AZRE May/June 2025

MAY - JUNE 2025

HEALTHCARE RISES

Metro Phoenix sees sharp increase in number of medical real estate developments

INSIDE: Women Who Lead in CRE 18 | Top Producers 58

Healthcare + Biotechnology Keeley Construction excels in providing specialized life science building & healthcare construction services, dedicated to the design, construction, and customization of advanced laboratory and healthcare facilities. Leveraging our expertise, Keeley ensures the creation of state-of-the-art spaces that foster innovation, collaboration, and the pursuit of scientific breakthroughs.

MARKET EXPERTISE

Design Build

Virtual Design + Construction (VDC)

Building Evaluation

Needs Assessment

Adaptive Reuse

Gonzo Gonzalez

Stacey Noble

Market Leader

Director of Business Development

ggonzalez@keeleyconstruction.com

snoble@keeleyconstruction.com

w w w. k e e l e y c o n s t r u c t i o n . c o m

CONTENTS

FEATURES

President and CEO: Michael Atkinson

4

EDITORIAL

Trendsetters

Publisher: Amy Lindsey

Editor in chief: Michael Gossie

9

Breaking Ground

Associate editor: Kyle Backer Staff writer: Lux Butler Contributing writer: David Wakefield

10 Big Deals

Interns: Bella Mazzilli | Gabrielle Wallace

14 Executive Profile

ART Creative services manager: Bruce Andersen

16 After Hours

Chief photographer: Mike Mertes Junior graphic designer: Leslie Durazo

18 Women Who Lead in CRE 32 Healthcare 40 Downtown Development

MARKETING/EVENTS Marketing and events director: Jacque Duhame OFFICE Director of finance: Sara Fregapane Operations coordinator: Michelle Zesati

46 Real Estate Law

Database solutions manager: Amanda Bruno

52 Technology

AZRE | PTK

56 Aviation

Director of sales: Ann McSherry AZ BUSINESS MAGAZINE

58 Top Producers 64 Valley Partnership

Sales manager: April Rice Account executive: Tom Allen | Maria Hansen AZ BUSINESS LEADERS Director of sales: Colleen Brady

MAY - JUNE 2025

EXPERIENCE ARIZONA | PLAY BALL Director of sales: David Harken

HEALTHCARE RISES

RANKING ARIZONA Director of sales: Sheri King

Metro Phoenix sees sharp increase in number of medical real estate developments

INSIDE: Women Who Lead in CRE 18 | Top Producers 58

ON THE COVER: Mayo Clinic recently announced a nearly $1.9 billion investment in the continued transformation of its Phoenix campus. (Provided rendering) 2 | May - June 2025

AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. ©2025 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

3

TRENDSETTERS

WHAT’S THE WEIGHT? A

major distinction between electric vehicles and gas-powered is hard to see from the curb, but easy to measure — a Honda Civic can weigh up to 3,000 pounds whereas a dual-motor Tesla Model 3 tips the scales at over 4,000 pounds. For parking structures that were built

Even in Arizona, you want a waterproof coating on at least the top deck of the parking garage. Not only does concrete degrade from water, but UV exposure causes damage over time.

with lighter vehicles in mind, the added load can lead to catastrophic outcomes.

Here’s what Scott Hargrove, director of engineering at Knott Laboratory, has to say about how to avoid the critical failure of parking garages.

“Any parking garage built before 1980 is coming up on its normal 50-year lifespan, but that can be lengthened by proper maintenance.”

“A lot of people who own parking structures think that since it’s concrete, it’ll last forever. The reality is that it won’t, especially when it’s not maintained.”

Maintenance is extremely important, not just for safety, but for the owners themselves.

It costs a lot less money to repair a crack now than it does to repair an entire I-beam.

Scott Hargrove Director of Engineering, Knott Laboratory

4 | May - June 2025

Make sure you’re watching for cracking, dripping water or salt staining. Those are signs something is going wrong.

“There are ways to reinforce the exterior of parking garages, like wrapping columns and slabs with carbon fiber, then putting structural epoxy over it. That acts like an extra layer of rebar.”

“Knowing the original design of the structure and how much weight it can hold is important.

Throwing on extra reinforcement in the wrong places doesn’t do any good.”

5

TRENDSETTERS

DEALS, DIRT AND DETAILS

all podcast platforms

Here are some of the best sound bites from real estate experts featured on the AZ Big Podcast Hosted by AZ Big Media Editor in Chief Michael Gossie and Publisher Amy Lindsey, the AZ Big Podcast takes you behind-thescenes of some of the most compelling storylines in the commercial real estate sector. Here are some sound bites from real estate experts featured on recent episodes of the AZ Big Podcast, sponsored by Burch & Cracchiolo. Listen to new episodes of the AZ Big Podcast each week on your favorite podcast platform.

6 | May - June 2025

Mike Cherine, co-founder, IndiCap “We have had this huge expansion over the past few years, so we will have some contraction right now and we have some absorption that’s going to have to happen. But we just moved ahead of Dallas as the No. 1 industrial market based on square footage.

California Gov. Gavin Newsom is great for the business in Arizona because a lot of the policies are pushing people out of California and Phoenix is a really easy transition. And Phoenix has so much to offer, not just the weather, but entertainment, affordability, everything.”

Jeff Foster, vice President and market officer, Prologis “We’re still seeing good activity right now. Obviously, we’re off the high of 2022, 2023 — the post-COVID boom for industrial where net absorption was outpacing supply up until about midway through 2023 to the point where we did 26 million square feet of net absorption in 2023, which was a record. Phoenix has just got such a compelling argument that business is going to come here. It’s just going to take a little bit of time to chew through this inventory. It could take another year or two, but in the long run, I think this is going to continue to be a robust market.”

Charley Freericks, Phoenix region president, Howard Hughes Holdings “Forecasts show that more than half of the growth in Maricopa County will be west of the White Tanks now that Loop 303 is basically complete. Buckeye is one of the fastest-growing cities in Arizona and the country.

Its forefathers annexed a lot of land, so it’ll be a city the size of Phoenix when it’s built out. Buckeye has landed tons of great companies creating high-wage, high-tech jobs, along with lots of distribution users. It's getting on the map.

