by Peter Madrid | Dec 14, 2021 | News & Updates
SCOTTSDALE, ARIZ. (Dec. 14, 2021) – A building/land portfolio sale and office property sale totaling $13.775 million, two retail property sales totaling $7.5 million, and the sale of an industrial building for $3.4 million highlight November transactions closed by LevRose Commercial Real Estate brokers. The five sales total $24.67 million.
The Kottler/Cosgrove team (Zak Kottler, Joe Cosgrove, Hunter Chasse, and Aaron Cook) represented the seller, Chalpin Family Enterprises, in the $8.775 million disposition of a Scottsdale Airpark portfolio comprised of a ±40,589 SF flex/hangar building plus an adjacent ±1.89 acres (±82,123 SF) of vacant land.
The property at 7428 and 7429 E. Karen Drive in Scottsdale is situated in the heart of the amenity-rich Scottsdale Airpark and is one of the largest sites sitting on the Scottsdale Airport Taxiway.
The existing building at 7428 E. Karen Drive previously served for many years as the corporate headquarters for Hi-Health, which has since fully vacated the property. The property was originally built in 1986 as an Office/Hangar building and expanded in 1999. The new owner intends to renovate and occupy the existing building while developing the vacant land at a later time.
7428 and 7429 E. Karen Drive in Scottsdale
The Kottler/Cosgrove team represented both the buyer and seller in the $5 million sale of 9089 E. Bahia Drive in Scottsdale. The office property totals 15,691 SF and was occupied by two tenants with brand new leases at the close of escrow.
Located within the much sought-after Scottsdale Airpark submarket, the asset was built in 2004 with major renovations completed in 2018. The stand-alone office building boasts impeccable Class A custom finishes throughout coupled with 100% occupancy which appealed to the out-of-state buyer who was seeking a well-positioned low maintenance asset in Arizona.
5929 W. Peoria Ave., in Glendale, Arizona
Keri Davies, Jason Reddington and Jon Rosenberg represented the seller, Triumph Glendale Crossing Acquisition, LP, in the $4.1 million disposition of a freestanding retail strip center at 5929 W. Peoria Ave., in Glendale, Arizona. The buyer was RIMIC Properties, LLC.
The strip center is well positioned on the hard SWC of 59th and Peoria avenues. LevRose also represented Triumph in the acquisition of the property in January 2017 for $3.025 million. This is the eighth transaction in Arizona for Triumph, all represented by LevRose CRE.
2270 S. Airport Blvd., Chandler, Arizona
Mark Cassell, Marty Maier, and Matt Beek represented the seller in the $3.4 million disposition of Chandler Airport Business Center, located at 2270 S. Airport Blvd., in Chandler, Arizona. The industrial building totals 19,000 SF and benefits from close proximity to Chandler Municipal Airport.
LevRose CRE represented the seller, Airport Business Center of Chandler, Inc., and the buyer, KFH CABC, LLC. The asset is located within proximity to Chandler Municipal Airport.
Aaron Norwood represented the buyer, DFP Properties, LLC, in the $3.4 million purchase of 881 N. Arizona Ave., in Gilbert, Arizona. The retail property, an auto dealership, totals 5,940 SF. The seller was Beverly Land Company, LLC.
881 N. Arizona Blvd., Gilbert, Arizona
About LevRose Commercial Real Estate/TCN Worldwide
LevRose is proud to be the sole Phoenix affiliate of TCN Worldwide. Formed in 1989, TCN is a consortium of networked independent domestic and international commercial real estate firms, which provides for complete, integrated real estate solutions across the globe. With approximately $41.3 billion in annual transactions and over 180 MSF under management, TCN Worldwide ranks as one of the largest service providers in the industry. An extensive range of real estate services and resources, coupled with a personal commitment to exceed client expectations, is what has made TCN Worldwide a leader within the global commercial real estate industry. For more information visit levrose.com.
by Peter Madrid | Dec 14, 2021 | News & Updates
PHOENIX, ARIZ. (Dec. 14, 2021) – AZCREW has elected the officers and directors that will lead Metro Phoenix’s premier women’s commercial real estate organization in 2022. AZCREW exists to transform the commercial real estate industry by advancing women globally.
