Issue 4 2018 by Commercial Executive Magazine

CONSTRUCTION UPDATE

COLLIERS INTERNATIONAL

Four Companies Talk Trends and Projects

CEM-AZ.COM

Bob Mulhern, Senior Managing Director

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ISSUE 4, 2018

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STONE CREEK FURNITURE

Letter from the Publisher West Side Story

ARTICLES

EXECUTIVE SPOTLIGHT

Fast 5: Law

Bob Mulhern of Colliers International

Check out this quick Q&A with five experts in CRE law

Construction Update Four companies talk trends and projects in the Valley

Project Future SmithGroup discusses the design behind industry-specific “Office Suite of the Future”

14 BROKER TEAM OF THE MONTH

Executive Profile Jennifer Delaporte, Business Development Manager, discusses Graycor’s latest projects

NorthMarq Capital

E X E C U T I V E P U B L I S H E R Mandy Purcell • mandy@mpmediaaz.com M A N A G I N G D I R E C T O R Karen Gallagher • karen@mpmediaaz.com E D I T O R Celina Busse • celina@mpmediaaz.com E D I T O R I A L Celina Busse • Tim Randall G R A P H I C D E S I G N Allison Martin • allison@mpmediaaz.com P H O T O G R A P H Y Carl Schultz • Allison Martin All rights reserved. No part of this publication can be reprinted or reproduced without publisher’s permission. Opinions expressed are those of the authors or persons quoted and not necessarily those of CEM. 2920 East Camelback Road, #228 • Phoenix, AZ 85016 • 602-955-2899 • www.cem-az.com

Letter from the

PUBLISHER

“First comes thought; then organization of that thought, into ideas and plans; then transformation of those plans into reality. The beginning, as you will observe, is in your imagination.” – N A P O L E O N H I L L

ith a nod to the 1950s Broadway musical West Side Story, this issue’s cover story features four individuals who have had a palpable presence in the West Valley. Commercial Executive Magazine sat down with the Mayor of Goodyear, JLL, CBRE, and Globe Corporation to discuss projects and predictions surrounding West side development. We would like to give a special thanks to George Getz, Marc Hertzberg, Mayor Georgia Lord, and Rusty Kennedy for being great sports and rearranging their schedules to make this photo shoot happen in the dead of summer. We had a ball celebrating George’s birthday at the photo shoot. Amid challenges in the construction sector with rising prices, material costs, and a shortage of skilled labor, Commercial Executive Magazine gets an update from four Phoenix construction companies on their resourceful strategies moving forward.

MANDY PURCELL

Commercial Executive Magazine has been looking forward to featuring the career timeline of Bob Mulhern, Senior Managing Director of Colliers International for quite some time. The feature highlights Mulhern’s leadership qualities and career highs, while also touching on his personal mantras and passions.

E X E C U T IV E P U B LIS H ER

Bob Mulhern has nothing but wonderful things to say about our Broker Team of the Month, Trevor Koskovich and Bill Hahn. The multifamily team was previously at Colliers International before making the move to NorthMarq Capital earlier this year. With the end of summer near, my team and I are gearing up for Commercial Executive Magazine’s 10th Anniversary Fall Forum. Featuring seven legends in our industry, Leadership Defined will consist of a panel discussion, cocktail reception, and networking opportunities. Don’t miss this exclusive industry event, October 4, 2018 at the Arizona Biltmore Resort.

Enjoy the issue, Marc, Georgia, and Rusty celebrate George Getz’s birthday with cake and champagne Mandy Purcell

aren Gallagher is Commercial Executive Magazine’s Managing Director and helps coordinate the many moving parts of the publication as well as heading up the sales and marketing efforts.

Growing up on Lake Minnetonka, Minnesota, Karen spent many hours boating, sailing, and water skiing. She chose to escape the cold Minnesota winters and head West to study at the University of Arizona. She has called Arizona her home for almost 35 years. Karen has two grown sons who both work in commercial real estate. Her oldest, Andrew, does acquisitions for STORE Capital in Scottsdale, Arizona. Her youngest, Jake, is a mortgage banker at Hamilton Realty Finance in Dallas, Texas. Commercial Executive Magazine’s Fall Forum is an event Karen is quite familiar with. She has worked the event since its inception. This year’s 10th Anniversary Fall Forum will be on October 4, 2018 at the Arizona Biltmore Resort. Please contact Karen with any questions regarding Commercial Executive Magazine or the Fall Forum.

P H O T O C A P T I O N S /// TOP: Left to right – Andrew, Karen and Jake Gallagher /// MIDDLE: Sailing on Lake Minnetonka, Minnesota BOTTOM: CEM team, left to right – Karen Gallagher, Mandy Purcell and Celina Busse.

HEAD OF THE CLASS Community Innovation

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We are a community at our core, committed to teamwork, service, expertise and fun. Our core values provide the solid foundation from which we serve our clients and support our Colliers team. This bedrock of life-work alignment provides the ideal springboard for a higher level of performance and outstanding relationships. Colliers team members demonstrate these core values in meaningful ways that go beyond the desire to achieve and catapult them to aspire. colliers.com/greaterphoenix Phoenix Scottsdale

+1 602 222 5000 +1 480 596 9000

Executive

SPOTLIGHT

“Grant that I may not so much seek to be consoled as to console, to be understood as to understand, to be loved as to love.” It is in these words of the Peace Prayer of St. Francis of Assisi that Bob Mulhern found inspiration as a young student at Arizona State University. “When I read them I was the antithesis, everything was about me,” he says. “Those lines changed my life.” Perhaps it is the next line, though, that best describes Mulhern’s enormous impact over a 30-year career of exceptional accomplishments.

“For it is in giving that we receive.”

Executive

SPOTLIGHT

BOB MULHERN’S

1981

Completed business degree at ASU and is selected as “Man of the Year”

1983

Completed MBA at ASU and started first professional job for Charlie Keating and American Continental Corporation; moved to Southern California

1988

Married Tina Marie Hoogervorst

1989

John Paul, the first of nine children, is born

( PICTURED RIGHT )

1993 Moved family (now four children) back to Arizona to work for CBRE 1997 Promoted to Senior Managing Director and Designated Broker for CBRE

1999 Began development career at Ryan Companies STARTING POINTS

“I want to positively influence people and provide them with a life vision to be the best version of themselves,” says the Senior Managing Director of Colliers International of Greater Phoenix. “Every individual needs to find out and pursue what is most important to them.” /// Practicing the spirit of giving in his professional, personal, and community areas of life, Mulhern strives to make the lives of those around him better. “I have always wanted to be involved in what is important,” he says.

BACKGROUND The eighth of 12 children,

Mulhern grew up in a household in which the commercial real estate industry was evident. “My dad was a developer, and I of course wanted to be just like him,” he says. /// Mulhern graduated from ASU with a Bachelor of Science in business administration, and later a Master of Business Administration. From there his career began at American Continental Corporation. “I went to work for Charles Keating, who made quite a name for himself here,” says Mulhern with a wry tone. “He was the biggest homebuilder in Arizona at the time, and shortly after I started he bought Lincoln Savings & Loan in California where I worked for six years.”

Executive

SPOTLIGHT 2001 Awarded first of five NAIOP project of the year awards 2002 Co-founded Veritas Preparatory Academy and Great Hearts Academies with Jay Heiler and Dan Scoggin

2004 Partnered with Daryl Burton to form Reliance Companies

Took over the role of Managing Director at Colliers International

CAREER TRAJECTORY

Mulhern returned to Arizona in 1993 with his wife of five years, Tina, and four children. “I had an opportunity to relocate and work for CBRE as the head of Property Management for the Southwest,” he says. During his 6-year stint, Mulhern rose to the level of Senior Managing Director and Designated Broker. /// From there, Mulhern pursued a new avenue in the sector, development at Ryan Companies U.S. where he earned the first of his six career NAIOP Project of the Year Awards. “I spent four years as Vice President of Development,” he says, “and I really enjoyed Ryan and its strong culture. /// Before moving to Colliers in 2009, Mulhern pursued the entrepreneurial route in development, founding Reliance Companies with Daryl Burton in 2004.

COLLIERS

Colliers’ Phoenix footprint includes two offices and more than 100 real estate professionals. “I manage the brokerage operations across property segments and market geographies,” he says. “I have an amazing leadership team consisting of Jim Keeley, Bev Jensen, and Nancy Zimmerman.” /// As part of Colliers’ high-growth global brand – 2017 corporate revenues of $2.3 billion – Mulhern emphasizes the importance of exceptional team members in the firm’s pursuit of market share. “As a leader, I need to promote our people and deliver 8

2009

First grandchild, Ana, is born

on the promise to help them in their business growth,” he says. /// Part of the challenge and opportunity that come along with managing a large and diversified team is continually deepening the talent pool. A recent experience points to Mulhern’s belief in the power of his approach. “Earlier this year, our biggest brokerage team decided to leave for a new opportunity. My first thought was to understand why, and after listening I expressed support for their decision,” he says. “Of course, I needed to find their replacement. Through the process of understanding, and working with peers and associates, we were excited to welcome brothers Chris and Matt Roach to the Colliers multifamily team.”

ACCOLADES Mulhern’s roster of accomp-

lishments stands too numerous to count. Some include 2015 NAIOP Arizona Award of Excellence, 2012 Redevelopment Project of the Year for the Veritas Preparatory Campus, and past president and past chairman of the Board of the NAIOP Arizona Chapter. /// His most important work, however, began in 2002 when he co-founded Veritas Preparatory Academy and Great Hearts Academies with Jay Heiler and Dan Scoggin. “Veritas is a founding member of Great Hearts, which has an ecosystem of 28 campuses serving nearly 16,000 students in Arizona and Texas,” he says. “Our goal is to educate students to be great thinkers, speakers and, ultimately, great citizens.” Mulhern serves as the President of the Board of Directors for Great Hearts Arizona.