Paul Kular, shareholder, Burch & Cracchiolo “We have a lot of construction that goes on in Arizona and whenever you have construction, you can have issues. If you buy a home and there are problems, there is a statute in Arizona called the Purchaser Dwelling Act (PDA) that you actually have to go through before you go into a courtroom. That’s an opportunity for the homeowner and the contractor to come together and try to reach a resolution to the issues that are being alleged by the homeowner. Some contracts between builders and homeowners require mediation and maybe even arbitration, and sometimes the contracts waive the opportunity to go in front of a judge or a jury.”

James Murphy, CEO, Willmeng Construction “When it comes to industrial construction, you break it down into pieces — build-to-suits and high-tech manufacturing and distribution. Between the two, I see the market continuing to be a frontrunner, whether we’re outright No. 1 or slip to No. 3, Metro Phoenix will stay out in front as a frontrunner. You still need to break it down into submarkets, and some don’t really need another 1 million feet of industrial, but there are other submarkets that if you build it and have the right development team and the right brokerage team, it’s going to lease up at breakneck speed like it did three years ago.”

7

TRENDSETTERS

Commercial real estate brokers are utilizing technology to enhance their services and improve client outcomes

By MICHAEL GOSSIE

M

ore and more, commercial real estate brokers are leveraging technology through data analytics, AI-driven market insights, virtual tours and CRM platforms to enhance client experiences. We talked tech with Andrea Davis, CCIM, owner and designated broker of Davis Commercial AZ in Scottsdale.

properties or deals we may have worked with them on. A CRM can also tag the brokers to follow-up and send timed email blasts; some will even dial clients to notify them. A good CRM serves as the firm’s database of properties and people. It also generates reports and can track commissions, which is invaluable.

AZRE: How is technology changing your world?

Andrea Davis: Traditionally, commercial real estate brokers tend to be slower adopters or lagging in this area, but the new generation of brokers coming into the market are quicker to embrace and utilize technology. As the owner of a brokerage firm that I founded in 2012, I started incorporating tech tools early to help myself and my team work smarter and more efficiently. As a result, when the pandemic hit, we were prepared to work well virtually. Commercial real estate has always been a relationship business and largely conducted face to face. While it’s still a relationship business, technology is helping change how we work and communicate and reduce desk cost per sales agent.

AZRE: How is AI impacting commercial real estate brokerages?

AD: AI technology is one of the most innovative tools for changing how we can work. It supports a variety of marketing efforts, whether we are creating content for social platforms, writing a proposal, creating templates for branding or creating forms — brokers can use it as a starting point or to help refine documents and presentations.

AZRE: What is the most significant technological advancement brokers are using today?

AD: There are two or three CRM platforms that work well for commercial real estate. As the owner of a brokerage, it allows the firm to track data, keep up to date notes and a full history on any given project — including links to components of a deal, the architects and landlords. We can then search for an architect or other key people in the database to find other 8 | May - June 2025

AZRE: What else should we be watching?

AD: Video and 3-D virtual tours are another technology that allow us to work more efficiently — especially with out-of-town clients. We no longer have to wait for them to fly into town to show them a property and can move on something quicker or reach prospective buyers or tenants in ways we couldn’t just a few years ago.

The next level will be avatars, which allows brokers to create communications with actual voice and realistic images with personalized messaging and information to prospects or clients.

And it can all be done without the cost of a camera crew or the time it takes to produce.

WRITE STUFF: Andrea Davis, owner and designated broker of Davis Commercial AZ, is the author of two books geared toward helping brokers, “SimpLEASEity” and “Simply Own It! The American Dream.” (Provided photo)

BREAKING GROUND MULTIFAMILY

OPTIMA MCDOWELL MOUNTAIN Developer: Optima General contractor: Optima Architects: David Hovey Sr., FAIA, and David Hovey Jr., AIA Broker: Optima Location: North Scottsdale Value: $1 billion Start date: 2024 Completion: First building expected to be complete in September 2025

TRANSPORTATION

NORTH 2 CONCOURSE IN TERMINAL 3 AT PHOENIX SKY HARBOR INTERNATIONAL AIRPORT Developer: Phoenix Aviation Department General contractor: McCarthy Building Companies Architects: HOK in collaboration with DFDG Architecture Location: Phoenix Sky Harbor International Airport Value: $326 million Start date: April 2025 Completion: TBD

INDUSTRIAL

ATLAS EXCHANGE Developer: ATLAS Capital Partners General contractor: Sun State Builders Architect: Crawley Architects Location: 4140 S. Signal Butte Rd., Mesa Size: 255,000-square-foot industrial development Start date: Third quarter of 2025 Completion: TBD

9

BIG DEALS

RECORD DEAL: CBRE negotiated the $107.5 million sale of Soltra Kierland, a 202-unit core multifamily community located in North Scottsdale. The transaction represents the highest price per unit for a multifamily sale in Metro Phoenix since 2022.

(Photo provided by CBRE)

TOP 10 REAL ESTATE DEALS Here are the 10 biggest deals in Metro Phoenix commerical real estate from Feb. 14, 2025, through April 21, 2025, according to data collected by the commercial real estate tracking website Vizzda and AZRE magazine.

1. Pacific Proving Technology Campus (planned) PRICE: $296,378,800 SECTOR: LANDS LOCATION: SIGNAL BUTTE AND PECOS ROADS, MESA SIZE: 173.5 ACRES BUYER: NTT DATA SELLER: LEVINE INVESTMENTS BROKER: NATHAN & ASSOCIATES

2. Soltra Kierland Apartments PRICE: $107,500,000 SECTOR: MULTIFAMILY LOCATION: 7111 E. TIERRA BUENA LANE, SCOTTSDALE SIZE: 202-UNIT APARTMENT COMPLEX BUYER: THE AZIZI GROUP SELLER: LEON CAPITAL GROUP BROKER: CBRE

3. SIGHT LOGISTICS PARK PRICE: $103,050,000 SECTOR: INDUSTRIAL LOCATION: 6840 AND 6860 S. HARL AVE., TEMPE SIZE: 357,103 SQUARE FEET BUYER: CBRE INVESTMENT MANAGEMENT SELLER: VIAWEST GROUP BROKER: JLL

4. BELLA ENCANTA PRICE: $95,750,000 SECTOR: BUILD-TO-RENT LOCATION: 9745 E. HAMPTON AVE., MESA SIZE: 212-UNIT BUILD-TO-RENT COMMUNITY BUYER: JP MORGAN SELLER: BELA FLOR COMMUNITIES

5. ARCHES AT HIDDEN CREEK PRICE: $95,446,000 SECTOR: MULTIFAMILY LOCATION: 1586 W. MAGGIO WAY, CHANDLER SIZE: 25.25 ACRES BUYER: BROOKFIELD PROPERTIES SELLER: BLACKSTONE

