This year, experts still see Arizona as a hotspot for commercial real estate activity and development.
While activity in other markets across the nation is starting to fizzle out, Arizona has yet to enter the ninth inning of the business cycle as a result of its slow and steady recovery following the recession.
AZRE identifies 40 companies — in alphabetical order — with major projects in the pipeline for 2017 that are worth keeping an eye on.
AIM Brokerage Services, LLC:
Launched in 2015 as the brokerage division of Arizona Investment & Management, the company which focuses only on investment transactions went from $12 million in total transactions its first year to nearly $39 million in 2016. The fast-growing brokerage firm is led by Victoria Miachika, president, who plans for continued expansion of its brokerage team to meet the companies’ client base.
Bankers Trust Company:
2017 marks 100-years of business for Bankers Trust, which has operated in Phoenix for the last eight. Locally, it has $580 million in assets, and achieved a 37.4-percent increase in assets over the past year. It sees more around the pike this year.
The company is currently working on plans to increase its pursuit of public works, roadway and federal projects from less than five percent to as much as 15 percent by 2017. A few projects in the pipeline for 2017 include the redevelopment of Sky Harbor International Airport’s Terminal 3 and 4 in addition to a redevelopment project for SRP.
Camelback Collective Holding, LLC:
Camelback Collective Holding — a joint venture between LaPour Partners, Inc. and Holualoa Arizona Inc. — is developing a $75 million office-hotel project dubbed the Camelback Collective at 28th Street and Camelback Road. The redevelopment project includes a four-story, 120,000-square-foot office complex and a five-story, 160-room boutique hotel by Marriott’s AC Hotels line. It’s slated for completion in Q2 2018.
Whether it’s manufacturing deals like SK Foods, AmerisourceBergen and Hutamaki; or helping corporate employers like ADP, CVS and McKesson relocate to the Valley; or working with local developers to reimagine iconic retail destinations — CBRE’s mission remains the same: create world-class outcomes and change the market for the better. This year the Phoenix office will transition to CBRE’s award winning, market-leading Workplace360 model. Planned to be CBRE’s largest 360 office yet, the Phoenix office will model how cutting-edge office space functions in a 21st century world.
Coldwell Banker Commercial Advisors:
The largest Coldwell Banker Commercial affiliate in the world announced plans to expand into the Phoenix market in June. The firm has identified Phoenix as a priority market nationally for expansion and looks to aggressively introduce the company’s full suite of commercial brokerage services to the region.
Year over year, Cresa has experienced double digit growth with this trend projected to continue in 2017. In 2016, the Phoenix national accounts team secured 3 new major global accounts with more to announce in 2017.
Cushman & Wakefield:
With the consolidation of the firm’s Phoenix operation into one location in 2017, it will offer the widest breadth and highest caliber of services locally, focusing on connectivity to clients and each other. For 2017, Cushman & Wakefield will work on some of the Valley’s most notable upcoming projects such as One Scottsdale, Watermark, One Hundred Mill, Tempe Tech Center, Scottsdale Landing and the Arizona Center.
The company will start construction of a $500 million recreational motorsports complex in Casa Grande called Attesa. The 2,360-acre site will feature two separate 2.8-mile roads and karting tracks. It will also feature a driver experience center, multi-surface racing and event area as well as a private clubhouse by the time it’s completed in 2020.
Similar to when Deco Communities introduced the ENVY Residences, Old Town Scottsdale’s first super luxury condo, Deco is preparing to launch a new brand in 2017 that it describes as Arizona’s first-ever ultra-luxury apartment community.
DPR’s Phoenix office expects to complete a 700,000-square-foot Emergency Department and Patient Tower Expansion for Banner Health at the Banner University Medical Center Phoenix by 2018. On top of the three-story podium that accommodates the emergency department relocation will be a 13-story patient tower with 256-patient beds.
A Phoenix-based home building company will be completing its first three new communities in 2017, which combine an urban living lifestyle and the charm of the Phoenix historic districts throughout Greater Phoenix in midtown and downtown neighborhoods.
Evergreen Devco Inc.:
Construction on Parc Midtown, a 306-unit multifamily development, started in May 2016. The project is an adaptive re-use of the former Phoenix Motor Company Mercedes Benz dealership, which is slated for completion this May.