The 2022 leadership comprises Heather Fox Skinner, CBRE, Global Workplace Solutions, President; Samantha Pinkal, Greater Phoenix Economic Counsel, President-Elect and Secretary; Lindsey Carlson, Colliers International, Immediate Past President; Amy Ferrari, Mode Commercial Real Estate, Treasurer; Alicia Jennings, RestorationHQ, Director; Jenny Liles, Cushman & Wakefield, Director; Elizabeth Paquette, Sonoran Property Construction, Director; and Michelle Rutkowski, MOR Studio, Director.
“As a member of multiple CREW chapters throughout my career, this organization has been instrumental in building my network, honing my leadership skills, and deepening my knowledge and perspective. I attribute a great deal of my personal success to the strength of our CREW; I am honored to lead our Arizona chapter next year,” Skinner said. “Hearing CREW members’ stories of success, resilience, and belonging fuel my passion to serve our members as we grow strategically in support of our mission.”
AZCREW’s focus remains to provide unparalleled membership value, focusing on quality programming and leadership development. AZCREW is committed to diversity, equity, and inclusion as evident by its CEO-driven pledge for action in CRE, signed by more than 50 company leaders.
“Thanks to the leadership of Lindsey Carlson and our entire board of directors, we finished 2021 strong with a notable uptick in applications for full and associate members,” Skinner said. “I am confident we will exceed our 2022 membership goals while consistently delivering exceptional value to our members.”
AZCREW’s 2022 strategic initiatives to further its mission include:
- Provide scholarships for local members to engage in leadership training through CREW Network Global Leadership Certificate Program and Leadership Summits.
- Leverage its expertise in diversity, equity, and inclusion (DEI) as the global leader on research surrounding gender and diversity in commercial real estate.
- Continue collaboration with neighbor chapters to facilitate shared best practices and business opportunities regionally and globally.
- Focus on long-term succession planning to develop leaders across the Valley as AZCREW positions itself for growth.
- Recognize the achievement of its members and their companies through award nominations and global recognition programs.
About AZCREW:
AZCREW is the local affiliate of CREW Network. CREW Network is the premiere business network dedicated to transforming the commercial real estate industry by advancing women globally. Membership offers unparalleled business development, leadership opportunities and networking both locally and globally with nearly 12,000 professionals in 75+ markets worldwide, representing all disciplines of commercial real estate. Learn more and apply for membership at arizonacrew.org.
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by Peter Madrid | Dec 13, 2021 | News & Updates
PHOENIX, ARIZ. (December 13, 2021) – The Southwest chapter of the Real Estate Investment Advisory Council (REIAC), a leader in educating and mentoring the next generation of commercial real estate professionals, has announced its leadership for 2022.
Karla Moran, Principal, Economic Development with SRP takes over as President.
Officers for 2022 are Arthur J. Ferrari III, LineageCRE, Vice President; Keyvan Ghahreman, Willmeng Construction, Secretary; Dick Lund, Biltmore Holdings, Program Chair; Chad Mantei, BBVA Commercial, Membership Chair; Phil McKenzie, KMPG, Treasurer; and Mark Singerman, the Rockefeller Group, Community Outreach Chair.
“I’m excited to be moving into the role as president, there is so much opportunity in our market and we’ve all been very busy the past couple of years,” said Moran, who at SRP works in collaboration with the Greater Phoenix Economic Council, the Arizona Commerce Authority, regional and state entities and local municipalities to help ease a company’s relocation process.
“I look forward to the dialogue that REIAC can create to help innovate and move our market forward with the high caliber of developers that we have as members,” Moran said.
The Southwest chapter of REIAC is one of the Valley’s most prestigious commercial real estate networking and mentoring organizations. Founded by businessman Larry Heath, REIAC Southwest celebrated its 20th anniversary in 2019.