Executive

SPOTLIGHT

The Mulhern Family

FAMILY With all of his successes, Mulhern considers his family

most important. “I have an incredible wife of 30 years and nine wonderful children,” he says. Over the years, their family, which now includes a son-in-law and two grandchildren, has traveled the world, including two trips to Rome where eight of the nine have been blessed by the Pope. “Our youngest, Patrick, is just 6, so we will be returning again in the future,” he says. /// With the adventures set to expand for many years to come, Mulhern looks forward to continuing a tradition with his two youngest children. “Our first seven have all been on a five-day backpacking trip with me in the Ansel Adams Wilderness in California,” he says. “There is a summit to be climbed, as well as repelling, rock climbing, and backpacking. It will be exciting to experience that again.”

2018 2012 Patrick, the last of nine children, is born

CONCLUSION

With Colliers booming and the Valley’s commercial real estate market continuing its ascent, Mulhern sees himself working for many years. “We have 15 more years of college to pay for,” he chuckles. “I love what I do, and this business, and will work at Colliers as long as they will have me.” /// When considering his legacy, Mulhern stays true to the principles that have served him so well. “I want to be identified as a family man, first and foremost, who helped people understand how to live their best life.”

Senior Managing Director for Colliers International

Chairman of Great Hearts Arizona: 23 academies, 12,500 kids Chairman of Diocese of Phoenix Finance Council

Happily married for 30 years with nine wonderful children, one son-in-law, two grandchildren and more to follow

Fast 5:

LAW Quick Q&A with 5 Experts in Law

Wendy Riddell Berry Riddell, LLC What has been your most interesting zoning case so far this year? I have been honored to represent the Phoenix Rescue Mission in their request to expand their campus at 35th Avenue and Buckeye. While nearly everyone agrees that the Mission’s goal of alleviating homelessness is admirable, and that our community is in desperate need of these programs, there are a few well-represented adjacent commercial landowners that object to the Mission. Complicating it further, the holistic care and programing they offer does not fit squarely into any definition provided in the zoning ordinance, leaving the city to default to calling us a “homeless shelter,” conjuring an undeserved negative image of our campus. Ultimately the goodwill the Mission has earned in the community was enough to convince the Board of Adjustment to approve our request for 250 recovery beds. After a recent additional review, we received approval for a total of 360 beds to continue to serve the overwhelming need in Phoenix.

Spencer Cashdan

Dickinson Wright

How often do your real estate cases go to court? Rarely. As a transactional lawyer, I draft unambiguous documents so that if an issue arises in the future, the document is clear as to the rights, obligations and remedies of the parties. If the rights, obligations, and remedies of the parties are well-defined in the agreement, it is less likely that the parties will litigate. When a document I drafted was the subject of litigation, the contested issue related to determining if a party acted “reasonably” – which is a term that is often used in agreements, but which cannot be determined at the time the agreement is executed. 10

Fast 5:

Paul Weiser

LAW

Buchalter

What are your biggest challenges in retail leasing cases and how do you overcome them? In representing tenants, educating them (and their brokers) to get an attorney involved at the letter of intent stage so that we can insure inclusion of beneficial terms such as exclusivity rights, warranties regarding HVAC and other systems, limited passthrough of common area expenses, no relocation, etc. Another challenge is to make sure that individuals starting a new business temper their unbridled enthusiasm with a clear understanding as to what their gross sales will need to be in order for them to turn a profit. From a landlord perspective, the biggest challenge is in analyzing the financial risks associated with a new tenancy versus the tenant’s financial ability to keep the business up and running until it (hopefully) reaches profitability. This usually involves advising clients on such issues as when abated rent should be given, letters of credit, security deposits, a security interest on tenant’s furniture, fixtures, and equipment and/or a personal guaranty.

Byron Sarhangian

Snell & Wilmer

How has technology made your law practice more successful? We live in an increasingly fast-paced, technologically driven world. More than ever, we have access to vast amounts of information immediately on our mobile devices. The ability to travel globally while reviewing documents and communicating instantaneously with clients has significantly decreased the delays in negotiating transactions. These advances in cellular and wireless technology have led to more efficient and direct communication. Additionally, the reliance on paper files is continuing to decrease as we scan and save documents to our internal network. The problem of needing to run to the office to grab a file is becoming a thing of the past with our robust document management programs. This not only serves as a benefit to our environment with less paper used on a daily basis, but it also reduces the physical space we need within the office to store large client files for many years.

P. Douglas Folk

Clark Hill PLC

What skills are essential to your practice in CRE law? Effective listening skills top the list. Confirming that I understand our client’s objectives and have identified strengths and weaknesses of the property or project helps me choose the right team, deal structure, and strategy. Next, get your facts right. Confirm the legal status of the property, read all contracts or proposals, and diagram the deal so that nothing we can control is overlooked. Offering our clients several alternatives keyed to different expectations for budget, schedule, or result also helps us to test their objectives and provide the best fit for a solution. We often hear that our ability to assess the deal from a business perspective – as though we were spending our own money – is the skill that earns their repeat business. Last, wherever possible, negotiate “win-win” outcomes. If the other side also believes its objectives were met, a good deal will beat a tougher contract every day of the week. © Copyright 2018 by MP Media, LLC

WHAT DOES

$122 MILLION IN CHARITABLE GIVING FEEL LIKE?

ONE SUCCESS STORY AT A TIME. TIME AFTER TIME. IMPROVING THE QUALITY OF LIFE IN OUR COMMUNITIES is just one of the many missions of e underbirds, hosts of the Waste Management Phoenix Open presented by the Ak-Chin Indian Community. Like Girl Scouts Arizona. UMOM. AZ Science Center. United Food Bank. And countless others.

More than $122 million has been gied to Arizona charities over 82 years, but the true impact can be expressed one story at a time. anks for your continued support of the Waste Management Phoenix Open. Chance Cozby, underbird

For more Arizona success stories, visit www.thunderbirdscharities.org

We’ve Joined NorthMarq! As NorthMarq Multifamily, we combine our local market knowledge with the strength of a national platform to develop creative solutions for your real estate investment opportunities. Contact us today to learn why commercial real estate investors can count on us at every stage of their investment–from acquisition, renovation, refinance and disposition.

Trevor Koskovich

Bill Hahn

PRESIDENT

EXECUTIVE VICE PRESIDENT

PHOENIX OFFICE

tkoskovich@northmarq.com

bhahn@northmarq.com

Jesse Hudson

Cynthia Meister

VICE PRESIDENT

PHOENIX OFFICE

ALBUQUERQUE OFFICE

jhudson@northmarq.com

cmeister@northmarq.com

Thomas Olivetti

Don Vedeen

VICE PRESIDENT

LAS VEGAS OFFICE

PHOENIX OFFICE

tolivetti@northmarq.com

dvedeen@northmarq.com

M U LT I F A M I LY & M A N U F A C T U R E D HOUSING INVESTMENT SALES Visit us @ northmarq.com/multifamily

BUILDING…

KNOWLEDGE naiopaz.org

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PHILLIP M. BREIDENBACH, Colliers International

 @NAIOPArizona  @NAIOPArizona  naioparizona

Presented by Willmeng Construction

Partners since 2007, multifamily professionals Bill Hahn and Trevor Koskovich have been riding the highs and lows of the Valley’s commercial real estate market for more than a decade. “I remember meeting Trevor for the first time over a lunch in Old Town Scottsdale,” Hahn recalls. “We hit it off and we had a plan.”

STARTING POINTS Early in 2018, Hahn and Koskovich moved their entire 10-team member operation from Colliers to NorthMarq Capital. The firm is an industry leader in commercial real estate finance with annual production volume of $13 billion and a loan-servicing portfolio of $52 billion on behalf of more than 50 institutional investors and the government-sponsored entities (GSE’s). /// “We realized this would be a good alliance,” says Koskovich, President of newly created NorthMarq Multifamily Investment Sales group. “We each had what the other wanted.”

BACKGROUND Hahn, Executive Vice President of NorthMarq Multifamily Investment Sales, and Koskovich, came to the commercial real estate industry on vastly different paths. “I entered the business with Marcus & Millichap in the early 1980s,” says Hahn. Koskovich, on the other hand, entered the arena with an entrepreneurial energy, having sold two companies he started. “I believed commercial real estate would be a great industry for me,” he says. “I interviewed every firm in town to find out which would be the best fit.” /// Sperry Van Ness proved the right launching pad for Koskovich. “I knew that working with Bill was ultimately going to offer me the most opportunity and room to grow,” he says. /// At 27, Koskovich had little idea of the obstacles looming on the horizon. “The market was ready to fall off a cliff. I recall the best advice I gave him,” says Hahn. /// “He told me, stop talking to owners of commercial real estate and start talking with the lenders,” says Koskovich.

Bill Hahn

Trevor Koskovich

Broker Team of the

MONTH

COLLIERS

TRANSITION

A year later, Colliers was the The transition to create a new pair’s new home as the duo business with NorthMarq fought the uphill battle of the Capital provided the team Great Recession. “Those years with an important opportunity were lean,” says Hahn. “But to advance to the next stage of Trevor was never discouraged growth. “It was hard to leave and we built our format, which Colliers,” says Hahn. “We felt, L to R: DON VEDEEN, TREVOR KOSKOVICH, is largely the same today.” though, that in order to deliver JESSE HUDSON, AND BILL HAHN /// “We hit the road to New a higher level of service to our York, Miami, Chicago, Dallas, clients, we needed to make and other markets in 2008the change,” Koskovich says. 2010 and talked to bankers, Fannie Mae, and Freddie /// NorthMarq Capital’s appeal involved its status as a Mac,” says Koskovich. /// The formula they developed Delegated Underwriting and Servicing Lender (DUS) places Koskovich out on the front lines prospecting and Freddie Mac approved Seller/Servicer. “As an and developing business. industry, this is where the Hahn is the deal closer, multifamily business is bringing together pricing headed,” says Koskovich. and packaging for “In order to have success clients. “Bob Mulhern in multifamily investhelped with that; he had ment sales, you have to us take personality tests,” be strategically aligned says Hahn. “It got us with the GSEs – Freddie to focus on what people Mac, Fannie Mae, Federal do well, and what they Housing Administration, like best.” and Housing and Urban Development.”

“We are both competitive and know resilience in this business is the key to success,” Koskovich says. “Bill is steady, does not get distracted, and is a great mentor.” “Trevor is outgoing and pedal to the metal,” says Hahn.

