and we were able to secure a great new loan for them in 45 business days,” stated Jim Pierson, Principal at Legacy Capital Advisors.

Legacy Capital Advisors secured $6,100,000 in Agency (Freddie Mac) permanent financing. Financing was arranged by Jim Pierson and Keaton Merrell of Legacy Capital Advisors in Phoenix and the deal was brokered by Art Wadlund and Clint Wadlund of Hendricks Berkadia. Legacy Capital has a long-standing relationship with James Associates which has been active in both Phoenix and Tucson apartment ownership and management.

WW-LOOK 2

Westward Look Grand Brings the Baja Coast Closer

Experience the Baja coast in Tucson this summer with Westward Look Wyndham Grand Resort & Spa’s “Baja Bound” summer special. Offering rates starting at $99 per night with no resort fee from May 18 through Sept. 18, 2014, the special includes a passbook of savings that guests may use at the resort’s restaurants and Sonoran Spa, as well as for tennis, horseback riding and more.

Guests can relax in a beach-like atmosphere with margaritas by the pool, Baja-influenced food like fish tacos and specialty entrées with a Mexican twist at the resort’s restaurants.

At the award-winning GOLD restaurant, “Baja Bound” specials include:
• Breakfast: Multi-grain and roasted pumpkin seed pancakes with prickly pear agave syrup; a Baja omelet with shrimp, avocado, queso fresco, pico de gallo, skillet potatoes and grilled flour tortilla; and a Bloody Maria with 100% blue agave tequila, spicy tomato juice and accented with fresh lime.
• Lunch: Cheese crisps with lime-cilantro diced chicken; street taquitos; shrimp poppers; and beach tacos with batter-fried Mahi-Mahi, grilled Ahi tuna or tequila-spiced shrimp
• Dinner: Pacific wahoo fillet with saffron broth, vegetables and tomato; and Baja skillet with sautéed shrimp and crab meat in garlic lime butter on a bed of rice, topped with poblano cream and queso fresco.

The resort’s casual hangout, Lookout Bar & Grille, will feature:
• Teasers: Cheese crisps, street taquitos and shrimp poppers.
• Beach Tacos: Guests can choose from batter-fried Mahi-Mahi, grilled Ahi tuna or tequila-spiced shrimp.

To book the “Baja Bound” getaway at the award-winning Westward Look Wyndham Grand this summer, please call the Reservations Department at (800) 722-2500.

The offer is valid for stays from May 18 through and including September 18, 2014, and rates are subject to availability. Taxes are not included. Restrictions may apply.

Marriott 4

JW Marriott Starr Pass Creates Luxury Summer Package

Visitors to JW Marriott Starr Pass Resort & Spa will be offered full days of fun and adventure, leisure and luxury at a great new summer rate. The Play Your Way package features rooms that start at $199 on weekends and $179 on weekdays and include a resort credit of $100 per day for use at any of the venues for the resort.

Father’s Day weekend will be special at JW Marriott Starr Pass Resort & Spa as memorable activities will be featured, including:
• “Old Tucson” style gunfights
• Craft beer tastings
• Live music
• BBQ

The resort credit accumulates during each day of your stay, so Play Your Way turns JW Marriott Starr Pass Resort & Spa into an all-access, pick-your-pastime zone for visitors, allowing them to create their own summer getaway. Some may wish to design their day around the 27-hole Arnold Palmer Signature Golf Course, or they may wish to immerse themselves in serenity at the newly remodeled Hashani Spa. For a more active adventure, splash away with the Starr Pass Water Collection, a trio of venues that includes tubing on the Lazy River, a twisting water slide and refreshing pools. Food enthusiasts have extensive menus at the five resort restaurants, including Primo and Catalina Barbeque Co. + Sports Bar, while family fun awaits at the tech-oriented Blur Teen Lounge and Rising Starr Kids’ Club.

The JW Marriott Starr Pass Play Your Way luxury summer stay package will be valid from May 19-Sept. 14. The resort credit cannot be applied to room rates, tax or resort fee and may not be redeemed for cash. In order to reserve your room, call 800-228-9290 or book online at jwmarriottstarrpass.com, using the code P42.

For more information about JW Marriott Starr Pass Resort & Spa, or summer events and specials, visit www.jwmarriottstarrpass.com.

starr_pass

JW Marriott Starr Pass creates luxury summer stay package

Visitors to JW Marriott Starr Pass Resort & Spa will be offered full days of fun and adventure, leisure and luxury at a great new summer rate. The Play Your Way package features rooms that start at $199 on weekends and $179 on weekdays and include a resort credit of $100 per day for use at any of the venues for the resort.