6. BROADSTONE UPTOWN APARTMENTS PRICE: $87,000,000 SECTOR: MULTIFAMILY LOCATION: 502 W/ CAMELBACK RD., PHOENIX SIZE: 280 UNITS BUYER: RENUE PROPERTIES SELLER: ALLIANCE RESIDENTIAL

7. KYRENE COMMERCEPLEX PRICE: $75,500,000 SECTOR: INDUSTRIAL LOCATION: 8240-8340 S. KYRENE RD., TEMPE SIZE: 315,995 SF BUYER: BKM CAPITAL PARTNERS SELLER: STARWOOD CAPITAL GROUP

10 | May - June 2025

8. WARE FARMS PARCELS 1B-8B (618 LOTS) PRICE: $71,456,281 SECTOR: LAND LOCATION: SAN TAN VALLEY SIZE: 618 PRESUMED FINISHED LOTS BUYER: KENNEDY LEWIS INVESTMENT SELLER: TRI POINTE HOMES

9. THE PALMS AT SUN CITY ASSISTED & SENIOR LIVING PRICE: $55,000,000 SECTOR: SENIOR LIVING LOCATION: 10101 PALMERAS DR., SUN CITY SIZE: 211 UNITS BUYER: VENTAS INC. SELLER: STELLAR SENIOR LIVING COMMUNITIES

10. ESTRELLA BUSINESS PARK II PRICE: $54,200,000 SECTOR: INDUSTRIAL LOCATION: 801 S. 75TH AVE., PHOENIX SIZE: 331,398 SF DISTRIBUTION WAREHOUSE BUYER: BKM CAPITAL PARTNERS SELLER: STARWOOD CAPITAL GROUP

BUILDING COMMUNITIES

for a Healthier Future

11

BIG DEAL

GROUNDBREAKERS: Grant Kingdon, principal of Mountain West Region at Creation, (left) and David Sellers, founder of Creation, (right) celebrated the start of construction for Source Logistics Center on Feb. 13.

In with the new Creation redevelops ‘funky shaped’ site in Tempe

By KYLE BACKER

O

n Feb. 13, Creation broke ground on a 144,885-square-foot Class A industrial facility in Southern Tempe. Located in one of the most sought-after regions in the Valley, Source Logistics Center features HVAC throughout the entire building, 3,000 square feet of spec office, a six-acre yard and access to a Union Pacific rail line. Construction is slated to finish in mid-2026.

“It’d be challenging to identify a 145,000-square-foot building with a contiguous six-acre yard anywhere on the West Coast, let alone in a premier infill submarket like the Tempe corridor,” explains Grant Kingdon, principal of the Mountain West Region at Creation. “If a tenant has 300 truck trailers they need to store at night, we have six acres for them.”

12 | May - June 2025

Prior to Source Logistics Center breaking ground, the parcel was owned Brenteson Wholesale since 1969. The company operated as a Christmas tree wholesaler, which built a 1,950-foot airstrip so the owner could fly to meet with growers in the Pacific Northwest. That continued until APS built a power transmission line nearby that made it unsafe to take off and land a plane.

Rather than being something to be worked around, Kingdon says that the “funky shape” of the site creates a clear differentiator in the market, going as far as to call it the “most compelling reason” to pursue the project. The availability of additional outdoor storage space and parking are features users are often looking for.

“We can’t develop into the southern

six acres of the site, but that creates an advantage for tenants,” Kingdon explains. “They want this excess yard space, but that means developers have to over cover the site to make the pro forma work. To find an opportunity where a developer can get the project to underwrite and reach a certain return threshold while also providing site features tenants want is unique.”

What makes the offering even more distinctive is that Source Logistics Center has a coveted Tempe address.

“Typically, facilities [with excess yard space] are on the outskirts where land is plentiful and cheaper,” Kingdon says. “But then you’re away from retail amenities, quality labor and all these other critical variables tenants are looking for. Having a site like this in the middle of town with

Grant Kingdon

nearby skilled labor, retail, access to the I-10 and a big yard — it’s like finding a needle in a haystack.”

Hemmed in As big as the impact Tempe has on the Valley, the municipality’s physical footprint is small — about 40 square miles. The City of Phoenix, stretching over 517 square miles, could fit nearly a baker’s dozen of Tempe-sized landmasses within its boundaries. Even Tempe’s smallest neighbor by area — Chandler — is about 50% bigger.

“We’re a city that mostly does redevelopment projects,” explains Mike DiDomenico, economic development director for Tempe. “If you’re in Mesa or Peoria, you can get a company that needs 100 acres and build something wonderful. We can’t even talk to them.”

Despite the high barrier to entry, David Sellers, founder of Creation, says that Source Logistics Center is one of two developments Creation is spearheading in the submarket.

“This is one part of a broader vision we have for this area,” he says.

“When you combine the two projects together, they represent a nearly $100 million investment from Creation and CrossHarbor Capital Partners. That shows

David Sellers

Mike DiDomenico

our commitment and trust in Tempe as a logistics and technology hub.”

The dearth of greenfield sites left in Tempe means that success in the landlocked city relies on have a keen eye for spotting suitable redevelopment prospects.

“You have to find sites like [where Source Logistics Center is located]

and tear stuff down. There was just a hodgepodge of buildings here before,” he continues. “The other project we’re doing on Elliot Road was a two story, 180,000-square-foot office building that was functionally obsolete. Those are the opportunities you have to look out for.”

OUT OF THE BOX: The site’s unique shape offers Source Logistics Center’s potential tenants a unique amenity: six acres of excess yard space.

13

EXECUTIVE PROFILE

NOT YOUR FATHER’S STORAGE How Jason Wesley Phillip creates community at Toy Barn

By LUX BUTLER

P

erformance enthusiasts have found the perfect space to house their cars, trucks, boats and more at Toy Barn, where each unit is individually owned and a community is guaranteed. Founded in 2008 by father-son duo Jason Wesley Phillips and Paul Wesley Phillips, Toy Barn has identified a market for premium vehicle storage that has only continued to grow over the past 15 years. At eight locations, spanning over 700,000 square feet of storage, Toy Barn is providing climate-controlled units with customizable features like lofts, kitchens and bathrooms.

The Phillips’ vision has not only created an upscale storage solution but also a community for like-minded individuals. AZRE sat down with Jason Wesley Phillips to discuss the growth of Toy Barn, his commercial real estate expertise, and his impact on the local Valley market.

