JANUARY-FEBRUARY 2021
ANNUAL
OUTLOOK
Grand2
Developer: Lincoln Property Company General Contractor: Whiting-Turner Architect: DAVIS
INSIDE:
Emerging Leaders p. 50 | Build Your Future p. 57
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Bright beacon ahead
I
t’s over. It’s all over. For the majority of people around the globe, the year 2020 could not end soon enough, and now that it is in our rear-view mirror, it’s time to reflect on what this tumultuous time taught us about ourselves and the entire state of Arizona. The swath of mental and physical suffering that was caused by the COVID-19 pandemic will be something that we will remember for decades to come, and hopefully, we have learned some lessons that will be useful in the future. In terms of the commercial real estate industry in Arizona, 2020 was far from a disaster, but the industry is acutely aware of how businesses in market sectors like retail and hospitality are scratching and clawing to stay afloat as we head into 2021. In this edition of AZRE Magazine, we look forward to the bright beacon of hope that is 2021. One company that has brought a lot of business to the state is Amazon, and this edition looks into the way that Amazon has expanded its operations in the state and the positive impacts that growth has had on business. In our Annual Outlook, industry experts provide their views on the prospects that await in 2021 and how the Greater Phoenix market enters the new year with strong indications of continued development and economic growth. We also give glimpses of some of the companies that will lead the way for the industry in 2021 and shine a light on some of the emerging leaders who are making an impact in the market. Also, in a look to the future, we highlight the ongoing efforts by Build Your Future Arizona to attract and train new skilled trades professionals to bolster the workforce in our state. With the rate of development and growth in Arizona continues, so does the need for trained people to do the building.
President and CEO: Michael Atkinson Publisher: Amy Lindsey Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Contributing writers: Courtney Gilstrap LeVinus | Carrie Kelly ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Digital marketing specialist: Paul Schaum Marketing designer: Heather Barnhill OFFICE Special projects manager: Sara Fregapane Executive assistant: Brandi Collins Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry AZ BUSINESS MAGAZINE Senior account executives: David Harken | April Rice Account executive: Manessa Ochoa AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown EXPERIENCE ARIZONA | PLAY BALL Director of sales: Laura Schwartz RANKING ARIZONA Director of sales: Sheri King
Steve Burks Associate editor, AZRE steve.burks@azbigmedia.com
2 | January-February 2021
AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602)277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. ©2020 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media.
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CONTENTS
FEATURES 2 Editor’s Letter 6 Trendsetters 10 Executive Profile 12 After Hours 14 New to Market 16 Big Deals
20 Legislative Update
36
22 Land Use & Zoning Law
24 Amazon 28 Annual Outlook
36 Companies to Watch
14
50 Emerging Leaders
57 Build Your Future
57
ON THE COVER:
Grand2
Developer: Lincoln Property Company General Contractor: Whiting-Turner Architect: DAVIS
4 | January-February 2021
GO TO store.azBIGmedia.com to purchase subscriptions, digital issues and plaques
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Now’s the time to make your building footprint a little lighter. If you own or manage commercial property, you could cut your operating expenses by becoming more energy efficient. By installing upgrades like LED lighting, occupancy sensors, HVAC units and window film, you can reduce your energy use and get up to $300,000 in rebates from SRP. Get a new lease on savings by contacting your Strategic Energy Manager or visiting savewithsrpbiz.com/propertymanagers.
TRENDSETTERS
35 S
omething that many of us take for granted in our office is the safety systems that are in place. Years of advancement has caused fire protection, safety and security in buildings to blend seamlessly into the structure, out of sight, but highly effective when called upon. Headquartered in Phoenix, Telgian is one of the industry leaders in services ranging from fire and life safety consulting for business and government agencies, fire and building code interpretation, risk analysis and hazard evaluation, fire and building plan review, fire sprinkler system design and industry training. As President and CEO of Telgian Holdings, Inc., James Tomes is responsible for the fire, life safety and security industry-leading company’s overall operational success. He is also a leader in the advancement of the fire protection and life safety industry, and has served on numerous global code development committees. As Telgian celebrates its 35th anniversary, Tomes sat down with AZRE Magazine to look at what’s ahead this year for the fire, life safety and security industry leader. In addition, he offers his thoughts on the unique challenges facing businesses of all types in the Valley throughout 2021. AZRE: As an essential business, what have you learned during Covid-19?
6 | January-February 2021
but also to attract talent from all over the country. We have several universities in the state producing graduates with solid skill sets that will either strengthen existing companies or who will go on to create their own. We look to hire that talent and imbue them with our values and further their skills with ongoing training. On the recruitment front, Phoenix is attractive to out-of-state candidates because of affordable and quality housing and a fantastic outdoor lifestyle.
JT: Reinforcement of our philosophy that great people and good leadership matter... It is one thing to be allowed to operate, but it is another to have a team that is dedicated to overcoming their own fears and obstacles to continue providing the services required by our customers. With proper planning, attention to detail and, above all, a culture that values our employees, we have found that operating safely even in these extreme circumstances can be accomplished.
AZRE: As businesses around the globe have had to adjust to reopening and staying open during Covid 19, how has this impacted Telgian?
AZRE: Tell us about assembling a world class workforce in Arizona.
JT: COVID-19 has been brutal. Even though we are an essential business, revenue has taken a serious hit. While our Fire safety inspection and service business saw some decline, our engineering services took a significant hit as several large national customers put CAPEX projects on hold. We are just now seeing demand begin to return to normal levels. Another impact was a slow-down in our pipeline as firms were either disrupted in their decision-making or were reluctant to make a change amongst the chaos.
JT: I think all the right ingredients are here not only to train and develop our own citizens
For the full Q&A with Tomes, visit azbigmedia.com.
Sundt launches Sundt Renewables Sundt Construction, Inc. has expanded its presence in the renewable energy construction market with the launch of Sundt Renewables, LLC. Prior to forming
the new subsidiary, Sundt acquired select assets and key personnel from i1 Energy, a well-known leader in the renewable power market. Sundt Renewables will focus on utility-scale solar and energy storage projects across the United States with a heavy emphasis on the Southwest and Texas. Sundt Renewables is led by a trio of solar industry veterans and successful entrepreneurs who founded and grew i1 Energy into a well-respected market presence. Tom Dodson leads the group as its Managing Director. As co-founder
of i1 Energy, he led the company’s operations and oversaw the construction of its projects. Topher Wood brings $2.5 billion in solar project experience to his role of Vice President, Business Development Manager for Sundt Renewables. Bobby Batista, i1 Energy’s third co-founder, along with Dodson and Wood, brings over 10 years of solar project experience to his new role of Vice President, Engineering Director for Sundt Renewables. He holds a bachelor’s degree in mechanical engineering from Stanford University.
Taking the next step Nine Arizona commercial real estate professionals recently earned the prestigious Certified Commercial Investment Member (CCIM) designation by the CCIM Institute. In August, the Central Arizona CCIM Chapter welcomed two designees, Perry Gabuzzi, CCIM, The Plaza Companies; and Adam Lam, CCIM, Sperry Commercial Global Affiliates, Insignia CRE. In November, Phoenix hosted the testing for 11 new CCIM designees, including seven
from Arizona. Also in attendance were a tester each from Washington, Texas, New Mexico and Nebraska. Central Arizona CCIM Chapter designees: Jim Gilligan, CCIM, Kinsale Property Group; Bettina Hunt, CCIM, Healthcare Trust of America; Scott Rubin, CCIM, The Plaza Companies; Randy Shuffler, CCIM, Realty One Group Mountain Desert (Lake Havasu City); and Carter Wilson, CCIM, DAUM Commercial Real Estate.
Southern Arizona CCIM Chapter designees: Cody McGuire, CCIM, National Bank of Arizona; and Jullian Willetts, CCIM, ReMax Excalibur Commercial. ARIZONA DESIGNEES: In a gathering only seen during a pandemic, Arizona commercial real estate professionals who received their CCIM designation in November gather remotely or in person at the DC Steakhouse in downtown Chandler.
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TRENDSETTERS
State of the Workforce The importance of workforce development programs in Arizona is obvious to the industry. Those who work in or with the construction industry in Arizona know that they are doing all they can with the amount of skilled tradespeople that are available and in order to keep up with Arizona’s rapid growth, they need more professionals to join their ranks. The Greater Phoenix Chamber Foundation recently released a report titled, “2020 State of the Workforce” that serves as an analysis of the Greater Phoenix region’s labor market. The report seeks to provide perspective on employment trends in the Valley. One of the industries that the report highlights is the construction industry. In the report, author Trevor Stokes, CEO at The Partnership for Workforce Innovation, notes that, “the construction sector in the Greater Phoenix region has grown by 4 percent in the last year, led by gains in the industry’s largest subsection, specialty trades contractors. “The construction industry in the region comprises several subsectors, the largest of which is specialty trades contractors. Specialty trades companies, including plumbing, heating and air conditioning contractors, electrical contractors, and roofing contractors employ more than 165,000 people in the Valley. Residential construction employs another 20,000, while nonresidential construction employs more than 15,000.” 8 | January-February 2021
Some other notable statistics in the report: • Specialty trades companies, including plumbing, heating and air conditioning contractors, electrical contractors, and roofing contractors employ more than 165,000 people in the Valley. Residential construction employs another 20,000, while nonresidential construction employs more than 15,000. • Construction Laborers and Carpenters accounted for 22.5 percent of the jobs in the industry. • Over the past decade, jobs in the
construction occupations have increased by more than 66%, while wages have increased by more than 12% in eight years. • From August 2019 to August 2020, employers from the construction sector in the Greater Phoenix region posted more than 21,000 job openings online. • The five most in-demand technical skills according to those job postings were: Subcontracting, HVAC, Construction Management, Plumbing and Accounting. To view the complete report, go to phoenixchamberfoundation.com.
Rents rising across the Phoenix Metro According to ApartmentList.com’s latest rent report, throughout the past year, rent increases have been occurring not just in the city of Phoenix, but across the entire metro. Rates are up 3.9 percent in comparison to the same time last year. Compared with other markets in the West, Phoenix, Las Vegas and Tucson were the only three that saw rent increases. San Francisco saw a huge rental rates drop of 25 percent, Seattle dropped 15 percent and Denver 5 percent. Of the largest 10 cities that the report had data for in the Phoenix metro, all of them have seen prices rise. Here’s a look at how rents compare across some of the largest cities in the metro: ■ Avondale has seen the fastest rent growth in the metro, with a year-over-year increase of 8.5 percent. The median two-bedroom there costs $1,405, while one-bedrooms go for $1,207.
(Source: apartmentlist.com)
■ Scottsdale has the most expensive rents of the largest cities in the Phoenix metro, with a two-bedroom median of $1,515; rents increased 1.3 percent over the past month but remained flat year-over-year.
■ Phoenix proper has the least expensive rents in the Phoenix metro, with a two-bedroom median of $1,154; rents increased 0.6 percent over the past month and 3.9 percent over the past year.
McCarthy’s Mike Gonzalez earns Distinguished Leadership Award Mike Gonzalez, vice president with McCarthy Southwest region’s education building group, has been awarded a 2020 Distinguished Leadership Award by the DesignBuild Institute of America (DBIA). He received the honor at the virtual 2020 Design-Build Conference and Expo on Oct. 30. Design-Build Institute of America (DBIA) is a membership organization founded to advocate and advance single-source project delivery within the design and construction community. The design-build method of project delivery embraces architecture, engineering and construction services under a single contract, thereby reintegrating the roles of designer and constructor. Gonzalez has nearly three decades of construction experience managing design-build, design-assist and traditional construction projects servicing multiple industries, including life science, infrastructure, manufacturing, industrial, power, hospitality, healthcare, high technology and higher education. He has guided more than $805 million in design-build projects to date. Gonzalez earned a bachelor’s degree in construction management from Arizona State University. He retired as a colonel in the United States Army after 30 years of service where he served honorably in both Operation Desert Shield and Operation Desert Storm.
Welcome to the neighborhood A top architecture firm from Los Angeles is setting up shop in Phoenix. Nadel Architecture + Planning announced the continuation of its expansion plans with the opening of a new office in Phoenix. The expansion positions the firm for ongoing growth in the months ahead and allows it to harness opportunities in a rebounding market, according to Greg Lyon, chairman and principal for Nadel, which has designed projects around the globe, including the iconic Los Angeles International Airport Gateway along Century Blvd. To spearhead the launch of its Phoenix office, Nadel has rehired veteran architecture and design executive Rick Redpath as managing director. Redpath, who has nearly 30 years of experience in the retail sector, had initially been with the firm for five years, joining right before the Great Recession in 2007. “We’re thrilled to welcome Rick back to our team,” Lyon notes. “Rick’s deep expertise and relationships in the daily-needs retail sector, combined with his thorough knowledge of the Phoenix market, allow us to leverage our growth in those areas and build on the market sectors where we currently have expertise in L.A.” 9
EXECUTIVE PROFILE
Lasting legacy Caruso Turley Scott still thriving under culture created by founder 60 years ago By STEVE BURKS
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f a company manages to last for more than five decades, it typically goes through culture shifts to keep up with the times. Generally, these shifts are fairly subtle, with new leadership structures creating changes in philosophy as the company evolves and adapts. One of the oldest structural engineering firms in the state of Arizona, Caruso Turley Scott, has shown that a company doesn’t have to go through a culture shift to thrive in the highly competitive, modern commercial real estate industry. “The culture of Caruso Turley Scott started with the way Sam Caruso treated people. Sam ran the company as if we were all on the same team,” said Paul Scott, who became partner with Sam Caruso and Richard Turley in 1981. “We were all pulling the wagon, including Sam. He didn’t use the term working for the company; he used
10 | January-February 2021
the term 'working with the company.' We’ve continued that culture with all the partners being project managers, too. All the partners work alongside the engineers, drafters, and admin staff working on the projects." Caruso established the structural engineering company in 1963 and the firm is rolling strong towards its 60th anniversary in 2023. Scott is the final working member of the trio that formed CTS in 1981. Caruso died in 1987 and Richard Turley retired in 2018. That trio helped establish the culture that has helped CTS become one of the largest structural engineering firms in the Southwest. Some notable projects that CTS has been involved in include Arizona’s firsts LEED Core & Shell Certified Building, Papago Gateway Biotechnology Research Facility in Tempe; the John M. Roll Federal Courthouse in Yuma, and the largest office development in
Arizona history, the Marina Heights project in Tempe. “Our team is an extension of Sam Caruso’s legacy,” said Chris Atkinson, who is one of seven managing partners at the firm. “Sam always emphasized a culture of respect and the spirit of collaborative service with all people we come in contact with; including architectural clients, building officials, owners, contractors, engineering peers, and CTS team members. This spirit of service and respect has afforded me the opportunity to team together with extraordinary professionals on a broad range of interesting projects.” The leadership structure at CTS ensures that the company will move forward into the future without sacrificing the culture established by its founders that made it successful. Atkinson and Sandra Herd became partners (joining Scott) in 1997 and about every five years, the company
LEADERS: The seven partners at Caruso Turley Scott are, (from left) Brady Notbohm, Chris Atkinson, Troy Turley, Sandra Herd, Richard Dahlmann, Paul Scott and Tom Morris.
has added a new partner. In 2002, Thomas Morris became partners, he was followed by Richard Dahlmann in 2007, Troy Turley (Richard’s son) in 2016 and Brady Notbohm became the latest partner in 2017. Scott, however, remains the link to the company’s past. Caruso began working in Phoenix in 1957 for Gilbert Maderafont Structural Engineers and then started Caruso Structural Engineers in 1963. Richard Turley joined the company in March of 1977 and Scott came on board just a few months later. Caruso asked Turley and Scott to become junior partners on Nov. 10, 1981 and two days later, Caruso Turley Scott Inc. Structural Engineers was official. “I think Richard would agree with me that the most valuable lessons Sam taught us were: a. Do the numbers! Be a good structural engineer. Sam would answer many technical questions by pulling out a book and showing us
the answer to our question. Sam was available to talk about the problem, but he also wanted us to do more digging into what was going on, so we would learn,” Scott said. “And, b. Treat everybody on the building team with respect. You will very likely see them on future projects. This turned out to be true. I know people today that I met over 40 years ago. We both stayed in this business for this long.” CTS has survived this long because the leadership has continued to seek improvements in all areas. “My goal is continuous improvement both for myself and CTS,” Atkinson said. “Technically, how can we improve our training and technology for optimized engineering results. Service, how can we improve our level of service to our broad spectrum of clients. Work environment, how can I provide my CTS team members the best opportunity for professional and personal growth.
