Tag Archives: Voit

Photo of Thursday Night Live, courtesy of NAIOP

NAIOP-AZ release year-end report

From philanthropy to tackling key issues affecting the industry to education and networking, NAIOP Arizona reports that its more than 700 members closed out a successful 2014.

Events such as Night at the Fights, the new Signature Speaker Series, Thursday Night Live, the quarterly Market Leaders Series and the golf tournament attracted more than 3,500 attendees combined.

The 2014 Dream Team program fed more than 5,600 homeless people in downtown Phoenix as teams from 13 NAIOP Arizona member firms volunteered on Friday afternoons during the year.

Tom Johnston was named 2015 chairman, succeeding Megan Creecy-Herman, the first female chairman of NAIOP Arizona and the youngest person in the country to hold that title.

“It (2104) was another successful year for NAIOP Arizona as we held more than 40 events focused on everything from education to volunteerism,” said Creecy-Herman. “We had 90 corporate sponsors in 2014, the most in our chapter’s history. This demonstrates the value that our industry sees in NAIOP Arizona.”

When it came to issues affecting NAIOP Arizona, the organization was just as vocal and proactive.

As the chapter made education a priority, NAIOP Arizona continued its partnership with Arizona State University’s Masters of Real Estate Development (MRED) program. A number of NAIOP members taught a practicum class throughout each semester via a case study or with a panel of experts.

The chapter also revamped its mentorship program, which selected 12 new, young professionals this past fall for its fourth annual class. That program helps educate Developing Leaders (members 35 and under) by pairing them with industry veterans to learn about the commercial real estate development industry.

“The chapter is in great shape and we look forward to another fantastic year with our signature events, an enhanced mentorship program and creating a philanthropic foundation,” Johnston said.

Voit

Voit grows team in Phoenix with two new brokers

Voit Real Estate Services’ Phoenix office is continuing to expand its presence in the Greater Phoenix market with the addition of two top-producing brokers.

Jenette Bennett

Jenette Bennett

Voit is pleased to announce the addition of Jenette Bennett and Jason Jones, both specializing in retail and focused on the West Valley, who have joined the firm as vice presidents.

“As Voit continues to expand the Phoenix team, we are committed to hiring top tier brokers who will provide the opportunity to create additional solutions for our clients,” according to Tom Johnston, Managing Director for Voit’s Phoenix and Las Vegas offices. “Jenette and Jason make great additions to our team and we’re excited to have them on-board.”

Prior to joining Voit, Bennett served as a commercial real estate investment agent for Don Bennett and Associates and Phoenix West Commercial in the West Valley of Arizona. As a leasing agent and investment analyst, Bennett coordinated all aspects of real estate transactions, from property research and site selection to forecasting internal rates of return on income-producing assets for her clients. In 2005, Bennett was awarded Team Member Rookie of the Year.

Jason Jones

Jason Jones

Bennett holds a Bachelor of Arts from Grand Canyon University and is a CCIM designee, on the board of the local chapter for 2015.

Jones came to Voit from Phoenix West Commercial where he was a Senior Associate specializing in retail and land. Prior to Phoenix West, Jones served as Vice President for the Olympia Group in Las Vegas for ten years where he managed commercial ventures from initial concept through final lease up for approximately 700KSF of commercial real estate.

“We are thrilled to bring our West Valley Retail team to Voit Real Estate Services, and appreciate the opportunity to be part of an organization with such a history of transaction expertise, extensive broker support and marketing capabilities,” commented to the two new brokers.

NAIOP Roundtable 2011 - AZRE Magazine September/October 2011

NAIOP Arizona announces new chairman, board members

Tom Johnston

Tom Johnston

NAIOP Arizona named Tom Johnston of Voit Real Estate Services as its Chairman for 2015. The industry group also named new officers, three new board members and re-nominated an existing board member.
Johnston, Managing Director at Voit, will be joined by new officers Bob Hubbard, Vice Chairman, LBA Realty; Larry Pobuda, Programs Chair, The Opus Group; Tammy Carr, Treasurer, Balfour Beatty; and Laurie Sandau, Secretary, GPE Commercial Advisors.
New board members include Rusty Kennedy, CBRE; Tom Knoell, Desert Troon Companies; and Larry Pobuda. Anthony Lydon of JLL was re-nominated to the board. Officers serve a one-year term; new board members serve a three-year term.
“We’re excited to have our mentorship program taken to a higher level that includes training relevant to each participant’s career path while building relationships with experienced real estate professionals,” Johnston said of one of his goals as chairman. “The creation of our philanthropic foundation will further demonstrate our commitment to giving back to our community.”
Megan Creecy-Herman of Liberty Property Trust served as the 2014 chairman and will remain on the Executive Committee.