AZRE: What inspired you and your father to start Toy Barn?

Jason Wesley Phillips: In 2008, when we started planning the first community, it was a small niche market. We first noticed it was growing in the Southeast Valley, in the Chandler area. We had identified a site to serve North Scottsdale in 2008 and began planning our first community.

The concept was really starting to be built around town, but it wasn’t being built in the Northeast Valley.

AZRE: A big point of Toy Barn’s marketing is the concept that it’s not just storage — you guys are creating a community. How do you foster that sense of community?

JWP: The success of the Toy Barn is built around the community aspect.

The clubhouse and owner’s lounge serve

14 | May - June 2025

as the social hub and meeting place for the whole of every community.

Additionally, we try to do several events throughout the year. We host monthly “Cars and Coffee” events, community breakfasts and we bring in guys with the latest and greatest car monthly. That’s how we build the community — we really try to cultivate everything around our clubhouses and social events.

AZRE: How have you seen the demand for specialized storage solutions evolve, and what has been the biggest challenge in scaling the business?

JWP: We’ve dovetailed into the growth of the Valley over the last 15 years. People continue to move here

and need specialized storage space — and we continue to provide that. The demand hasn’t softened, so we keep growing.

The biggest challenge recently has been that the price of land has skyrocketed in the last few years.

That increase has put pressure on our pricing models, same with the inflation we’ve seen over the past few years. It costs a lot more to bring these products to market today than it did even three years ago. So, we need to continue educating people on that dynamic of the overall real estate market. The areas that we like to build in are convenient locations close to home and the office, and to do that, we have to pay a premium for our land sites.

JOIN US AS WE HONOR THE MOST INFLUENTIAL WOMEN IN ARIZONA AT ONE OF THE MOST EXCITING EVENTS OF THE YEAR!

SAVE THE DATE!

MOST INFLUENTIAL

Thursday, August 21, 2025

IN ARIZONA

5:00-8:30 p.m.

Chateau Luxe | 1175 E. Lone Cactus Drive | Phoenix, AZ 85024

WOMEN 2025

Get in front of a VIP audience! Contact Amy Lindsey at amy.lindsey@azbigmedia.com or 602-277-6045 for event sponsorship opportunities.

YOUR COMPLETE MULTIMEDIA SOLUTION! 15

AFTER HOURS

Between the uprights How Billy Cundiff translated his NFL success into a development career

By GABRIELLE WALLACE

B

efore Billy Cundiff was kickstarting development projects, he was kicking off football games in the NFL. Prior to his retirement in 2015, Cundiff played for multiple teams including the Dallas Cowboys, Cleveland Browns and Baltimore Ravens — and was voted to the 2011 Pro Bowl as the AFC placekicker.

Today, Cundiff is managing director of development for Greystar, where he handles all ground-up activities in Arizona and Southern Nevada. Cundiff sat down with the AZ Big Podcast to talk about the parallels between CRE and the NFL, along with housing affordability in Greater Phoenix.

Responses have been edited for clarity and length.

AZRE: How did you make the switch from NFL kicker to managing director at Greystar?

Billy Cundiff: When I came into the NFL, I was taught it wasn’t a career, a career is something you do your entire life, so I was trying to figure out what I wanted to be when I grow up. Being from a small town in Iowa, nobody was a real estate developer — I’d never been exposed to that before. But the NFL had an internship program with

16 | May - June 2025

CBRE and I did that in my 2013 and 2014 off-seasons.

That’s when I started to think development could be something for me. I didn’t go the broker route because I wanted to establish a new identity outside of football. I used my education benefits and got my master’s in real estate development at ASU. AZRE: What gave you the discipline to go this route and not become a broker where you could talk football all the time?

BC: It was intentional. I was making sure I could create a second career. I wanted to be challenged, and I found development challenging — it was a natural fit. As intentional as I was in trying to stay away from football I also lucked out and found something I am passionate about.

AZRE: Are there any parallels between being a professional athlete and working in the commercial real estate world?

BC: There are, and I’ve especially seen that as I hire people to build out our team. I’m now a coach of developers.

Facing adversity and being solutionoriented are what make you successful in professional sports, and the same goes for developing. Good athletes deal

with problems all the time and they don’t complain about it. I found that mentality works well in development.

In football, you get a test every week when you play the game and you’re able to look at film and learn. In development, you don’t get that every week, but we’ve implemented a hotwash where we discuss what we can do better at every major milestone. We give everyone a platform where they can tell us where to improve just like sports.

AZRE: How critical would you say the need for housing in Arizona is?

BC: The need is huge across the entire spectrum of housing, whether we’re talking about people trying to buy a home or just trying to find basic shelter. In Phoenix, we’ve got affordability issues and problems with getting the housing stock to increase. It affects all kinds of people too.

Projects are also taking more time to complete. If you talk to any developer, they’re going to complain non-stop that projects are taking eight to 10 months longer. There are also construction costs — it’s hard to deliver a product that is cheap enough so we can make sure rent is low but also fits what the renter needs.

Gottlieb Law, PLC has substantial experience in the areas of real estate and commercial litigation as well as real estate transactions. The Firm also handles matters pertaining to business law, contract law, probate law, and more.

602-899-8188 gottlieblawaz.com 2375 E. Camelback Road, Suite 600 Phoenix, Arizona 85016

17

WOMEN WHO LEAD IN CRE

WOMEN WHO LEAD IN COMMERCIAL REAL ESTATE More women take on leadership roles in Arizona

By LUX BUTLER BELLA MAZZILLI GABRIELLE WALLACE

E

ffective leadership is built on a foundation of confidence, resilience, innovation and passion — and the women leading Phoenix’s commercial real estate scene exemplify all those traits and more.

Whether they’re building regionshaping projects, making critical design decisions, brokering big deals, scouting new business opportunities or steering the company into the future, these women thrive in an industry

18 | May - June 2025

that is as dynamic and multifaceted as the city itself. In a field that demands adaptability, strategic thinking, and bold ideas, their leadership rises to meet the challenge.

The women at the front of the Valley’s top firms have built their careers with purpose and determination, and as Phoenix continues to evolve, so too does their impact.

Still, there’s progress to be made.

According to the 2020 CREW

Network Benchmark Study: Gender and Diversity in Commercial Real Estate, women made up just 36.7% of the industry workforce, across roles ranging from brokers and developers to finance and asset management.