Personally, continuing to hone my engineering skills and strengthen my relationships.” Scott hasn’t hinted that he intends to retire anytime soon, but he knows that the company culture and success will likely continue on for many years to come with Atkinson, Herd, Morris, Dahlmann, Troy Turley and Notbohm leading the way. “I think and hope that Sam Caruso would be pleased with how Richard and I (and now Sandy Herd, Chris Atkinson, Tom Morris, Troy Turley, Richard Dahlmann, and Brady Notbohm) have grown the company using his guidance and example,” Scott said. “When Sam invited Richard and I to be junior partners, there were 12 people in the company. Today there are 86 people and seven partners. I love driving around Phoenix and seeing all the buildings we have worked on. I still look forward to going to work every day.” 11
AFTER HOURS
Can’t leave home without it
CRE professionals share their must-have outdoor items
By STEVE BURKS
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here is one clear lesson that many people have learned during 2020 and that is how valuable it is to be able to get outside and enjoy the great outdoors. While many activities were limited, people were encouraged to get outside and away from things if possible. The residents of Arizona are spoiled with some of the best outdoor experiences just a short drive away. But with many people just beginning to experiment with backpacking, camping and outdoor exploration, there are hazards that they may not expect and getting advice from people with experience spending time outdoors could prove valuable. AZRE Magazine reached out to four commercial real estate professionals who have a lot of experience with camping, backpacking and off-road exploring to ask them this question:
“What is the one camping/outdoor item that you can’t go without when you head for the great outdoors?”
ADAM BAUGH
Partner, Withey Morris In October, Baugh, his daughter and some friends from the commercial real estate world did a rim-to-rim hike at the Grand Canyon, hiking under a full moon during the overnight portion of the excursion. Baugh said his family does it all — camping, white water rafting, riding 4x4’s — and enjoys the time outdoors with regular hikes in the San Tan or Superstition Mountains or the Tonto Basin. “My go-to, must-have, is the Multi-tool. I use it all the time and 12 | January-February 2021
its versatility has helped me solve a lot of problems from opening a can, cutting a cord, or tightening a screw on a campout. The biggest reason I always carry it is because of one particularly unfortunate experience I had with a cholla cactus. All it takes is a simple brush with the plant and you are toast. I’ve used the multi-tool pliers to remove cacti from my legs, arms, my dog, kids and bike tires. I never leave home without it.” ADAM BAUGH: Adam relaxing with his daughter during a rim to rim hike
CRAIG COPPOLA
Founding Principal, Lee & Associates Coppola is an experienced backpacker, traveling around the globe to explore places like Iceland, Nepal, New Zealand, Patagonia, Switzerland, Bolivia and Africa. He has a goal to spend 30 nights a year “on the ground” and has gotten in over 200 hikes and 40 days “on the ground” in 2020. “Grape Crystal Light. In Arizona, water is insurance when you are backpacking. We have to carry a lot…all the time. So we started bringing some crystal light to help drink additional
GREAT OUTDOORS: Craig Coppola (top) relaxes while spending one of his days "on the ground" during a backpacking trip; Debbie Laing (bottom left) is strapped in to an offroad vehicle while exploring Arizona's high country; and Mike Oswinkle (below right) is well equipped for anything the roads through the wilderness might throw at him.
water. Grape is the must take flavor no matter where I am backpacking.
DEBBIE LAING
Senior Real Estate Manager Ryan Companies US, Inc. Laing admits that “Glamping” is more her style, but she does spend many nights camping and exploring. “There are three large items that I would have a hard time living without when it comes to the great outdoors. Our 5th Wheel Camper is probably the most important — we take it everywhere! For example, in January we took it to
Parker, Arizona, for off-road racing, brought it out again in April to Lake Havasu for boat racing and of course it was critical in the numerous trips we’ve taken to Munds Park this year. We also have a Polaris RZR and a boat that I’m quite fond of. We love the Polaris for off-roading and the boat is a necessity for our many days spent out on Lake Pleasant. We even take the boat on larger, annual trips like our 120-mile round trip from Laughlin to the Hoover Dam on the water! We see a lot of cool stuff along the way and it’s the trip I most look forward to each year.”
MIKE OSTWINKLE
Field Operations Manager, Weitz Ostwinkle is part of a group of offroad vehicle enthusiasts that tries to get out every six to eight weeks for a weekend run, hitting difficult trails in remote areas. Ostwinkle also said he has spent many days behind the wheel of his truck, taking mainly dirt roads from Phoenix to Hamilton, Montana. “The one item I would not go without is a roof top tent. One year we encountered rain and snow ended up drenched one night. The roof top tent is a game changer.” 13
NEW TO MARKET A
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RESIDENTIAL A ASCENT AT THE PHOENICIAN DEVELOPER: Replay Destinations GENERAL CONTRACTOR: Tiffany Construction Co., and PWI Residential Construction ARCHITECT: Nelsen Partners, Vallone Design, Floor Associates and bulthaup LOCATION: 6000 E. Camelback Rd., Scottsdale SIZE: 195 units VALUE: WND START/COMPLETE: November 2020/ Spring 2022
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MULTIFAMILY B THE PREMIERE AT EASTMARK 2.0 DEVELOPER: PCS Development GENERAL CONTRACTOR: Route2 ARCHITECT: Route2 LOCATION: NEC Ray Rd. & Ellsworth Rd. Mesa SIZE: 354 units (site is 13.2 acres) VALUE: WND START/COMPLETE: Q2 2021/Q3 2022
INDUSTRIAL C 303 LOGISTICS DEVELOPERS: Barclay Group and W.M. Grace Companies GENERAL CONTRACTOR: The Renaissance Companies ARCHITECT: Butler Design Group BROKERAGES: JLL LOCATION: 16695 W. Glendale Ave., Glendale SIZE: 349,663 SF (Phase 1) VALUE: WND START/COMPLETE: September 2020/ Q2 2021
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RETAIL D CARSENSE DEVELOPER: Penske Automotive Group GENERAL CONTRACTOR: A.R. Mays Construction ARCHITECT: John Mahoney Architect LOCATION: 101 & Indian School/Scottsdale Autoshow SIZE: 43,465 SF VALUE: $8,500,000 START/COMPLETE: October 2020/ July 2021
OFFICE E LOFTIN EQUIPMENT HEADQUARTERS DEVELOPER: Loftin Equipment GENERAL CONTRACTOR: LGE Design Build ARCHITECT: LGE Design Group LOCATION: 52nd St. and McDowell Rd., Phoenix SIZE: 20,549 SF VALUE: WND START/COMPLETE: December 2020/ Q3 2021
MULTIFAMILY F THE MANOR SCOTTSDALE DEVELOPER: The Related Group GENERAL CONTRACTOR: McShane Construction Company ARCHITECT: Humphreys & Partners Architects LOCATION: 13320 N. Scottsdale Rd., Scottsdale SIZE: 286 units VALUE: $88 million START/COMPLETE: November 2020/ March 2022
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A DASHING LOCATION
Grand2 is biggest office sale in Arizona in 2020 By ALYSSA TUFTS
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new chapter will begin for a leading tech company at the forefront of innovation and customer satisfaction. When Lincoln Property Company’s Class AA Grand2 office building in Tempe sold in December 2020, it became the largest office sale to close in Arizona that year. Sold for a reported $187 million, the 9-story, 358,000-square-foot Grand2 building will be home to San Franciscobased DoorDash, the leading ondemand food platform. Grand2, which was completed in late 2019 by Lincoln Property Company (LPC) Desert West in partnership with Goldman Sachs MBD Real Estate, is part of The Grand at Papago Park Center, a master plan that will
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ultimately total 3.2 million square feet of office, multifamily, hotel, retail and restaurant space. U.S.-based real estate investment management firm Apex Capital Investments Corporation bought the building. DAVIS served as the architect at Grand2 and WhitingTurner was the general contractor. LPC serves as the developer, leasing agent and property manager for all office space at The Grand, and will continue to serve as property manager for Grand2. CJ Osbrink, executive managing director for Newmark, who represented LPC in the sale of the Grand2, said Grand2 was a unique deal because DoorDash is an amazing tenant and has grown tremendously due to COVID-19. “They went from a pre-IPO valuation of $13 billion and that became $16 billion in the middle of the pandemic, and in late 2020 announced they’re publicly traded and have a more than $50 billion market cap, so the tenant allowed us to maintain pricing here.” “DoorDash had a large office presence in Arizona before the pandemic began and they were already
Dave Krumwiede
CJ Osbrink
conducting a multi-market search to find a larger space to accommodate their ‘next chapter’ of growth,” said David Krumwiede, senior executive vice president, Lincoln Property Company. “They selected Grand2 because it allows them to consolidate their Phoenix footprint into a single building and because it has the layout and amenities that reflect their energetic, forward-thinking culture.” In addition, Krumwiede said the Grand2 was appealing to DoorDash because there’s an opportunity for them to continue to grow into new buildings at
ROOFTOP: Grand2 features innovative amenities including a 13,000-squarefoot rooftop deck with seating, catering capabilities and views of Papago Buttes and Camelback Mountain and a 13,000-square-foot indoor/outdoor lobby and amenity lounge with a TV viewing area, collaborative spaces, conference facilities and an on-site fitness facility.
The Grand at Papago Park Center. Krumwiede said the significance of the sale of Grand2 is investors are making a flight to quality and safety. “Their products of choice are industrial, multifamily and high-quality, singletenant office assets with long-term, credit tenant leases. Grand2 checks those boxes with Class AA amenities and location, and a 15-year triple net lease to DoorDash. The strength of that combination was reflected in Grand2’s ability to attract off-shore money and secure a record-breaking sale price.” Osbrink said DoorDash putting a footprint at the Grand2 is a testament to how attractive the location is for big tech companies who are looking to migrate into the Phoenix market with close access to freeways, proximity to light rail stops and many retail amenities, and is proof that Papago Park is becoming more of a hub for tech-related tenants like DoorDash. “This sale further shows that the sustainability of the Arizona, and specifically the Phoenix economy for companies that are looking to go into a business-friendly, tax-friendly and infrastructure-friendly environment versus some of the other gateway markets,” Osbrink said. “Quick access to freeways, light rail and an international airport eases the burden on corporate visitors and serves commuting employees in ways that will help DoorDash attract and retain the best talent,” Krumwiede said. “As an example, Grand2’s two on-site Light Rail stops and its two nearby freeway interchanges will cut employee commute times by more than 30 minutes compared to some of the increasingly congested projects on the south side of the Lake. From an exposure standpoint, Grand2 also gives DoorDash an amazing, Loop 202-facing building signage position that is visible to more than
185,000 cars per day.” Grand2 features innovative amenities designed for functionality and comfort for DoorDash employees including a 13,000-square-foot lobby and amenity lounge with a TV viewing area, collaborative spaces, conference facilities and an on-site, state-of-the-art fitness facility with Peloton and Mirror equipment. The LEED Silver and Energy Star building also has a 13,000-squarefoot rooftop deck with seating, catering capabilities and views of Papago Buttes and Camelback Mountain. “As much as building amenities add innovation to a project, their real power is in how they serve the people who use the building on a daily basis,” Krumwiede said. “When you add a lobby with comfortable seating, fitness center
or a rooftop deck where an employee can enjoy their lunch with a view, you’re creating a place where someone wants to work. More and more employers are realizing that buildings like these offer a tremendous recruiting and retention advantage. That is where innovation comes full circle with bottom-line business success.” Grand2 was highly competitive during its leasing phase, Krumwiede said its sale listing attracted strong, global buyer interest. “As a vaccine is introduced and our economy re-emerges in the coming months, all indicators point to the appetite for this type of product to continue, or even increase. We already have our next office building underway and look forward to announcing more on that project in early 2021.” 17
MULTIFAMILY/SALES
$122M | 539,135 SF SF MAXWELL ON 66TH
6611 E. Mayo Blvd, Phoenix BUYER: RREEF Property Trust SELLER: JLB Partners BROKER: Institutional Property Advisors
$98M | 388,416 SF
909 WEST APARTMENTS 909 W. Grove Pkwy., Tempe BUYER: JRK Property Holdings SELLER: MG Properties BROKER: N/A
$95M | 403,326 SF
DISTRICT AT CHANDLER 2222 W. Frye Rd., Chandler BUYER: Pacific Coast Capital Partners SELLER: Kaplan Management Company BROKER: N/A
$91M | 313,144 SF RIATA APARTMENTS
100 N. Hearthstone Way, Chandler BUYER: EPI Property Management SELLER: Embrey Development BROKER: N/A
$84.48M | 339,720 SF
THE FAIRWAYS APARTMENTS 777 W. Chandler Blvd., Chandler BUYER: NexPoint Residential Trust SELLER: Virtu Investments BROKER: N/A
RETAIL/SALES
$16.5M | 63,320 SF BELL ROAD TOYOTA
2020 W. Bell Rd., Phoenix BUYER: Lithia Motors Inc. SELLER: Howard A. Keyes
$15.2M | 11,155 SF DIGNITY HEALTH EMERGENCY CLINIC
$14.25M | 123,830 SF LIFE STORAGE
$14.45M | 117,873 SF TARGET
$12.6M | 111,221 SF RESIDENCE INN PHOENIX
17040 N. 51st Ave., Glendale BUYER: Exchange Right SELLER: Mays and Company BROKER: N/A
1800 & 1818 E. Baseline Rd., Tempe BUYER: B6 Baseline LLC SELLER: Menin Development BROKER: CBRE
18 | January-February 2021
3325 N. 16th St., Phoenix BUYER: Artemis Real Estate Partners SELLER: Hawkins Companies BROKER: N/A
8242 N. Black Canyon Hwy, Phoenix BUYER: Cambridge Properties SELLER: Imara Holdings Inc. BROKER: N/A
It’s the big deals and the brokers who close them that make the market an interesting one to watch. Here are the top notabe sales for the months of October and November. Sources: Race Carter at Cushman & Wakefield Research.
OFFICE/SALES
$18.5M | 121,437 SF MARCONI RESEARCH PARK
15810 N. 28th Ave., Phoenix BUYER: PHX AZ Holdings, LLC. SELLER: Sabal Capital Partners. BROKER: CBRE
$10.45M | 14,653 SF
MEDICAL OFFICE BUILDING 1655 N. 107th Ave., Avondale BUYER: Exchange Right SELLER: Exchange Right BROKER: N/A
$9.7M | 20,084 SF SOUTHEAST VALLEY ENDOSCOPY CENTER
875 S. Dobson Rd., Chandler BUYER: Montecity Medical Real Estate SELLER: SEVG Associated Properties BROKER: N/A
LAND/SALES
$8.45M | 82,410 SF
EDWARDS PROFESSIONAL PARK I & II 10752 N. 89th Pl. and 8952 E. Desert Cove Ave., Scottsdale BUYER: West Coast Capital Partners SELLER: MRR Holdings III BROKER: N/A
$6.75M | 64,147 SF
GOODYEAR BUSINESS CENTER Litchfield Rd. & Van Buren St., Goodyear BUYER: Shell Commercial SELLER: Arizona Healthcare Properties LLC BROKER: N/A
INDUSTRIAL/SALES
$65.5M | 29AC
$87.7M | 180,294 SF CHANDLER AIRPORT COMMERCE
$19M | 209.5AC EL CIDRO RANCH
$81M | 601,162 SF LANDING 202
$16M | 72AC
$31.85M | 242,863 SF CIRCLE K DISTRIBUTION
$14.4M | 73AC
$18.3M | 458,200 SF
$14.4M | 108AC SF SABRE BUSINESS PARK
$17.65M | 114,347 SF
ASCENT AT THE PHOENICIAN 6500 E. Camelback Rd., Scottsdale BUYER: Replay Destinations SELLER: Host Hotels and Resorts BROKER: Nathan & Associates, Inc.