Broker Team of the

MONTH

MOVING FORWARD Creating the correct architecture of the DUS model in Phoenix is the top priority. “We are the avant-garde professionals in bringing this approach to the Valley,” says Hahn. “We want to grow the NorthMarq brand for multifamily investment sales.” That expansion will not just be local. “We are building a platform that will be repeatable in high growth markets across the country,” says Koskovich. “We hope to be in 30 markets in the next three to five years.” /// Other areas of potential are manufactured housing and market penetration in Tucson, Albuquerque, Las Vegas, and El Paso. “There is not a sole reliance on Phoenix,” Koskovich says.

INTANGIBLES What makes the pair great teammates is not only a successful business relationship, but a personal one as well. Both are Arizona State University graduates. “We are great friends who have traveled abroad,” says Hahn. “We have visited South America and climbed Mount Kilimanjaro in Africa.” /// “We are both competitive and know resilience in this business is the key to success,” Koskovich says. /// Each has distinctive traits that complement the other. “Trevor is outgoing and pedal to the metal,” says Hahn. “What he believes he will accomplish gets done.” /// “Bill is steady, does not get distracted, and is a great mentor,” reflects Koskovich.

“We are the avant-garde professionals in bringing this approach to the Valley,” says Hahn. “We want to grow the NorthMarq brand for multifamily investment sales.”

That expansion will not just be local. “We are building a platform that will be repeatable in GREATER PHOENIX high growth markets across the country,” While transaction opportunities become harder to find as the cycle elongates, adds Koskovich. “We hope to be in Koskovich still identifies Metro Phoenix as a premier choice. “This is a very 30 markets in the next three attractive market relative to the national picture,” he says. “We stack up very well to five years.” and are far more mature now than in 2008.” /// Hahn, for all his years in the business, does wonder about transaction levels. “I am astonished by the sale prices,” he says. “Part of that is because inventory levels are lower than they have ever been in Phoenix.”

– BILL HAHN & T R E VO R KO S KOV I C H

CONCLUSION Unquestionably, this powerhouse duo has a long runway of success ahead as it leads the field with a new model. “Every day we are trying to grow the business and market share, expand opportunities, and fill the cup,” says Koskovich. /// Hahn, still with fire in the tank, says he knows that NorthMarq is well served when he finally decides to call it a career. “I am not planning on it,” he says. “But with Trevor’s dynamic attributes, NorthMarq can look at him to lead the business for the next 10 to 20 years.” /// Sounds like a couple of great decades.

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imilar to the 1950sâ&#x20AC;&#x2122; West Side Story, the development of our West Valley is a strong, larger-than-life work of art. Like the main characters in the original Broadway musical, we feature four local, forward-thinking leaders who followed their gut and have been instrumental in the redevelopment of this booming metropolis.

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STORY

L E F T TO R I GH T: MA R C H E R TZ B E RG MAYO R GE O R GI A LO RD GE O R GE GE TZ R U ST Y K E NNE DY

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STORY

IT HAS BEEN JUST OVER A DECADE

since a confident, young graduate of the University of Texas entered the world of commercial real estate in the Valley with CBRE. “It has been a real privilege to work with and partner with Joe Porter, Pat Feeney, and Dan Calihan,” says Senior Vice President Rusty Kennedy. “These three prominent industry leaders pioneered the industrial warehousing movement in the West Valley. They saw the opportunity in the marketplace and planted the flag in the West Valley before people thought of the submarket as a viable industrial location for users.”

That was well over 10 years ago and today Phoenix’s West Valley submarket has grown into a hub for industrial and warehouse users alike with the ability to attract tenants from anywhere in the country.

STARTING POINTS This dynamic team continues to rack up an impressive list of accomplishments: NAIOP Arizona Industrial Brokers of the Year 2010, 2011, 2012, 2015, and 2016; and NAIOP Arizona Industrial Brokers of the Year Finalists 2009, 2013, 2014, and 2017. Add to that a sterling list of investors, tenants, and developers and CBRE’s brand in the Valley remains an outperformer. “Our team has been very fortunate to work alongside the top tenants, owners, investors, and developers in the industry and we are eager to continue to expand those relationships within the Phoenix market and across the country,” Kennedy says proudly.

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STORY

WEST VALLEY GROWTH An Arizona native, Kennedy has embraced the West Valley vision that Feeney, Calihan, and Porter had and the team continues to pursue this vision. “The West side of Metro Phoenix is truly the epicenter of industrial warehousing, e-commerce, and omni-channel real estate for the entire state of Arizona,” he says. With more than a third of Metro Phoenix residents calling the West Valley home, the East Valley is no longer the only game in town. “The growth in labor force, infrastructure, development, and major users in Glendale, Goodyear, Buckeye, Avondale, and other communities is tremendous and expected to continue for the foreseeable future,” Kennedy says. /// The West Valley industrial submarket is projected to expand with over 5.7 million SF of product under construction during Q1 2018, which represents 72 percent of all industrial construction projects that are underway in the entire metro area. “The name everyone knows While the West Valley’s industrial market booms given its on the West Side is PV303, the 1,600-acre mixed use infrastructure and labor force, Kennedy is quick to point business park,” says Kennedy. “Of course, that has out the competitive advantage of the strategic geographical been a huge listing for our team with great developers position. “Phoenix industrial will continue to expand because and partners, but the West Valley story does not of the proximity to the ports of Los Angeles and Long Beach end there.” /// The West Valley’s industrial footprint and the ability to access just under 34 million people within comprises roughly 40 percent of Metro Phoenix’s a 400-mile radius and not have to be located within the state 310.2 MSF total industrial product base. The West of California” he says. “Beyond that, though, the West Valley Valley is now positioned as a prominent hub of has strengths in housing; a diversified industry and labor base; transportation, logistics, and distribution. “Look at healthcare; manufacturing; entertainment and destination the Southwest Valley, the region is a national ‘who’s attractions; and dynamic retail.” /// In many ways, the energy who’ of big box occupiers: Dick’s Sporting Goods, of the West Valley mirrors the transformation of Metro Sub-Zero, REI, Chewy.com, SK Foods, UPS, Conair, Phoenix since the Great Recession. “We are a more diversified Aldi, Ball Corporation, Huhtamaki, and the list goes economy now, more resilient and disciplined,” he says. “Our on and on,” says Kennedy. economy is not just real estate. The state is business friendly and a job creator with a great labor force.”

WEST VALLEY ECONOMICS

PROJECTS PV303 remains a high priority for Kennedy and the team. “Working with Merit Partners, First Industrial, and Sunbelt Holdings has been excellent,” Kennedy says. “Notable tenants located within the park include REI, Dick’s Sporting Goods, Sub-Zero, Aldi, Ball Corporation, UPS, and many more to come.” /// In addition and a further testament to the momentum in the West Valley, a new project that is scheduled to deliver in August of 2018 is squarely on the minds of the trio. “Lincoln Logistics 40 is a 901,700 SF spec development just off the I-10 in Goodyear,” Kennedy says. “As the name suggests, this is a 40-foot clear height industrial project that has already garnered attention from users across the country.” /// A collaboration between Lincoln Property Company and Goldman Sachs, Lincoln Logistics 40 offers tenants best-in class features including but not limited to FTZ Magnet Site Designation, APS power up to 12,000 amps, 551 parking stalls (expandable to over 1,000), 161 dockhigh doors with 185 trailer parking stalls, and energy-efficient clear-story windows. “This is an incredible opportunity to work on the leasing of this state of the art facility, as the Valley has never experienced spec buildings of this magnitude and quality,” says Kennedy. “Lincoln and Goldman have been great to work with and we are looking forward to a very successful project.”

of Metro Phoenix’s 310.2 MSF total industrial product base is located in the West Valley

FUTURE The future for CBRE’s industrial team looks extremely positive as the West Valley continues its strong, upward trajectory. “There are great synergies between the East and West valleys, which allows us to stay very active across the entire industrial market across Metro Phoenix” Kennedy says. “This is an exciting time in the industrial sector and we think we have a long runway ahead.”

ADVANTAGE DELIVERED.

CBRE knows Industrial. Weâ&#x20AC;&#x2122;re proud to have partnered in helping to expand numerous nationally and globally recognized brands across the West Valley. As the unrivaled leader in commercial real estate services in the Phoenix metro, CBRE is committed to bringing the combined power of our global platform and market expertise to every client we proudly serve. How can we help transform your real estate into real advantage? For more information contact: Pat Feeney, SIOR, Senior Vice President +1 602 735 5530 | pat.feeney@cbre.com Danny Calihan, Senior Vice President +1 602 735 5677 | danny.calihan@cbre.com Rusty Kennedy, Senior Vice President +1 602 735 1712 | rusty.kennedy@cbre.com James Cohn, Associate +1 602 735 5582 | james.cohn@cbre.com cbre.us/phoenix

FALL FORUM FALL FORUM//////OCT. OCT.4,4,2018 2018 10 ththAnniversary Fall Forum Celebrates CRE Legends 10 Anniversary Fall Forum Celebrates CRE Legends

MODERATOR

Dana Garmany

Gary Tharaldson

Ed Robson

Jim Pederson

T R O ON G O L F

T HA R A L DSO N COM PA N IES

ROBSON COM M U N I T IES, I N C.

PEDERSON GROUP, INC.

John Graham

Michael Pollack

Conley Wolfswinkel

SUNBELT HOLDINGS

P OLLACK I N V EST M EN TS

W. H OLDIN GS

THE EVENT WILL BE HELD AT THE ARIZONA BILTMORE RESORT 2400 E. Missouri Ave., Phoenix, AZ 85016

ITINERARY

SPONSORSHIPS

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Registration 3:15pm

Contact Karen Gallagher

Table with 10 Seats $1,400

Panel 4 – 6pm

for Opportunities

Individual Ticket $150

Networking & Cocktails 6 – 7pm

karen@mpmediaaz.com

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STORY

What do scallions, a nearly 120-year-oldfamily-held company, and proceeds from the sale of a financial institution have in common? West Valley opportunity, courtesy of Globe Corporation President and CEO, George F. Getz. “The West Side has the most potential of any area in the Valley,” says Getz.