“Commercial real estate is traditionally a very male dominated industry, so women in real estate need to be bold,” says Vanessa Williams, Arizona market leader and senior managing director at CBRE.

“To succeed in leadership, you need to be a servant leader and inspire those around you.”

AZRE sat down with more than a dozen of these Women Who Lead in Commercial Real Estate to gain valuable insights into what it takes to lead, their advice for aspiring professionals and their personal perspectives on success.

Answers have been edited for length and clarity.

Meet them on the pages that follow:

TAMMY CARR, director of business development at Brinkmann Constructors JESSICA COLÓN, preconstruction manager at DPR Construction EMILY GANEM, executive vice president, Ganem Construction CARRIE KELLY, managing director of Site Selectors Guild; CEO and founder of Pick It Up! Management & Consulting CHERIE KOESTER, CEO at Earthworks Environmental GRENEE MARTACHO, CEO at Concord General Contracting ALICIA SAXBY, senior leasing manager at Prologis ANGIE SCHMIDT, CEO of SDB Contracting Services ANDI ST JOHN, managing director at CBRE CATHY TEETER, managing director at CBRE VANESSA WILLIAMS, Arizona market leader and senior managing director at CBRE TARA ZIKA, vice president at CORE Construction AMY ZITNY, vice president at Corgan 19

WOMEN WHO LEAD IN CRE

Tammy Carr Director of business development Brinkmann Constructors

AZRE: Have you faced any challenges being a female leader in construction?

Tammy Carr: For context, I spent 12 years on the design side, primarily in architecture, and was an owner of a local architecture firm. As far as genderbased challenges, I have encountered them from time to time. Around 20% of people across all areas of commercial real estate are female. In construction specifically, about 5% of the workforce was female at the end of 2011. Now we’re up to just under 10%.

As a female leader, I’ve occasionally encountered blatant disrespect or insubordination.

If you don’t have the respect of the team members, they’re not going to give you the answers you’re seeking. You need to have thick skin and be confident in your leadership skills, because they’re going to be challenged.

Not all people will like your style. But you also can’t allow them to cross your boundaries. Usually, if you treat people kindly and with respect, most people will give that respect back.

AZRE: What are some ways you maintain that self-confidence?

TC: For me, I do a lot of hiking, yoga and meditation. I spend time each morning grounding myself and figuring out what my priorities are for the day. Showing up as your best self helps you feel confident that what you’re doing and how you’re doing it best aligns with the desired outcome.

Sometimes that means dragging folks along, but when you’re certain it’s 20 | May - June 2025

for legitimate reasons and done in the appropriate way, it makes it easier to meet any resistance when challenged.

You also have to be humble enough to have the right people at the table and value their opinions. It is incumbent, in my opinion, for leaders to adapt their style to help accommodate the people they’re working with.

AZRE: What strengths do women bring to the construction industry?

TC: More women are getting involved in construction and they seem to be excelling. The skills that we would qualify as being good leaders in construction often come naturally, including being efficient communicators and consensus builders, because construction is a very complicated industry that has multiple players.

AZRE: You said earlier that you’ve seen the number of women in construction grow. Do you think that trend will continue?

TC: Part of the challenge is that parents don’t often talk to young women about construction as a field to get in to. I’ve even mentored some women interested in the field whose parents blatantly told them to pick a different career.

But Brinkmann Constructors recruits heavily from ASU for interns and project engineers, and it has been really encouraging to see the number of women in those programs these days.

Also, because of the construction labor shortage, companies are understanding that they need to engage more diverse groups, including women, to get them involved early on. I think will have a major impact on the construction workforce in the future.

Vanessa Williams

Andi St John

Cathy Teeter

AZRE: What skill should professionals aspiring to leadership work on early in their careers?

Vanessa Willams: The most important attribute of any successful leader — man or woman — is being a phenomenal communicator. Recognizing the power of words and what makes people tick is what future leaders should focus on the most. You can teach any skill set, but it takes a lot of hard work to understand others and how to talk to them. If you know how to communicate and how to sell yourself, the sky’s the limit.

AZRE: Can you share how mentorship has played a role in your professional development?

Andi St John: I’m a huge believer in mentorship. CBRE has a lot of great programs — both formal and informal — at the local and national level.

There isn’t just one mentor that I can look back at and say they pushed my career forward. Brokers, colleagues and supervisors have all had an impact on me. I’ve even learned a lot from clients over the years, because different points of view and critiques makes someone better. That feedback helped me grow.

AZRE: What advice would you give to young professionals?

Cathy Teeter: Have faith in yourself and don’t feel like you need to be perfect.

Waiting until you’ve mastered everything before taking a chance means missing out on opportunities that might never come around again. When I think about folks in the office who have taken risks, it was uncomfortable for them at the time, but the payoff was huge for them professionally. People need to be supported and encouraged — which I enjoy doing as a leader — but they have to be the ones to go out and do it.

Arizona market leader and senior managing director CBRE

Managing director CBRE

Managing director CBRE

21

WOMEN WHO LEAD IN CRE

Emily Ganem Executive vice president Ganem Construction AZRE: What advice would you give to young women that are looking to become leaders?

Emily Ganem: The biggest piece of advice I would give is: don't sell yourself short. I say it all the time. I love mentoring young girls and I was just talking to someone the other day

who said, “I don’t understand — it just seems so far-fetched to get where you are.” I told her, “You’re selling yourself short. Focus on growth. Don’t feel like you’re not good enough for anything — and don’t feel like you’re too good for anything, either. Just learn and go.” Be confident, and remember you also have to consistently show up.

AZRE: What are some habits or routines you’ve adopted that you think have contributed to your success?

EG: I worked with a career coach early in my journey, and I think coaching is a magical thing. Everyone should have mentors and coaches, and I try to be that for others too — there’s always more to learn. One of the things that my coach helped me recognize was that I needed meditation. And meditation can come in many forms.

Everyone thinks it’s just about sitting in silence, but it doesn’t have to.

For me, it might be taking a walk and noticing the day, or dancing. It’s not traditional meditating, but it’s focusing on nothing — just being present. I also practice something physical most

22 | May - June 2025

days. The more I grow in business, the less I care about physical appearance — but I care a lot about physical wellness.

There’s so much research behind it, and it’s something we all need for our health and clarity.

AZRE: What skills do you think women should focus on to reach their potential in the construction industry?