REIAC has four regions in the U.S. and was established as a nonprofit trade association to provide a forum for the exchange of ideas, concerns and experiences among senior executives who conduct commercial real estate transactions.
The networking opportunities REIAC Southwest offers its members include four main evening programs per year and four breakfast programs with panelists discussing industry trends.
The distinguished speaker program has featured national industry experts such as Dr. Peter Linneman, Hessam Nadji, John Cushman, Gerald Hines, Sr., Dr. Michael Crow, Jerry Colangelo, Gary Knight, Jerry Moyes and many other industry and business leaders.
Arizona Congressman David Schweikert will be the featured speaker at the 2021 event on Dec. 16 at the Westin Kierland, 6902 E. Greenway Parkway in Scottsdale.
The event begins at 3:30 p.m. with registration and networking. The program begins at 4:30 p.m., followed by a networking reception at 5:30 p.m.
The event is open to the public and the registration fee is $30 for non-REIAC members. The event will include a meet and greet with ASU MRED and Junior Achievement students. Register here.
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by Peter Madrid | Dec 13, 2021 | News & Updates
TUCSON, Ariz. (Dec. 13, 2021) – The Terracon Foundation is pleased to announce the award of a $10,000 grant to the University of Arizona College of Engineering to help support Geotechnical and Civil Engineering Student Stipends.
A $ 3,500 local community grant was also awarded to Tucson Clean and Beautiful, Inc. to help support the Youth Environmental Leadership & Action (YELA) Mentoring Program.
“I am proud to be a Terracon employee-owner and thankful that they give us opportunities to advocate and support organizations in the communities where we work and live. We are proud of our employee-owner involvement in both these organizations,” said Derek D. Koller, CIH, CHMM, office manager in Terracon’s Tucson office, who championed the grants.
Since 2015, the Tucson office has championed $31,000 for the University of Arizona’s colleges of Engineering and Public Health and $28,500 in community grants. To date, the Terracon Foundation has granted more than $3 million to community organizations, universities, dependents of employees, and for disaster relief efforts.
For more information about the Terracon Foundation and other organizations it has supported, visit terracon.com/foundation.
Terracon is an employee-owned engineering consulting firm with more than 5,000 employees providing environmental, facilities, geotechnical, and materials services from more than 150 offices with services available in all 50 states. Terracon ranks 24th on Engineering News-Record’s 2021 list of Top 500 Design Firms. For additional information about Terracon, visit terracon.com.
A $ 3,500 local community grant was also awarded to Tucson Clean and Beautiful, Inc. to help support the Youth Environmental Leadership & Action (YELA) Mentoring Program.
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by Peter Madrid | Dec 13, 2021 | News & Updates
Western Wealth Capital provides free December rent for 58 families in communities it serves
Phoenix, Arizona (Dec. 13, 2021) – Western Wealth Communities and Western Wealth Capital (WWC) were humbled to again share the annual Rent-Free Christmas program and provided free rent in December for 58 deserving families – one in each community WWC serves – so they may use those funds to instead create a Christmas/Holiday memory with their family.
As part of the program, 14 families in 2021 also received a full Christmas package, including food vouchers, and presents for the entire family. The goals of WWC and Western Wealth Communities are to help lift some financial and emotional burdens for these hard-working individuals and families this holiday season.
In November, WWC chose a family at Presidio North Apartments, 17031 N. 11th Ave., and Sierra Pines, 9401 N. 31st Ave., both in Phoenix.
“No parent should ever have to decide between keeping a roof over a child’s head or putting a present under the tree on Christmas Eve, but so many parents do. And especially this year, with all of the uncertainties and challenges this pandemic has brought, I am proud that WWC continues this tradition,” said WWC CEO Janet LePage.