BACKGROUND

Globe Corporation was founded in 1901 in Chicago when George Fulmer Getz struck out on his own in the coal business. Through the years, successive generations involved the company in a diversity of business lines including manufacturing, ranching, and commercial banking. /// Globe’s presence in Arizona initiated with generation two, George F. Getz, Jr. who acquired large ranches in northern Arizona and several tracts of land in the West Valley. Generation three, Bert A. Getz, furthered the family’s investment in Arizona with the acquisition of The Arizona Bank in the late 1960s and additional real estate assets. “My grandfather and dad liked to buy a property, hold it for 10 years, and then flip it into another parcel,” says George F. Getz, also known by some as “YG”. /// “Once I joined Globe Corporation in 1986, it became TH confusing to call the office. Because Now managed by the fourth generation of the Getz family, Co-CEOs my grandfather was actually George F. George F. Getz and Bert A. Getz Jr. have forged a new path for the firm Getz, Jr. and his son, my father, is Bert A. as a “diversified investment company” with positions in real estate, asset Getz, I’m actually George F. Getz, Sr. So management, and private equity. “The business operates in Metro Phoenix when people called the office and asked and in Chicago,” says George Getz. “Bert primarily handles the private for George, our receptionist would ask, equity and public securities operations, and my attention is on commercial ‘which George?’ The caller would say, real estate and property management. We work collaboratively.” /// After ‘George Jr.’ when they wanted me and graduating from the University of Southern California with a B.B.A., George she would put my grandfather on the Getz took his first job at The Arizona Bank in 1985. “I think it is important phone. So instead she started saying, ‘Do to work outside of a family business before entering it,” he says. Just a year you want young George or old George?’ later, The Arizona Bank was sold to Security Pacific. The door for Getz to That’s how the nickname YG (Young enter Globe Corporation opened. “As Globe had a financial interest in the George) began. sale, dad told me to consider what I wanted to do with the profits, as I would one day be running the company.”

4 GENERATION

“The West Side is fairly devoid of office. There is a definite need for more general office space.” – GEORGE GETZ

GLOBE REIMAGINED

Much like his predecessors, George Getz took the company in a new direction and diversified the portfolio. “I wanted to take our land holdings and maximize their value through strategic development and joint ventures,” he says. “My focus has always been cash flow and acquiring high performing commercial real estate assets.” /// He has done just that. Globe now owns and manages more than 20 institutional-quality industrial, office, and retail properties. © Copyright 2018 by MP Media, LLC

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STORY

THE MARKET AT ESTRELLA FALLS About those scallions. The Market at Estrella Falls development sits on property that George F. Getz Jr. purchased in the 1970s. “At the time, the acreage contained the largest scallion farm in North America,” he recalls. From there the path from farmland to largescale retail development took its share of twists and turns. Throughout the 1970s and early 1980s, Globe leased the land to farmers. However, in the late 1980s and early 1990s, things began to change. Development giant SunCor purchased 10,000 acres of Goodyear Farms and established the Palm Valley master-plan, a mixed-use community, according to the City of Goodyear. “Our acreage was the only piece not part of the Goodyear Farm,” says Getz. /// As Palm Valley came to fruition, another commercial real estate titan was making noise. Westcor was advancing its regional shopping mall footprint and the Goodyear area was on its radar. “According to the Goodyear General Plan, a mall development would be located on SunCor-owned property,” says Getz. “My friend Greg Vogel noted that our parcel was situated perfectly within Westcor’s 10-mile concentric circle design.” /// That was just the push Getz needed. He contacted Westcor’s principals and discussed the possibilities of siting a future mall development on the scallion farm. “Westcor leadership told me flat out that they would not work with SunCor on a project because of their status as a publicly-traded company,” says Getz. “They preferred to work with a privatelyowned family firm that thought in terms of decades not quarters.” /// Subsequently, Westcor relayed this information to SunCor leadership with interesting results. “They completely understood Westcor’s position, and indicated that they would not stand in the way of our development,” says Getz. “Within six months there was a new general plan and we were ready to go.” /// One of the projects within Globe’s master plan for that property is The Market at Estrella Falls, one of the West Valley’s premier successes, boasting 492,000 SF of existing and planned retail space on 67 acres. “When Macerich purchased Westcor in 2002, we had to sign off on the deal,” says Getz. “Today we remain partners in the development.” © Copyright 2018 by MP Media, LLC

WEST VALLEY “Why not the West Valley?” says Getz. “With workforce housing, transportation, areas to grow, and cities easy to work with, the West Valley could grow like the Southeast Valley over the next decade or two.” Along with The Market at Estrella Falls, Globe also developed and sold Aldea at Estrella Falls, a 328-unit multifamily project. /// Globe is also collaborating with Ryan Companies U.S. on an industrial venture in Buckeye. Getz says he sees additional opportunity in office. “The West Side is fairly devoid of office. There is a definite need for more general office space,” he says. “We are looking for a great property.”

5 TH GENERATION With no imminent plans to step down from the top spot, George Getz is preparing the company for what he hopes will be a fifth generation of Getz ownership. “Bert and I each have three children, along with the daughter of our late sister Lynn. We would love to see one or more of them learn and ultimately run the business,” he says. “We are setting up platforms now for the next generation.” /// As Globe continues on in its second century of operations, George Getz and his team strive to create value across their portfolio. “Tenants are the value of our commercial real estate assets, which is why we manage our properties in-house,” he says. “We want to maintain our sterling reputation of being a good business partner. By creating the right environment, strong balance sheet and a willingness to always do the right thing, the next generation is already miles ahead of the competition.” 25

Rail-Served Build-to-Suit Opportunities Available

3.5-MILE DRIVE NORTH

CCE

IL A F RA

LE O

1 MI

Buckeye Industrial Rail Park is a 260-acre master planned industrial park ideally located to serve Arizona and surrounding markets. Available to accommodate Âą4 million SF

Served by one mile of Union Pacific frontage rail

Direct access to a 175,000 workforce within 30 minutes

Accessible by a full diamond interchange

Zoned Industrial, City of Buckeye

F OR MORE I N F ORMATI ON , CON TA C T: George Getz, Globe Corporation +1 480 991 0500 Mike Olsen, Globe Corporation +1 480 991 0500 Marc Herzberg, JLL +1 602 282 6269 Anthony J. Lydon, JLL +1 602 282 6268 Molly Ryan Carson, Ryan Companies +1 602 322 6140

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WESTERN RETAIL ADVISORS 2525 E Camelback Rd, Ste 625, Phoenix, AZ 85016 WESTERN RETAIL ADVISORS

The information contained within this brochure has been obtained from sources other than Western Retail Advisors, LLC. Western Retail Advisors has not verified such information and makes no guarantee warranty or representation about such information. It is your responsibility to independently confirm its accuracy and completeness. Any dimensions, specifications, floor plans and information may not be accurate and should be verified by you prior to the lease or purchase of the property.

PADS 1, 2 & 3 AVAILABLE PADS 1, 2 & 3 AVAILABLE

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W E S T E R N R E T A I L A D V I S O R S The information contained within this brochure has been obtained from sources other than Western Retail Advisors, LLC. Western Retail Advisors has not verified such information and makes no guarantee warranty or representation about such information. It is yourEstrella responsibility to independently confirm its accuracy and completeness. Any dimensions, specifications,October floor plans and information may not2016; be accurate and should be verified by you prior to the lease or purchase of the proper Anchored by Harkins Falls 16, Opened 2525 E Camelback Rd, Ste 625, Phoenix, AZ 85016 W E S T E R N R E T A I L A D V I S O R S The information contained within this brochure has been obtained from sources other than Western Retail Advisors, LLC. Western Retail Advisors has not verified such information and makes no guarantee warranty or representation about such information. It is yourEstrella responsibility to independently confirm its#1 accuracyTheatre and completeness. Any dimensions, specifications,October floor plans and information may not2016; be box accurate and office should be verified bysales you prior to the lease Anchored Harkins Falls 16, Opened E Camelback Rd, Stescreen 625, Phoenix, AZ 85016 ( 2525 Largest movie inby Arizona, over 80 feet and in Arizona based on ) or purchase of the proper ( Largest movie screen in Arizona, over 80 feet and #1 Theatre in Arizona based on box office sales )

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Cover

STORY

Phoenix’s West Valley has achieved tremendous growth over the last several decades. An influx of residents and businesses is helping the region shed its image as a bedroom community, earning its reputation as a great place to live, work, and play. /// The region’s mix of luxury and affordable housing contributes to a diverse community that attracts both executives and firsttime homebuyers. West Valley amenities – including Westgate Entertainment District, University of Phoenix Stadium (home of the Arizona Cardinals), Gila River Arena, five spring training stadiums, and continuously expanding dining options – provide an exceptional quality of life for its residents. /// The West Valley’s large talent pool, affordable cost of living and doing business, and availability of land has attracted health care, distribution, and advanced manufacturing companies to the region over the last several years.

COMMERCIAL REAL ESTATE

West Valley vs. Phoenix Metro WEST VALLEY

PHOENIX METRO

OFFICE

Labor Stats The West Valley has access to

Total Base

5.8 MSF

88.1 MSF

Vacancy

13.6%

16.5%

Asking Rent (FSG/Annual)

$21.09

$25.65

Under Construction

2.57 MSF

1.5 MILLION West Valley employees

Total Base

124.6 MSF

310.2 MSF

Vacancy

6.6%

6.7%

$0.44

$0.64

5.7 MSF

7.89 MSF

Asking Rent

(NNN/Monthly)

Under Construction

Total Base

47 MSF

150.9 MSF

Vacancy

9.2%

8.4%

Asking Rent (NNN/Annual)

$15.79

$17.35

Under Construction

175,270 SF

990,662 SF

BUCKEYE...

people

in the West Valley are employed in the healthcare sector

RETAIL

of finance & insurance workers in Maricopa County live in the West Valley compared to 12% of jobs located there

of the West Valley’s workforce commutes to jobs in other parts of Maricopa County

31,279

production workers live in the West Valley, ACCOUNTING FOR 36%

of production jobs in Metro Phoenix.