EG: Confidence is so important — especially in construction, which is still is a male-dominated industry. As much as things have evolved, old-school mindsets still exist.

I also think being nimble will get you far in any field. Your way is not always the right way — everybody thinks and learns differently.

Most importantly: be consistent. Do what you know how to do, and do it well. And don't be afraid to grow. You’re going to make mistakes. That's where the biggest growth comes from — doing the hard things anyway.

23

WOMEN WHO LEAD IN CRE

Jessica Colón Arizona preconstruction leader DPR Construction

AZRE: What inspired you to pursue a career in commercial real estate?

Jessica Colón: I was always drawn to science and math, so I chose engineering as my degree in school. I didn’t know construction engineering was an option, but I took an engineering elective that walked us through the different disciplines.

When construction engineering came up, I knew that was what I wanted to do. I also had a co-op all four years of school, so I got to work with companies and after my first one, I was just hooked. I loved

the diversity of what our work looked like and the people I got to work with.

AZRE: How do you juggle work-life balance?

JC: I have a great partner in my husband, and our girls are almost grown now, so I don’t have to juggle as much anymore. I have a husband who is also a high achiever and travels a lot for work, but we have a great understanding that managing life is not always a fifty-fifty split. Some weeks, it’s 100% from one of us. Other times, my husband or I can only give 20%. But when possible, we take time off and we 100% invest in our family together. It’s not perfect, but it’s what works for us.

AZRE: Are there any routines that have led to success in your personal or professional life?

JC: My biggest routine started when I was in college because I had to make early calls to the job site. When I went back to school, my body had adjusted to getting up early, so I made a habit of getting to campus by 7 a.m. Even today, I wake up at 4:30 a.m. and set time aside for myself to do whatever it is that I need to do.

That helps me focus and feel present before I jump into the chaos of the day.

I enjoy how things are always changing in my work, but maintaining a routine and setting time aside for myself has helped me be successful.

AZRE: What unique strengths and assets do women bring to the construction industry?

JC: Women are naturally good at collaborating. We do a good job of bridging the gap in our work with subcontractors and architects. We’re also wonderful multitaskers, which allows us to have a lot of plates spinning at once. But I think the relationship-building capacity we have is a key differentiator in what women bring to the field. We don’t just build buildings; we build relationships where people want to work with us and solve problems together.

AZRE: What made you decide to make the move to Arizona after being in Los Angeles for so long?

JC: I was looking for a change. Our business unit leader in Arizona at the time was Gretchen Kinsella and I really wanted to work with her. I was searching for a different and more challenging role, and there was one available here that would let me branch out into the other core markets we work in, like healthcare and advanced technology.

AZRE: What is your outlook on the Arizona market over the next five years?

JC: We’re going to continue to see growth across all market sectors. What I’m really excited about is Arizona embracing technology. We’re going to see a lot more prefabrication in order to keep up with demand because we don’t have the skilled labor needed to support all of it. I’m looking forward to more women choosing construction as a career — and I see this across the industry, not just in Arizona. I think we should also encourage women to go into the skilled trades and not just administrative positions.

24 | May - June 2025

Carrie Kelly

Managing director, Site Selectors Guild CEO & founder, Pick It Up! Management & Consulting AZRE: Tell me a little bit about your career and where you are now.

Carrie Kelly: I went from working in a law firm that was involved with economic development, to actually working in economic development, then running an economic development association. Now, I’m doing the something similar, but it’s with site selectors and it’s an international association. I also have a consulting business where I do strategic planning and organizational assessments, typically for associations, but nonprofits as well.

AZRE: Economic development isn’t a widely known career path. Was working at that law firm your introduction to the field?

CK: It was. I worked with communities that needed economic development support or had land they didn’t know what to do with. That was about 20 years ago, so I got in at the ground floor in that community. Economic development has been a career path for a long time, but not in every community like it is now.

That’s been a cool progression to see.

AZRE: How has the economic development field changed over your career?

CK: The first year I was at AAED, we did a study and found something like 70% of directors were men at the time, and 30% women. But if you looked at the deputy level, the inverse was true. Today, a lot of those deputies have stepped into director roles. There are still men of course, but it’s much more female led. Even at the conferences we go to, there’s an even split of men and women, maybe slightly more women. Arizona has a lot of female leadership in economic development now.

AZRE: What's a piece of advice you wish you received when you were beginning your career?

CK: I am not a natural extrovert, which surprises people. The thought of going to anybody older than me for advice or asking about what they did to get to the next level scared me when I was starting out. I wish I spent more time finding people who would mentor me or join different organizations. I had this fear that people wouldn’t want to take time away from what they’re doing to help me, but it’s the opposite of that.

Seek out everybody you can, because you never know what connections will come from that.

AZRE: Were you at a law firm because you were interested in becoming an attorney?

CK: My great grandfather was a lawyer. My grandfather was a lawyer. My mom is a lawyer. When I got a job offer to run the Mohave Community College Foundation out here in Kingman, I had been accepted into law school after putting it off. So I went to my mom, and I said, “I could go to law school, or I could take this job.” She told me that law school will always be there, but this opportunity wouldn’t. That was a big thing for her to say, because my daughter was six months old, so I was leaving my community in Indiana for this new adventure. But that led me down the path I’m on now.

25

WOMEN WHO LEAD IN CRE

Cherie Koester CEO Earthworks Environmental

AZRE: How would you describe your leadership?

Cherie Koester: I don’t know if it’s a politically correct answer, but I’m very stern. I have the mindset of work hard, play hard and give all you can. That said, I also have a lot of understanding for people with families, which has been important to me since founding the business because I remember being a mom with kids at home.

AZRE: How do you think your leadership style has changed since you started your business?

CS: I’ve learned a ton because early on, you don’t know what you don’t know. I used to get concerned about all the little things, but I can’t dig that deep anymore. I have to trust that I’m training people well and that our processes are correct.

I know that every employee is an extension of me, so I try to be as present as possible while still looking at the bigger picture.

AZRE: How do you stay innovative?

CK: It comes from listening. I don’t know everything and never will, so I need feedback from clients and employees. It's all about understanding the needs of clients, employees and the business while also meeting regulatory demands of our industry.

AZRE: What are some personal qualities that have helped you be successful in this sector?

CS: I have grit and moxie. I got pregnant with my daughter when I was 15. I remember when she was about two days old, and I was sitting there with a child at 16 thinking, 26 | May - June 2025

“What do I do now?” I learned to adjust as I go. I had the mindset of “I’m not going to fail.”