Buckeye Rd. and Cotton Ln., Goodyear BUYER: Landsea Homes SELLER: BET Investments BROKER: Nathan & Associates, Inc.
Loop 303 & Glendale Ave., Litchfield Park BUYER: Lincoln Property Company SELLER: Loop 303 at Glendale North LLC BROKER: N/A ALSUP 303 INDUSTRIAL PARK 5215 Alsup Rd., Tolleson BUYER: New York Life Investment Management SELLER: Merit Partners BROKER: Cushman & Wakefield
SR 303 and Bethany Home Rd., Glendale BUYER: Scottsdale Investment Management SELLER: Virgin Farms X LLC. BROKER: Land Advisors Organization
PARK - LOT 4 3405 S. McQueen Rd., Chandler BUYER: Lexington Realty Trust SELLER: Ryan Companies US, Inc. BROKER: Lee & Associates
7958 E. Ray Rd., Mesa BUYER: Cohen Asset Management SELLER: Marwest Capital BROKER: CBRE
8313 W. Latham St., Tolleson BUYER: KKR & Co. SELLER: Cohen Asset Management BROKER: N/A
3740-3836 W. Buckeye Rd. and 5707 W. Buckeye Rd. Phoenix BUYER: Harrison Properties SELLER: DF Properties Inc. BROKER: N/A
14555-14557 N. 82nd St., & 8212-8224 E. Evans Rd., Scottsdale BUYER: Harsch Investment Properties SELLER: Scottsdale Commercial Developments, Inc. 19
LEGISLATIVE UPDATE
5 issues for 2021 E
ach session of the Arizona Legislature has a personality all its own. Some sessions are more contentious than others. Some are mired in external forces pushing significant policies. Others are swift and short. The upcoming Regular Session of the Arizona Legislature will also be unique. With 2020 behind us, the promise of a COVID vaccine in the second quarter of 2021 provides hope for positive policy advances. As always, the Arizona Association for Economic Development (AAED) will play a role in economic development policy at the State Capitol. AAED regularly advocates for economic development programs that make Arizona competitive, measures that ensure a qualified workforce pipeline, and an infrastructure that promotes growth and business opportunities in the state. Below are a few notable issues coming in the 2021 Regular Session of the Arizona Legislature: ANGEL INVESTMENT INCENTIVE PROGRAM In an effort to attract capital for in-state startups, Arizona has had an Angel Investment Incentive Program on the books for years. Administered by the Arizona Commerce Authority, the Angel Investment Tax Credit Program provides certified investors a tax credit equal to 30 percent of investments made in a Qualified Small Business. This certification allows investors to claim tax credits on their eligible investments and receive favorable Arizona income tax treatment on related capital gains.
20 | January-February 2021
Carrie Kelly AAED
The program has been a huge success throughout the years. In 2019 alone, there were 104 certified investor applications and $2.5 million in approved tax credits to help spur innovation in Arizona. The program is up for reauthorization this legislative session. TELEMEDICINE One thing COVID taught state officials is that trips to the doctor are not always in the best interest of the patient due to exposure to other illnesses. Look for lawmakers to introduce legislation to expand Arizona’s telemedicine statutes. Provisions being considered include provider expansion, payment parity and workers’ compensation coverage. COVID LIABILITY PROTECTION Included in stimulus discussions at the federal level is the issue of liability protection for businesses amid the COVID pandemic. Absent any federal legislation, the Arizona Legislature is expected to address the issue in the upcoming session. Draft bills have circulated that would
increase the threshold for lawsuits against businesses based on COVID. From restaurants to retailers, many businesses have been clamoring for some protection against potential lawsuits. PROP 208 OFFSET In November, Arizona voters narrowly passed Proposition 208. The initiative imposes a 3.5 percent surcharge on income above $250,000 (single filing) or $500,000 (joint filing). The revenue collected is disbursed through grants to public schools. Since many small businesses are structured as LLCs, owners elect to allow the tax liability of the business to flow through to personal tax filings. This places a disproportionate burden of Prop 208 on Arizona’s small businesses. Legislative leaders are considering ways to mitigate the impact of Prop 208 on high wage earners and small businesses. One of the proposals that may be introduced in the Arizona Legislature this session includes the concept of an income tax offset of the Prop 208 surcharge. In short, a taxpayer subject to the Prop 208 surcharge would be able to write off the amount on their personal income taxes. The net effect of such a proposal would be to increase the amount of revenue for grants into the K-12 system but decrease the personal income tax revenue for general state government needs. INFRASTRUCTURE One of the challenges that COVID exposed is the “digital divide” that exists in Arizona due to the many needs of rural broadband to the simple hardware and software technology infrastructure needed for distance learning. This legislative session will focus on the divide that exists in connectivity across Arizona and ways to improve connectivity. For AAED, connectivity and broadband infrastructure is a workforce development issue. The students of today are the workforce of tomorrow. Regardless of the reason, students must be able to shift quickly to online learning free of technology challenges. Carrie Kelly is the Executive Director of the Arizona Association for Economic Development
LIHTC will help address housing demand F
or the past decade, Arizona’s population has grown at an exponential rate of 120,000 residents per year. When it comes to constructing rental housing for these new residents, the law of supply and demand very much applies in our state. When developers cannot construct new rental units quickly enough to meet the needs of these new Arizonans – and estimates show that Arizona needs to add about 240,000 new rental units this decade – the marketplace dictates that rents rise. The greater the rise in rents, the more challenging it is for many residents to find housing in their price range. The most practical solution to meeting Arizona’s need for affordable housing and avoiding a California-style housing crisis? Creating an innovative publicprivate partnership that makes it less daunting financially and logistically for developers to grow our state’s supply of rental housing. During the previous legislative session, the Arizona Multihousing Association (AMA), Arizona Housing Coalition (AHC), and other real estate partners helped spearhead the effort to pass a state Low Income Housing Tax Credit (LIHTC) Program modeled after the federal program signed into law by President Ronald Reagan as part of his Tax Reform Act of 1986. Made permanent in 1993, federal LIHTC has since been expanded by Presidents on both sides of the aisle, including Presidents Obama and Trump. Since its inception, federal LIHTC has supported the construction or renovation of more than 45,000 properties and nearly 3 million housing units nationally. Federal LIHTC has helped finance about 16,000 housing units here in Arizona since 1987. Another measure of federal LIHTC’s success? A credible accounting study shows that the foreclosure rate on these properties is less than 1 percent,
Courtney Gilstrap LeVinus AMA
meaning LIHTC financing works and helps the public sector, private sector, job-creating builders and residents. Already, 26 red and blue states – including our neighbors in Colorado, Utah and New Mexico – have created state-level “LIHTC booster” programs to speed up the construction of housing for those who otherwise would struggle to afford rent. In Colorado alone, the state LIHTC program has created over 7,000 new affordable housing units since 2015. Arizona’s state LIHTC would use the same stringent regulatory parameters as the federal LIHTC program. These requirements ensure that a healthy percentage of a development’s housing units are priced affordably and rented to residents with incomes below the area’s median income. The federal program issues tax credits to state and territorial governments, which then use a competitive process to distribute the credits to developers. In Arizona, the Arizona Department of Housing (ADOH) manages this process through its Qualified Allocation Plan. Thus, a state-level LIHTC program would create no additional layer of government. And state LIHTC credits could be targeted toward specific communities in needs, including Arizona’s urban and rural areas, the homeless, military veterans, and schoolteachers.
With Arizona’s need for workforce and affordable housing set to grow at a rate of about 7,500 new units annually this decade, a state LIHTC program would help our housing market meet this ceaselessly growing demand and avoid the pitfalls of failing and unaffordable housing markets such as California and Oregon. State LIHTC would also help draw more developer interest when it comes to building rental housing at all price points and across all demographics. Currently, many developers shy away from building rental units at below market rates. This is due to the fact that land, labor, and material costs are practically identical whether constructing so-called “affordable” or “luxury” units. The same principle holds true with local land-use restrictions, design guidelines, building codes and other regulatory costs. A state-level LIHTC program would better level the playing field without breaking the state budget, without government choosing “winners and losers,” and most importantly without artificially deflating the rental marketplace, a la rent control, like California and Washington. Prior to COVID, the AMA, AHC, and partners had secured wide bipartisan support for a state LIHTC program, passing our bill through a divided state House of Representatives with 45 of 60 votes. This next legislative session, we hope to achieve the same success and finally get the program across the finish line and signed on the Governor’s desk. By doing so, we can come out of this pandemic ahead of the game and create thousands of quality jobs and homes, stimulating an otherwise fragile economy. Courtney Gilstrap LeVinus is the executive director of the Arizona Multihousing Association. 21
LAND USE & ZONING LAW
The Dance continues Attorneys see very little slowdown in development issues By STEVE BURKS
T
he effects of the COVID-19 pandemic for Arizona attorneys who specialize in land use and zoning issues were mainly procedural. Gone were the face-to-face meetings and hearings, replaced by Zoom calls and video conferences. These changes in how business was getting done did not have much impact at the speed of development in the state. “The pandemic was a disruptor for how we do business in the industry, but I give major kudos to the local municipalities that have done their very best to keep things moving forward,” said Taylor Earl, partner at Earl & Curley, P.C. in Phoenix. “We had about a month and a half where a few cases went on pause, but nearly all of them shot back around May and June. Homebuilders were all nervous about what the pandemic would mean for business, but that window of apprehension only lasted 2-3 months until they saw sales continue to climb.” For land use and zoning attorneys, the rapid pace of development is welcome business, especially for projects that see little if any resistance from the municipalities and neighboring property owners. However, infill development and adaptive re-use projects are becoming more and more popular as some parts of the market age and begin redevelopment. “Obviously, infill causes issues of compatibility of existing land uses and new proposals,” said Larry Lazarus, partner at Lazarus & Silvyn, P.C., which has offices in Phoenix and
22 | January-February 2021
Tucson. “Close attention will need to occur with surrounding properties specifically related to density, height, public open space and traffic.” “For the growth on the periphery, but still within local jurisdictions, there is always the conflict between accommodating growth and a desire for a rural living environment,” added Keri Silvyn, partner at Lazarus & Silvyn who works in the firm’s Tucson office. “We expect to also see more zoning entitlements along the periphery of local jurisdictions as infill opportunities decrease.” Earl’s partner at Earl & Curley, Rod Jarvis, said that there are some potential changes in how developments will be built as rising construction costs cause developers and builders to innovate and adapt. “Word is that rising construction costs are going to be the impetus for ever more use of prefabricated building components, not only in manufactured homes communities, but even in traditional ‘stick built’ subdivisions, in apartments, and offices as well,” Jarvis said. “As this practice becomes more wide-spread, acceptance of such building practices will be reflected in zoning ordinances.” Earl and Jarvis both note Arizona’s population growth as indications that development will continue at its current pace for the next few years. “We have seen great redevelopments occur that are both tremendously positive for the surrounding area and are also financially rewarding for the developer,” Earl said. “This trend will certainly continue in 2021. But development is moving to the more undeveloped areas as well, and doing so at a greater rate than we saw coming out of the recession.” “Zoning and land use processes continually re-create the conflict of old and new, existing uses and
Taylor Earl
Rodney Jarvis
Larry Lazarus
Keri Silvyn
neighborhoods and change of the status quo,” added Jarvis. “That ‘conflict’ will always be a part of the land use process.” As 2021 arrives, Lazarus noted that attorneys in his line of work are keeping an eye on a case before the Arizona Supreme Court that focuses on whether government assistance as a public benefit is prohibited if the purpose for the assistance is economic development. The Schires v Carlat case was brought by The Goldwater Institute against the City of Peoria for gifting funds to a private business, Huntington University and Arrowhead Equities LLC. “If the court finds that financial assistance is prohibited, many fear this could have a devastating affect on further limiting financial incentives in the state and may cause businesses to leave Arizona,” Lazarus noted.
Happy & Healthy New Year from Lazarus & Silvyn! Larry S. Lazarus Partner
Keri L. Silvyn Partner
Rory J. Juneman Attorney
Lazarus & Silvyn, P.C., (formerly Lazarus, Silvyn & Bangs, P.C.), is a growing land use law, zoning and planning team, with Partners Larry Lazarus and Keri Silvyn at the helm in Phoenix and Tucson. Thank you to our clients, developers and community partners for helping Arizona communities grow responsibly in 2020. Visit us at LSLawAZ.com.
Michelle Green Senior Land Use Planner
Robin M. Large Senior Land Use Planner
Christine Bell Executive Assistant
Mary Keating Firm Administrator
TaNisha Bryant Office Administrator
34
Phoenix 206 E. Virginia Avenue Phoenix, AZ 85004-1110 602.340.0900
Tucson 5983 E. Grant Road, Suite 290 Tucson, AZ 85712-2365 520.207.4464
DELIVERING EXCELLENCE AND INTEGRITY FOR MORE THAN THREE DECADES.
YEARS
Over the test of time, Bjerk Builders has consistently proven their unparalleled dedication to excellence, by completing client projects on time, within budget and with the utmost level of quality. License B1-088897
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480.497.2300 • fax: 480.497.9610 www.bjerkbuilders.com 23
9/23/20 9:08 AM
AMAZON
GROWING TOGETHER
Arizona benefitting from Amazon’s rapid growth in the state
By STEVE BURKS
Y
ou’re not mistaken if you feel like you’re seeing a new Amazon fulfillment or delivery facility pop up every few months in the Greater Phoenix market. In fact, the company is on pace to average one new facility each month in the market during 2020, with 12 new locations beginning operations during the calendar year and three more facilities ready to come online in 2021. “Growth and expansion is based on demand. Amazon’s business continues to grow exponentially, and with it, Greater Phoenix is a beneficiary,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council. “Greater Phoenix is the perfect location for distribution because of our infrastructure, talent pool, low business costs and advantageous operating environment. Businesses in Greater Phoenix can serve more than 33 million consumers in a single
24 | January-February 2021
days truck haul, our shipping costs to California are up to 75 percent cheaper than other Mountain West markets and we have the third largest labor pool in the western U.S.” Relative to population, Arizona was Amazon’s most active market in 2020, which was the most active the company has been in the state. Since 2017, Amazon has opened 20 facilities in Arizona, and according to Amazon spokesperson Lisa Guinn, the number of full- and part-time employees will be more than 20,000 statewide by the end of 2020 and those numbers grow each year. All of this growth in the market has taken just 13 years from the time Amazon opened its first facility in the state in 2007. “Due to the nature of its business, Amazon has quite a significant footprint statewide,” said Sandra Watson, president and CEO of the
Arizona Commerce Authority. “For example, just recently the company announced expansion plans in several Arizona cities — Avondale, Chandler, Goodyear, Mesa, Phoenix and Tempe. These new sites in the Phoenix metro area will support customer fulfillment and delivery operations. It’s a large-scale undertaking, and we are grateful for the company’s continued investment in Arizona.” Amazon also announced plans for a 90,000 square foot Phoenix Tech Hub expansion at 100 Mill in Tempe, which will bring more than 500 new jobs to the community. “Amazon more than doubled its workforce in Arizona between 2017 and 2020,” said Camacho. “Since 2010, Amazon has invested more than $11 billion in Arizona and added more
AMAZON’S ARIZONA FOOTPRINT
According to research by MWPVL, a specialized supply chain, logistics and distribution consulting firm based in Montreal, Quebec, Amazon facilities account for more than 12 million square feet spread among 32 facilities, with more facilities in the works. Here is a breakdown of Amazon facilities in the state by type.