GOODYEAR...

GLENDALE...

was the 7 fastest growing city

ranked as one of the

ranked #13 for “Best Cities

in the U.S. between July 2015 –

“Top 10 Best US Cities to Live In”

to Buy a Family Home”

July 2016, growing 4.8%

by 24/7 Wall St.

by Smartasset

46,011

INDUSTRIAL

San Francisco

Bay Area

750 miles 12.00 hours

Cover

Las Vegas STORY 285 miles 5.25 hours

KEY INDUSTRIES

RETAILERS EXPANDING AND/OR RELOCATING IN THE WEST VALLEY:

IN THE WEST VALLEY

FINANCE

MANUFACTURING

HEALTHCARE

WAREHOUSE

AEROSPACE

DISTRIBUTION

Riverside/Inland • Aldi Foods Empire

• UPS

• Chewy.com 310 miles 4.10 hours • Nikola Motor • Huhtamaki

INFORMATION TECHNOLOGY

Flag

• Fry’s Food Stores Los Angeles • Top Golf • Dutch Bros

San • Diego In-N-Out

• Subzero

Yuma

350 miles

• Dick’s Sporting Goods • Planet Fitness 4.75 hours

920 miles 12.25 hours

635 miles 11.00 hours

Sacramento San Francisco

Denver

Salt Lake City

Reno

Bay Area

750 miles 12.00 hours

One-day delivery area Two-day delivery area

Colorado Springs

Las Vegas 285 miles 5.25 hours

Santa Fe

Flagstaff

Amarillo

Riverside/Inland Empire 310 miles 4.10 hours

Oklahoma City

Albuquerque

Los Angeles

475 miles 6.25 hours

San Diego

Yuma

350 miles 4.75 hours

Phoenix Tucson

125 miles 1.75 hours

Nogales

Lubbock

Dallas

Las Cruces

1,120 miles 15.50 hours

El Paso

4.10 HOURS FROM INLAND EMPIRE Houston

440 miles 6 hours

Convenient access to One-day delivery area Arizona’s highway systems

Ft. Worth

San Antonio

Two-day delivery area

1,185 miles Galveston 17.50 hours

Laredo

West Valley is 20 minutes from downtown Phoenix

12 HOURS F FRANSISCO

Transportation Map Credit to JLL

Corpus Christi

POPULATION STATS... WEST VALLEY 1.6 million /// METRO PHOENIX 4.73 million 4.10 HOURS FROM INLAND EMPIRE

MILLENNIAL

GENERATION X

12 HOURS FROM SAN FRANSISCO

6.25 HOURS FROM ALBUQUERQUE

IMMEDIATE ACCESS TO INTERSTATE 10

the population % ofholds a bachelor’s

20 MINUTES FROM DOWNTO PHOENIX

degree or higher

BABY BOOMER

GREATEST GENERATION

More than a third of Metro Phoenix residents live in the West Valley

* Statistics and chart information used in “Why the West Valley” is courtesy of JLL & CBRE.

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STORY

Mayor of Goodyear, Arizona

n November 2011, Dick’s Sporting Goods broke ground on a $40 million, 600,000SF distribution warehouse in the massive 1,600-acre PV303 business park. Goodyear’s Mayor Georgia Lord was on hand for the formal ceremony with the traditional shovel, along with one other item – something a bit more peculiar. /// “The story of Dick’s Sporting Goods’ beginnings is that founder Richard Stack relied on $300 seed money from his grandmother in 1948 after his idea for selling fishing gear was rejected by his current employer. That $300 came out of his grandmother’s cookie jar and the rest is history,” says Lord. /// “At the groundbreaking, I presented him with a cookie jar filled with ‘play seed money’ as a way to honor the company’s legacy. This is the creative way we work here in Goodyear.”

STARTING POINTS To put it succinctly, Goodyear is thriving. “There is something great happening here every minute,” says Lord. “The sky is the limit.” /// In many respects though, the dynamic energy of Goodyear can be found across the West Valley. “All of the cities share a great relationship. We are competitive, but given our close proximity, we realize that economic development regionally benefits all of us,” she says. “Every month the mayors meet for a breakfast and dinner to communicate and share ideas.”

APPROACH

When Lord became mayor in 2011, she entered an environment that was far from economically inviting. “There was a very negative reaction from the business community about the commercial climate in Goodyear,” she recalls. “Over the past six years the city staff and elected officials have worked hard to change that perception. We have succeeded because of technology and teamwork.” /// The rise of Goodyear in stature, economic strength, and quality of life is due in no small part to the city leaders engaging with the residents. “We are in the service business, we work for the citizens,” says Lord. “We pride ourselves in gathering and utilizing their input and incorporating it into our general plan. In that way, we are building everyone’s ownership of Goodyear.” 30

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STORY

DESIGN The feedback and responses come from a bi-annual survey of residents. The emphasis is on what they want to see in their community. “Last year we were surprised to learn that the number one item on the list was more parks,” Lord says. /// To that end, the city is already beginning construction on an 86-acre recreation campus which will include an aquatic park, 30,000 SF recreation center, and other outdoor amenities. “The first phase of 30 acres will be ready in 2020,” Lord says. /// A second park, Wellspring, will be a health and wellness experience founded on a public/private partnership between Abrazo Community Health Network, Cancer Treatment Centers of America, and Adelante Healthcare. “We were one of nine General Electric grant winners,” says Lord “This is a unique project and something that has never been seen before.” /// While benefitting tremendously from the grant, Wellspring’s creation also relied on Lord’s cookie jar. “The land, we actually had sold to the county years ago, and we were able to purchase it back for less than $300,” says Lord. Richard Stack would be proud.

GROWTH MODEL Lord’s ongoing focus is bringing companies and jobs to the city. “We are looked at continually and are grateful for the businesses that come to Goodyear,” she says. Unquestionably, PV303 has been an enormous catalyst in the development trajectory of the city. With ongoing expansion announcements from corporate giants such as Aldi, UPS, Sub-Zero and many more, the 20 million SF business park is becoming a Western commercial hub. “UPS is adding 500 full-time and 1,000 part-time roles,” says Lord. “PV303 is a big reason we are moving in the right direction.” /// Lord also notes that developers are starting to introduce spec projects into Goodyear. “This is something we are seeing for the first time,” she says proudly.

GOODYEAR, ARIZONA S TAT I S T I C S

Ranked among the FASTEST-GROWING cities in America

Median household income:

FUTURE With her final term ending in 2021, Mayor Lord has a lot on her plate left to accomplish. “We are only 11 percent developed, so there is quite a bit of room for growth,” she says. As businesses enter Goodyear, that translates to jobs, which means more housing. /// “City officials just instituted zero-lot-line regulations, which will hopefully maximize living space,” she says. “We want residents to work and live in Goodyear.” /// Also, a pressing need for Lord: “We need more retail and restaurants,” she says. /// The West Valley is booming and on track to accelerate even faster with the proposed SR 30, south of the I-10 and connecting the Loops 202 and 303. “This would be a great regional success,” Lord predicts. “The West Valley is glorious. In every city something new happens every day.” /// Specifically for Goodyear, Lord sees nothing but upside. “We are building a quality city and doing very well.”

73,831 66.7%

of the workforce is college educated

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STORY

“Our team at JLL has had a strong commitment to the West Valley for over two decades,” says the 25-year industry veteran, Marc Hertzberg. “We are geographic driven, and our success rests in an exclusive focus to use our resources to match opportunities with communities we know like the back of our hand.”

STARTING POINTS Hertzberg and his team – Anthony and John Lydon, Riley Gilbert, and Lindsay Davidson – waste no time in delving into the intricacies of the West Valley market. “Our experience runs deep up and down the line of West Valley stakeholders. This includes economic developers, industrial users, architects, land owners, developers, and builders,” he says. “This is who we work with on a day-in, day-out basis.” /// Since joining JLL in 2010, Hertzberg has negotiated more than 38 million SF of deals valued at more than $715 million.

LOCATION + LABOR

DEALMAKING

Mention Phoenix, Tolleson, Buckeye, Goodyear, Avondale, or any other booming West Valley community and Hertzberg’s eyes light up and his motor runs fast. “Large employers are coming to town and choosing the West Valley; the region is receiving a great deal of attention,” he says. “There was approximately 10 million SF of industrial absorption in 2017 in the Valley overall, and a majority of that was big box companies coming to the West Valley.” /// The drivers of West Valley growth are well known: close proximity to California and the dual ports of Long Beach and Los Angeles; a robust Metro Phoenix transportation infrastructure; operational cost advantages to competing metros; and of course, availability of land. Hertzberg acknowledges these, but adds a huge and often overlooked characteristic. /// “It is not only location,” he says. “It is also an abundance of labor. The West Valley has a highly educated workforce, plus quality education institutions like Grand Canyon University, Arizona State University and Midwestern University.”

New projects cover the municipalities of the West Valley, each offering its own unique addition to the industrial landscape. However, the impetus of this tremendous growth cycle can be traced back to the migration of Dick’s Sporting Goods to Goodyear in 2011. /// “Over eight years, their West Coast expansion has played a very significant role in the emergence of the Loop 303 Corridor,” he says. “Their distribution center is a cutting-edge store fulfillment building with e-commerce operations serving the entire West Coast.” /// With PV303 as an anchor development for the region, Hertzberg identifies extraordinary opportunities and projects where businesses and communities are benefiting. “Developers are stepping up to create smart, modern, and highly advanced industrial facilities,” he says. “That kind of momentum extends into nearby communities. Look at Cardinal Glass, a large-scale employer in the City of Buckeye with over 100 jobs centered in a soon-to-be 1 million SF facility.” /// This is the type of story Hertzberg relishes repeating, and he can tell dozens more about any of the West Valley’s prime locations. “Merit Partners’ Riverside 43, west of the airport, is a fantastic building,” he says. “Three months into construction we completed a lease with Germany’s B. Braun Melsungen, a pharmaceutical company, bringing a whole new type of employer to the West Valley.” /// Add to the roster Opus Group’s Goodyear Crossing and it’s no secret why the West Valley is drawing the eyes of developers and businesses. “This 540,000 SF spec building creates a North and South energy along the Loop 303,” he says.