Father’s Day weekend will be special at JW Marriott Starr Pass Resort & Spa as memorable activities will be featured, including:

  • “Old Tucson” style gunfights
  • Craft beer tastings
  • Live music
  • BBQ

The resort credit accumulates during each day of your stay, so Play Your Way turns JW Marriott Starr Pass Resort & Spa into an all-access, pick-your-pastime zone for visitors, allowing them to create their own summer getaway. Some may wish to design their day around the 27-hole Arnold Palmer Signature Golf Course, or they may wish to immerse themselves in serenity at the newly remodeled Hashani Spa. For a more active adventure, splash away with the Starr Pass Water Collection, a trio of venues that includes tubing on the Lazy River, a twisting water slide and refreshing pools. Food enthusiasts have extensive menus at the five resort restaurants, including Primo and Catalina Barbeque Co. + Sports Bar, while family fun awaits at the tech-oriented Blur Teen Lounge and Rising Starr Kids’ Club.

The JW Marriott Starr Pass Play Your Way luxury summer stay package will be valid from May 19-Sept. 14. The resort credit cannot be applied to room rates, tax or resort fee and may not be redeemed for cash. In order to reserve your room, call 800-228-9290 or book online at jwmarriottstarrpass.com, using the code P42.

For more information about JW Marriott Starr Pass Resort & Spa, or summer events and specials, please visit www.jwmarriottstarrpass.com.

Westward Look Wyndham Grand Summer Camp set

Westward Look Wyndham Grand Resort & Spa announces its Summer Camp 2014 for children ages 6-14, which will run weekdays from May 26 through Aug. 1 from 8 a.m. to 5 p.m.

Prices for Summer Camp are:

Registration: $20 per child; $35 per family
Full day, per week: $210 for the first child, $185 for the second child (includes 2 complimentary daily snacks)
Half day, per week: $155 for the first child, $135 for the second child (includes 2 complimentary daily snacks)
Daily rate: $49 full day; $39 half day (includes 2 complimentary daily snacks)
Lunch: $40 per week, per child
Summer Camp activities will include: tennis, basketball, volleyball, Capture the Flag, soccer, movies, swimming, crafts, gymnastics, tumbling, Wii gaming, billiards, foosball, ultimate Frisbee and kickball.

child-poolDuring swimming, lifeguards will be on duty and there will be staff members in the water with summer campers at all times. Lifeguards will administer a swim test each Monday to determine where each camper is allowed to swim. Staff members will also ensure that campers have applied their own sunscreen each hour during outdoor activities. Water breaks will occur every 15 minutes and upon request.

Westward Look Wyndham Grand will have two rooms designated for summer campers during the hottest part of the day with air conditioning, cold water, restroom access and gaming activities.

Parents are given contact information with the daily schedule so they know where their children are at all times. Parents will have access to staff members’ cell phones in case of an emergency. Each staff member will have each camper’s emergency contact information and documentation at all times when camp is in session.

For more information or to register for Summer Camp, please call (520) 297-1151.

3350 E. Hemisphere Loop, Tucson, Ariz.

Colliers completes $18.95M sale in Tucson

Colliers International in Greater Phoenix recently completed the sale of a 143,650-square-foot Class A office building for $18.95 million, or $131.95 a square foot.

W. P. Carey Inc. on behalf of CPA®:17 – Global, one of its managed REITs, purchased the building, which is leased to a single tenant. The seller was Summit Properties of Seattle.

Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate; all of Colliers International in Greater Phoenix, served as brokers for the buyer and seller.

“The transaction is the largest office sale in Tucson based on square footage since January of 2008 and involves one of the highest quality assets in the market,” Moffitt said.

“This sale shows demand for assets in the Tucson market that have investment-grade tenants,” Bauman said.

Constructed in 2002, the building is located at 3350 E. Hemisphere Loop in Tucson and is situated on 16 acres at the Tucson International Business Center.

“The buyer acquired this Class A office building well below replacement cost with a high-quality tenant in place,” Glassmoyer said.

Gino Sabatini, W. P. Carey Managing Director and Co-Head of Global Investments, noted, “The quality of the tenant and the criticality of the asset to their operations made this an attractive investment for W. P. Carey. The building’s size along with significant improvements made by the tenant are key factors in meeting the tenant’s unique requirements and consequently enhanced the investment value of the asset for us.”

Tucson 2014 - Banner

Sundt golf tournament raises $18,000 for MDA

The Sundt Foundation, a charitable organization funded by Sundt Construction, Inc. and its employees, hosted its annual Mike Gaines Charity Golf Tournament last month at La Paloma Country Club in Tucson, Ariz. More than 100 golfers attended the tournament, raising $18,000 for the Muscular Dystrophy Association (MDA) in honor of long-time Sundt employee Mike Gaines, who passed away in 2002 from Amytrophic Lateral Sclerosis (ALS), also known as Lou Gherig’s Disease.