Fulfillment and Distribution Centers (14)
Delivery Stations (15) FACILITY CODE
CITY
SIZE (SF)
OPENED
DPX1
Phoenix
Unk
May 2015
DPX3
Chandler
91,200
May 2017
DTU1
Tucson
10,000
September 2017
DPX5
Phoenix
169,600
2018
CITY
SIZE (SF)
OPENED
DPX6
Goodyear
432,200
September 2019
PHX3
Phoenix
1,009,400
September 2007
DTU2
Tucson
49,500
September 2019
PHX5
Goodyear
820,400
June 2008
HTC1
Tucson
38,400
March 2020
FACILITY CODE
PHX6/TFC1
Phoenix
1,205,600
October 2010
DTU8
Phoenix
100,000
August 2020
PHX7/PHX8
Phoenix
1,267,100
September 2011
DPX7
Chandler
201,800
September 2020
PHX9
Tolleson
Unk
October 2015
DPX8
Phoenix
347,600
September 2020
XUSH
Phoenix
149,200
October 2015
DTU3
Chandler
164,500
September 2020
TUS1
Phoenix
473,200
Q4 2017
DPX4
Tempe
106,700
September 2020
Unknown
Phoenix
129,500
June 2018
DTU9
Mesa
150,000
November 2020
*SAZ1/VAZ1/HPX1
Phoenix
149,200
September 2019
No code
Surprise
145,500
2021
No code
Phoenix
145,500
Q4 2021
TUS2
Tucson
857,400
April 2020
GYR1
Goodyear
855,000
November 2020
AZA4
Phoenix
554,000
Q4 2020
GYR3
Phoenix
1,100,000
Q4 2020
GYR4
Avondale
242,500
Q4 2020
*HPX and HTC are both Heavy/Bulk Delivery Stations
Inbound Cross Dock Facility (1) FACILITY CODE No code
*SAZ1 is a mini fulfillment center/Amazon Fresh/Delivery Station for Same Day Delivery; HPX1 is Heavy/Bulky Delivery Station
First Mile Sortation Centers (1)
CITY
SIZE (SF)
OPENED
Goodyear
554,300
2021
Amazon Prime Hub (1)
FACILITY CODE
CITY
SIZE (SF)
OPENED
AZA5
Phoenix
569,300
May 2019
FACILITY CODE
CITY
SIZE (SF)
OPENED
UAZ1/DPX1
Phoenix
59,900
May 2015
(Source: MWPVL International)
25
AMAZON AMAZON: Recent growth means company will employ more than 20,000 people in Arizona by the end of 2020.
than $9 billion into Arizona’s GDP. Additionally, there are more than 10,000 small and medium business sellers and independent authors in Arizona that are growing their business with Amazon.” “Whether it’s food, drink, e-commerce, industrial distribution, UPS, FedEx; this Valley has been such a beneficiary and is going to continue to be thanks to e-commerce,” added Chuck Carefoot, senior vice president of construction for the Southwest Region for Ryan Companies US, Inc., which completed an 857,000 square foot Tucson facility for Amazon in May of 2019. “I think we’re in for some good times.” Amazon’s rapid growth has corresponded with equally rapid growth in Arizona, as well as a maturing commercial real estate market, which is seeing a huge influx of warehouse, distribution and manufacturing facilities. “Amazon is proud to be an active member of the Arizona business community,” Guinn said. “We appreciate the strong, long-standing support we’ve received from local and state leaders as we continue to grow and make investments to support Arizona’s communities. There are many contributing factors that go into our thought process as we decide where to place new buildings to support our operations network. We look at the workforce and community partners and know there is an abundance of talent across the state.” Since the majority of Amazon facilities are similar to one another, it would be understandable if the company contracted the work on those buildings to a small pool of companies in order to maintain consistency. However, Amazon does just the opposite, spreading business around to many developers and general contractors, who in turn utilize the services of many different architects, engineers and other professional services companies. Amazon has recently opened facilities that were built by Graycor 26 | January-February 2021
Construction, Layton Construction, Ryan Companies US, Inc., The Renaissance Companies and Willmeng, and were developed by Irwin G. Pasternack, AIA + Associates; Lincoln Property Company; Prologis; Seefried Industrial Properties, Inc. and The Opus Group. And these are just a few of the companies that have developed or built one of Amazon’s 29 active facilities in Arizona. Carefoot feels that this approach to development by Amazon is similar to how Ryan Companies tries to cultivate a deep roster of subcontractors in order to have a strong reach in the market. “Ryan is stronger because we have depth in our subcontractor base,” Carefoot said. “I see that in our national customers who are like Amazon on the e-commerce distribution side of the equation. And like us, they are an essential service, so it’s vital that none of us put all of our eggs in one basket.” “The evolution within Amazon at a facility level is staggering in the scope and breadth,” said Chelsea Porter, director of marketing for The Renaissance Companies. “With their pace of hiring and opening new locations, our team is often the most experienced team member in a facility, and called on to lead the planning and coordination efforts for the project. Of course, all work must be completed without impacting a 24/7/365 operation, one that will likely be handling a higher volume at the end of that project than when we started planning.” While many of the facilities may have the same basic shell, Amazon has continued to improve on how its
facilities operate, which challenges builders. “Change is truly the norm within Amazon and they expect their contractors to not only deal with it, but to embrace it and be an active part and contributor to it,” added Porter. “The variety of project type also runs the gamut from improving package flow and handling in a sort or last mile building, to employee area improvements, to a state of the art secure operations and data center. Amazon challenges us to always think outside of the box and to be innovators.” By 2022, Amazon is expected to employ more than 22,000 people in Arizona, which would make it one of the largest employers in the state. The company has developed very robust training and career development programs for its employees. The goal of the programs is to provide skills training to warehouse associates in order for them to advance into higherpaid, in-demand positions at Amazon or outside companies. Amazon’s Career Choice program provides tuition and fee support for employees who are working towards certification or a diploma in qualified fields of study, including transportation, healthcare, mechanical and skilled trades and IT & computer science. The program offers on-site classes to make it easier for associates to take part. Amazon also has its A2Tech (associate to technician) program that launched in 2016 and is designed to give fulfillment center associates the training and industry certification to move into a more highly skilled IT career.
ANNUAL OUTLOOK
MIXED MESSAGES
Some sectors rolling, others limping into 2021 By STEVE BURKS
28 | January-February 2021
T
here was a lot of bad news to go around in 2020, as many businesses in Arizona were affected by the COVID-19 pandemic. As our attention turns ahead to 2021, it’s still not quite clear how much damage the pandemic had on the various commercial real estate sectors. In the Greater Phoenix multifamily, industrial and land markets, that damage was minimal, as those sectors enter 2021 with strong momentum that looks like it will carry well into next year. The office and retail markets, however, weren’t so lucky. How people work and buy goods during a pandemic continue to evolve, and both sectors head into 2021 with a lot of questions about how much space will companies
use in the future, and will people return to the store after spending a better part of a year doing their shopping online. AZRE Magazine talked to experts on the various market sectors to get their insight on what we can expect in 2021.
MULTIFAMILY The Greater Phoenix multifamily market appears to be very healthy heading into 2021, despite a 2020 that caused many players in the market to pause as they gauged the effects of the pandemic restrictions. “We started the year with a hot first quarter. When COVID-19 hit in Q2, Phoenix multifamily activity came to a screeching halt,” according to Alon Shnitzer, senior managing partner at
ABI Multifamily. “Everyone wanted to wait and assess the market to see how things were going to pan out. When it became clear Phoenix was a hot destination, and rent payments were holding steady, activity began to pick up in the third quarter. As for the fourth quarter, it’s been a blistering hot market. ABI Multifamily currently has 40 properties in escrow.” One negative factor caused by the pandemic appears to be new product in the pipeline, as new construction is well off of the 2019 pace that saw more than 6,000 new units delivered. That slightly slower delivery pace will have an effect on rental rates, as well as unit sales prices. According to the Kidder Mathews Q3 2020 Multifamily Market Trends Report, average asking rents in
29
ANNUAL OUTLOOK MULTIFAMILY NEW CONSTRUCTION & ABSORPTION
AVERAGE ASKING RENT/UNIT & VACANCY RATE
10K
$1.2K
12%
$1.0K
10%
$800
8%
$600
6%
$400
4%
$200
2%
9K 8K 7K 6K 5K 4K 3K 2K 1K 2010
2011
2012
New Construction (Units)
2013
2014
2015
2016
2017
2018
2019
YTD
2010
2011
Asking Rent/Unit
Absorption (Units)
2012
2013
2014
2015
2016
2017
2018
2019
YTD
Vacancy Rate
(Source: CoStar/Kidder Mathews) NUMBER OF UNITS SOLD & GROSS RENT MULTIPLIER
the market have gone up 3.65 percent to50K $1,122. “Apartment sales in Phoenix 40K dropped to about half of their normal levels in Q2 as shutdowns and 30K uncertainty created a challenging market,” said Steve Gebing, partner at 20K Institutional Property Advisors, a subsidiary of Marcus & Millichap. 10K “Deal activity has already started to recover, a trend that will be supported going into with2013 positive 2010 2021 2011 2012 2014 2015 2016 GRM Number of Units Sold economic demographic and drivers, along with historically low interest rates spurring investment sales.” Gebing points out that the state is seeing its population boom continue, and it may be accelerating due to the pandemic driving many people out of high-density coastal cities. Gebing feels that the demand for lower living costs will support demand for rentals in the West Valley and inforthis Class C product The information report was composed by thethe Kidder more broadly across metro. Mathews Research Group.which is already “Workforce housing, in short supply, will see greater demand GARY BARAGONA due to economic uncertainty,” Gebing Director of Research states. “These trends have and will 415.229.8925 continue to push occupancies and rents gary.baragona@kidder.com higher on Class B and C apartments MARKthe READ across Valley.” Regional President, With the majorityBrokerage of factors working toSouthwest increase demand for multifamily 602.513.5200 products, it appears poised to perform mark.read@kidder.com atLIC record high levels in 2021. N° 00572743 “Based on what we’re seeing, multifamily is expected to remain the top product type of choice for KIDDER.COM investors, with increasing momentum going into 2021,” adds Shnitzer.
INDUSTRIAL
2017
AVERAGE SALES PRICE/UNIT & CAP RATES
Research & Forecast Report for Q3 $180Kin Greater The industrial15% market 2020 by Colliers International in 9% 8% $160Kthe Belle of Phoenix has turned into Arizona. There was 4.7 million square 12% the ball in the commercial $140K real estate feet of industrial product delivered 7% world. in Southwest Phoenix through Q3, 6% $120K 9% Despite the pandemic, industrial with another 3 million SF under 5% $100K activity was unprecedented, with just construction. This growth was sparked 4% $80K under 10 million6%square feet of product by the opening of the Loop 303. The3% $60K delivered through Q3 and another 9.3 other hot submarket was the Northwest $40K 2% 3% million under construction. (Deer Valley), with 2.5 million SF $20K 1% “Industrial should remain the delivered in 2020 and another 5 million “Belle of theYTDBall” in Greater2010 Phoenix under 2018 2019 2011 2012 2013 SF 2014 2015construction. 2016 2017 2018 2019 YTD Cap Rate through at least 2022,” said Sale Jim Price/Unit “I believe 2021 will have more Wilson, executive managing director momentum than any year in our for Cushman & Wakefield. “Because market’s history. We feel it is almost a the market didn’t enter 2020 with an perfect storm,” said CBRE senior vice excess of available industrial space, president Pat Feeney, who teams up Kidder Mathewswon’t is the result largest,in independent commercial real estate firm on the West Coast, new development an with Kennedy on many transactions. with 900 real estate professionals and staff in 22 offices in Washington, Oregon, California, overbuilt market.” is makingappraisal, it increasingly Nevada, and Arizona. We offer a complete“California range of brokerage, property That assessmentconsulting, played out during moremanagement, difficult andand expensive to finance do management, project and construction debt equity for alltoproperty types. 2020,services according Rusty Kennedy, business there, and companies in cities senior Vice President at CBRE. and states that are fiscally upside “Quarter one wasBROKERAGE one of the most, down are moving to the sunbelt, and COMMERCIAL if not the most active we have ever Phoenix is inching higher up on the list ANNUAL NO. OF seen for positive net absorption with of affordable and “business friendly” SALES SF BROKERS just under 4 million square feet,” alternatives. Hence, I envision 2021 to Kennedy said. “As weANNUAL headed into likely be a banner ANNUAL year for the region.” quarter two, we saw aTRANSACTION ‘tapping on the One untapped area thatSF Wilson feels LEASING brakes’ early, but thenVOLUME activity picked could have vast potential is the land up again in mid-April. Subsequently, along the South Mountain Loop 202 absorption in theADVISORY third quarter was freeway, including hundreds of acres of VALUATION well balanced and getting back on Gila River Indian Community land. TOTAL NO. track to a record pace.APPRAISALS I expect 2020 “If developers can successfully ANNUALLY APPRAISERS/MAI’S to likely end up at over 11 million navigate the process of building square feet of positive net absorption on leased land and working with and possibly pushing higher.” PROPERTY MANAGEMENT Tribal Projects Development and The bulk of the industrial landowners, that area provides major IN ASSETS UNDER MANAGEMENT development in 2020 occurred in opportunities,” Wilson said. “It offers MANAGEMENT PORTFOLIO SF the Southwest Phoenix submarket, the same desirable attributes as the according to the Arizona Industrial West and far East Valley, large blocks of
27M
450+
$9.6B
42M
1,680+
37/23
70M+
$12B+
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant
30 | January-February 2021 should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT, OR OTHER PROFESSIONAL ADVISOR.
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Design-Build.
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ANNUAL OUTLOOK INDUSTRIAL
(Source: Bureau of Labor Statistics)
available land, access to freeways and close proximity to growing populations for staffing.”
OFFICE The COVID-19 pandemic fundamentally changed the office environment (at least temporarily) and the numbers reflect that change. According to Don Morrow, senior Vice President, investment sales for NAI Horizon, through Dec. 1 of 2020, there has been 617,000 square feet of negative net absorption in the Greater Phoenix market, most of which has been a result of the sublease market. This negative net absorption caused the overall office vacancy rate to go from 11.4 percent at the beginning of 2020 to 12.8 percent. “Larger tenants have seemed to be more impacted and many have placed any moving plans on hold,” Morrow said. “Smaller tenants are slowly resuming their real estate activity with leasing of these smaller spaces becoming more active.” So, what does 2021 look like for the office market? “We believe we will continue to see slower activity in the leasing market for the early part of 2021, with many companies having found efficiencies in their employees working remotely,” said Tyson Breinholt, partner and 32 | January-February 2021
associate broker for Commercial Properties Inc. “I expect some spaces will be coming back on the market, and predict an increase in the amount of sublease space as companies shift to take advantage of smaller footprints with some teams effectively working from home.” “I think that companies are learning to navigate some of the initial challenges that they faced and are focused on putting together business plans that successfully blend a hybrid work model for their employees that includes a combination of working in the office, working from home (WFH) and possibly a third off-site remote or satellite location,” said Larry Downey, vice chairman/tenant advisory services for Cushman & Wakefield. “Companies will continue to focus on evaluating their real estate options during the early part of 2021.” The biggest question mark heading into 2021 is how companies implement work from home (WFH) strategies. The general feeling is that people will want to return to the office, but also have the flexibility of WFH. Just how that will affect leasing demands, remains to be seen and may take a couple years to fully play out. “We’ve seen and heard from employees, C-Suite executives and corporate commercial real estate
RETURN TO OFFICE SURVEY
Gensler surveyed 2,300 workers with companies of 100 people or more and of those surveyed here were the responses about working remotely: ■ 45% of the people want to return to the office full-time ■ 26% of the people wanted to have a hybrid model working from home 1 or 2 days a week ■ 18% wanted to work from home 3 or 4 days a week ■ 12% of the people wanted to work from home full-time.