Five Star Development:
The Scottsdale-based development company broke ground on the Ritz-Carlton Residences in Paradise Valley last summer. It’s called the largest undertaking of a new master-planned community to feature a Ritz-Carlton with Residences in nearly a decade with an estimated project value of $2 billion. The project spans 105-acres, and will include a 200-room Ritz-Carlton Resort, 91 villas and 45 single-family homes once completed in 2018.
With a decade of experience in Arizona, and over 50 recent design awards, Gensler has two major projects in Downtown Phoenix to watch. The first, a $25 million renovation of the Arizona Center with modern updates to better engage the downtown core and surrounding community. The other is the exterior improvements to the Renaissance Phoenix Downtown Hotel, which will act as catalyst in activating Adams Street.
Hines is developing The Offices at Chandler Viridian, a six-story, Class A office building with 250,000 square feet of leasable space composed of large flexible floorplates, generous ceiling height volumes, and ultra-efficient glazing and mechanical systems. Leasing activity has been strong and construction is expected to start in early 2017 and complete in early 2018.
The company will be building four different projects around the Valley. It breaks ground in February on the $18 million Spectrum Medical Commons, a 44,000-square-foot medical office building next to Dignity Health Mercy Gilbert Medical Center. In addition, it will be building phase II of the Perimeter Center project, a 44,000 SF of Class A office in Scottsdale; Ascend D, a 60,000 SF office project in Chandler; and 979 Playa, 114,000 SF of Class A office in Tempe.
In 2016, Keyser experienced double-digit percentage growth in revenue and headcount compelling a recent expansion of their headquarters in Scottsdale. Representing only tenants/users of space, Keyser is excited to roll out major announcements for the second and third quarters.
Kitchell is at the forefront of prefabrication and 3-D printing that allows faster and more accurate construction of complex items to lower costs and reduce waste. It’s 33,000-square-foot prefabrication center in Tempe for bathrooms, walls, drywall sheets, window frames and electrical systems also contains 10,000 square feet of 3-D printing and virtual reality studio space for collaboration.
Layton Construction Company:
Layton celebrates 30 years in the Valley this year, and expects to see more work in the markets that tend to be leading indicators of positive economic growth such as hospitality, office and industrial markets.
LGE Design Build:
With experience across more than 800 projects and having built 19 million square feet in Arizona over the last 22 years, LGE sees 2017 as its biggest and best year yet with 200,000 square feet of office, restaurant, entertainment and industrial design-build projects on the horizon.
Mark-Taylor delivered the first multifamily community in Arizona to earn the U.S. Environmental Protection Agency’s ENERGY STAR certification last year. Next year, the company will evaluate the potential to transition up to four other properties including San Cervantes, Azul at Spectrum and Borrego at Spectrum.
McCarthy Building Companies, Inc.:
The oldest American-owned general contractor is taking its expertise in utility-solar construction to the national market and has projects from California to Georgia. Numerous schools, solar and healthcare projects are scheduled for 2017 including the ASU BioDesign C, WestMEC, Greenfield Water Treatment Expansion.
Newmark Grubb Knight Frank:
In less than three years, NGKF’s Phoenix division grew from seven brokers to 35. NGKF reports its retail brokerage team accounts for more than any other retail brokerage team in Phoenix at more than 12.5 million square feet. On the industrial side, it handled the $43 million Huhtamaki deal in Goodyear, Aviall Services’ new 323,245-square-foot distribution center in Southwest Phoenix and IRIS USA’s 50-acre purchase for a new 420,000-square-foot facility in Surprise.
Norris Design has grown by more than 300 percent in Arizona over the past five years. The company, known for mixed-use master planning and urban design, has more than 20 notable projects in the works for 2017 including Market Street at DC Ranch in Scottsdale, One Hundred Mill in Tempe and the Banner-University Medical Center in Tucson.
The Opus Group:
The completion and sale of Opus Airport Industrial in November represents Opus’ first full life cycle project since entering the Phoenix market. Additionally, Opus reports a robust pipeline of planned industrial, office, healthcare, and multifamily developments for the area. That includes construction of a 540,000-square-foot master-planned industrial development at the Goodyear Crossing Industrial Park.
Paul Johnson Drywall:
The only Arizona-based drywall contractor named to the national Top 50 Contractor list is projecting significant growth in 2017. Planned projects include new communities for Meritage Homes, K. Hovnanian homes, Taylor Morrison, Toll Brothers, Merril Gardens in Anthem, Maravilla Scottsdale, Aurora on Broadway, Diamante and Aspera.