AZRE: Where does that strength come from?

CS: I was just born with the conviction that I will not fail, and I’m not going to give up either. I’m one of those people who think we could have a really bad week, month or year, but still know that something good is coming around the corner. I don’t know when that will happen, but the universe evens itself out. If I can be a good person, then that positivity will make its way back to me.

AZRE: What do you see as your greatest strengths that helped you become the success you are today?

CS: I’m a risk-taker. Expanding into new markets would scare other business professionals, but I try to look at the positives and reduce the negatives.

I also have the gift of gab. I like to talk a lot and personalize what I’m doing with my clients. I want to know them and gain their trust. I always answer my phone; I never fully disconnect so people can always rely on me.

AZRE: Is there one thing that gives you the most pride from your professional career?

CS: Surviving year one — that was a big challenge. Also, my three adult children all work for the company, which makes me proud. I want Earthworks to still feel like a small family-owned company and make sure everyone knows that I care about them — even as we continue to grow.

Grenee Martacho CEO Concord General Contracting

AZRE: How would you describe your leadership style?

Grenee Martacho: Very authentic. I don’t put on a mask. If I’m having a rough day, I hole up in my office to get work done. If it’s a great day, I’ll be out chatting with people. We’re a dog-friendly workplace, and one time a new employee asked, “You’re the CEO, why are you on the ground playing with the dogs?” And I said, “Because that’s what I do at home. It’s who I am.” I always tell our employees that we’d all love to say we’re always at our best, but reality is, we’re just a bunch of human beings coming together. So, let’s support each other and have our good and bad days together.

AZRE: What kind of mindset does it take to thrive in an employee-owned company like Concord?

GM: You need to have that entrepreneurial spirit. You have to be willing to jump in and figure it out. That’s one of the perks of being an ESOP company. If I want to increase shareholder value — not just for myself but for the whole company — I have to take charge and push things forward. That mindset is a big part of our culture. It’s not about hierarchy. We don’t have layers and layers of middle management, which gives people room to grow. But it also means you have to own your role. That’s what’s cool about Concord. People take that ownership seriously and aren’t just sitting around waiting to be told what to do. You can’t fake that kind of buy-in.

AZRE: What advice would you give to young women looking to build a career in leadership?

GM: Never lose your confidence. That’s one gift my parents gave me — they always said, “You can do whatever you want, you just have to work really hard for it.” I didn’t know I was going to be a CEO and lead a construction company. But I loved business and the idea of people coming together to work toward the same goal. And over time, you refine your touch and how you lead. But the belief that if I focus my mind on something I can accomplish anything has never left me. That’s what I tell young women especially — keep your confidence. That’s the fuel.

27

WOMEN WHO LEAD IN CRE

Alicia Saxby Senior leasing manager Prologis

AZRE: Can you walk me through your career journey and how you got to where you are today?

Alicia Saxby: I’ve been in the business for about 17 years. I started off in the accounting department at Grubb & Ellis and worked my way through there.

Then, I transitioned to Cushman & Wakefield, where I worked on a team before switching over from the brokerage to the ownership side. After that, I worked at a company called BKM before transferring to Prologis, where I am now.

AZRE: Was there a specific moment or decision that really changed the direction of your career?

AS: When I decided to make the switch from the brokerage side to the ownership side, I felt like there was more stability for me, more long-term opportunity for growth.

AZRE: Did you have any mentors or influential figures who helped shape your career path?

AS: Early on I had a mentor — my grandfather — who taught me to be who I am. He believed in me, and he always thought I was going to do great things.

Having him in the background always cheering me on and telling me that I can do anything that I put my mind to really pushed me a long way.

AZRE: How do you manage work-life balance in a field that often involves long hours?

AS: It’s hard in our industry. We have a lot of evening events to entertain clients and award ceremonies to attend, so it does become difficult to have that downtime in the evenings with your family. You don’t have to go to every event — just make the ones you do attend meaningful. Also, build a stronger community with your network, your family and your friends so you can find the right work-life balance.

AZRE: What skills do you think are important for women to fine-tune if they want to grow professionally?

AS: Early on in your career, it’s all about building relationships in the real estate community. That’s what got me where I am today. It’s a small community — I’ve worked with these people for many, many years.

I would also say it’s important to find a work style that fits and go with it. Don’t let anyone force you to do something that makes you uncomfortable. Stay true to who you are, and you can be successful. Never downplay what makes you different, because that could be your competitive advantage later down the road. Also, take every opportunity seriously because you never know how many doors it could open for you.

28 | May - June 2025

Angie Schmidt CEO SDB Contracting Services

AZRE: Tell me a bit about your career and how you ended up where you are now.

Angie Schmidt: After graduating high school, I went to floral school where I learned the craft and then started managing a flower shop for 10 years. I left the floral business when I had my first son in ‘92 and was a stay-at-home mom until my youngest went off to college.

That's when Dominic Spagnuolo, my father and founder of SDB, said, “Come work with me!” and I’ve been there ever since. I started in accounting and learned the finance side of the business before moving into leadership.

AZRE: What did you learn from stepping into this leadership position?

AS: Just take it one day at a time. It’s all about the people — your employees are everything. It’s making sure that you know who they are. I tell the employees that we’re together more than we are with our families, so we have to get along. We have to respect each other. I don't care if you're sweeping the floor in our warehouse, or you're in the executive leadership team, we all treat each other the same.

AZRE: It sounds like taking care of your employees is a top priority for you.

AS: That’s my philosophy. You can’t do it alone. There are so many puzzle pieces, and it takes everybody coming together to make it all work. If you don't have great people supporting you as a leader, you're nothing. And I'm really proud of

our team. We don’t hire people just to have them there. They all have a job to do, and we expect them to do it and help SDB grow.

AZRE: Do you have any habits that have contributed to your success?

AS: I wake up early every day to run. It clears my mind.

I get everything organized in my head and start my day. Once I get to the office, I make my to-do list. There are always fires to put out, so it's important to be there and support team members. That's what I do.

AZRE: What’s a piece of advice that you would impart upon young women who want to become leaders in the construction industry?

AS: I have a picture in my office, and it’s a bird picking up a frog and trying to eat it, but the frog has its hands around the neck of the bird. At the bottom of the frame it says, “Don’t ever give up.” It was a picture my dad had in his office, which he gave to me.

That’s my motto. I know it's a maledominated field, but I don't look at it that way. Everybody has an opportunity as long as they go out and do what they do best. You might have a door shut in your face or an employee that doesn’t work out, but you don’t ever give up. Just keep plugging along.