WFH HICCUPS
Companies are finding there are some drawbacks to a work-from-home environment such as: ■ It is difficult if not impossible to train new employees ■ Work efficiency and output is not easy to monitor ■ Employees access to technology ■ Security issues with non-controlled remote computers ■ Personal development is stifled ■ Collaboration is more difficult ■ Loss of work/life balance (Source: Don Morrow, senior vice president, NAI Horizon)
occupiers over the past nine plus months that most of their workforce want to return to the office for at least a good percentage of their work
ANNUAL OUTLOOK RETAIL
schedule,” said Downey. “As they work through the new work schedules, companies will evaluate their current and future real estate requirements and whether that includes up-sizing to allow for increased space for distancing or reducing their square footage for a smaller numbers of workers.”
RETAIL According to Darren Pitts, executive Vice President at Velocity Retail Group, many brick-and-mortar retailers were struggling prior to the COVID-19 pandemic, so the impact of that were too much to overcome, with many businesses forced to close in 2020, creating vacancies that would not have been there in a normal year. “The Phoenix market will have negative absorption for the first time since the Great Recession with nearly 500,000 square feet of negative net absorption in 2020,” reported Pitts. “This has been reflected in the current market statistics which show a vacancy rate of 7.7 percent, which is up from 7.3 percent at year-end 2019.” Heading into 2021, Pitts expects retail users to be more “refined and disciplined.” “We believe the retail market should become stronger and more efficient than it has been in the last decade. Brick and mortar isn’t going anywhere,” according to Pitts. “We expect retailers to be healthier and have better technology, logistics and delivery platforms.” Despite a less-than-stellar 2020 and a pandemic that keeps dragging on, it’s not all gloom-and-doom heading into 2021. The Newmark team of Steve Julius, Jesse Goldsmith and Chase Dorsett see much to be bullish about, with continued population and job growth in the market, which will 34 | January-February 2021
(Source: Avison Young}
support retail development, especially in high-growth areas like the East Valley and Southwest Valley. “Phoenix’s strong job market, favorable climate and affordability has long made it a top living destination for people all over the country,” Julius, Goldsmith and Dorsett said in a joint response. “From 2010 to 2019, Phoenix Metro added over 750,000 new residents (US Census), making it the third fastest growing metro area in the entire country. In addition, in 2019 Phoenix metro posted wage growth of 3.84 percent, ranking second among metros for highest wage growth. These factors make Phoenix a top market for new retailers and existing retailers expanding.” The Newmark team did note, however, that one potential factor that could work against retail expansion is the expected increase in capital gains taxes for high earners, and the possibility of eliminating the 1031 exchange for investors with incomes over $400,000. “We estimate that 40 to 50 percent of multi-tenant retail transactions involve a 1031 exchange so eliminating this would have an immense impact on the industry,” Juluis, Goldsmith and Dorsett added.
LAND It’s not quite the great Oklahoma Land Rush of 1893, but the current status of land sales and transactions in the Greater Phoenix area is nearing “boom” levels. “For the first time in several years the land market in 2020 gained intense momentum,” said Nate Nathan, founder at Nathan & Associates. “The fact that all the finished lots, both in Maricopa and Pinal county, were acquired by mid
2019, builders had no other option other than to turn their attention towards land in the growth corridors.” Nathan said that the growth patterns are becoming clear as we head into 2021, with areas west of the White Tanks, Grand Ave., Southeast Buckeye, City of Maricopa, San Tan Valley, and Pinal County all becoming very important for home builders to find new inventory. One growth corridor that saw tremendous activity is the Loop 303 corridor in the West Valley. There have been major industrial developments along the Loop 303, which have created job centers for the growing population out in that area. “Starting approximately four years ago the 303 corridor created approximately 5,000 jobs, this is changing the land market dramatically,” said Ryan Duncan, broker at Nathan & Associates. “There are thousands more jobs predicted over the next few years in and around this corridor. For the first time, the West Valley is going to thrive due to this employment corridor. The same phenomenon holds true for the 202 corridor and more specifically land in Laveen. Those changes to the employment map will also impact housing from the standpoint of reasonable commute times in support of growth. Look to see sub-markets that had been previously non-viable to suddenly come alive.” Nathan said that he has seen the lot prices increase by 30 percent in 2020, driven by high demand and low supply, as well as increasing costs of infrastructure. As more than 100,000 new residents arrive in Arizona each year, it will be a few years before the land market slows down.
COMPANIES TO WATCH
GUIDING FORCES These companies will show the way to a better 2021
36 | January-February 2021
W
hen 2020 began, the commercial real estate industry was enjoying calm winds at its back and smooth sailing ahead. The forecast changed rapidly, and by the middle of 2020, it was lifeboats in the water and everyone was bracing for the ship to go down.
However, the industry managed to salvage a solid 2020, with many companies in the Greater Phoenix market enjoying record years in terms of activity. This was due to the overall strength of the market, one that was shaped by the last downturn that took almost a decade to recover from. The companies highlighted below were some of the ones leading the way as the industry fought through the unknown elements caused by the COVID-19 pandemic, and will be the ones to keep an eye on as they navigate into 2021.
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COMPANIES TO WATCH
ARCHSOL
Celebrating 15 years of ongoing success in healthcare architecture, ARCHSOL continues to design solutions that enhance and benefit its clients’ ability to serve the community’s healthcare needs. This past year, ARCHSOL has grown to more than 35 individuals with experience in all facets of healthcare project delivery. ARCHSOL was awarded a 2020 “ENR Award of Merit” for a bed-pod renovation project as well as a “Best Places to Work” award. The ARCHSOL team is ready and prepared to handle all that 2021 has to offer!
BUTLER DESIGN GROUP / ARCHITECTS AND PLANNERS
Butler Design Group (BDG) remains an industry leader for commercial architectural firms in the Valley. Named Architectural Firm of the Year in both the 2020 NAIOP and AZRE RED Awards, BDG recently surpassed the 50 million square foot mark of projects completed and/or under construction over the past 25 years. In 2020, BDG was involved in the design of over 6.5 million square feet, including the design of several marquee projects such as the Creighton University Health Sciences Campus.
CARUSO TURLEY SCOTT STRUCTURAL ENGINEERS
As one of the oldest and largest structural engineering firms in the Southwest, Caruso Turley Scott was well positioned to thrive during the challenging 2020. CTS worked on noteworthy projects that came to life in 2020, including HonorHealth Sonoran Medical Center and Valleywise Health Medical Center. Moving forward, CTS will continue to deliver best-inclass engineering across the entire scope of product type. 38 | January-February 2021
CAWLEY ARCHITECTS
Celebrating over 25 years, Cawley Architects looks forward to advancing their clients’ and staffs’ aspirations in the next 25. Cawley has developed best in class practices that combine art and engineering to deliver striking contemporary building designs. Recent successes include the state-of-the-art Heidi’s Village Animal Rescue, the Ottawa University O’Dell Recreation Center, the Adelante Primary Healthcare facility, and the Southwest Industrial Center. Cawley has been the No. 1 Small Architectural office in Ranking Arizona for three straight years.
CBRE
In spite of tremendous headwinds caused by the outbreak of COVID-19, CBRE continued to serve as an invaluable strategic partner and advisor to its clients during uncertain times. As Arizona and the rest of the world deal with the effects of the pandemic in 2021, CBRE will continue to leverage its scale, research, data and thought leadership to determine future trends and opportunities to ensure their clients prosper and build advantage for themselves across their entire commercial real estate footprint.
CLEAR COMMERCIAL ADVISORS In 2020, Clear Commercial Advisors enjoyed record revenues as the team continued its focus on retail leasing in Downtown and Midtown Phoenix. The team is one suite away from completing lease up of Portland on The Park, located in the historic Roosevelt neighborhood, and Tapestry on Central, a Midtown Phoenix condominium project with ground-floor retail located on the northwest corner of Central Avenue and Encanto Boulevard, is almost fully leased as well. Moving into 2021, they are expecting more growth.
BUTLER DESIGN GROUP: Butler designed the new Ball Corporation Canning Facility in Goodyear.
COLLIERS INTERNATIONAL IN ARIZONA
Colliers AZ is projecting a strong year in 2021, especially in the areas of industrial, multifamily, healthcare and land. During 2020, Colliers was awarded more than 200 new assignments and we believe the Arizona economy will provide the conditions to successfully service them. During 2021, Colliers plans to build on its 2020 momentum and continue providing strategic real estate advice to clients, navigating the many “moving parts” of the current business environment.
COMMERCIAL PROPERTIES INC. Commercial Properties Inc. has become a juggernaut in the Valley, and enjoyed one of its best years ever in 2020. CPI’s focus is mainly on properties in the exploding East Valley market, which is seeing big population increases and an expanding development footprint. As CPI moves into 2021, the firm feels that the Phoenix market is positioned to continue to grow. The market will need to see flexibility in the first two quarters of 2021, but then expect to see some positive traction in leasing for the remainder of the year.
CONCORD GENERAL CONTRACTOR
In January 2020 Concord completed a succession plan and leadership transition that had been in the works for over a decade. With the leadership transition came a strong focus on identifying how Concord had grown and changed over the years and building on the
COMPANIES TO WATCH strong culture and reputation we have within the industry. People are the strongest asset at Concord and in 2020 they officially became Employee Owners by becoming an ESOP company, building an even stronger dedication to the building environment.
CORE CONSTRUCTION
During 2020, CORE had the opportunity to build a wide range of projects that will transform education and public safety across Arizona. In the coming months, CORE looks forward to the successful completion of nine fire stations currently in design and construction as well as the opening of a landmark, 150,000 SF Public Safety Training Facility in Gilbert. In 2021, CORE will complete key projects at all the major universities and work on facilities for more than 50 Arizona school districts.
CORESLAB STRUCTURES INC.
Coreslab Structures has provided total precast concrete solutions for projects across Arizona and Nevada for the past 32 years. While 2020 did have its surprises and challenges, Coreslab successfully completed a number of high profile projects including the Catalina Parking Garage at Park Central Mall which is the tallest parking structure in Arizona. Ron Harman, who has been with Coreslab since 1982, will retire in 2021 as the General Manager and Rick Reichenberg will step into that role.
CORGAN
Corgan’s aptitude for agility and focus on human-centric design offered the foundation HEIDI'S VILLAGE: Animal rescue facility was designed by Cawley Architects and built by CHASSE Building Team.
40 | January-February 2021
to navigate this unprecedented year. In 2020, the firm opened a northern Arizona office in Flagstaff and celebrated recognition by AZ Big Media as the No. 1 architecture firm in Arizona, one of the top 20 companies to watch out for, and one of Arizona’s most admired companies. Design, planning, and strategy projects across the globe continue including current work in Arizona spanning the aviation, data centers, education, healthcare, municipal, and workplace markets.
CUNINGHAM GROUP
For more than 50 years, Cuningham Group has earned an outstanding reputation for delivering excellence in architecture, interior design, urban design, master planning, and landscape architecture for a diverse mix of clients and project types including healthcare, senior living and multifamily. Select work includes Valleywise Health’s Roosevelt Campus Replacement Hospital, Dignity Yavapai Regional Medical Center’s Outpatient Services Building, Banner Desert Medical Center’s New Women’s Tower, and Aspire Park Central, which will provide market-rate apartments as part of the redevelopment at Park Central.
CUSHMAN & WAKEFIELD
Cushman & Wakefield went into 2020 with great expectations after a strong 2019, but the impact of COVID-19 caused the company to pause and hit the reset button for how the pandemic has impacted the industry. Since the beginning of the pandemic, Cushman & Wakefield has been an industry leader delivering innovative materials for clients such as the Six Feet Office prototype, a conceptual idea to help clients prepare for the return to the office, and the Recovery Readiness guide, which outlines some of the best thinking and practices in reopening the workplace.
DAVIS
DAVIS projects completed in 2020 include The Grand and Cambria (Phoenix), Novus (Tempe), Canopy (Scottsdale) and RendezVous Urban Flats (Tucson). Looking ahead, the firm will continue to design mixed-use properties that are timely and timeless, as well as excellent investments for owners and developers. Known for noteworthy architecture that generates impressive return on investment, DAVIS designs feature sustainability and wellness for improved productivity, reduced absenteeism, and enjoyable work, hospitality, and multi-family residential environments.
DP ELECTRIC
Celebrating 30 years in business and a fourth AZCentral Top Company Award, 2020 was a milestone year for DP Electric. Company growth was forefront going into 2020 and met by groundbreaking projects like Phoenix Sky Harbor Terminal 4 South Concourse and Nationwide regional headquarters. DPE also launched its new in-house, NCCER accredited, apprenticeship training program, which is instrumental in the success of providing high quality talent to all projects. Looking towards 2021, DP Electric plans to continue to invest in employee development, prefabrication and virtual design.
EARTHWORKS ENVIRONMENTAL Earthworks was born in 2014 of a single client in Phoenix and continued to develop client relationships throughout Arizona. Today, Earthworks is making waves across the country, now providing stormwater consulting services across 14 states. A highly knowledgeable team combined with unparalleled customer service has been the catalyst for growth. It plans to revolutionize regulatory record management with ERX,
GATEWAY 303
GOODYEAR CIVIC SQUARE CHANDLER CONNECTION
PARK 303
Butler Design Group Architects & Planners
www.butlerdesigngroup.com
COMPANIES TO WATCH CORE CONSTRUCTION: Work on the Town of Gilbert Public Safety Training Facility should conclude in 2021. HAYDON CONSTRUCTION: Festival Fields Park in Avondale is just one of Haydon's transformational projects.
its proprietary environmental management software program. Earthworks will explore additional growth opportunities in 2021 as it strives to be residential construction’s first choice in compliance services.
FENIX DEVELOPMENT
Fenix Development is a privately–held Los Angeles-based real-estate investment and development firm with holdings in Arizona, Nevada and California, with more than 30 years of experience in land entitlement, planning, and development. In 2020, Fenix Development proudly completed the first phase of a 15-acre master plan of The Watermark | Tempe. Phase one includes a 16-story high-rise Class A office and curated retail and restaurant space, and won the 2019 NAIOP Mixed-Use Project of the Year Award.
GENSLER
The architecture and design firm is set to unveil its new office at the renowned Esplanade. Conceived as a true “living lab,” the new office expands the firm’s presence with a ground-level retail space that was repositioned into a highly flexible, sustainable workplace. Gensler has seen growth in residential, health and tech sectors with multiple new projects in development. Early 2021 will see completion of GateWay Community College’s Phoenix Forge Makerspace for the Maricopa Community College District, an innovative and community-focused place to create.
GREENLIGHT COMMUNITIES
Greenlight Communities successfully completed its first two attainable rental apartment communities in 2020, producing 478 units in the city of Phoenix. Having brought these two projects, Cabana 12th and Cabana Washington, to full lease-up, Greenlight has successfully provided rental housing for the growing numbers of renters that have been priced out of the market. Construction of an additional five Cabana communities, totaling 1,241 units, is already underway. Greenlight Communities is wellpositioned to continue making a mark in the rental housing market in 2021.