Originally launched in 2001 shortly after Gaines’ diagnosis, the tournament continues to raise money each year benefiting MDA in support of its research to find a cure for ALS. Although Gaines died in 2002, his legacy lives on through the Mike Gaines Charitable Fundraising Events held in Tucson and Phoenix, Sacramento, San Diego and San Antonio. Sundt and the Sundt Foundation have hosted nearly 40 events in the past 14 years, raising more than $1 million in donations for ALS research programs.

“It’s an honor to be a part of these ongoing events benefiting research and other advances toward a cure for ALS. We greatly appreciate the continued support of the construction industry,” said Sundt administrator and tournament organizer Aly Gartin. “This tournament not only offers a means to give back but increases awareness of such a terrible disease.”

The Sundt Foundation has been raising funds for Tucson-based non-profit organizations since 1999. The Foundation is funded primarily by contributions from Sundt employees and company matching. To date, the organization has awarded more than $5 million in donations to organizations throughout Arizona, California, Texas and beyond.

bioscience

Bioscience Roadmap gets an extension through 2025

The strategic plan that has guided Arizona’s fast-growing bioscience sector for nearly 12 years is gearing up for a new decade.

“Arizona’s Bioscience Roadmap: 2014-2025” will be unveiled starting April 8 at events in Phoenix, Tucson, and Flagstaff, the state’s three metropolitan areas that feature growing bioscience hubs. The plan includes updated strategies that can strengthen and diversify Arizona’s economy while providing Arizonans access to the latest health care innovations.

“The updated Bioscience Roadmap builds on the successes of its first decade and adds contemporary strategies to take Arizona’s bioscience base to the next level,” said Jack Jewett, President & CEO of the Flinn Foundation, which commissioned the update and the original Bioscience Roadmap in 2002. “Arizona is now known as a top emerging bioscience state, but we have far to go to reach our full potential.”

The updated Roadmap will continue to focus on developing Arizona’s biomedical research infrastructure but will emphasize turning this research into new therapies, products, diagnostics, jobs, firms, and other benefits to Arizona. Commercialization, entrepreneurship, creating a critical mass of bioscience firms, and the development of talent are prime themes.

The Roadmap’s overarching vision is for Arizona—a young but rapidly growing state in the biosciences—to become a global competitor and national leader in select areas of the biosciences by 2025.

Over the first decade, Arizona built major research facilities at its universities, formed new private research institutes, attracted top talent, created high-tech business incubators, and greatly expanded statewide STEM (science, technology, education, math) education programs. The number of Arizona bioscience industry jobs grew by 45 percent, nearly four times greater than the nation.

“Arizona has many bioscience strengths and opportunities, but a substantial increase in private and public investment will be needed over the next decade to realize the Roadmap’s goals,” said Walter Plosila, senior advisor to the Battelle Technology Partnership Practice, the Columbus, Ohio-based nonprofit research and development organization that authored the original Roadmap and its update.

Plosila noted that Arizona’s greatest needs are access to risk capital by startup and emerging bioscience firms, building a stronger bioscience entrepreneurship culture, and an expansion of the research infrastructure combined with commercialization at the state’s universities.

The new Roadmap plan features five goals, 17 strategies, and 77 proposed actions. The actions are meant to evolve as needs change over the course of the decade. The plan was developed by Battelle following research, interviews, and focus groups with more than 150 local and national bioscience leaders, including extensive input from Arizona’s Bioscience Roadmap Steering Committee, a body of more than 100 statewide leaders in science, business, academia, and government.

“An emphasis on the full spectrum of the biosciences—from research to hospitals to bio-agriculture—and a renewed focus on resources, collaboration, and long-term patience is needed for Arizona to continue its ascent in the biosciences,” said Martin Shultz, Senior Policy Director for Brownstein Hyatt Farber Schreck, who chairs the Roadmap Steering Committee. “The impact can be profound—the biosciences are a multibillion-dollar industry for Arizona.”

There are six industry segments that comprise the biosciences in Arizona: agricultural feedstock and chemicals; drugs, pharmaceuticals, and diagnostics; medical devices and equipment; research, testing, and medical labs; bioscience-related distribution; and hospitals. A new economic-impact analysis by Battelle estimates the total revenue generated annually by Arizona’s bioscience industry—not counting hospitals—to be $14 billion. With hospitals included, the figure exceeds $36 billion.

Based on the latest industry data (2012), Arizona currently has 106,846 bioscience jobs spread across 1,382 establishments and an annual average wage of $62,775—39 percent higher than the private-sector average. These numbers do not include academic research jobs at the state universities or private research institutes.

Hospitals account for the majority of the state’s bioscience jobs. With hospitals removed from the equation, the other segments combine for 23,545 jobs, 1,266 establishments, and average annual wages of $85,571. Growth in the non-hospital segments accelerated dramatically over the last few years.