Q2 Phoenix Market Report: Voit

VOIT REPORT:  PHOENIX OFFICE LEASE RATES RISE FOR THE SIXTH CONSECUTIVE QUARTER; RETAIL MARKET POSTS LOWEST VACANCY RATE SINCE 2008

Jennifer Farino, Voit Real Estate Services

Jennifer Farino, Voit Real Estate Services

By Jennifer Farino
The Phoenix office market continued to convey strong signs of recovery in 2014, and marked its sixth consecutive quarter of rising lease rates.  The average asking full-service gross lease rate finished the second quarter at $21.12 per square foot, an increase of 3.23% from 2013’s second quarter average asking lease rate, according to a new Second Quarter Market Report  from Voit Real Estate Services.

“This is good news for the Phoenix market overall,” explains Jennifer Farino, Market Research Analyst at Voit.  “The rise in lease rates demonstrates that the market continues to improve, which further supports the recovery we’ve been forecasting for the past 12 to 24 months.”

Demand for Office Product Increases
As a whole, the Phoenix office market posted just over 7.1 million square feet of positive absorption since the second quarter of 2011, 5.8 million of that in the last nine quarters, according to Voit’s report.

Another trend to note, according to Farino, is the continued decrease in the amount of vacant and available space in Phoenix.  “We should see a very slight increase in construction in the coming quarters, with just under 20.0 million square feet waiting in the wings as planned projects throughout the Valley.”
As the recovery continues, Farino notes that Phoenix is poised for growth in the new niche of high-tech manufacturing. This, in addition to a high demand for back office workers, will help lead the charge of positive absorption in the Phoenix office market.

Vacancy and Availability in Retail Market Reach Pre-Recession Levels
The Phoenix Retail market took significant strides toward continued improvement in 2014 with positive absorption for the year thus far, a twenty-one cent or one and a half percent increase in asking lease rates, and drops in both vacancy and availability, compared to the first quarter of 2014.

“Overall in the Phoenix Retail market over the last two and a half years, vacancy has decreased over 16 percent while availability has decreased 13 percent,” says Farino.  “The substantial drops in vacancy and availability are contributing to the gains in asking lease rates.”

Both vacancy and availability continued trending downward throughout 2014. Vacancy ended the second quarter of 2014 at 10.26 percent, a drop just over 6 percent from 2013’s second quarter.  Likewise, availability posted a rate of 11.43 percent at the close of the quarter, a substantial decrease of almost 6.4 percent from a year ago.

As lease rates rise, sale prices are also ticking up, notes Farino, who attributes this trend to the diminishing supply of product under construction in the Phoenix Metro area, leaving the existing product to take in new retailers opening businesses.

“Overall, we continue to be cautiously optimistic about the Phoenix Retail market,” says Farino. “We continue to see improvement in both the office and retail markets, and we anticipate positive gains moving forward, provided job creation continues and consumer confidence stabilizes.”

21615 N 27th Ave, Voit, WEB

Voit directs $2.48M industrial sale in Phoenix

Eric Bell and Mike Ciosek of Voit Real Estate Services’ Phoenix office successfully directed the $2.48M sale of a 27,825 SF industrial warehouse in Phoenix on behalf of the buyer, D2BAC Development, LLC (Robert Gladding, Manager). The buyer will occupy the majority of the property for his business VX3, LLC, an Audio Video Rental company according to Bell.

“The property was a perfect fit for them.” Bell said. “It’s getting very difficult to find quality buildings in the Deer Valley area and their need of a large fenced yard and truck well made their requirement even more difficult to fulfill.”

Though the building was only being marketed for Lease, Bell encouraged Gladding to make an offer since he knew it was a good fit.

The property is located at 21615 N. 27th Avenue in Phoenix.