On the development side, the company will watch The Curve at Melrose take shape in Midtown Phoenix as it heads toward completion in early 2018. It will also move forward with the development of a senior housing component at the mixed-use Aspera community in Glendale. Other projects on deck for 2017 include a 210-unit community in Chandler, a 220-unit community in Mesa starting in Q3 and communities in Goodyear and North Phoenix, which are set to break ground in Q4.
With projects on both sides of the Valley between SkySong, ASU Scottsdale Innovation Center and P83, Sharon Harper, president of Plaza Companies says, “we will be at the forefront of the commercial real estate scene in the coming years.” It will start construction on a fifth and possibly sixth building at SkySong. Meanwhile, it starts the development phase of a mixed-use innovation and technology center at P83 in Peoria and Estrella Medical Plaza 2 at the Banner Estrella Medical Center campus in Phoenix.
Ryan Companies US, Inc.:
Ryan Companies US, Inc. is increasing the amount of healthcare, multifamily, retail, industrial and senior living projects in its portfolio. Ryan Companies Southwest Division has several projects in the pipeline for 2017 including a 28,000 SF medical clinic for Banner Health at Desert Ridge; a 229-unit multifamily project in Phoenix; three-tenant retail development in Tucson and senior living projects in North Scottsdale, Chandler and Mesa.
Since opening in 2015, the firm’s Phoenix office has recruited top regional talent and completed over 100 transactions totaling more than 2.3 million square feet. In 2017, the office expects to continue growing its team and client list of global financial services companies, technology and law firms.
The Scottsdale-based development company has 40 projects in the pipeline for 2017 valued at more than $100 million. In Arizona, it’s working on 20 projects in the East Valley, Scottsdale, and Arcadia.
Named Ranking Arizona’s Best of the Best No. 1 architecture firm for the 17th year straight, SmithGroupJJR, doesn’t plan on breaking the streak. It plans to begin an office project for the Greater Phoenix Economic Council, new city hall for the City of Eloy, the Tempe Tech Campus, and Banner University Medical Center Tucson – North Campus.
Sundt Construction, Inc.:
One of the country’s largest general contractors will continue to work on a number of projects with significant impact on Arizona in 2017. These include water treatment plants, transportation projects in the Valley and Tucson and several building projects throughout Arizona, including ones for our higher education institutions.
VanTrust Real Estate, LLC:
VanTrust will break ground on the Vantage West Distribution Center, a 600,000-square-foot distribution/warehouse space in Buckeye on Van Buren Street and Perryville Road. It will also begin construction on a 120,000 SF speculative office building on the 26-acres it bought in August at Chandler Boulevard and McClintock Road.
The Scottsdale-based technology and analytics firm will be hiring more than 1,000-new employees and continue to build its asset management portfolio, which includes clients like McDonalds and Starbucks. The firm recently launched a new analytics platform called Fusion, which streamlines the efficiency and delivery of its services.
Walker & Dunlop:
Since opening a Phoenix office in 2013, and further expanding in 2016, the company’s commitment to Arizona has resulted in a leading market share. What differentiates W&D as a top tier Fannie Mae, Freddie Mac, HUD and Capital Markets finance company, is a balanced sheet lending program, which recently surpassed $1 billion in volume, including over $85 million in Arizona.
Wentworth Property Company:
Resulting from multiple acquisitions in 2016, Wentworth is now the largest owner of class A office space in North Scottsdale and the largest private land owner in Tempe. A couple projects underway in 2017 include the Scottsdale Landing portfolio, completing the transformation of a 1970’s commercial building to The Alameda, a 232,452 SF creative office campus in Tempe and build-to-suit buildings at the Discovery Business Campus.
Westroc, the development and management entity of Hotel Valley Ho and Sanctuary Camelback Mountain Resort & Spa, plans to open its latest property — Mountain Shadows — in 2017. The $113 million luxury resort will be located at the former Mountain Shadows Golf Resort, which closed more than 10 years ago.
Willmeng Construction, Inc.:
Willmeng plans to construct a mixed-use project called Union32 with 135 Class A multifamily units and 42,000 square feet of ground floor Class A office space. The multifamily portion will have views of Camelback Mountain, a rooftop amenity deck and a rooftop pool. Willmeng will also work on Park Place II — a 2 million-square-foot business campus with plans for eight buildings at full build-out — in Chandler along the Price Road Employment Corridor.