The bioscience-related distribution subsector is a new addition to Arizona’s bioscience definition, following the lead of the Biotechnology Industry Organization, the nation’s bioscience trade association. Companies in this subsector coordinate the delivery of bioscience-related products through processes such as cold storage and product monitoring, and new technologies such as automated pharmaceutical distribution systems. This change also called for several smaller industries to be dropped from Arizona’s definition.

The Roadmap also presents updated data on Arizona’s performance in generating grants from the National Institutes of Health, academic research expenditures, venture capital, and tech-transfer measures involving the state universities. These metrics plus industry measures will be tracked throughout the decade by Battelle and reported by the Flinn Foundation.

The Roadmap also includes analyses of Arizona’s bioscience sector that were critical in developing the strategies and actions, such as an assessment of Arizona’s bioscience strengths, weaknesses, opportunities, and challenges. It identified Arizona’s core competencies as cancer research, neurosciences, bioengineering, agricultural biotechnology, imaging sciences, precision medicine, diagnostics, health information technologies, and health economics.

The Flinn Foundation is a privately endowed, philanthropic grantmaking organization established in 1965 by Dr. Robert S. and Irene P. Flinn to improve the quality of life in Arizona to benefit future generations. The Phoenix-based foundation supports the advancement of the biosciences in Arizona, as well as a merit-based college scholarship program, arts and culture, and the Arizona Center for Civic Leadership. “Arizona’s Bioscience Roadmap: 2014-2025” is available for download at www.flinn.org.

Lyle Tweet - Regional Geotechnical Manager

LMT Engineering joins forces with Speedie & Associates

Speedie & Associates, Inc. is joining forces in Tucson with LMT Engineering. LMT is a firm that has specialized in geotechnical engineering, primarily in the Southern Arizona Market, for many years. LMT was headed by Lyle Tweet PE. who now joins Speedie as Regional Geotechnical Manager. Prior to forming LMT approximately 10 years ago, Lyle had an outstanding career working for large established geotechnical firms within the state, culminating in his position as the Tucson Branch Manager for Terracon. His long-standing reputation as a Geotechnical Engineer, particularly within the Tucson market – along with his widely-recognized abilities – will greatly strengthen Speedie & Associates Southern Arizona visibility.

As Regional Geotechnical Manager for Speedie, Lyle’s primary role will be focused on developing new client relationships primarily in the Southern Arizona market – as well as providing geotechnical engineering leadership within the Tucson branch office. Justin Manchester will continue to provide his excellent leadership as overall Tucson Branch Manager.

Speedie & Associates is joined by another LMT associate, Ken Karaba RG. Ken joined LMT in 2008 as its Principal Geologist. Prior to that he was the Tucson Branch Manager for GRC Consultants, a full service geotechnical and environmental consulting firm headquartered in San Francisco. Of his 35 years of experience in the fields of geotechnical engineering, CMT, and environmental consulting in the western US, the last 30 have been in Southern Arizona. Similar to Lyle, Ken will bring both his outstanding local reputation and strong technical abilities in the geotechnical field to Speedie & Associates. As a Geotechnical Project Manager working out of the Tucson office, Ken will be primarily providing Southern Arizona-based geotechnical and environmental support to the firm.

Power Outage Map

UNS Shareholders Approve Acquisition by Fortis

Shareholders of UNS Energy Corporation voted overwhelmingly today to approve the proposed acquisition of the company by a subsidiary of Fortis Inc.

The votes were tabulated at today’s special meeting for shareholders at UNS Energy’s Corporate Headquarters in Tucson. Approximately 97 percent of the ballots cast supported the company’s acquisition by Fortis, the largest investor-owned gas and electric distribution utility company in Canada.

“Today’s vote is a positive step toward a new partnership that will provide benefits for shareholders, customers, employees and the communities we serve. Joining Fortis will provide additional financial strength to help us maintain safe, reliable service throughout Arizona,” said Board Chair and CEO Paul J. Bonavia.

The merger agreement provides that Fortis will acquire all of the outstanding common stock of UNS Energy for $60.25 per share in cash. The $4.3 billion transaction, which includes the assumption of approximately $1.8 billion in debt, would provide additional capital and new resources for UNS Energy’s subsidiaries, including Tucson Electric Power (TEP) and UniSource Energy Services (UES). Both companies will remain headquartered in Tucson under local control with current management and staffing levels and no planned changes to existing operations or rates.

Joining the Fortis family of companies would improve UNS Energy’s access to capital to fund the ongoing diversification of its generating fleet as well as investment in other infrastructure improvements. Upon closing, Fortis will inject $200 million of equity into UNS Energy.