“As the holiday season comes into full swing, we’re thinking of the many things that might create stress for families as we continue through these unprecedented times — such as meals to prepare, traditions to uphold or create, whether or not to attend or host events, and gifts to buy or make. But for many families, the biggest stress of all is how to afford to provide a Christmas for their family when budgets are already tight especially if they are dealing with lost income or unexpected medical expenses,” LePage said.
WWC has been able to lift that burden for many deserving families over the past six years. In 2015, it decided as a company to provide one family in need at each of its multifamily communities with a rent-free December. This was a tangible way WWC could have an impact on the families and children that lay their heads to rest each night in WWC’s 58 apartment communities across the nation.
In addition to the 58 families who received free rent, WWC also provided 14 families with a full Christmas memory with decorations and gifts.
“We serve a variety of residents, many in challenged neighborhoods, where purchasing gifts and providing a holiday meal is a financial burden every year. Lifting the spirits of these families and helping to provide a joyful holiday season for many deserving, hard-working families throughout the Phoenix area is our mission with our ‘Rent-Free Christmas’ program,” LePage said.
Each August, WWC also hosts a school supply giveaway. It helps take away the financial burden for families of purchasing $100 or more in backpacks and school supplies. The initiative is called “We’ve Got Your Back,” and provides each school-age child in WWC apartment communities throughout the area with supplies that are suggested or requested by the local school district as well as a brand-new backpack.
“There are numerous ways companies can give back to the communities they serve. We are so proud of the impact that both Rent-Free Christmas and We’ve Got Your Back have on our community members,” LePage said. “We’re proud to have given out more than $300,000 in free rent and school supplies over the past five years and lifted burdens for hundreds of hard-working families.”
by Peter Madrid | Dec 13, 2021 | News & Updates
PHOENIX, ARIZONA (December 13, 2021) – As the self-storage industry in Arizona continues to be an economic force, the Arizona Self-Storage Association (AZSA) is reinstating its District Liaison program to give its members in the outlying rural areas a voice.
“It’s vital to have representation in parts of the state such as Flagstaff, Yuma, Lake Havasu and the White Mountains,” said AZSA Executive Director Amy Amideo.
This program was started by AZSA board members about 20 years ago. Since it was before the onset of social media, the board wanted and needed to get the word out about AZSA and its mission. It needed to have boots on the ground.
“The main purpose was to have that local person who knew the people and the town well be an extension of the AZSA board,” Amideo said. “They would have much more influence on owners attending regional meetings, workshops and networking events. Also, self-storage was a relatively new industry and the board wanted to make sure everyone was aware of the laws and statutes and to promote what was a novel idea then – collaboration. The board has always believed in strength in numbers.”
Hard work and dedication of early and current board members Chris Rudel, Martin Lorch, Bill Alter, and Richard Marmor assisted in getting the program off the ground. The foundation originally built by these board members is still strong, empowering the next generation of self-storage professionals and AZSA members.
When COVID-19 hit, AZSA’s in-person events were canceled. As AZSA celebrated its 25th anniversary this year, Amideo hit the road to Arizona’s outlying areas for a “Ruralpalooza” tour.
“While I was out meeting the owners and managers, I was also building relationships and seeing who might be a good fit for the District Liaison position,” Amideo said. “I also took over a position that was held by Anne Mari DeCoster for over a decade, so there was that need to introduce myself in person. With COVID shutting everything down, this was the only way I could think of to introduce myself and let them know that AZSA was here for them during this pandemic.”
With the industry changing at a rapid pace, including the advent of a new type of owner – investor/owner with little or no industry experience – the District Liaison is needed more than ever to help maintain the integrity of the self-storage industry. New changes have been put in place, Amideo said.
“The District Liaison will have direct access to a designated board member,” Amideo explains. “Prior to there was not an established executive director role or no designated board member to turn to. This will now be a mentor role for the AZSA board member.”
Expected positive results include re-establishing relations with long-time members and providing support and a sense of local community to new small facility owners/managers.
Doug Hayhurst, owner of Xtra Space Self Storage in Mayer, Arizona, has been in the mini-storage industry since 1973. Amideo brought AZSA’s “Ruralpalooza” to his facility, meeting with him and his manager.