HAYDON CONSTRUCTION
In 2020, Haydon’s work helped reshape 42 | January-February 2021
communities. Festival Fields Park in Avondale was transformed into a community gathering place and in the Southeast Valley, Haydon completed phases 1 and 1B on the Gilbert Regional Park. Haydon also delivered the new Ottawa University Athletic Facility, helping that institution continue to thrive. In 2021, Haydon will deliver The Edge, a 234,000 square foot, Class A mixed-use (office and retail) project in Scottsdale, as well as a state-of-the-art dispensery and indoor growing and processing facility for Gold Leaf.
HINES
While Hines has made waves with its office and multifamily projects, 2020 was the year of the major industrial project, Glendale 303. This development could grow to 1.2 million square feet and is in the heart of the booming Loop 303 corridor. In 2021, Hines will look to deliver on two luxury multifamily projects, one in North Phoenix and the other, Adeline, which will be a 25-story, 379 unit high-rise located in the heart of Downtown Phoenix. Hines is also working on a high-profile project in Downtown Tempe, 100 Mill, which will be a 17-story office building at Mill Ave. and Rio Salado Parkway.
JOKAKE
Jokake’s honors from the Arizona Corporate Excellence Awards and Arizona’s Most Admired Companies this past year illustrate the team’s commitment to providing an exceptional service. Additionally, Casey Cartier’s recognition as a Global CEO underscores the role his leadership has played in the company’s success. Gilbert’s San Tan Medical looks to be completed mid-year with Sonoran Spine being the anchor tenant; medical manufacturer BD will undergo an extensive cleanroom fit-up for the recent expansion; and an increasing number of industrial and e-commerce clients are reimagining their footprints.
JLL
Since forming its Phoenix office in 2008, JLL has grown into a local market leader, employing more than 685 of the region’s most recognized industry experts in office, industrial, retail, healthcare and data center brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services. In the past year, the Phoenix team completed 70 million square feet in lease and sale transactions valued at $2.7 billion, directed $190 million in
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COMPANIES TO WATCH project management and currently manages a 52.3 million-square-foot portfolio.
R. Sellers Foundation, LGE was also able to make substantial impacts in the Valley.
LAYTON CONSTRUCTION
LINCOLN PROPERTY COMPANY
Spurred by significant growth in the office, industrial, and hospitality market sectors, Layton Construction experienced unparalleled results at both the local and national level in 2020. Building on several consecutive record-setting years, a substantial backlog of major projects, and a strong team of talented employees, this positive momentum is expected to propel Layton to another unprecedented year in 2021. Layton officially merged with the STO family of companies. The merger allows both firms to leverage each other’s geographic reach to better service clients.
LGE DESIGN BUILD
LGE Design Build had a busy 2020 with its highest volume year to date. LGE currently has over 6 million square feet in design and construction spread across several product types including medical office, corporate office, manufacturing, hospitality and distribution. LGE opened its second office in Dallas, TX and has several projects already in its pipeline, including the 1 million square foot 820 Exchange. Through it’s non-profit David
As NAIOP Arizona’s back-to-back 2018 and 2019 Owner/Developer of the Year, LPC is celebrating 20 years in the Southwest market. In 2020, LPC delivered the Class AA Grand2, the second of eight planned LPC-developed buildings at Papago Park Center and sold the building in late 2020 for a record-breaking $187.5 million. It also delivered the first of four office buildings at Union, a 1.35 millionsquare-foot, Class A office project in the heart of the Riverview District; and the 1.25 millionsquare-foot Park303 Phase I.
MARCUS & MILLICHAP
In 2020, Marcus & Millichap navigated a multitude of challenges, bringing to light its adaptability and unwavering commitment to clients and team members. Marcus & Millichap underwent key technological advancements for clients and agents alike, including an improved website and new proprietary systems for enhanced client connectivity. Locally, the firm’s Phoenix office completed its third expansion in three years as more investment sales professionals and Institutional Property
Advisors (IPA) agents joined the team. In 2021, Marcus & Millichap will celebrate its 50th anniversary as a firm.
MERIT PARTNERS
One of the market leaders in industrial development, Merit Partners enjoyed a robust 2020 and has ongoing projects all over the Valley, representing an investment of more than $2 billion. Current notable projects for Merit include the 570 acre Camelback 303 development which envisions more than 9 million square feet of industrial space in Glendale, and PV|303 in Goodyear which Merit has already developed over 5 million SF with ability to develop an additional 4 million. Merit Partners is also developing Tolleson Corporate Park as well as Phoenix Logistics Center.
MORTENSON
Mortenson is expanding the boundaries of innovation and building expertise that delivers better-than-imagined outcomes. In 2021, Mortenson will help customers solve complex problems in the development and construction process, whether it be in frontend services, a small tenant improvement or a complex landmark project. Success in 2020 included the delivery of the Hyatt Place/Hyatt House within ASU’s Novus Innovation Corridor; the Hyatt Place Phoenix Downtown groundbreaking; and supporting SRP’s corporate growth; Mortenson expects continued growth in the healthcare, industrial, higher education and sports markets in 2021.
NAI HORIZON
NAI Horizon’s continued focus on growth and advancement of technology to best serve its clients helped the full-service commercial real estate company weather a pandemic that devastated economies. In 2020, NAI Horizon added to its property management division, one of the most experienced in the Southwest, and celebrated the mentoring and growth of six up-and-coming professionals. NAI Horizon’s broker ownership platform allows agents to benefit from both personal achievement and the success of the company while encouraging a collaborative culture.
NATHAN & ASSOCIATES INC.
On the verge of its 40th anniversary, Nathan & Associates went into 2020 all pistons firing.
UNION: DAVIS designed, Wespac built and Lincoln Property Company developed. PROJECT MAB: Layton Construction is currently working on the Mark Anthony Brewing facility. 44 | January-February 2021
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COMPANIES TO WATCH OKLAND CONSTRUCTION COMPANY: Work has wrapped up on the first phase of the IDEA Campus.
team recently added nearly 900,000 square feet of management assignments to its southwest portfolio. With several projects still on track for completion, 2021 will be another successful year for Ryan.
SMARTRENT
In 2020, SmartRent broadened the robust set of smart home automation solutions to include all elements of a community. Core product offerings now include a smart parking management platform, self-monitored home security features for smart homes, and a more robust self-guided tours platform. Amidst the pandemic, SmartRent’s Self-Guided Tours became the most popular solution, with over 170,000 tours completed at communities nationwide between March and November 2020. In May 2020, SmartRent raised $60 million in series C funding to support smart home expansion efforts.
SMITHGROUP Land deals were coming back due to the lack of available lot inventory, and when the state of Arizona went into lockdown in March there was a roughly 4-5 week hiatus, which was completely dominated by deal extensions waiting to see what was coming. By the 5th week of the pandemic sales went supersonic. The second half of 2020 will go down as one of the best periods of time for land and lot deals that Nathan & Associates has ever seen.
OKLAND CONSTRUCTION COMPANY, INC.
For another year, Okland Construction Company delivered on some high-profile projects to the Valley, including Chandler’s newest full-service hospital, the Banner Ocotillo Medical Center, as well as The Watermark | Tempe. Okland also completed the first building in the I.D.E.A. Campus in Tempe. Okland continues to remain on schedule for a 2021 completion of the Creighton University Health Sciences Campus at Park Central, as well as the renovations at Talking Stick Resort Arena.
PLAZA COMPANIES
Plaza Companies continued to advance some of Arizona’s most high-profile commercial real estate projects. Construction on the new $100 million Creighton University Health Sciences Campus continued at Park Central, 46 | January-February 2021
and that project continued to gain momentum in the market. In 2021, the Creighton Health Sciences campus will open, and will continue to grow the overall impact of Park Central on midtown Phoenix. Planning is underway for the sixth office building at SkySong, and Plaza is also working on medical office buildings in Prescott, Phoenix and the East Valley.
PROLOGIS
Prologis, publicly traded on the NYSE and a member of the S&P 500, is the global leader in logistics real estate with roughly 800 million square feet of modern logistics facilities in 19 countries. Locally, the Prologis Phoenix metro portfolio growing at a steady pace as more and more warehouse and logistics facilities are being delivered in the Greater Phoenix Market. Prologis is in the final stages of work on the 2.3 million square foot, multi-story Project Sol in Goodyear, which will be utilized as an Amazon fulfillment center.
RYAN COMPANIES US, INC.
In 2020, Ryan Companies had 2.7 million square feet of projects under construction spanning office, senior living, industrial and hospitality sectors. The firm completed several projects, including 777 Tower at Novus Innovation Corridor, Acoya Scottsdale at Troon, Chandler Airport Commerce Park and Canopy by Hilton. Further, the real estate management
SmithGroup continued its brand promise to Design a Better Future with 2020 project wins from Phoenix Children’s Hospital, Republic Services, and Axway while celebrating grand openings including Chandler’s Banner Ocotillo Medical Center, the I.D.E.A. Biotech Campus in Tempe, the Novus Innovation Corridor at Arizona State University, and the Phoenix Warehouse District’s Lincoln Union. Throughout 2021, SmithGroup’s commitment to creating spaces for Arizonans to live, work, heal, learn, and play continues through its projects.
STEVENS-LEINWEBER CONSTRUCTION, INC.
Stevens-Leinweber Construction, Inc. has emerged as one of the Valley’s most active tenant improvement contractors. In 2020 it strengthened its position as a TI leader while also cementing a new ground-up division with a string of high-profile office and industrial projects. SLC’s ground-up division has completed or initiated more than 3.5 million square feet of Class A industrial space. In 2020 that included new buildings at PV303 and Tolleson Commerce Park, and tenant improvements for companies including Ball, Boeing and XPO.
SUNDT
Sundt has been building critical infrastructure across Arizona for more than 90 years. Headquartered in Tempe, the company continually ranks in the top five of ENR
Earthworks will help you and your team stay in compliance. Let us manage the environmental regulations so you can complete your project on time and within budget.
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47
COMPANIES TO WATCH STEVENS-LEINWEBER CONSTRUCTION: Project will expand MiTek's Tolleson facility to 412,921 SF. THE RENAISSANCE COMPANIES: Elwood Logistics Center is a 1.3 million SF facility in Goodyear.
Southwest’s Top Contractors. Sundt’s current work in the Valley includes expansions for Gila River Hotels & Casinos – Wild Horse Pass, the Royal Oaks Community, UArizona’s Student Success District and the I-10 and Ruthrauff interchange. Recently, the company completed the Canopy by Hilton Tempe and Valleywise Health North and South Metro Ambulatory clinics. Chad Buck recently was selected to lead the Southwest District for Sundt Construction’s Building Group.
SUNTEC
Forged out of pure grit and determination, Suntec has established themselves as a Western United States leader in the concrete industry by mastering the challenging, critically timed, and technically demanding work in the commercial real estate market. Over the last year, Suntec’s steadfast service has attracted many exciting new projects; some of which include: Project Sol, a 2.3 million square foot industrial and office space development in the West Valley; X Phoenix, a 20-story “cohousing” development in Downtown Phoenix; Block 24; and the recent Mayo Clinic West Tower Expansion.
TERRACON
Terracon saw strong vibrant project activity in 2020 despite challenges presented by COVID with staff growth and the key acquisition of Phoenix based Environmental Planning Group (EPG). Key projects kicking off construction were projects with ALDI at multiple locations, Love’s at a new Travel Stop in Cordes Junction and two projects with Transwestern in downtown Phoenix. In January 2021, Terracon will begin work on the I-10 Broadway Curve improvement project, along with a new 61,000 square foot Banner Rehabilitation Hospital in Mesa, and the new ASU multipurpose arena project.
THE OPUS GROUP
The Opus Group has served as a driving force behind much of the industrial development activity in the West Valley. In 2020, The Opus Group wrapped up two speculative industrial buildings, the 450,619 square foot Goodyear Airport Industrial project and the 275,000 SF Goodyear 85 project. The Opus Group also delivered a Class A multifamily project to the 48 | January-February 2021
West Valley, as the Paradise Multifamily @ P83 in Peoria opened in November. The Opus Group has already begun work on Fairway 10, a 720,000-square-foot, three-building industrial project in Avondale, which is scheduled for completion in Summer of 2021.
THE RENAISSANCE COMPANIES
Kelly Pettigrew was named President of The Renaissance Companies in 2020 as the result of a multi-year initiative started by late founder Craig Porter. Renaissance’s co-founder, Jill Porter, also leads the team while establishing Renaissance’s new foundation in honor of her husband, Craig Porter, called Will to Thrive, in support of Glioblastoma Multiform Brain Tumor research. This year Renaissance celebrated milestones including the completion of their largest contract project to date, a design/build beverage manufacturing facility and the award of Arizona’s largest speculative industrial facility ever built at 1.3 million square feet.
TRAMMELL CROW COMPANY Less than a month apart, Trammell Crow Company completed two, large, Class A
industrial developments, Gilbert Gateway Commerce Center and Park Aldea. This summed up a very active 2020 for TCC. In 2021, TCC will wrap up construction on Axis Raintree, a 175,000 square-foot, three-story, Class A speculative office building with a structured garage, located on an 8.24-acre site in Scottsdale. TCC’s subsidiary, High Street Residential, will wrap up work on the 160-unit luxury multifamily project, Gramercy Scottsdale, by mid 2021.
WESPAC CONSTRUCTION
As a prominent figure in the Valley, Wespac is well-known for projects ranging from tenant improvements to large ground up construction. These projects have generated $220 million in 2020 for Wespac as a firm and are set to generate $250 million for 2021. In addition to their commitment to sustainability and safety on all job sites, Wespac gives back to the community each year through Arizona’s only nonprofit music festival, M3F. With more than 85 percent of Wespac’s portfolio consisting of repeat or referral clients, their 29 year history speaks for itself.
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49
EMERGING LEADERS
EMERGING LEADERS CRE loaded with people ready to shape industry
E
ach year of experience that a young professional can rack up is valuable. That being said, 2020 has to be about a decade’s worth. For those young commercial real estate professionals that not only survived, but thrived during our pandemic-filled 2020, what could compare to what they learned in the past year? Gone was the normal office environment, replaced by remote work, which eliminated the office huddles where advice was solicited and shared by more senior employees to help guide the less experienced. Normal routines like building tours and planning meetings were all moved online, but business did not slow down in the Greater Phoenix market, thanks in large part to the flexibile and tech savvy young professionals who worked through the problems that the pandemic put in front of them. These are some of those emerging leaders of the industry who have been tested by one of the more remarkable times in the nation’s history and are ready to shape how the industry looks moving forward.
Jake Baratz and Boston Chauthani
Vice President of Investments (Baratz) and Investment Advisor (Chauthani), Taylor Street Advisors Baratz and Chauthani have become a formidable, effective team for Taylor Street Advisors. Baratz and Chauthani specialize in the Acquisition and Disposition of both Single & Multi-Tenant Retail assets for Private Capital Clients. Chauthani is 29 and Baratz is 23 and they both lead the Retail Team at Taylor Street Advisors, they have closed a total of $51,785,000 in deals with the majority of that in 2020 during a pandemic. As anyone in Commercial Real Estate knows, retail took one of the largest hits during 2020 and for Baratz and Chauthani to continue to not only close deals but exceed expectations along the way by also assisting a client in restructuring his current leases to successfully get through the pandemic and continue operating is a major stand out to both their peers and competition. They both always go the
50 | January-February 2021
extra mile for their clients and are creative problem solvers that assist and serve. Originally from Chicago, Baratz grew up in Finance – working with his Father on the Chicago Board of Trade from a young age. Chauthani spent much of his youth in Huntington Beach before relocating to Arizona.