The merger is subject to the approval of regulators, including the Arizona Corporation Commission and the Federal Energy Regulatory Commission; the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; and the satisfaction of customary closing conditions. UNS Energy anticipates the transaction will be finalized by the end of 2014.

2127 E. Speedway

CBRE Releases Recent Leasing Transactions in Tucson

CBRE’s Tucson office has released the following recent leasing transactions for the greater Tucson area:

 

Chuy’s restaurants have leased 2,400 SF of retail space at Capin Plaza located at 8195 N. Oracle Rd. in Tucson. CBRE’s Jayme Fabe negotiated on behalf of the landlord, Capin Family Trust of Tucson. The tenant was represented by Peter Villaescusa and Jesse Peron, also with CBRE.

 

Barker-Morrissey Contracting has leased 6,719 SF of office space 2127 E. Speedway Blvd. in Tucson. CBRE’s Bill Di Vito and Jesse Blum represented the lease on behalf the tenant while Di Vito, Blum and Buzz Isaacson represented the landlord, Holualoa Speedway Office LLC.

 

US General Administration Services has leased 5,616 SF of office space at Monument Plaza located at 1637 E. Monument Plaza in Casa Grande, Ariz. CBRE’s Ian Stuart and David Blanchette represented the landlord, Casa Grande Internal Medicine PC. The tenant was represented by Chris Ackle with CBRE’s Phoenix office.

 

Yamaneko Dojo LLC has leased 1,500 SF of retail space at Midstar Plaza located at 4518 E. Broadway Blvd. in Tucson. The landlord, Midstar Partners LLC, was represented by Nancy McClure and Michael Laatsch with CBRE’s Tucson office. The tenant was represented by Robert Grant with KW Commercial.

 

Catholic Community Services of Arizona has leased 6,712 SF of office space at 5151 E. Broadway Blvd. in Tucson. The tenant was represented by CBRE’s Buzz Isaacson, Robert Delaney and Tim Healy. The landlord, KCI-Broadway LLC, was represented by David Volk and Bruce Suppes, also with CBRE.

 

Devereux Arizona has leased 3,143 SF of office space at Pima Professional Plaza located at 5700 Pima St. in Tucson. The tenant was represented by David Montijo with CBRE’s Tucson office. The landlord, 2222 Craycroft LLC, was represented by Aubrey Finkelstein with Vast Commercial Real Estate.

 

Bio-Medical Applications of Arizona LLC has leased 13,592 SF of office space at Fifth & Jefferson Center located at 5555 E. Fifth St. in Tucson. The tenant was represented by David Montijo and Jeff Casper with CBRE’s Tucson office and Jim Greene in CBRE’s Denver office. The landlord, Fifth & Jefferson LLC VVV LC, was represented by Melissa Lal and Andy Seleznov with Larsen Baker.

Courtesy of Hobbs and Black Architects

Genesis OB/GYN Leases 22KSF in Tucson

Genesis OB/GYN PC leased 22,395 SF at 2424 N. Wyatt Rd. in Tucson, Ariz., from TMC Holdings, LLC for the relocation of the Crossroads OB/GYN practice and administrative offices from 4881 E Grant Rd.  Both the interior and exterior façade of the Wyatt building are being remodeled significantly in anticipation of Crossroads’ July occupancy on the second floor. Renovations are being completed by Barker Morrissey Contracting. The Crossroads move, under the leadership of CEO John Cole, expands the practice from their current 15 KSF, and the Grant Road clinical and administrative space will be available for new practice groups.

Tom Knox, SIOR and Rick Kleiner, MBA, Principals and Office Specialists with Cushman & Wakefield | PICOR, represented the landlord and Mark Irvin with Mark Irvin Commercial Real Estate Services represented the tenant in this transaction. Knox and Kleiner represent the space to become available in the Grant Road building.

manufacturing

Quik Tek Assembly Expands into Tucson

Quik Tek Assembly, a minority-owned provider of contract manufacturing services, announced that it has expanded operations to the Tucson region. Quik Assembly Solutions, a division of Quik Tek Assembly, has leased an 8,000 square-foot building at 3450 S. Broadmont, Suite 120, and plans a $700,000 capital investment. The new facility will be open by April 2014.

Quik Tek Assembly, also a Raytheon supplier, provides a wide range of contract manufacturing services including circuit and cable design; PCB layout and manufacture; PCB, cable and mechanical assembly; product testing and the manufacture of complete product ready to ship.

The company plans to hire 50 new positions over the next 5 years. The jobs at the facility will be a mix of engineering, manufacturing, administrative and technician positions. Candidates interested in job opportunities can click here.

Through TREO, the company worked with community partners including the City of Tucson, Pima County One-Stop Career Center, Arizona Commerce Authority and Startup Tucson.