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STORY

You might call Marc Hertzberg, Managing Director within JLL’s Arizona Industrial Group, a West Valley evangelist. PRIME A reference to “prime” could certainly mean Amazon, which commands a huge presence in the West Valley. For Hertzberg, however, prime would describe TEN Distribution Center 1, an Irwin G. Pasternack industrial development. “This is a 200-acre site bordering West Phoenix and Tolleson, sitting on the best infill land site in the West Valley,” Hertzberg says. “With 1.1 million SF under construction, this spec design is a great example of an advanced 40-foot clearance product with state-of-theart e-commerce fulfillment technologies, set up to include robotics and drone retrieval equipment. In total, more than 3 million SF can be built out.”

FUTURE Hertzberg sees three distinct timelines for the evolution of the West Valley’s industrial sector. “Right now, companies want delivery in an 8- to 12-month window, and developers are managing those expectations,” he says. “In the medium-term, as long as Phoenix and the West Valley continue on a parallel path to national economic growth, there should be sustained growth of 18 to 24 months ahead.” /// It is the longer-term, though, which drives Hertzberg’s focus. “The growth in the West Valley is comparable to that of California’s Inland Empire 15 years ago,” he says. “That region now has over 350 million SF of industrial capacity. When you sit back and let that sink in, it’s a pretty staggering realization of our potential.”

CONCLUSION For Hertzberg and the JLL team, the industrial runway in the years ahead holds tremendous promise. “The demand buckets: e-commerce, food and beverage, manufacturing, regional logistics, and store fulfillment are ruling the day,” he says. “Large-scale companies are entering the West Valley and developers are meeting those needs for significant blocks of space. Our extensive market knowledge and strong relationships position us well for success moving forward, and we’re grateful for the opportunity to find that success in such an exceptional part of the Valley.”

he commercial real estate (CRE) footprint of Bob Parsons’ YAM Properties continues to expand across Metro Phoenix. The latest marker, the purchase of Westgate Enter tainment District, one of the Valley’s most recognized developments. “This is a landmark project for Arizona, and could be something huge nationwide,” says Dan Dahl, director of real estate for the company. “We are ver y excited where this project is now.”

S TA R T I N G P O I N T S

YA M W O R L D W I D E

BACKGROUND

As Dahl tells it, Parsons is “not a dip his toe in the water kind of guy,” he says. That certainly is the case with the monumental move to spend over $130 million on the creative development boasting 533,000 SF of mixed-use space, and another 33 acres entitled, but as yet untouched. “This was our first acquisition since September 2016,” Dahl says. “There is a lot of future growth and development to be done.”

Parsons as the innovative entrepreneur launched YAM Worldwide in 2012 and has expanded the portfolio to include: Harley-Davidson of Scottsdale, GO AZ Motorcycles, Spooky Fast Customs, Southern Thunder Harley-Davidson, Scottsdale National Golf Club, Parsons Xtreme Golf, BIG YAM, SNEAKY BIG Studios, YAM Capital, YAM Properties, and The Bob & Renee Parsons Foundation.

Dahl, originally from Chicago, came to Phoenix 20 years ago with a CPA background, and experience working in commercial real estate. “I started in Phoenix with a CPA firm that specialized in working with developers,” he says. After a few years I went in house with a developer focused primarily on marina developments, unique in a desert setting.”

West Side

SPOTLIGHT

YA M P R O P E R T I E S

Dahl entered the world of YAM in 2012 after an entrepreneurial real estate venture with partners in 2008. “I knew Steve Gabbay, the Chief Operating Officer at YAM, and we both knew GoDaddy CEO, Mike Zimmerman,” Dahl says. “I asked Steve if he thought Bob might be interested in commercial properties, and Steve hinted that he would consider the possibility.” /// After discussing the concept with Parsons, YAM Properties was launched with Dahl managing the ship. “I recall having a few sleepless nights in the beginning,” Dahl says. “I thought, what did I get us into?” /// At the outset, the Dan Dahl YAM Properties team was “Parsons is not a ‘dip his toe Dahl, plus one. “We made in the water’ kind of guy. It three initial purchases: certainly is the case with the Citadelle Plaza, I Palazzo and Scottsdale Grayhawk monumental move to spend Center, Dahl says. That early over $130 million on the creative activity has since ballooned development boasting 533,000 to a Valley footprint of over 2.5 million SF. /// Dahl attributes much of SF of mixed-use space, and YAM Properties’ growth and success to the another 33 acres of entitled, leadership of Parsons. “Bob is not a passive investor,” says Dahl. “He but is untouched. – D A N D A H L surely is not with YAM Properties. He takes action decisively.” /// Parsons’ pro-active nature with YAM Properties, follows several of the leader’s core tenets outlined in his 16 rules: “Get and stay out of your comfort zone; always be moving forward; be quick to decide and anything that is not managed will deteriorate.” /// “I believe the management focus is what elevates YAM Properties,” says Dahl. “We manage everything we own, and that is done purposefully. We know our tenants and that offers a personal touch.”

W E S T G AT E

From its early stumbles including a foreclosure, Westgate has recovered very nicely. “The development has done a 180-degree turn,” says Dahl. “iStar, the previous owners did an excellent job of bringing in a great tenant mix.” /// The horizon looks bright for the 76-acre site, particularly given its close proximity to the home of the Arizona Cardinals and Arizona Coyotes. “Glendale has invited us in with open arms, and we are excited to be their partners,” Dahl says. /// Where Westgate goes next will depend largely on Dahl and his team, and of course the instincts of Parsons. “Bob has a great vision,” Dahl says. /// A good bet for the district might be opportunities surrounding a small sports gathering arriving in 2023. “Super Bowl LVII (57) is a target for us, we are going to have some big things in place,” says Dahl. “That said, we are going to take our time and methodically plan. The last thing you want to do in commercial real estate is rush to develop, and find out the project is not the right fit.”

Bob Parsons

FUTURE

YAM’s growth trajectory continues to accelerate with not just Westgate, but a host of other intriguing prospects. “We are very optimistic, and are looking at Chandler and Tempe. We would not rule out any part of the Valley,” Dahl says. “But our portfolio is only in Arizona, if you are managing properties in other markets, you lose the personal touch.” /// Dahl is excited about YAM’s potential with the addition of Westgate. “We will continue to move down the path we are on and be opportunistic,” he says. “I want my legacy at YAM to be that I created good relationships with our tenants.”

West Side

SPOTLIGHT

ANYTHING but Average Billionaire Bob Parsons has made a name for himself in Arizona. The founder of GoDaddy, Parsons started his first company, Parsons Technologies, in 1984 and went on to create his current all-encompassing and widely successful, YAM Worldwide, Inc. Born in Baltimore, Maryland, Parsons has humble beginnings. “I grew up poor as a church mouse,” says Parsons. After high school, he joined the United States Marine Corps during the Vietnam War. During Parsons’ enlistment, he received the Combat Action Ribbon, Vietnamese Cross of Gallantry, and a Purple Heart Medal. He credits the Marine Corps for instilling early lessons and discipline. “I absolutely would not be where I am today without the experiences I had in the Marine Corps,” says Parsons. He went on to graduate from the University of Baltimore where he received a Bachelor of Science in accounting. In 1984, Parsons taught himself how to code in his basement. With this knowledge, he started his first company, a tax software firm called Parsons Technology. He sold it 10 years later for $64 million. In 1997, he started Jomax Technologies, which would become what many know today as the Internet domain and web-hosting company, GoDaddy. GoDaddy is the world’s largest domain registrar with more than 59 million names under management. Parsons stepped down as CEO in 2014, but remains on the board and is still the company’s largest stockholder. YAM Worldwide is home to Parsons’ many entrepreneurial adventures. He owns and operates HarleyDavidson of Scottsdale, Southern Thunder HarleyDavidson, GO AZ Motorcycles, Scottsdale National Golf Club, Parsons Xtreme Golf (PXG), YAMWOOD Foundry, Spooky Fast Custom Finishing, SNEAKY BIG Studios, BIG YAM, YAM Capital, and numerous real estate holdings with YAM Properties. YAM Properties owns and operates office and retail commercial real estate in Metro Phoenix. With properties in Tempe, Scottsdale, Mesa, and Glendale, assets range from movie theatres to restaurants to banking, and most recently, Westgate in Glendale.

BOB PARSONS

Never give up Get out and stay out of your comfort zone

Take things a day at a time

Whatever worries you, quantify and accept the worst possible outcome

When you’re ready to quit, you’re closer than you think

Focus on what you want to have happen

Be quick to decide and act

Always be moving forward

Anything that is measured and watched, improves

Focus more on what you’re doing versus focusing on your competitors Anything that is not managed will deteriorate

Never let anyone push you around

Solve your own problems

Never expect life to be fair

Don’t take yourself too seriously

There’s always a reason to smile 37

partnership collaboration trust

Construction Is Teamwork confidence achievement performance

We pull together on our projects

THE HENSEL PHELPS WAY...is all about People, Process, Partnership and Technology

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Construction

UPDATE

Construction in Phoenix is booming despite companies facing rapid changes with technology, the skilled labor shortage, imposing tariffs, rising cost of materials, and construction worker compensation. Commercial Executive Magazine hears from four construction companies on how they’re thinking outside the box to stay ahead of these changes, while constructing buildings relevant for the Valley’s changing needs.

Construction

UPDATE

Staying ahead of the construction curve of rising prices, trends, and projects is what Andrew Geier, Executive Vice President of Layton, does best.

225 MADISON (PHOTO ABOVE, CREDIT TO DLR GROUP)

In downtown Phoenix, Layton is working on a massive adaptive reuse project. DLR is the architect, and together with Maricopa County as the owner, Layton is converting the old Madison Street Jail into a new office building for the county attorney. 40

stablished in Arizona in 1987, Layton Construction’s Phoenix office has been involved in the commercial real estate industry for decades. Layton has built a variety of different projects over the years including everything from distribution centers, hotels, office buildings, hospitals, retails centers, and public facilities. /// Andrew Geier started with the company nearly 15 years ago after graduating from Kansas State University. He established himself as a leader in the community and has been recognized for his work both on a national and local level. /// Layton is a large organization with offices in 10 cities and projects completed in 40 states. Geier says Layton’s other markets experienced strong growth before Phoenix did, which helped them prepare for the recent construction boom and rising costs. “While the tariffs are new to all markets, they, along with the other stresses produced by rising labor, material and transportation costs, are dealt with strategically.”