Kyle Campbell
Associate Vice President, Colliers International in Arizona Kyle was the 2019 NAIOP Arizona Emerging Broker of the Year and has been part of Collier’s No. 1 Top Team in Arizona for 2018-2019. He joined Colliers as a research associate and used that experience to gain valuable market insight that helped guide him as he moved into a broker position. Campbell’s strategic approach to providing value to his clients, especially using advanced mapping and demographic date, has made him an invaluable partner to owners and occupiers of educational space. Kyle has become a national expert in the education space, and it is accelerating his work around the U.S.
Dominique Damerell
Vice President, CBRE Dominique works in CBRE Phoenix’s Debt & Structured Finance department, where she secures financing options for a variety of multifamily, office, retail and industrial properties as well as new development projects. With relationships spanning numerous domestic and international investors, Dominque creates exceptional outcomes for her clients through close-knit relationships with a wide variety of institutional lenders to procure competitive lending packages. Of Dominique, Rocco Mandala, CBRE Vice Chairman, says, “She is instrumental to our team and one of the reasons for our success. I trust her work without question, and her technical skills provide speed, efficiency and accuracy and instill confidence within the team and with our clients.”
Ann Donnelly
Associate, Senior Designer, McCarthy Nordburg Donnelly is an experienced interior architectural designer and project manager who focuses on the corporate built environment and workplace strategies. Her depth of experience includes corporate office, medical office, nonprofit, professional and technology clients. Her knowledge and skill have allowed her to deliver intelligent solutions with a strategic approach to design. As a project manager, Donnelly is the main point of contact with the building owners, landlord representatives and tenants. She ensures that the parameters of each project are aligned with the specific project goals of each client. Donnelly is a critical thinker who is motivated to learn with a strong work ethic.
Chase Dorsett
Associate, Newmark Dorsett came to Newmark after graduating Cum Laude in urban planning at Arizona State. For the past two years, he has partnered with Senior Managing Directors Steve Julius and Jesse Goldsmith to specialize in investment sales for multi-tenant shopping centers and net leased retail properties in Phoenix. Chase supports the team with the marketing and disposition of retail properties through existing client relationships, the cultivation of new business, financial underwriting and insightful market analyses. Some of the highlights of Chase’s young career are he secured $17 million in new listings during the pandemic, personally closed five transactions (2020 YTD) totaling roughly $10 million, was part of team that has closed 15 transactions for roughly $60 million.
Benjamin Farthing
Associate, CBRE Benjamin Farthing is responsible for business development and prospecting, managing the team’s deal pipeline, market research, and assisting his team in all aspects of the sale of single- and multi-tenant investment properties in Phoenix and throughout the United States. As an Associate with CBRE’s Net Lease Property Group in Phoenix, Farthing supports the team in the marketing,
research and sales of single-tenant and multi-tenant investment properties in Phoenix and throughout the United States. He is passionate about the needs and goals of his clients and enjoys providing thorough economic analysis to support them through the acquisition and disposition process.
Brian Fitzpatrick
Director of Operations, Mortenson One of Fitzpatrick’s priorities is to break negative perception of a career in construction. To combat this perception, he is active in encouraging students and second career seekers to understand the meaningful career options available in the construction industry. He serves on the Board of Directors for the Phoenix Affiliate of ACE Mentor Program of America, Inc. and has also written a white paper on the topic for Mortenson. When it comes to challenging the status quo, he is a natural leader and never shies away from a challenge. Throughout the past year, Brian was critical in supporting the essential workers on our team and among our trade partners – ensuring their safety, first and foremost.
RoseAnn Linsmeyer
Associate, Interior Designer, Senior Project Manager, Cawley Architects RoseAnn is Cawley Architects’ longest-tenured Project Manager and their current Interior Designer. With her precise drawings, extensive coordination skills, and interior design talents, RoseAnn has grown to be responsible for creating and coordinating drawing packages for their largest and most complicated projects. Because of her accomplishments, RoseAnn has developed a devoted following among their clients. She is also actively involved with the International Interior Design Association (IIDA) Southwest chapter. She is currently establishing an Interior Design Studio at Cawley Architects to expand their architectural services. RoseAnn’s creativity and ability to connect with her clients to interpret their vision and make it come to life is remarkable.
JP Malham
Business Development, SiteWorks Landscape A now 4-year veteran in the industry, 26-year-old JP Malham specializes in client acquisition and business development for SiteWorks Landscaping. He is an active member in the Building Owners and Managers Association and the International 51
EMERGING LEADERS Facility Management Association. In his short time as Director of Business Development for SiteWorks, Malham has been integral in the procurement of various high-profile landscape maintenance contracts, including Phoenix Children’s Hospital and the ASU Research Park and The Esplanade on Camelback. Malham comes from an industry lineage, following in his father’s footsteps. His father, Chris Malham, has worked in the industry since 1975 and is the founding partner of SiteWorks Landscape.
Ashley Zimmerman Marsh
Shareholder, Tiffany & Bosco Zimmerman Marsh concentrates her practice in Land Use and Zoning. An Arizona native, Ashley represents property owners, developers, and homebuilders throughout the Valley through each step of the zoning and land use entitlement process. Ashley also supports her clients with due-diligence zoning and land use legal opinions to facilitate real estate negotiations and transactions. With each representation, Ashley partners with her clients, and their development and brokerage teams, on strategy and execution while maximizing value for each client. She was selected to serve on the NAIOP Arizona Developing Leaders Steering Committee and has received numerous awards, including Lawyers of Distinction in 2019 and Rising Stars recognition by SuperLawyers.com.
Jessica Morin
Director of Market Analytics, CoStar Group Jessica Morin is the primary analyst for in-depth analysis and thought leadership requests for Arizona. CoStar is the leading provider of commercial real estate information, analytics, and online marketplaces, conducting ongoing research to produce and maintain the largest and most comprehensive commercial real estate information database. Previously, she served as the Senior Research Analyst at CBRE in Phoenix, where she provided comprehensive research for the local market and supported broader 52 | January-February 2021
research activities on a national level. While at CBRE, Jessica cultivated deep relationships with economic development organizations, local communities, and business leaders. Earlier in her career, Jessica was the Vice President of Business Expansion at the Arizona Commerce Authority.
Ashley Brenden Nye
Development Manager, Trammell Crow Company Ashley Nye has more than eight years of experience as a designer/project manager working in both Phoenix and Seattle, WA. Prior to joining Trammell Crow Company, Ashley worked for notable firms Norris Design, Mithun and Smithgroup with an emphasis in landscape design and most recently as a Project Manager for Point B focusing on site acquisitions and due diligence, and managing design, permitting, scheduling and construction activity. She earned a Bachelor of Arts degree from the University of Arizona and a master’s degree in Landscape Architecture from Arizona State University.
Stephanie Oleksa
Interior Designer, SmithGroup As a Lead Project Designer, Oleksa collaborates closely with each client to set project vision, scope, goals, and most importantly, expectations. She coordinates with consultants and engineers, manages and produces the project’s construction documents, and works with contractors to support each project into fruition. Her client-tailored approach creates well-scaled, inviting spaces that strengthens her customer’s business goals and values. Oleksa has helped lead design include a 500,000 square foot IT Innovation Center for a global automotive manufacturing company in Austin, Texas, the first Headquarters in the USA for an European cyber security company, Kudelski Security, and a national workplace standard for Republic Service’s call centers.
Bob Olson
Project Manager, Ryan Companies US, Inc. As Project Manager, Bob Olson works with architects, engineers, owners and construction management teams to develop the design of a building and manage the associated costs. Bob
We see an emerging leader. Kyle Campbell is highly attuned to the evolving needs of his clients. His ability to leverage Colliers’ full suite of services has proved invaluable to countless organizations as he works to identify opportunities and provide innovative strategies. We aren’t the only ones who value this approach. NAIOP and AZBigMedia have both recognized his talents — and so have his clients. Kyle is a leader because he sees what could be. Visit colliers.com/arizona to learn more.
Accelerating success.
Kyle Campbell
Associate Vice President
EMERGING LEADERS is also responsible for scheduling, creating and managing contracts, and maintaining status reports. Olson is an analytical, resourceful problem solver and a valuable support to customers—a true construction professional who utilizes his knowledge and diverse skill set to identify and evaluate situations that deliver quality and value. His passion and curiosity for construction began at a very young age and has proved to be the foundation of what makes him a successful project manager today. Bob brings a level of unparalleled optimism to each project he touches.
Chelsea Porter
Director of Marketing, The Renaissance Companies Chelsea Porter began her career in the company that her father founded as a project engineer and has slowly transitioned into her current role as director of marketing. Porter has a design background and as director of marketing, she formulates the marketing plan and budget each year, represents the firm at professional organizations, leads market research efforts, prepares weekly project lead updates and prepares monthly reports to the executive team. With the passing of her father and company founder, Craig Porter, in October of 2020, Chelsea will likely step into more leadership duties for The Renaissance Companies.
Charlie Thompson
Project executive, DPR Construction Thompson has more than 13 years of experience managing the design and construction of complex healthcare and life sciences projects in Arizona. His successful involvement with multiple healthcare campus additions and renovations reflects a proven track record of delivering efficient and transparent projects that meet the end needs of his clients. Thompson fosters the development of high performing, cross organizational teams throughout the design and construction of multiple $200 million complicated hospital additions and renovations in the City of Phoenix and overall has supported over one billion dollars in hospital projects in Arizona. Through the development and facilitation of the DPR Design Management Academy, Charlie has helped incoming talent improve delivery and integration between design and construction.
Lauren Tomlin
Marketing Coordinator, Ryan Companies US, Inc. Lauren Tomlin supports strategic marketing plans, public relations activities, the planning and coordinating of special events, and the pursuit process. In under two years at Ryan, 54 | January-February 2021
Lauren has managed to help win over one million square feet of office, industrial, healthcare, retail, and public sector work. Known for her dependability, skillful creativity, and exceptional relationshipbuilding abilities, Tomlin bridges the gap between what partners expect and reality. She works cross-functionally with construction, capital markets, virtual design and construction, development, and our external partners to provide innovative solutions and increase Ryan’s divisional presence.
Andrew Warner
Associate/Manufactured Housing Specialty Team, NAI Horizon The 2017 Associate of the Year at NAI Horizon, Warner is a valued member of the team that has closed more than $85 million in mobile home park and RV park investment sales. He and his father, Russ Warner, monitor the manufactured housing and RV park industry not only in Arizona but across the U.S. as well. In 2018, while working toward his CCIM designation, he worked on a deal with a fellow classmate whose family was selling its mobile home park in Idaho. The sale of The Meadows fetched a sales price of $12.7 million. The words fearless, persistent, inquisitive, adventurous and “people person” come to mind when describing Andrew Warner.
Jesse Zwick
Project Engineer, Jokake Construction Zwick served for three years as an intern with Jokake before finally being brought on board full-time. Shortly after beginning his new role, Zwick completed his first project acting as the sole project manager, was teamed on two multi-million dollar projects, and is maintaining his current client relationships and their project workload. His tenacity and ambition to grow into his role as a Project Engineer is remarkable. He enjoys tackling the high-concept issues and working as a liaison to the client. His ability to independently identify opportunities to learn alongside a Senior Superintendent or Senior Project Manager is exciting and promising as he grows with Jokake. Jesse Zwick’s success continues to develop him into an inspiring up-and-coming construction professional.
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BUILD YOUR FUTURE
Up to the task Build Your Future program shows growth during challenging first year By STEVE BURKS
I
n October of 2019, the ambitious Build Your Future Arizona program started with a big kickoff event at Talking Stick Arena in Downtown Phoenix. The program was unique in that it had the backing (both financially and in manpower) of several major contractors in the Valley, as well as the Greater Phoenix Chamber Foundation and it had a strong marketing team behind the initiative. All the pieces were in place and Phase 1 of BYFAZ rolled out in 2020 and was ready to make some inroads in solving a growing workforce shortage issue in the skilled trades. Arizona was projected to be about 155,000 workers short by 2022 in vital construction disciplines like framers, plumbers and pipe fitters, electricians, carpenters, concrete finishers and iron, steel and sheet metal workers. “Our first goal with BYF, the first leg of it, was having a place where people can go and get all of this information,” said JD Martin, vice president, partner and business solutions manager for Corbins Electric, one of the original
60 | January-February 2021
investor companies in BYFAZ. “That the big launch that we did for the website, we now had a single point of reference that we can send people to in order to get all of this information.” The new informational website, along with promotional materials, allowed interested parties to see the different trades in the industry, and learn a little about what a career in the trades actually looks like and what they pay. The BYFAZ mission is to create a sustainable and skilled craft workforce by creating awareness about high paying construction careers, training opportunities and mapping career paths to employment in these high demand occupations. The campaign has three major goals: 1. Connecting Dots — Increase awareness of craft professional occupations; 2. Perception — Improve education and training outcomes through business partnerships; and 3. Motivate — Increase the number and tenure of craft professionals. At the first quarterly report on BYFAZ in February of 2020, the program had solid news to report. In
the first three months of the three-year campaign, BYF Arizona tallied more than 8 million media impressions and had already engaged more than 6,000 students and influencers via career days. It also had expanded its partnerships with leading industry associations from 3 to 11, and welcomed several new investors. Notably, Lennar Homes announced, at the February event, that they were upgrading their current investment to the Champion Level, and that division president Alan Jones will be joining the steering committee. “The first year started off with a bang and then COVID came and that slowed us down quite a bit,” added Dan Puente, founder and CEO of DP Electric, another original investor in the program and a member of the BYFAZ steering committee. “But I do think that the public is open to it. We’re getting a lot of interest. The demand is there, the interest is there and it’s really what we’re trying to figure out now is how to put the pieces together.” For the construction industry in Arizona, COVID-19 put many projects
on hold for a short time. However, by the time summer hit Arizona, building was back to its rapid pace. For BYFAZ, the pandemic provided some more selling points for a career in the skilled trades. “Construction is considered critical, so there is some job security in this,” Martin said. Arizona Gov. Doug Ducey declared construction an essential industry, so while other businesses faced restrictions, the construction industry did not. The industries hit the hardest were hospitality, food services and retail; industries that normally employ a younger demographic, the same demographic that BYFAZ is
looking to reach. “Our market is still busy and I see it continuing to be busy in 2021. Demand is high,” Puente said. “How do we get these people — whether they are from the hospitality or retail industries, trying to change their careers, or a 17 or 18 year old coming out of high school — how do we bridge the gap from no experience to being ready to work?” That’s one of the questions BYFAZ will try to answer as it continues to evolve and improve. Recently, BYFAZ rolled out another phase in its development, a career center page. On this page, (careers. byfaz.org) employers can post jobs, job
The Mission
Build Your Future Arizona’s mission is to create a sustainable and skilled craft workforce by creating awareness about high paying construction careers, training opportunities and mapping career paths to employment in these high demand occupations.
seekers can look for open positions and visitors to the site can see upcoming events put on by BYFAZ and job training opportunities that are available. Puente stressed that training is key in being able to get those that show interest their first job in the trades. “When you don’t have any experience, it’s hard to place somebody without some sort of experience unless it’s a laborer position with a GC,” Puente said. “I know that we’re creating kind of a pre-apprenticeship program that gives a person some basic knowledge of safety and general skills that will help them be productive.
We are led by an industry steering committee made up of leading employers who have invested in our effort to inspire the next generation of craft professionals to construct a career.
STEERING COMMITTEE MEMBERS
Paul Sierpina
Vice President/Senior Project Manager, Suntec Concrete
Bryan Amarel
Operations Manager, Hensel Phelps
Mike Bontrager
Senior Vice President, Alston Construction
Mike Brewer
Founder and CEO, The Brewer Companies
Alan Jones
Division President, Lennar
Tim King
President, HACI Mechanical Contractors, Inc.