Adan Ortiz, president of Quik Tek Assembly, said: “Southern Arizona is a growing market, and we needed to be close to both existing and new potential customers. Additionally, we look forward to contributing to workforce development by encouraging STEM interest and providing student internships in partnership with The University of Arizona and Pima Community College.”

“Hi-tech manufacturers and suppliers to existing employers are logical fits for the Tucson region,” said Joe Snell, TREO president and CEO. “In addition, Quik Tek is committed to

Kleinn Automotive Accessories leased 1,000 square feet at 2112 N. Dragoon Street.

Cushman & Wakefield | PICOR Releases Recent Transaction List

Kleinn Automotive Accessories leased 1,000 square feet at 2112 N. Dragoon Street, #16 in Tucson, Arizona, from Rich Rodgers Investments, Inc. Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

Flash in the Past Studio leased 1,485 square feet at 43 S. 6th Avenue in Tucson, Arizona, from Rich Rodgers Investments, Inc. Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Billy Mordka with Harvey Mordka Realty represented the tenant in this transaction.

Henry Tusinski leased 1,740 square feet at 220 E. 27th Street, Suite D in Tucson from Tin Cup Properties, LLC. Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord.

Merle’s Automotive Supply, Inc. leased 7,200 square feet at 6550 N. Thornydale Road, in Marana from Encino Investments, LLC to expand their store at that location and better serve their clients in the area. Aaron LaPrise, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord. Russell W. Hall, SIOR, GSCS and Stephen D. Cohen, Principals and Industrial Specialists with Cushman & Wakefield | PICOR, represented the tenant in this transaction.

Ray Parri purchased a 10,000 square foot warehouse at 3424 S. Campbell Avenue in Tucson, Arizona, from Campbell Industrial, LLC for $511,300. Paul Hooker, Industrial Specialist with Cushman & Wakefield | PICOR, represented the buyer and Tony Reed with Long Realty represented the seller in this transaction.

red-header-2014

RED AWARDS 2014: Healthcare Project

On Feb. 26, AZRE hosted the 9th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2013 and the construction teams involved. AZRE held an open call for nominations and more than 100 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. Click here to view all 2014 RED Awards Winners.‎


Tucson Medical Center
Developer: Tucson Medical Center
Contractor: J.E. Dunn Construction
Architect: Hobbs + Black Architects
Brokerage: Hill International
Size: 218,930 SF
Location: 5301 E. Grant Rd., Tucson
Completed: April 2013

tucson-medical-centerOriginally intended to be a series of complex renovations, Tucson Medical Center added a four-story orthopedic and surgical tower to its campus that meets the increasing needs of the growing community. The tower replaced 18 existing operating rooms and added much more, including a dedicated pediatric surgery area. The new tower also adds 14 surgical suites, two hybrid rooms and 40 private patient rooms. The new tower add-on also included renovations to the building, such as shades for the windows to ward away the sun’s discomfort and an upgrade on the chilling and heating water systems. The new tower also blends in with the original design of the medical center, with native stone and copper integrated into the architecture, creating the appearance that it has always been there. During construction, the hospital 
did not experience any planned or unplanned interruptions in patient care.

theater

Artigue Elected President of ATC Board

Cameron Artigue, an attorney with Gammage & Burnham in Phoenix, has been elected President of Arizona Theatre Company’s Board of Trustees. Robert Glaser, Principle at PICOR Commercial Real Estate Properties in Tucson continues to serve as Chair.

Glaser and Artigue will be joined on the Executive Committee by:

 Immediate Past Chair – Michael Seiden, Former President and CEO of Western International University, Phoenix

 Vice President – Phoenix, Susan Segal, an attorney with Gust Rosenfeld PLC

 Vice President (Tucson) – Lynne Wood Dusenberry, University of Arizona – retired;

 Assistant Treasurer – Marc Erpenbeck, President and Chief Legal Counsel, George Brazil, Phoenix

Secretary – Robert Taylor, Senior Director of Regulatory Policy and Public Involvement, Salt River Project, Phoenix.

 Assistant Secretary – Dina Scalone-Romero, Executive Director, Therapeutic Riding of Tucson

For more information, visit www.arizonatheatre.org.

clear energy systems coming to tempe

TEP Recognizes Energy Efficiency Partnerships

Tucson Electric Power (TEP) has recognized customers and other community partners with TEP BrightEE Awards for energy savings achieved through the company’s successful energy efficiency (EE) programs.

The inaugural TEP BrightEE Awards were presented today to local nonprofit organizations, school districts, small businesses and homebuilders. Several BrightEE (pronounced ‘brighty’) recipients are customers who reduced their energy use and lowered their monthly electric bills by participating in TEP’s customer-funded EE programs.