Construction

UPDATE

Geier says communication is important throughout the supply chain, as well as with clients. “We are constantly checking with material suppliers, subcontractors and monitoring commodity pricing,” he says. “We use that information to provide clear and constant communication with our clients about price escalation risk, which allow them to make informed decisions throughout the project.” /// Layton’s extremely diverse portfolio of projects also helps. “Diversity connects us with several different groups of subcontractors in terms of project type and project size,” says Geier. “It allows us to match each project with the right subcontractor and the right resources.” /// With these strategies and the right team, Geier says Layton is prepared for the future. “We have such a talented group of individuals that work at Layton. I’m excited to see what the future holds as continued success creates new opportunities that help challenge and fulfill our folks’ full potential.”

Andrew Geier

WHAT IS THE BIGGEST GROWTH SECTOR YOU’RE CURRENTLY SEEING IN PHOENIX? AG: We view the market through our own prism and right now we are very active in the office, industrial and hospitality sectors. Industrial seems to be the steadiest with recent projects and future projects maintaining a steady pace. Office and hospitality projects are extremely hot right now.

A ERI AL REND ERI NG O F 2 2 5 M AD I S ON

WHAT ARE SOME TRENDS YOU’RE SEEING RIGHT NOW IN CONSTRUCTION ? AG: Technology continues to shape the way projects are designed, priced, and built. It has given clients the ability to use virtual reality to make design decisions early in the process and see the impact of the decision in virtual reality – well before the project begins. Technology allows a higher level of communication and coordination than ever before which has resulted in meeting project goals, reducing costs and reduction of construction durations. /// One trend at Layton is the utilization of data analytics to shape the way we perform projects. At the macro level, using data from previous projects, we are able to direct the project team into delivery types where the data has proved out to meet the current project’s goals and has been very beneficial to clients. At the micro level, we’re using current project data to ensure schedule adherence.

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Construction

UPDATE

Lorraine Bergman, President and CEO of Caliente, started the company in 1991. Caliente is not only a woman-owned business, but also one of the region’s leading general contractors.

aliente has stayed on top of the hurdles in and taken into consideration when structuring project the construction industry by staying diverse. budgets.” /// Bergman says the tariffs being imposed on Providing a full range of construction services materials, particularly steel and aluminum, will result in to commercial, industrial, educational, immediate and substantial cost increases. “The strategies healthcare, hospitality, and energy sectors, the for cost management under these circumstances will be company has clients in over 10 states throughout more complicated and have a greater impact the West. /// “Although multifamily is on our industry,” says Bergman. /// Today’s booming right now, we are involved construction workers are looking for in several strategic sectors,” says a fair wage, but are also focused Bergman. “This strategy makes on less tangible benefits such as Caliente agile, flexible, and work hour flexibility, working gives us the ability to weather from home options and other economic ups and downs. “lifestyle” benefits. Bergman If work from one sector says Caliente has been at the dissolves such as large retail forefront in this area, offering development did in 2008, employees flexible hours we always have a reliable and tools to work remotely, source of work generated providing her team with a from our diverse client robust Wellness Program, base.” /// Imposing tariffs, and enhancing their bonus rising costs of materials program to increase each and transportation, and employee’s potential to share compensation for construction in the company’s success. /// workers are all major factors Even with the many ups and disrupting the construction downs in the construction industry, industry. /// “Cost of materials and Caliente has much to look forward to. transportation has always been a “Caliente has experienced tremendous concern for contractors, and increases growth over the past 10 years,” says Lorraine Bergman were expected. Our subcontractor and supplier Bergman. “Fundamentally we remain a familypartners kept us informed of upcoming price increases,” run and family-oriented business that believes its success says Bergman. “This information could be incorporated lies not only in building great projects but also, long-lasting into our discussions with owners on negotiated contracts relationships with our team, clients, and colleagues.”

Construction

UPDATE

SOUTHEAST VIEW OF THE MERIDIAN CLUBHOUSE

The Meridian Clubhouse at the William Lyon Homes Ovation Development is a new residential community for active adults in Queen Creek. Caliente will be constructing a 14,000 SF clubhouse with a banquet hall, activity rooms, and fitness center.

What are some trends youâ&#x20AC;&#x2122;re seeing right now in construction? L B:

Off-site modular building construction has been around for decades, but is expanding to include manufacturing of building components such as electrical panels, cast-in-place concrete walls, mechanical systems, etc., that are incorporated into traditional construction projects. LEAN Construction principles, workforce shortages, and cost control are also driving the technology expansion. Off-site construction requires fewer workers in the field and enables projects to be completed more efficiently. Another trend is the increasing use of technology. We have been using tablets, smartphones, and MS Surface devices for years along with collaborative software platforms to facilitate communication and make decisions more quickly. New technology to improve design, project record documentation, and safety are being developed daily. We have used drones to monitor the site, take photos and software is being developed to use in conjunction with drones to perform surveys, assist with design, and even identify job site hazards. ÂŠ Copyright 2018 by MP Media, LLC

What is Caliente, as a company, looking forward to in the future? LB: Caliente is looking forward to the continued growth and expansion of Arizona. This growth is allowing us to expand our construction services and build our portfolio; opening the door for future opportunities and expanding our client base. I am also thrilled to see how people we hired a few years out of college have grown and are now taking leadership positions in our company and am looking forward to how the generation that follows them will impact the construction business. The technological advances that are being made in construction are energizing our industry and making it an attractive career for young men and women to whom changing technology has virtually since birth, been a daily part of their lives. It will be exciting to see what the next generation of builders will bring to our industry.

Construction

UPDATE

Casey Cartier, President and CEO of Jokake Construction is set to bring the company to new heights.

asey Cartier is familiar with the Southwest market as well as the construction industry in Phoenix. He has been President of Jokake since 2012 and was promoted to CEO in 2015. Before joining Jokake, Cartier was division manager for Ryan Companies U.S. and has worked in Phoenix for over 18 years. He holds dual Bachelor of Science degrees in biochemistry and business management from Northern Arizona University.

Jokake is unique compared to most construction companies in its delivery of the client experience. “Our teams focus on client service and strive to deliver the best experience and project outcomes,” says Cartier. “We have organizationally taken this one step further with the 100 percent employee owned stock program (ESOP). This program gives our team members the autonomy and responsibility for company decisions at a project level.”

Casey Cartier

Cartier has made sure to keep the company agile with rising costs of construction, compensation for construction workers, materials, and transportation. “Jokake has always focused on early partnerships with our clients. As a result, we’re able to identify cost escalation risks and address them early,” says Cartier. “We’ve had great success with prefabrication, and by doing so, reduced associated labor costs.”

Recent technology has also given Jokake the opportunity to better prepare for projects. “In the last two years we have invested in robust technology that gives us keen preconstruction insights,” says Cartier. “I believe this strategy will continue to work as we see rising material and labor costs in the future.” Like many in the commercial real estate industry, Cartier is optimistic about the future. “We’re looking forward to continued success for our clients, partners, and Jokake through strategic growth initiatives,” says Cartier.

Signature Health is a new, private 120-bed mental health hospital in Pasadena, California. Jokake has done work in California in the past, but this project is its first ground-up steel structure in the Golden State.

Construction

Park Lucero is a 94,794 SF tilt panel building and parking lot in Gilbert. This project is a great example of Jokake’s expansion into the industrial market.

UPDATE

How do you plan on expanding your services into new and traditional markets? CC: Jokake was recently selected as ENR’s 2018 Contractor of the Year because of our evolution into a fullservice contractor. Moving forward, we plan to add integrated services such as design, asset management, and capital market teams. /// Because Jokake is an ESOP, we’re focused on sustainable growth, not just fast growth. Our strategy for regional growth has always been through relationships with existing clients. We’ve had great success with clients that know and trust our capabilities and recognize us as a regional partner, not just an Arizona builder.

What are some trends you’re seeing right now in construction? Make-a-Wish corporate headquarters is located just off the Highland/16th Street exit on SR-51 North. Jokake is working around existing tenants to renovate the interior and exterior. Eventually the 87,000 SF building will house the corporate Make-a-Wish (MAW) America team.

Key Projects Jokake is Completing in 2018: Make-a-Wish corporate headquarters Signature Health Behavioral Health Hospital in Pasadena, CA

CC: The similarities between construction and manufacturing processes are being explored and the outcomes are very exciting. Jokake is currently implementing construction site automation on a few projects. As a result, our field managers have realtime, virtual data for material delivery, production rates, integrated schedules, and BIM technology. Automation turns a project site into a fully developed manufacturing operation, with better building as the service and a better facility as the product.

Park Lucero industrial facility

Construction Update:

TECH

C O N S T R U C T I O N By: Anthony Jeffers

ensel Phelps’ Western District office in Phoenix opened in 2007, although projects such as IBM Building Systems in Tucson established a presence in the region as early as 1979. The Western District office manages projects in Arizona, New Mexico, Nevada, Utah, and Oklahoma. /// Technology is shaping every aspect of construction to continuously improve processes. Hensel Phelps is one of the leaders in the construction industry using new and innovative technologies. Some of these tools include laser scanning, Augmented and Virtual Reality (AR/VR), sUAS (drones), and Artificial Intelligence (AI) Machine Learning and Deep Learning.

Virtual Reality (VR) Virtual Reality (VR) is used with clients who can review high quality mockups to approve textures and materials. By deploying this technology during the planning phase on a recent hospital project, doctors quickly saw inefficiencies with the layout of a typical room thus creating a 30-item correction list while interacting in the virtual environment for only a few minutes. These were corrected before they became costly changes and created delays in the construction phase.

sUAVs (Drones) Laser scanners and sUAVs quickly capture massive amounts of data. Drones are commonly used for site utilization during the planning phase as well as for progress tracking, quality control, and safety reviews during construction. Using a drone on a recent project pursuit enabled us to perform a volumetric analysis of excess soil on site to calculate removal costs in a matter of hours compared to several days manual surveys used to take. /// Using drones to capture a new building façade allowed us to determine in HD the quality of glass panel installation. This work was accomplished in a matter of hours compared to weeks using traditional methods of scaffolding and several people.

