4 minute read
Broker Team of the Month
Presented by Willmeng Construction
The phrase “hit the ground running” certainly applies to the Newmark Knight Frank (NKF) Capital Markets team of Senior Managing Directors Steve Julius and Jesse Goldsmith and Associate Chase Dorsett. “We joined NKF in January of this year,” says Julius. “We were drawn to the company’s entrepreneurial culture and the opportunity to grow the Phoenix office’s retail capital markets presence,” says Goldsmith. “As anticipated, we are very excited to be at the firm,” added Dorsett.
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Steve Julius, Jesse Goldsmith, Chase Dorsett and Steve Julius
Background
Arriving in Phoenix five years apart − Julius in 2001 from Milwaukee and Goldsmith in 2005 from Salt Lake City − the duo joined forces in 2006. “I always had an interest in commercial real estate,” says Julius. “I had been intrigued by CRE since my junior year in college. I had a finance professor who worked in CRE with a focus on investments who really piqued my interest,” Goldsmith says. As for Dorsett, a Greater Phoenix native, he started in the industry in 2016, first as a research analyst and then joining Julius and Goldsmith in 2018 as a broker. “I became fascinated with real estate during my childhood, spending time driving different neighborhoods in the Valley and touring homes with my father, who was a Realtor.”
Capital Markets
According to the U.S. Department of Commerce, 11% of all retail sales in 2019 occurred through e-commerce. Flip that dynamic and 89% of all retail activity occurs in physical outlets, a fact not lost on the NKF team. “Daily needs uses that operate out of brick-and-mortar locations – like fitness centers, restaurants and health and beauty – have continued to expand as landlords, property owners and developers recognize the need for a diverse tenant base in neighborhood retail properties,” says Julius. “Everyday uses – groceries, fitness and services – occupy roughly 90% of neighborhood retail spaces in Phoenix,” says Goldsmith.
Steve Julius
Investors
The Phoenix metro continues to outpace competing metros with its business-friendly climate, migration inflows, economic dynamism and workforce talent. Institutional and private client investors see the Valley as an opportune locale to deploy capital and generate strong cash flows and asset appreciation. “In our experience, there are two different buyer pools − stable buyers seeking stable product and buyers seeking value-add properties,” says Goldsmith. “Investors are entering all parts of the Phoenix metropolitan statistical area (MSA), and yield-driven opportunities generally receive multiple offers,” says Julius.
Another interesting situation is the source of buyers interested in the region. “Out-of-state buyers (65% in 2019) are targeting Phoenix. We have received many inbound calls from established investors looking to add their first Phoenix retail property to their portfolios,” says Dorsett. “Compared to other commercial real estate sectors, retail has, historically, had a smaller buyer pool. With the continuing trend of inbound, out-of-state investors, we are seeing that pool grow,” says Goldsmith.
Trends
The long-run outlook for the Valley holds tremendous upside potential, even as the short-term prospects are uncertain with the health pandemic disrupting economic activity. “In future years, the redevelopment of existing retail centers could outpace ground-up developments,” says Julius. “With high construction costs, purchasing and redeveloping existing centers is more feasible for investors than building new,” says Goldsmith. “If investors take opportunities to transform Class C+ centers to Class B, or Class B centers to Class A, the updates will benefit overall absorption and vacancy in the market.”
Jesse Goldsmith
Chemistry
A team’s success depends on its members’ ability to effectively collaborate, communicate and leverage their distinctive capabilities. In their 15 years together, these professionals have created a winning formula of production excellence. “What makes our team dynamic is our unique and complementary strengths and approaches to client service. Steve’s analytical approach is driven by statistics and finance,” says Goldsmith. “Jesse is passionate and enthusiastic, connecting with clients through his vision, and Chase’s research background gives him a deep understanding of the market,” says Julius.
As for Dorsett, he sees Julius and Goldsmith as insightful mentors in his career development. “Partnering with Steve and Jesse for the past two years has provided me with the opportunity to truly learn from the best,” he says. “Witnessing Steve and Jesse’s different approaches to the commercial real estate business has empowered me to develop my own style when it comes to exceptional collaboration and client service.”
Chase Dorsett
Newmark Knight Frank
Julius, Goldsmith and Dorsett made the move to NKF, an industry leader with 18,000 CRE professionals in nearly 480 global offices, with high expectations. “Newmark’s connected platform boasts the highest-quality brokerage professionals in Phoenix and across the country, and we really see an environment to flourish and collaborate,” says Julius. “Executive Managing Director Mike Garlick is an outstanding leader, and we wanted to work alongside him and other professionals of his caliber,” says Goldsmith.
Future
Making a move can be a challenging prospect; however, these three talented brokers are up to the task. “We pride ourselves on the relationships we have built with our clients, colleagues and teammates,” says Julius. “The personal client connections that have grown throughout our careers are truly the most important part of our work,” says Goldsmith.