Warner Business Center, Voit, ViaWest

ViaWest Group Sells Warner Business Center for $40M

Responding to the increasing investor demand in Metro Phoenix, ViaWest has sold its largest asset, Warner Business Center.  ViaWest had purchased the loan on the seven-building property for $31M in April 2013 and foreclosed on it in May 2013.  As ViaWest began implementing its lease-up strategy, commencing vacant suite improvements, and renewing some leases in the third quarter 2013, it was approached by the buyer to explore a potential sale.  The sale was consummated on December 24, 2013, for $40M to Warner Business Center I, LLC and Warner Business Center 4, LLC, both managed by Voit Real Estate Services.
Both parties represented themselves in the transaction. Bill Bayless of CBRE had served as ViaWest’s leasing agent and was instrumental in the success of the project.  Tom Richards of Voit Real Estate Services worked on behalf of the buyer in managing a smooth transaction.
The property is presently 67% occupied with twenty-one tenants.  The buyer will be able to significantly increase the rental income through additional leasing.  The 321,327 SF asset is ideally located on Warner Rd. just east of I-10 freeway and caters to office, industrial, and showroom users.  With a range of suite styles, the property is excellent for tenants needing a variety of functions, including office, warehouse, truck doors, open ceiling, major street frontage, high parking ratios, heavy power, and more.
“While it was our initial desire to hold this asset for a longer period, the sale was the right thing to do for the strategic benefit of our company and investors.  The proceeds of the sale will free up significant capital for us to continue building our value-add portfolio.  We believe the buyer purchased a wonderful long-term asset and therefore this was a win-win situation for all parties,” noted Gary Linhart, Co-Founder and Principal of ViaWest Group.
“While this sale reduces our portfolio to just below 1.5 MSF, we are quickly filling the gap with two strategic purchases.  As well, the buyer has recognized our strong capability in property management and therefore has hired us to continue that effort.  They were wonderful to work with, and we could not be happier for them,” added Steven Schwarz, also a Co-Founder and Principal of ViaWest.
Voit Real Estate Services will serve as the leasing brokers on the property.

Voit

Voit Becomes Sole Regional Firm To Rank In Nation's Top 10 For Industrial Investment Sales

 

Voit Real Estate Services is the only regional real estate firm which ranked in the top 10 nationally in industrial investment sales in 1Q 2013, according to statistics just released by national market research firm Real Capital Analytics.

Voit, a full-service commercial real estate provider serving Phoenix and the Southwestern U.S., was named in the top 10 in a new 2013 quarterly report, alongside nine national and global firms.

rsz_mark_read“This achievement is a direct result of our firm’s recent expansion initiative, through which we have aggressively recruited top talent in each of the markets we serve,” said Mark Read, Executive Managing Director for Voit Real Estate Services. “We have added more than 20 brokers in the past 12 months, and we are well equipped in each market, with strong experts who are capable of closing substantial deals.”

The Real Capital Analytics report, which ranks the top industrial brokers of 1Q 2013 by transaction volume, includes statistics on all investment sales more than $2.5M in value.

With $273 million in total investment sales during 2013’s first quarter, Voit was ranked as number six in the country for flex deals, and as number five in the Western Region of the U.S. for all industrial transactions.

“The significance of these rankings is their reflection of how we serve the industry,”  Read said. “As an experienced real estate owner, operator, broker, property manager, contractor and developer, we are at the forefront of the real estate market in the Southwestern U.S. This report, however, confirms a deeper expertise, reflecting how our services fit in from a national perspective.”

According to Read, over the past 24 months, Voit has increased its partnerships with large investors throughout the nation who are seeking a “one-stop-shop” of local knowledge and services in the Western U.S.

“By continuing to partner with national companies seeking the real estate opportunities available here in the West, we continue to expand our reach and reconfirm ourselves as strong players in the national arena,” Read noted.

In addition to Voit, the top 10 industrial brokers included in Real Capital Analytics’ 1Q 2013 report included CBRE, Eastdil Secured, Cushman & Wakefield, Jones Lang LaSalle, HFF, Colliers International, Newmark Grubb Knight Frank, Stan Johnson Co., and NAI Global.

 

Voit - Eva Bates

Voit's Phoenix Office Expands Its Asset Services Division

As part of a strategic effort to grow its asset and property management services, Voit Real Estate Services’ Phoenix office added Eva Bates as a Property Manager, according to Don Morrow, Managing Director of Voit’s Phoenix operations.

Coinciding with the addition of Bates, Voit has taken on an additional 1 MSF of management assignments in the Phoenix market, including a portfolio owned by Capital Commercial Investments which encompasses more than 736,000 SF in Maricopa County.

“The addition of both Eva and these new assignments is well-aligned with our strategy to continue to grow our full-service platform, which includes asset and property management for both distressed and stabilized properties,” Morrow said.

“One major difference at Voit is that our team understands real estate from an owner’s perspective. Eva’s skills are well-aligned with this distinction, as she has experience working within ownership groups, and brings an owner’s perspective to her management.”

Bates brings with her more than 17 years of experience in the commercial real estate industry, specializing in property management, construction management, tenant relations, leasing, and lease administration.

Before joining Voit, Bates served as a senior property manager for three years at Grubb & Ellis where she managed medical, office, and industrial properties. Prior to her tenure with Grubb & Ellis, Bates served as district manager at SARES-REGIS Group where she was responsible for managing the firm’s Arizona portfolio, totaling 1.7 MSF.