VR technology can be deployed on a variety of devices from phones and tablets to wearable devices, each offering specific benefits and features based on the use case. 48

Construction Update:

TECH

Volumetric analysis performed from sUAV data helped determine excess material quantities on site in a matter of hours.

Augmented Reality (AR) Augmented Reality (AR) devices used in the field have provided quality inspections comparing the BIM model within the real-world context. Hensel Phelps’ projects are experiencing tangible benefits with increased productivity though utilization of this technology. /// Artificial Intelligence (AI) and deep machine learning continues to push the boundaries of what is possible in the AEC industry. By utilizing AI, data analysis can become much more efficient and automated enabling project teams to focus on solutions rather than spending time trying to identify the problems. /// These tools, deployed in the proper application at the critical times in a project are greatly enhancing the construction process. They help identify and address potential issues during the planning phase. As technology continues to improve and evolve, the ability to adapt to and effectively incorporate these technologies into proven processes is paramount in driving the industry forward. Hensel Phelps utilizes MEO Technology a collaborative platform to run and interface each of the project management software tools improving our project delivery for our clients and industry partners. /// Implementation and utilization of technology has created real world benefits to our projects by enabling shorter schedules, increased labor efficiencies to our trade partners, improving safety and quality standards for our craftsmen, and reducing “undesirable expenses” for changes to our owners.

Detailed images of the exterior glazing system such as this one captured by the drone provide more detailed information that would be otherwise difficult or prohibitive on certain projects.

Augmented Reality allows the end user to see how a design will interact with the physical world, quickly allowing them to identify clashes or check clearances and openings.

Project

SPOTLIGHT SmithGroup taps into creativity to design the

Office Suite of the Future By: Mark Adams

In an unconventional project approach by a building owner in Phoenix, SmithGroup was asked to participate in Project Future, the design of an industryspecific “Office Suite of the Future,” but without a client relationship or its input and feedback.

A joint effort between the building owner, general contractor, and four handselected architecture firms in the Valley, the project required each firm to tap entirely into their own creativity and design a unique space for future building tenants. Without traditional client collaboration, each space was designed for a specific industry, rather than a client.

Project

SPOTLIGHT

ith a concentration on the legal industry, the SmithGroup team strove for full flexibility within the space while providing both collaborative and focus areas. The primary goal of the “Legal Services Suite” was to give a future tenant flexible and fun open workspace while maintaining the priority of confidentiality. /// A conference hub, “The Blue Box,” was inserted into the space as a standalone object creating a buffer between the office’s public and private zones. Views OPEN OFFICE were preserved for staff to enjoy by locating circulation and © Photography Copyright: collaborative space along the exterior glass line. With a goal Kevin Korczyk, Courtesy of of combining function and design, the use of simple details, SmithGroupJJR colors, artwork, and overall space efficiency were used to answer the needs of a modern law firm. /// The SmithGroup team seized the opportunity to create this futuristic workplace by breaking barriers and creating an open environment for a tenant serving the legal industry. The challenge, however, was strategizing how to accomplish this goal while maintaining case and client confidentiality. /// The design team made strategic decisions in the organization of the plan to address these concerns. This included dividing the public and private zones with the conference room hub and providing collaborative spaces that are located away from the open work area to help with sound. /// A separate challenge was finding a way to apply finishes and materials to divide spaces MARK ADAMS and bring to life the suite while staying within the budget. Vice President, Studio Leader The team accomplished this successfully through the creative value engineering process. The team worked closely with the millworker to create a cost-effective way to build the screen FRONT DESK RECEPTION wall at the entry that divides the space but allows for views to the exterior. /// The design was also kept simple as to create & STAFF LOUNGE AREA a backdrop for the artwork SmithGroup commissioned for © Photography Copyright: Kevin Korczyk, display throughout the space. Courtesy of SmithGroupJJR

Executive

PROFILE In the world of commercial real estate, changemakers operate on multiple fronts. They balance between diplomacy and disruption. Their outreach is deliberate and purposeful, connecting people in ways that allow new discussions and ideas to break through. Above all, they engage – with colleagues, project stakeholders, and the communities they serve.

JenniferDelaporte Business Development Manager, Graycor On each of these fronts, you can find Graycor Construction Company’s Business Development Manager Jennifer Delaporte. An 11-year industry veteran, Delaporte knows the value of a great network and strong relationships. /// “So much of what we do is about connecting and supporting others,” says Delaporte. “I work every day to forge solid relationships with partners who I can passionately advocate for. You can’t build great communities in a silo. It takes diverse, dynamic, and collective teams.” /// Delaporte is a passionate advocate. She serves as a teacher, leader, and volunteer for organizations across Phoenix. In the West Valley, specifically, Delaporte has served as a mentor for the Youth Entrepreneurship Boot Camp in Surprise, recently delivered the keynote at the Surprise Chamber of Commerce Women in Business luncheon, and presented the final 2018 curriculum for Leadership West, a non-profit that has cultivated more than 500 leaders from diverse backgrounds in its 25-year history in the West Valley. She is now working with Leadership West’s board to develop a strategic positioning approach to help propel their impact to communities throughout the West Valley. /// “We are proud of our legacy, as many of our graduates serve in influential government roles, private sector leadership, and support civic engagement throughout the West Valley,” says Michelle Hess, Executive Director of Leadership West. “Jennifer brings a fresh perspective to our curriculum and strategic planning efforts, allowing us to approach the market and today’s modern leader with a different lens. It’s great to see corporate partners like Graycor support our community in such a vested and authentic way.” 52

Executive

PROFILE

C U LT U R E D R I V E S R E S U LT S

10 WEST LOGISTICS CENTER

Joining Graycor Construction in 2015 as its first business developer in the Phoenix market, Delaporte appreciates what Graycor brings to the Southwest. /// “For years we were recognized as a leader in the industrial market, but most of the market was not aware of our existing diverse portfolio in office, hospitality, retail, and tenant improvement,” says Delaporte. “With 95 percent of our jobs being repeat or referral work, it has been exciting to see new partners discover what Graycor has to offer.” /// Highly active throughout the Valley, when it comes to communities that sit west of Central Avenue, Graycor in the last five years has constructed more than 10 million SF – largely representing leading-edge industrial space. /// Graycor recently completed the first two phases of ground-up construction – totaling 1.3 million SF – at 10 West Logistics Center, located at Van Buren Street and 59th Avenue (the future site of the Loop 202 South Mountain freeway), for Wentworth Property Company and New York Life. Phase 1 earned Best of NAIOP: Spec Industrial Project of the Year. Shell construction on Phase 2 recently completed and, in July, the team started on a new 569,000 SF tenant improvement.

The company is concurrently working on TEN Distribution Center 1, a 40-foot clear height, 1.1 million SF speculative, ground-up building within Irwin G. Pasternack’s planned 3.6 million SF industrial park at 83rd Avenue near I-10. Graycor also recently completed two industrial buildings for Prologis – a 230,000 SF building now leased by Stitch Fix at Prologis Riverside, at 55th Avenue near Lower Buckeye Road, and a 480,000 SF ultra-modern distribution center for Amazon at Prologis Park Riverside – with both tenant improvements completed by Graycor. Additionally, for Prologis, work has begun on the Prologis I-17 Logistics Center, a Class A flex industrial development that sits on 25 acres of prime infill space within Phoenix’s 7th Street corridor. When complete, Phase I will total four buildings and 558,712 SF, divisible from 25,000 to 211,000 SF. PROLOGIS PARK RIVERSIDE

“It’s great to see the momentum,” says Delaporte. “As market conditions continue to be favorable and residential density returns, we’re also seeing the resurgence of retail and mixed-use infill projects.” /// Graycor is currently in discussions with several development partners on projects slated to begin infilling throughout the West Valley. Many of these opportunities are a result of Delaporte’s outreach and strategic positioning of Graycor in the market. /// “Jennifer has proven herself to be a great asset to our team, particularly when it comes to defining new market segments and how to penetrate those opportunities,” says Todd Ostransky, Graycor Construction Company Vice President for the Southwest Division. “She is a passionate leader who consistently strives to impact Graycor and the industry, by creating growth and opportunity for the company and those around her.”

Company

PROFILE

TENANT REPRESENTATION Jim Underhill, CEO

Gary Gregg, Managing Principal

Q: With Arizona’s business and job growth increasing, where do you see Phoenix headed in the next few years?

Cresa’s growth over the past 25 years has been significant, which has led the company to become the largest tenant advisory firm in the world. Commercial Executive Magazine hears from Cresa’s Phoenix office on the latest trends tenants are looking for and the future of its niche market.

Q: What are tenants looking for in office, industrial, and retail? Any new trends you’re seeing emerging? GG: Rightfully so, occupiers are expecting more from their real estate service provider other than simply finding available space and negotiating terms. To successfully represent occupiers, firms must consider incorporating multiple service verticals including project management, incentive negotiations, and labor analytics into each project, regardless of size, scope or location. Compared to historical approaches, more variables are considered critical by occupiers. This, in conjunction with the market being landlord favorable, has created opportunities for cost savings/ concessions outside of the traditional real estate negotiations.

GG: In the near term, construction costs will continue to climb due to the shortage of qualified construction labor and supplies. Tenant improvement costs will Q: What is Cresa’s view for the future? continue to be a strong discussion point within lease negotiations. Office rents will continue to JU: We’re looking to add to our already significant platform, climb due to the lack of speculative building and and we believe that we will be unmatched in our ability to continued positive absorption of available deliver truly integrated global occupier solutions. We’re also product. Vacancy rates of office and looking to grow geographically, not only in North American, but industrial projects will dip below around the world and add talent in locations where we already have the levels reached prior to a significant presence. Our goal is to be the preeminent tenant focused the recession. real estate firm in the world, and we feel like we’re well on our way.

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