“In the past, our dealings (with AZSA) were primarily over the phone,” Hayhurst said. “Having a liaison is a tremendous help to understand some of the issues we run into. It’s great to get that insight. It makes a big difference. The big operators, they’ve got a lot more access (to resources). The smaller ones, we’re the backbone of the business.”
By reinstating the District Liaison program, Amideo says AZSA has numerous goals in mind. They include member loyalty and collaboration; a truly statewide organization not just the major metros; continued education and networking at the granular level; an association that members are proud to say they are a part of; and helping to develop the emerging leaders of the industry.
“A priority is to re-establish our live, in-person events like workshops, networking and growing a community,” Amideo said.
Founded in 1996, the AZSA was created to present a unified voice on issues affecting the industry in the state and in its communities. AZSA continues that mission 25 years later with more than 400 storage operator and vendor members representing more than 600 self-storage businesses.
“AZSA has the direct line to what our regional issues are and the owners’ best practices to share with their communities and the state at large,” Amideo said. “It will give them a sense that they are part of something bigger; having everyone realize the importance of the association’s legal and legislative pillar. This is difficult to see on a daily basis, but it’s crucial when laws are being proposed that are unfavorable to our industry.”
For more information visit azselfstorage.org.
x, in x, Arizona.
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by Peter Madrid | Dec 9, 2021 | News & Updates
PHOENIX, ARIZ. (Dec. 9, 2021) – The Central Arizona Chapter of CCIM, commercial real estate’s global standard for professional achievement, has announced its leadership and board members for 2022.
Todd Hamilton, CCIM, SIOR, Citywide Commercial Real Estate, will serve a second year as President. The leadership team includes Brian Teske, CCIM, Casita Capital Realty, President-Elect; Sabrina Walters, SLW Realty Group LLC, Secretary/Treasurer; and Marina Hammersmith, CCIM, ORION Investment Real Estate, Immediate Past President.
Board members for 2022: Chad Kirkorsky, Citywide Commercial; Nicole Marucci, Champion Title & Settlements Inc.; Bobbie Mastracci, CCIM, SIOR, Phoenix West Commercial; Belinda Rosthenhausler, CDC Small Business Finance; Brian Teske, CCIM, Casita Capital Realty; Sheila Long, Old Republic Exchange; Eli Mastracci, CCIM, Phoenix West Commercial; Jennette Bennett, CCIM, Kidder Mathews; Bettina Hunt, Healthcare Trust of America; John Kinser, Enterprise Bank & Trust; and Perry A. Gabuzzi, CCIM, Kidder Mathews.
Ad-hoc board member is Lisa Richardson, Real Living SJ Fowler Real Estate.
“I am so honored to serve another year as chapter President,” Hamilton said. “Our 2022 Board comprises seasoned commercial real estate professionals with a laser focus on growing the Central Arizona CCIM chapter and the pre-eminent CCIM education. We have a robust schedule of networking opportunities planned throughout 2022 and I can’t wait to get everyone together again.”
The CCIM Institute confers the Certified Commercial Investment Member designation. To earn the CCIM designation, commercial real estate professionals must complete more than 160 hours of case-study-driven education covering topics such as interest-based negotiation, financial analysis, market analysis, user decision analysis, investment analysis, and ethics in commercial investment real estate.
Candidates must also compile a portfolio demonstrating the depth of their commercial real estate experience and pass a comprehensive examination.
Learn more about CCIM Central Arizona Chapter: centralazccimchapter.com.
2022 leadership (left to right): Marina Hammersmith, Belinda Rosthenhausler, Sheila Long, Sabrina Walters, Chad Kirkorsky, Brian Teske, Todd Hamilton, Eli Mastracci, and Bobbie Mastracci.
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About CCIM Institute
CCIM Institute created the language of global real estate investment. Our courses and worldwide community deploy commercial real estate investment methodologies and tools that speed the pathway between opportunity, a go/no-go decision and success for an asset, taught by instructors who are themselves industry leaders.