Earlier in her career, Bates gained her expertise in property management at PM Reality Group as a General Manager for the Phoenix City Square – a 1 MSF commercial office and retail project. In this role, she was responsible for daily management operations, including the coordination of capital renovation projects and tenant improvements, as well as management of office, engineering, and custodial staff.

Bates attended Meredith College in Raleigh, N.C. She is a certified Arizona Department of Real Estate Licensee, and is a member of the Building Owners and Managers Association (BOMA).

Phoenix-Market

Phoenix Market Is Affordable Again

The current state of the Phoenix commercial real estate market can be viewed from two sides. The reality is that we are still pushing through, so to speak, amidst a haze of foreclosures, bank take-backs and monetary defaults.  But through the fog, there is a silver lining in the form of good old-fashioned opportunity.

As REO properties flood the market, there is one truth that has emerged that brightens the hearts of real estate buyers:  The Phoenix market, already a fantastic place to live and do business, has become affordable again.

In This Ring: Investors vs. Owner-Users

Demand is on the rise for all distressed property types in the Phoenix market, based primarily on competitive pricing.  Buyers are ready to invest, and there is an enormous amount of money chasing opportunities in the Phoenix market.  This leads to a highly competitive buying pool where investors and owner-users duke it out over attractively priced distressed properties.

Recently, owner-users have thrown some of the proverbial winning punches, sometimes beating out investors in distressed sale opportunities.  On the other hand income-producing multi-tenant properties remain competitive amidst investors.  This competition is a good sign for the market as a whole, as it is pushing winning bidders into shorter due diligence and closing periods, which moves deals through the market faster.  This positive activity will continue for the next few years, as distressed properties move their way through the system.

The bottom line:  When the price is right, buyers are interested.

Local Businesses: Things Are Looking Up

The recent rise in demand has had a positive impact on the Phoenix business community.  Companies know that now is a good time to buy and lease, taking advantage of current low occupancy costs.  With that in mind, many companies are moving into the Phoenix market, while some other local businesses are absorbing customer base from failing competitors, resulting in local expansions.

In many cases, investors are making deals now which will help local businesses to lease space affordably moving forward.  In the past year, Voit’s Phoenix office has closed a number of large transactions for investors, encompassing all product types.  From land to retail centers to office properties, to a 57,000 square-foot multi-tenant flex project which was acquired as a value-add upon purchasing the distressed note from a special servicer.  In most cases, the investors will be able to deliver these properties to local tenants at competitive lease rates.

Other notable businesses that are taking advantage of today’s affordable Phoenix market include Dick’s Sporting Goods, which is developing a 600,000 square-foot build-to-suit, as well as Amazon.com, which expanded its footprint over the past 24 months in the region by leasing more than two million square feet.

Each of these transactions directly benefits companies throughout the Phoenix market, bringing business opportunities to local architects, engineers, contractors, brokers, and more.

But large corporations are not the only beneficiaries when it comes to the affordability of today’s market.  Local “Mom and Pop” owner/operators are buying buildings at low prices and renovating them.  In addition, SBA financing is readily available from many lenders, offering small business owners an opportunity they may not have had in prior markets:  the chance to own their own space and control future costs.

The Flip Side: Why Local Bank Failures Help The Market

One area of the market that has demonstrated immense improvement in the past few months is the ability to complete real estate transactions.  For a portion of the downturn many companies had difficulty closing deals, but the market has begun to move again, allowing local businesses to relocate and expand.

Some of this new movement may be attributed to the various mid-sized local and regional banks which are failing in the Phoenix market.  While bank failures may appear negative on the surface, these failings actually begin a ripple effect that helps the real estate market.  When a bank fails, it is marketed by the FDIC to be purchased by a healthier bank, which is in a better position to work through distressed assets and bad loans – actions which help move real estate deals forward.

In addition, banks are now able to complete loan-to-value assessments that are based on distressed pricing.  When the market was stagnant, there were very few transactions closing, so banks had no comparable sales to consider when completing appraisals.  Now that real estate transactions are moving again, banks can more easily create valid appraisals based on sales comps from recent deals.

At the same time, banks and life insurance companies are all starting to place more debt in the marketplace. As financing becomes more readily available, transaction activity in the local real estate market will flourish.

What’s Next For the Phoenix Market?

The outlook for the Phoenix commercial real estate market is positive.  There will be a continued supply of distressed properties which will hit the market over the next two to three years as CMBS loans come to maturity and banks work out the properties on their books.  Buyers and tenants will enjoy an affordable Phoenix market for the next few years.

Darren Tappen is Senior Vice President of Voit Real Estate Services.