From REIT to RESTAURATEUR
Phoenix has
BIG POTENTIAL
in Central Business District According to a study commissioned by Commercial Cafe, Phoenix has plenty of room for development in its central business district. Phoenix ranked fifth among 25 urban areas included in the study, which tracked how much vacant, unimproved property was available in these urban core areas. The study also included a survey of people living and/or working in those 25 cities and asked them what their CBD needed. Tops on the list, according to the survey, were housing, homeless shelters, parks and community centers.
Total Vacant Land in Central Business District
(In Acres) 1. Dallas 86.37 2. Las Vegas 75.16 3. Austin 70.72 4. San Antonio 42.39 5. Phoenix 31.03 6. Minneapolis 27.13 7. Indianapolis 24.69 8. Salt Lake City 22.41 9. Atlanta 22.02 10. Tucson 18.11
Total construction in Central Business District since 2013
(In square feet) 1. New York 29,616,844 2. Dallas 8,506,240 3. Chicago 6,979,051 4. Houston 6,529,568 5. Los Angeles 4,973,752 12. Phoenix 1,592,330 25. Tucson 25,736
You could say Kellie Pruitt has seen it all. After starting her career in law enforcement, she moved into public accounting, eventually earning a CFO role and helping to list Healthcare Trust of America on the New York Stock Exchage. Then, after a month of “retirement,” she jumped into the restaurant business and opened PNPK Craft Slider+Wine Bar in Scottsdale, a dog-friendly spot focused on small bites and everything in a flight. So how is running a REIT different from running a restaurant? According to Pruitt: “Running a REIT involves managing investors, buildings, tenants and employees whereas the restaurant business is entirely focused on the customer experience – the atmosphere of the restaurant, the quality and value of the food and the excellent customer service provided by the staff.” “With a REIT, you are constantly reporting results to the public and investors, whereas with a restaurant, others are constantly reporting to you about their experience, preference, likes and suggested changes.” “Financial markets and investors determine how fast a REIT grows. But for restaurants, our
entire existence relies on customers.” “And perhaps most notably, running a REIT is a national business with no requirement for community involvement. Restaurants, however, must and should focus on being an authentic part of the fabric of the community they are in in order to build loyal, returning customers.” Visit Pruitt at PNPK daily from 11 a.m. to 10 p.m.
Office supply wave hitting the Valley According to a report from CBRE, there is nearly 3.1 million square feet of office space currently under construction in the Phoenix market, 2.5 million square feet of which is in the southeast valley. The majority of this new space will come online in 2019. Here are the largest projects currently underway in the Valley. Project, City Speculative or Build to Suit Orbital ATK, Chandler BTS The Grand at Papago Park, Tempe SPEC Freedom Financial Buildings 1 and 2, Tempe BTS Allred Park Place, Chandler SPEC The Watermark Tempe, Tempe SPEC Chandler Viridian, Chandler SPEC Block 23 at Cityscape, Phoenix SPEC Chandler Freeway Crossing, Chandler SPEC Discovery Business Campus, Tempe BTS SPEC Chaparral Commerce Center, Scottsdale Camelback Collective, Phoenix SPEC One Chandler Corporate Center, Tempe SPEC
Size 355,734 SF 352,481 SF 300,000 SF 270,000 SF 270,000 SF 249,217 SF 206,250 SF 153,370 SF 150,000 SF 120,000 SF 118,500 SF 114,000 SF 7