Today, the organization, through its 50 chapters, continues to innovate best practices and elevate the commercial real estate professional through its core designation program to earn the CCIM pin— real estate’s most coveted credential — and its topical education courses offered through the Ward Center for Real Estate Studies.
In addition, membership in CCIM includes the industry’s best technology and operational platform, allowing entrepreneurial and mid-sized businesses to compete with the largest multinational providers. Today, almost 70 percent of designees hold the title of owner, partner, principal, or president, representing an exclusive worldwide referral network of 13,000 members in 30 countries. Ultimately, CCIM represents a larger vision of the commercial real estate provider, leveraging investment analysis, opinions of value, and underwriting to become a leader in sourcing capital, building a cash-flow vehicle, and ultimately creating value. Information at www.ccim.com.
by Peter Madrid | Dec 8, 2021 | News & Updates
PHOENIX, ARIZ. (Dec. 8, 2021) – NAI Horizon represented the tenant, a wealth management and retirement financial planning firm, in a long-term office lease at Connexion @ASU Research Park in Tempe.
NAI Horizon Associate Lori Kahn represented Martinsen Wealth Management, LLC in the long-term lease at 7855 S. River Parkway in Tempe.
The financial planning firm will occupy 2,890 SF of the Connexion @ASU Research Park, which totals 50,208 SF.
“We are thrilled to have found Connexion at ASU Research Park for Martinsen Wealth Management’s rapidly expanding business,” Kahn said. “The building’s proximity to the Loop 101, along with its beautiful campus and high-end tenants, make this the perfect location to service Mr. Martinsen’s growing client base in the Southeast Valley.”
The landlord, BIDDULPH-PEORIA, LLC, of Phoenix was represented by Gregg Kafka with Lee & Associates.
About NAI Horizon
Exceptional global commercial real estate solutions begin with local market leadership and expertise. Established in 1992, NAI Horizon is a full-service commercial real estate company serving Arizona with offices located in Phoenix and Tucson. NAI Horizon is passionate about the commercial real estate business, providing Brokerage and Property Management Services for local, national and international clients. NAI Horizon is a member of the NAI Global commercial real estate network providing real estate solutions to more than 300 offices worldwide. For more information visit www.naihorizon.com.
About NAI Global
Advisory Services, Leasing, Property Management, Property & Note Sales and Tenant Representation
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 300 offices in 43 countries strategically located throughout North America, Latin America and the Caribbean, Europe, Africa and Asia Pacific, with 5,100 local market professionals, managing in excess of 1.1 billion square feet of property and facilities. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions and a gross revenue of $1.5 billion.
NAI Global professionals achieve extraordinary results for clients locally and globally through creativity, collaboration and the consistent delivery of exceptional knowledge and service that only market-leading firms can provide. NAI Global provides a full range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services.
To learn more visit www.naiglobal.com.
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by Peter Madrid | Dec 7, 2021 | News & Updates
PHOENIX, ARIZONA (December 7, 2021) – NAI Horizon represented the sellers in the $1.525 million disposition of 3.4 acres. The buyer is currently rezoning the parcels from S-1 to CP-GCP in the highly sought-after Phoenix Sky Harbor submarket.
NAI Horizon Senior Vice President Rick Foss represented the sellers, Jeanne and Larry Blackketter of Phoenix in the land sale at 5815 South 36th St., in Phoenix.
The land is surrounded by the South Mountain Business Park, the Eaton 40th Street Business Park, and AIP South 40 Distribution Development. The buyer will construct an industrial property for a tenant who has committed to lease the property, Foss said.
“This is the last industrial piece between two and five acres that was available for purchase in the submarket,” Foss said. “It went under contract as the highest priced for land without I-10 frontage that had been recorded.”
Foss specializes in building and land sales in the Sky Harbor/Tempe submarket
The developer, CTC Properties, LLC, was represented by Mike Parker with CBRE.