“Energy efficiency programs give us a great opportunity to work directly with our customers in developing an important, low-cost energy resource,” said TEP President and Chief Operating Officer David G. Hutchens. “These EE partnerships produce savings for our customers, benefits for our environment, and help us to continue providing safe, reliable, and affordable service to the community.”

TEP’s EE programs provide incentives for customers to invest in high efficiency technologies such as compact fluorescent lighting, pumps, motors and HVAC equipment. Other programs offer incentives for builders to design and construct residential and commercial buildings based on EE construction standards.

The programs help TEP work toward achieving the goals in Arizona’s Energy Efficiency Standard. The standard requires electric utilities to increase energy savings each year through customer-funded EE programs until the cumulative usage reduction reaches 22 percent by 2020.

EE programs, which cost less than building new power plants, help reduce reliance on fossil fuels, resulting in reduced air emissions and water usage. TEP’s EE programs have already produced significant benefits. The TEP EE program measures enacted in 2013 alone will produce energy savings exceeding 168,000 megawatt hours – enough energy to power more than 14,000 Tucson homes for a year.

Here is the list of BrightEE categories and winners selected by TEP’s EE team:

  • Large Business – Carondelet St. Mary’s Hospital: St. Mary’s most notable projects include retrofitting more than 20,000 florescent T12 tube lamp fixtures with more efficient lamps and thousands of electronic ballasts. The hospital also installed variable speed drives, which can raise or lower motor speeds used in HVAC and other systems. Installation of an automated energy management system is scheduled to be completed this summer.
  • Small Business – Vroom Engineering: This local engineering firm participated in the Small Business program to replace more than one hundred 1,000-Watt, metal halide light fixtures with energy efficient high bay fluorescent fixtures.
  • Contractor – Inline Electrical Resources: Inline was the first applicant to register as a contractor for TEP’s Small Business program. Since then, Inline has completed more than 200 energy efficiency projects.
  • Schools – Sunnyside Unified School District: Sunnyside has upgraded classroom lighting and mechanical equipment at the majority of its schools and several support facilities. In 2013, the company gave 17 EE classroom presentations and distributed more than 450 energy efficiency kits for Sunnyside students to use at home through TEP’s Outreach Program. Desert View High School also participates in TEP’s Direct Load Control program.
  • Schools – Marana Unified School District: Marana has upgraded lighting and HVAC equipment in several schools by combining TEP incentives with federal funding available through the 2009 American Recovery and Reinvestment Act. More than two dozen EE classroom presentations were given in 2013 alone, and TEP has distributed more than 550 EE kits to students.
  • Non-Profit – The Primavera Foundation: In 2013, Primavera completed construction of a new energy-efficient, 12-unit family complex that was built in South Tucson using sustainable principles. The project is designed to meet LEED and Net-Zero Energy Building standards through a mix of 2- and 3-bedroom patio units that are ADA compliant. (Note: This nonprofit organization, which administers affordable housing, workforce development and neighborhood revitalization programs, is a past recipient of TEP’s Grants That Make a Difference program, which is funded with shareholder dollars.)
  • Homebuilder – Meritage Homes: Meritage was the first national builder to construct every home using standards that meet or exceed ENERGY STAR® requirements. Meritage, which participates in TEP’s New Construction program, builds homes that are twice as energy efficient as a typical U.S. home of the same size.
  • Lifetime Contribution to Residential Energy Efficiency – John Wesley Miller: Miller, a national leader in energy conservation and green building practices, has received numerous industry honors and awards for energy conservation and building quality. He has consulted with Pima County to promote a program for energy-efficient homes and the use of solar energy, and with the University of Arizona’s Environmental Research Laboratory in developing new energy-saving products and technologies. Miller is one of four builders selected by the U.S. Department of Energy to develop highly-efficient “zero-energy use” homes. The second such home built by Miller costs an average of about $300 annually to heat and cool.
5555 Broadway, WEB

CBRE Releases Recent Tucson Transactions

CBRE has recently leased two retail spaces totaling 5,522 SF located at the 5555 Broadway Center in Tucson.

The redevelopment project was formerly home to a Mervyn’s department store. The site, which sits at the northeast corner of Broadway Boulevard and Craycroft Road, is anchored by Hobby Lobby and Stein Mart. Nancy McClure and Michael Laatsch with CBRE’s Tucson office negotiated the lease for the landlord/developer, Benenson Capital Partners of New York City. The newest tenants include an Arizona Urgent Care, which will open in the 3,522 SF west-corner end-cap, and Potbelly Sandwich Shop, which leased the remaining 2,000 SF between Urgent Care and Broadway Smiles Dentistry & Orthodontics. Arizona Urgent Care was represented by Ken Elmer of Commercial Properties, Inc. and Potbelly was represented by Zach Pace of Phoenix Commercial Advisors. Arizona Urgent Care and Potbelly Sandwich Shop will both open in mid-2014.