PROJECT MEMBERS
JD Martin
Vice President & Partner, Corbins Electric
Dan Puente
CEO, DP Electric
Sean Ray
Director of Craft Workforce Development, Sundt Construction
Marcia Veidmark President & CEO, SSC Underground
Jennifer Mellor
Project member from Greater Phoenix Chamber Foundation
Paul Sanders
Project member from Greater Phoenix Chamber Foundation 61
BUILD YOUR FUTURE BUILD YOUR FUTURE INVESTORS CHAMPION LEVEL Corbins Electric DP Electric HACI Hensel Phelps Lennar McCarthy Building Companies, Inc. Maricopa Community Colleges Sundt Suntec Concrete SUPERINTENDENT LEVEL The Brewer Companies Constructors Bonding, Inc. Penta Building Group SSC Underground
Concord General Contracting Erickson Companies Gothic K2 Electric The Opus Group Pete King Construction Co. Pulte Homes R/S Service Starrick Plumbing, Inc. VW Connect Weitz Wilson Electric
L&L Asphalt Moen, Inc. Pro Steel Erectors II Inc. Pueblo Lumber TD Industries Truss Fab, LLC Valley Rain Construction Younger Brothers COMMUNITY AND INDUSTRY PARTNERS Arizona Builders Alliance Arizona Hispanic Chamber of Commerce Arizona Masonry Council Associated Minority Contractors of Arizona Arizona Roofing Contractors Association American Subcontractors Association of Arizona, Inc. Arizona Utility Contractors Association Construction Financial Management Association Valley of the Sun Chapter Gilbert Chamber Foundation NAIOP Plumbing-Heating-Cooling Contractors Association Arizona Registrar of Contractors Western Wall & Ceiling Contractors Association
PROJECT MANAGER LEVEL 3-G Construction Company Austin Companies Border States Supply Chain Solutions Buesing C.D.S. Framing, Inc. Chas Roberts
CRAFT PROFESSIONAL LEVEL AMW Construction Supply Brown & Brown Insurance Chasse Building Team Colt Builders Courtland Communities Delta Diversified Enterprises Inc. Enterprise Fleet Furtmann Bros, LLC Jeff Fleetham Jenco Inc.
“If we’re having a hard time placing people today because companies aren’t taking people who aren’t trained, then we have to solve that problem before we get more aggressive on the recruitment side.” Martin said that the next phase for BYFAZ is getting more involved with middle and high schools. BYFAZ will work with these schools to provide information about careers in the skilled trades and help develop curriculum that can introduce students to concepts they can put to use in their careers. Martin said that this next phase will be the most difficult because the industry will be competing for the students’ attention against post-secondary institutions and community colleges, as well as long-held misconceptions about what a career in the trades is like. “We want to be able to get in front of them and explain how technology has become such a critical part of construction,” Martin said. “These kids are borrowing their world view from their parents.” Martin noted that a large number of current tradespeople in the industry got interested in that career path by someone they know. For Martin, it was his step-father, who was an estimator for an electrical contractor.
“We’re trying to attract people who have no one in their lives who were in construction, so it’s something that hasn’t been talked about,” added Martin. “We have to come at it from a different angle. More and more schools are trying to get CTE programs and schools are looking at CTE as a way to get kids interested in STEM (science, technology, engineering and mathematics) fields as a path to college. But there’s a whole lot of that in construction that non-college bounds kids can take advantage of.” Educating the teachers and students about careers in the trades is just one part of the equation that BYFAZ must solve. The other part is changing the minds of the parents. “A lot of these parents have succumbed to the marketing that the education community has done for the last 20 years,” said Mike Brewer, founder and CEO of The Brewer Companies and a member of the BYFAZ steering committee. “In our conversations with teachers and counselors, they are looking forward to the days when they can have the conversation with students about alternative opportunities to college. Parents are the biggest challenge. “That’s how important it is that BYF, if we can publicize it enough, gets
62 | January-February 2021
the message out that going through a skilled trades training program is an education, but it’s more about what you get educated on. Like an accountant would get a more formalized education, a framer or a plumber would get an education in their craft. It’s just a different environment, but it is still an education that leads to a reliable career.” For the early investors like Brewer, Martin and Puente, the key to success for BYFAZ is patience. The program is still in its development phase and has yet to get to its full potential. “Nothing happens quickly. I think most people understand that and the investors in BYFAZ understand that,” Puente said. “We have been talking about this problem for as long as I can remember and then more recently, before BYF, people were starting to do stuff on their own, but that was more segmented. Today, our message is more visible, so I think if you fast forward another 3 years from now, that message will be stronger and we’ll be entrenched in some of the schools and the community colleges. “It’ll take a while to get back to where it once was where you learned a trade in high school and you had technical education in high school. I do think that’s coming back and it’s going to take time.”
BUILD YOUR FUTURE
SHOWING THE WAY Construction executives provide some insight on building a successful career By STEVE BURKS
T
he Build Your Future Arizona initiative is designed to educate people about the opportunities available in the skilled trades industry, as well as provide a place to find information on training and available jobs. The goal of BYFAZ is to create a skilled trades workforce to keep up with the growing demand in Arizona and the rest of the United States. Women in the skilled trades profession are a vital part of the workforce, but the challenge is to get the attention of young women who may not see themselves fitting in the workforce. In Arizona, the industry is fortunate to have a large contingent of accomplished women in the construction industry who have risen through the ranks and have become executives. Three of these women, Kimberly Davids, general manager of Weitz Construction; Michelle Walker, vice president of finance and administration for SSC Underground; and Antonya Williams, senior vice president of business development for the Southwest Region at McCarthy Building Companies; are great examples of the kinds of careers women in construction can create for themselves. These women provided some insight into what challenges they
64 | January-February 2021
faced coming up through the industry and what are the traits that made them successful.
Kimberly Davids
Q: What are the key traits for success in this industry? A: Honesty, integrity and accountability. This industry affords us the opportunity to work with various teams on multiple projects at any given point throughout the year. Each team with its own dynamic and each project with its own opportunities and challenges. The ability to facilitate difficult conversations, internally and externally, is vital to the success of a company. Fostering an environment of open communication where everyone can respectfully speak their mind is key. Q: What advice would you give women who are just entering the construction industry that want to advance in their careers like you have? A: Ask questions. Challenge the process. Offer to take on stretch assignments. And most importantly… don’t quit! Q: What were the biggest challenges for you early in your career and what did you do to overcome those?
A: As I was obtaining my Civil Engineering degree, I couldn’t wait to apply the theoretical curriculum to real world construction projects. Upon starting my career, I found myself unmotivated and discouraged with the mounds of paperwork and documentation (i.e. shop drawings, submittals, etc.) required. I experienced the same frustration during college when I just wanted to build something, but instead I felt stuck behind a desk. One day, I walked into my Project Manager’s office and voiced my concerns. He immediately started to explain the relevance of the tasks I was asked to perform, the importance of proper documentation, encouraged me to take site walks, and exposed me to financials; all of which made all the difference in my attitude and performance. I am driven by understanding the “how” and “why” of any given situation, so asking questions and challenging the process was just what I needed to keep me engaged. As I have progressed throughout my career, I have held every position so I can understand the perspective of each member on the team and how they impact the success and culture of a project, and thus the company overall.
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BUILD YOUR FUTURE
Kimberly Davids
Michelle Walker
Antonya Williams
Michelle Walker
likes a know-it-all, especially if they don’t know it all!
the development of others is key to the success of teams in overcoming obstacles and reaching their full potential and strive to do this with our teams at McCarthy today.
Q: What advice would you give women who are just entering the construction industry that want to advance in their careers like you have? A: Have humble confidence — don’t act like you’re out to prove something, but feel comfortable that you have an important role to play. Don’t try to be one of the boys — you’re a woman, in construction — you can be both. If you get treated differently — examine the intent before getting offended. Are they trying to diminish you, or just be gentlemen? 9.9 times out of 10 I’ve found that any sort of different treatment comes from a place of care, not discrimination. Q: What were the biggest challenges for you early in your career and what did you do to overcome those? A: 22 years ago, construction in Arizona was very much a “good old boys” network still. More than being a woman in construction, being young was the biggest challenge. While being young in any field even today can create challenges to your credibility, it felt especially so in construction. To overcome both being a woman and young, learning to listen more than speaking was key — learning everything I could and waiting until I had enough knowledge to add value to the conversation/ process. I had to learn that nobody 66 | January-February 2021
Q: What are the key traits for success in this industry? A: Perseverance — sticking it out when the going gets tough. Faith — knowing that when it looks hopeless, things will get better. Courage — being willing to take risks and do things you’ve never done before. Teamwork — no project can be built by one person or one company or one trade. It takes us all.
Antonya Williams
Q: What were the biggest challenges for you early in your career and what did you do to overcome those? A: The biggest challenge I faced as a young project engineer was building confidence. I made a point of communicating this area of development with my manager, and through his support and encouragement, we identified opportunities that allowed me to lead and take on new assignments. I started leading owner meetings, trade partner meetings, and site visits. I took on challenging new assignments that helped me to grow confidence in problem solving. Seeing these challenges through to completion was ultimately what stretched me outside my comfort zone and expanded my leadership potential. I learned that a great manager who is invested in
Q: What are the key traits for success in this industry? A: Early in my career, a vice president and mentor taught me to be a “go-to” person. These are people who everyone trusts. They are reliable to find the best solutions, they show up every day to serve their partners, and they take tasks through to completion – not leaving any loose ends. Throughout my career, these are the types of people I gravitate to. Having an all-in attitude is key to being a “go-to” person no matter your role within the industry. Q: What advice would you give women who are just entering the construction industry that want to advance in their careers like you have? A: My first piece of advice is to go for it. Construction is an industry with so much opportunity and it provides an extremely rewarding experience for those who commit to it. My second piece of advice is to be yourself. Having a genuine personal brand will make you stand out and build strong lasting relationships throughout your career. The more you bring your full self to your work, the more success you will have in this industry.
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BUILD YOUR FUTURE
INSTITUTIONAL New SMCC program focuses APPROACH on construction trades
By STEVE BURKS
A
clear by-product of the Build Your Future Arizona initiative is a willingness to collaborate on solutions to the growing skilled trades workforce shortage in the industry. Contractors and subcontractors that likely compete for the same business are now teaming up on programs, like BYFAZ, that will help not just their company, but the entire industry. In December, South Mountain Community College had its official ribbon-cutting ceremony for its new Construction Trades Institute, a program that will focus on fast, career focused jobs in the skilled trades for carpentry and framing, plumbing and electrical systems. CTI is the product of collaboration between the college and four industry partners, The Brewer Companies, Haskins Electric, 3-G Construction and McCarthy Building Companies. “(South Mountain) was trying to
68 | January-February 2021
put something together, but they just didn’t know what to do,” said Mike Brewer, founder and CEO of The Brewer Companies. “So when we got involved with it, it was a matter of putting together a curriculum. We recruited (vice president) Mike McCrery at 3-G and Haskins Electric and then McCarthy got involved. The more the merrier, in my opinion, because it’s really about the program.” Brewer, who is one of the early investors in BYFAZ and a member of the organizations’ steering committee, said administrators from SMCC came out to learn about the training program that The Brewer Companies utilizes. SMCC wanted to use The Brewer Companies’ program, but Brewer wanted to keep some of those methods in-house, so he worked with SMCC to develop a curriculum for the CTI plumbing portion. 3-G and McCarthy helped with the carpentry and framing curriculum
and Haskins Electric with electrical. CTI will feature hands-on laboratories, and a dedicated student success space, as well as faculty offices. Students can finish a certificate in just one semester, and will receive training not only in the program skills, but in additional skill sets such as leadership, motivation, oral and written communications, problem solving, time management and OSHA safety. Students can get two certification levels in just two semesters, so about one year. An added element of the program is that every student that goes through the initial, 16 week program is guaranteed an interview at one of the partner companies. “If the student is willing to go through 16 weeks, they are showing commitment to the discipline,” said Brewer. “So, I’ll take a chance.” Mike Gonzalez, vice president of the Education Building Group for
GREAT TALENT BUILDS GREAT COMMUNITIES. We’re investing in the next generation of leaders and builders.
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BUILD YOUR FUTURE CTI Program Snapshot
The South Mountain Community College Construction Trades Institute offers classes in three trades areas: Carpentry/Framing, Plumbing and Electrical. The program offers two levels of certification, the first one requires 16 credits - one semester, and Level Two requires 11 credits - one semester.
These four basic classes are required for each trade area: CON 103: Safety CON 104: Power Tools CON 105: Calculations CON 107: Blueprint Readings
the Southwest Region of McCarthy Building Companies and a member of the Maricopa Community Colleges Foundation Board and its Workforce Development Advisory Committee said that work is ongoing with the other community colleges to improve their programs. The CTI program will likely see improvements as well. “While the initial phase of CTI is focused on residential construction needs, we are collaborating with the district and our industry partners to develop commercial construction curriculum and will be supporting graduates of the program with career opportunities, including future internships and jobs with our selfperform teams and with our trade partners,” Gonzalez said. “McCarthy certainly sees potential here.” “One of the things we heard loud and clear from our industry partners is they need qualified people and they need qualified people yesterday,” said Dr. Clyne Namuo, Vice President of learning at SMCC during a televised interview. “Our hope is that the CTI here at South Mountain Community College will help fill that demand for qualified trades professionals.” The CTI program at SMCC is the latest in a growing number of programs that focus on developing a skilled trades workforce. One of the most successful community college programs in the state is at Central Arizona Community College. That program focuses on trades like heavy equipment operations, pipe welding, 70 | January-February 2021
structural and fabrication welding. The companies behind the CTI program at SMCC hope that it will grow into the go-to place for people looking for the skills to join the workforce in one of the areas the program focuses on. “Graduates of programs like CTI will be employed if they are employable,” Gonzalez said. “It’s an excellent track for students with an interest in building communities who are not pursuing a traditional college route but want to have a rewarding career.” Slowly, the industry is making progress in developing programs at the high school level. The East Valley Institute of Technology and WestMec both have strong education and training programs for young people. A new program, ElevateEdAZ, was launched by the Greater Phoenix Chamber Foundation, which is matching businesses to schools to develop classes and curriculum that aligns with workforce needs. The Foundation has partnered with the Phoenix Union High School District to pilot more strategies to increase the amount of technical and skilled trades courses at the high school level. “We’re not selling jobs, we’re talking about careers,” said Brewer. “Careers in the trades, if you’re doing it right, by the end of year 2, you’re going to be making $50,000-$60,000 in Phoenix, at least on the residential side. I don’t know where else you can do that.” Behind many of these recent advancements is BYFAZ, which has served as the collaborative hub for
These are the classes in each specialty area: Carpentry/Framing CON 110: Flooring CON 111: Wall Systems CON 112: Ceiling and roof framing Certificate Level Two (11 credits) CON 213: Steel Framing CON 214: Roofing & Envelopes CON 215: Interior Finishes CON 216: Concrete Forms Plumbing CON 124: Pipes and Fittings CON 125: Fixtures CON 126: Drain, Waste and Vent CON 127: Distribution Systems Certificate Level Two (11 credits) CON 224: Pipe Systems CON 225: Disposal Systems CON 226: Fixtures and Appliances CON 227: Resource Solutions Electrical CON 131: Electrical Systems CON 132: Distribution Panels CON 133: Conduits Certificate Level Two (11 credits) CON 234: Power Distribution CON 235: Motor Controls CON 236: Industrial Wiring the industry’s efforts on workforce development. “The role that Build Your Future is playing by bringing together the construction industry, educational sector and the community has been quite effective,” said Gonzalez. “The SMCC CTI program and others like it are the result of this type of collaboration. It’s helping to provide job training programs that allow members of our community to start on a rewarding career path in the trades.”
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Resilience [rəˈzilyəns]
NOUN 1. The capacity to recover quickly from difficulties; toughness. 2. Elasticity, the ability to adapt to challenges and chaos
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