About NAI Horizon
Exceptional global commercial real estate solutions begin with local market leadership and expertise. Established in 1992, NAI Horizon is a full-service commercial real estate company serving Arizona with offices located in Phoenix and Tucson. NAI Horizon is passionate about the commercial real estate business, providing Brokerage and Property Management Services for local, national and international clients. NAI Horizon is a member of the NAI Global commercial real estate network providing real estate solutions to more than 300 offices worldwide. For more information visit www.naihorizon.com.
About NAI Global
Advisory Services, Leasing, Property Management, Property & Note Sales and Tenant Representation
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 300 offices in 43 countries strategically located throughout North America, Latin America and the Caribbean, Europe, Africa and Asia Pacific, with 5,100 local market professionals, managing in excess of 1.1 billion square feet of property and facilities. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions and a gross revenue of $1.5 billion.
NAI Global professionals achieve extraordinary results for clients locally and globally through creativity, collaboration and the consistent delivery of exceptional knowledge and service that only market-leading firms can provide. NAI Global provides a full range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services.
To learn more visit www.naiglobal.com.
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by Peter Madrid | Dec 7, 2021 | News & Updates
SCOTTSDALE, Arizona (Dec. 7, 2021) – As one of the Valley’s hottest municipalities for new commercial growth, Buckeye is expected to experience a medical office building boom as the young-family oriented city continues to grow.
“Talk about an underserved market when it comes to medical office space,” said Andrea Davis, CCIM, Principal of Andrea Davis CRE. “We’re working with a developer (Magnat Group) that understands the demand in Buckeye and this may be one of many. There is a need in this bustling Southwest Valley city for everything from women’s services to pediatrics to imaging to specialty services to outpatient facilities.”
Magnat Group is developing Sundance Medical Center, which will be located at the NWC of Yuma Road and Sundance Parkway in Buckeye. The two-story medical office building will total 43,600 SF.
According to CoStar data, the Southwest Outlying Submarket is one of the smallest in the Valley with roughly 310,000 SF of office space. The vacancy rate has risen moderately over the past 12 months, and at 1.9%, the rate was a touch higher than the long-term average as of 2021 Q4. Interpretation – there is little, if any, inventory to lease or purchase for business owners.
Annual net absorption came in at negative 6,000 SF over the past year. The story improves over a longer period of time. Over the past five years, the submarket has posted net absorption of about 1,300 SF per year, on average. Rents grew by 3.1% over the past year, which is right in line with the impressive decade-long annual average in Southwest Outlying.
There are no supply pressures on vacancy or rent in the near term, according to CoStar with no new product under construction. This lack of construction extends more than 10 years since an office project was delivered in the submarket.
“The type of client we’re seeing demand medical office space in Buckeye seems to be large medical users,” Davis said. “These users are requiring 5,000 square feet to 20,000 square feet versus the average medical user size of 2,500 square feet to 3,000 square feet.”
As the largest Valley city in terms of size – 640 square miles – Buckeye boasts more than 91,000 residents, an 80 percent increase from 2010, according to the city website. The Maricopa Association of Governments predicts Buckeye’s population will balloon to 305,000 residents by 2040.
Recently it landed KORE Power, a lithium-ion battery manufacturer reported to add more than 3,000 well-paying jobs to West Valley. Buckeye also boasts Verrado, an 8,800-acre master-planned community.
ABOUT ANDREA DAVIS CRE
Andrea Davis, CCIM, has practiced commercial real estate for more than 20 years. Davis’ breadth of knowledge stretches from developers to landlords to buyer/tenant representation and investments. Within the commercial real estate industry, Davis has won numerous awards. Andrea Davis CRE is listed among the top 10 in Ranking Arizona for the category of Office Brokerage. Her book, SimpLEASEity™, focuses on leasing and is the first in a series of commercial real estate guidebooks. Her next book, Simply Own It, the American Dream, is forthcoming this year. For more information visit andreadavis.co
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