“The redevelopment of this former Mervyn’s site is redevelopment done right. The proactive planning, collaboration and hard work by all of the organizations involved have resulted in a transformed property,” said CBRE’s McClure. “This 7.1-acre corner is now home to a modern, successful retail strip center that is 100 percent leased and is a huge boon to the community.”

“5555 Broadway Center has been a great project, and we owe CBRE a great debt in its ultimate success,” said Gary F. Sedoruk, managing director of Benenson Capital Partners. “I think we built a great team in Tucson.”

Formerly the site of a Mervyn’s department store and a long-closed, boarded-up tire shop, 5555 Broadway was purchased by Benenson Capital Partners in 1992. After Mervyn’s closed in 2009, redevelopment did not begin until early 2012. The pad was completed as shell space at the end of 2012, with three of the four spaces leased to the Mattress Firm, Vitamin Shoppe and Broadway Smiles Dentistry and Orthodontics prior to completion. The anchor tenants took occupancy after improvements to the main building with Stein Mart opening in late 2012 and Hobby Lobby in the spring of 2013. With the latest additions of Arizona Urgent Care and Potbelly, the entire retail development is now fully leased.

OTHER TRANSACTIONS

Local homebuilder United Builders LLC has leased 1,560 SF of office space at 6601 E. Grant Rd in Tucson. CBRE’s David Montijo negotiated on behalf of the tenant. The landlord, C2D2 Associates LLC, was self-represented. United Builders took occupancy early January.   Progressive Animal Wellness Services LLC has leased 3,150 SF of retail space at Rita Ranch shopping center located at 9040 Valencia Rd. in Tucson. CBRE’s David Dutson negotiated on behalf of the landlord, CNA Enterprises, Inc. The tenant, who was represented by Dean Ingram with DeRito Partners, took occupancy in early January.   The Thomas R. Brown Family Foundation has leased 4,718 SF of office space at Taylor Office Park located at 1990-1996 N. Kolb Rd. in Tucson. CBRE’s Jeff Casper negotiated the 10-year lease on behalf of the landlord, Taylor Kolb LLC. The tenant, who was represented by Bob Davis and Tom Hunt with Rein & Grossoehme, will take occupancy in early March.   Burns Pest Elimination of Tucson has leased 3,516 SF of flex/industrial space at 2002 N. Forbes Blvd. CBRE’s Tim Healy and Bob DeLaney negotiated on behalf of the landlord, San Diego, Calif.-based DMIG, LLC. The tenant, who was represented by Jeff Casper with CBRE, will take occupancy March 1st.   The National Ecological Observatory Network has leased 3,900 SF of office space at Valencia Business Park located at 2115 E. Valencia Rd. in Tucson. The landlord was Tucson-based Obedin Holdings LLC. CBRE’s Bill Di Vito and Jesse Blum represented both the tenant and landlord in negotiating the lease term. The Boulder, Colo.-based NEON, which is designed to gather and synthesize data on the impacts of climate change, land use change and invasive species on natural resources and biodiversity by collecting data from 106 sites across the U.S., will take occupancy in early June.

RED Awards banner

Tucson Commercial Real Estate Market Review

PICOR released the following Tucson commercial real estate market review:

Office

The Tucson office vacancy rate ended 2013 in familiar territory, at 12.2%, with medical and associated uses continuing to shine more brightly than financial and service sector requirements. Investment activity picked up in the fourth quarter, with seven of the ten largest buildings sold to users in service and technology fields. We expect mild improvement across the market in 2014 with job creation the key to meaningful absorption.

Retail

On the strongest annual net absorption since 2008 (728,000 sf), the Tucson retail market improved to 7.1% vacancy at year end 2013, versus 7.9% a year before. Lease rates appear to have bottomed out, with average asking rates citywide at $14.32 psf/year. Deliveries for the year totaled almost 400,000 sf, the highest level of construction in four years. This construction was driven by tenant activity, rather than speculative development.

Industrial

The Tucson industrial market made significant headway over the course of 2013. Positive absorption of 770,000 sf allowed vacancy to improve 1.5 percentage points (pps) year over year to end the year at 10.5%, led by small business growth. Upward pressure on rents became more notable in small spaces, but not significantly enough to impact values. On the investment side, pricing pressure remained as continued REO product washed through the market. Look for continued gradual improvement in the year ahead.

Multifamily

2013 saw increases in unit absorption, average rental rates and occupancy rates, ending at a 9.41% vacancy rate on absorption of 754 units. Monthly rents increased $8 per unit to $637. Sale activity dropped sharply in 2013 due to stagnant NOIs and the midyear jump in interest rates. Expect a multi-year increase in trading activity beginning this year, thanks to improving fundamentals and heightened investor interest as other markets become overpriced.