29

WOMEN WHO LEAD IN CRE

Tara Zika Vice president CORE Construction

AZRE: What advice would you give to young women who want to be in leadership roles?

Tara Zika: Some of the best advice I received is that you’re not a leader until you create a leader. Once you’re able to look past your individual success and can celebrate the success of somebody else under you, that’s when that all of us — women and men — really become leaders.

AZRE: What skills do you think are important to fine-tune to grow in the commercial real estate industry?

TZ: Be assertive, confident and don't qualify your contributions. When you’re asking a question, don’t hedge it with, “This might be a stupid thing to ask.” If you're sharing an idea, don't start off by saying “Someone probably already thought of this.” As soon as we do that, we put ourselves in a submissive role. You also need to be humble, but couple that with confidence. Embrace that side of you.

AZRE: How do you juggle your work-life balance?

TZ: We all have to figure out how to manage work while also living our lives.

Each of us have different challenges — my life experience is so different from the next woman’s. But there’s an expectation that women have to balance work and life, and sometimes women will be judged based on how they determine what that balance is. Since I’m single and don’t have kids, I’m able to go deep into my work like a lot of my male counterparts because I'm at a different phase in my life.

Women get asked this question because society expects different things from us, but I challenge everyone to start asking that question to men as well. I do think men should really start to self-reflect on what their responsibility is at home.

Women can also look at it as a way of saying, “I can dive into my work knowing that my husband or partner is taking care of things, and that’s okay.” It’s also good for men to be able to say, “It’s okay for me to stay at home.”

30 | May - June 2025

Amy Zitny Vice president Corgan

AZRE: Tell me about your career and how you ended up where you are now.

Amy Zitny: I am a native of Arizona and attended the architecture school at ASU before going to University of Illinois for grad school. I came back to Arizona after a couple long winters in Illinois, and started up at HDR. I immediately went into healthcare architecture after getting my master's degree, and I am currently at Corgan as the Phoenix Healthcare Studio Lead.

AZRE: Have you experienced any challenges as a female leader in a male-dominated industry?

AZ: I would say yes. There have been certain points in my career where I felt overlooked. I don’t know if it’s necessarily just because I’m a woman — ageism might be part of it too. But I don't have a big story about overcoming obstacles as a female. There's hasn't been a point in my career where I felt things weren't going my way just because I'm a woman.

But the design industry is growing tremendously in terms of gender diversity. At the career fairs I go to, there’s often more women than men now. That is interesting progress to see because when I was in architecture school, it was about 75% men and 25% women.

AZRE: What’s a piece of advice you would give someone starting out in this career?

AZ: It’s important to lean into your strengths, and that means understanding who you are. Always

be your authentic self — but also recognize you don’t know what you don’t know, especially early in your career. Be open to exploring the unknown and don’t be afraid to fail. Failure is okay so long as you learn from it.

Also, try to find a mentor.

It doesn’t have to be a formal thing, just somebody a couple steps above you in their career whom you can trust.

AZRE: Have you had any mentors?

AZ: I was lucky to have a mentor at one of my first jobs who took an interest in my career and helped me along the way. People can be superficial in this industry, but my mentor was always honest with me, which helped me grow both as a person and a professional.

AZRE: Have you been able to take on that role for someone else?

AZ: As a leader, you have to pull people up with you so you have an engaged team that wants to share in the successes together. But you can’t force a mentormentee relationship — some people are more open to it than others. I have taken on a mentor role for a few people on my team, and I make sure I do what I can to assist them in their career growth. My mentor took time out their day to help me, so I want to pay that forward.

31

HEALTHCARE

THE NEXT GENERATION OF HEALTHCARE

Investments from Mayo Clinic and ASU indicate a healthier Arizona

By GABRIELLE WALLACE

H

ealthcare facilities drive development in cities in numerous ways.

Hospitals and health campuses need construction crews to build the campus, creating jobs in that sector. Once construction is complete, hospital staffing needs continue to increase employment as well. Beyond creating a powerful economic engine, these centers of healing provide hope to people when they need it most.

While the entire Valley is seeing a surge of medical infrastructure, the recently announced ASU Health Headquarters in Downtown Phoenix and the $1.9 billion investment by Mayo Clinic will have a long-lasting impact on healthcare outcomes. Communities in Greater Phoenix and beyond will see increased access to care as new campuses are built and existing ones are expanded.

32 | May - June 2025

Bold. Forward. Unbound.

On March 3, Mayo Clinic announced that it’s committing just short of $2 billion in its Phoenix campus. The multibillion-dollar investment will include a 1.2-million-square-foot expansion, bringing the campus to almost 4 million square feet with the ability to expand to 8 million in the future.

As part of its “Bold. Forward.

Unbound.” strategy, the project includes a new procedural building and a fivefloor expansion of the clinic’s specialty building. Eleven new operating rooms and two new patient support units supporting 48 additional beds will

WORLD-CLASS CARE: Mayo Clinic is investing $1.9 billion into its Phoenix campus, which will include a new procedural building, 11 new operating rooms, 48 additional beds and more across the 1.2-million-square-foot expansion. (Rendering courtesy of Mayo Clinic.)

be added as well. There will also be a two-story indoor promenade to connect buildings around the campus so that visitors and patients may move more efficiently from building to building.

Dr. Mitchell Humphreys, chairperson of Bold. Forward. Unbound in Arizona notes that one of the essential concepts for this project is care neighborhoods. Patients shouldn’t have to move around all over the campus to reach other specialties but instead be located near all relevant specialties.

Another big part of the project is the patient experience. Humphreys adds that Mayo Clinic has spent time visiting Disney and looking at Google to observe

their curation processes and amenities.

“We’re not just thinking about healthcare. We’re talking about having patient input on how to design some of these amenities and common ground space,” Humphreys continues.

Improved and updated technology will be another focal point of the expansion.

“Certainly, part of this project is automation and digital and robotics, but at its heart, it’s about people taking care of people and using technologies to enhance what we do,” Humphreys says.

Not only will the project provide increased healthcare access to nearby populations but it will also boost the

Phoenix economy. Humphreys highlights that while the seven-year project will generate construction and architectural spending, the bigger impact is with medical staffing. Nurses, doctors, imaging technicians and more will be needed to fulfill the vision of Bold. Forward. Unbound.

“All the things that go along with the spaces we’re constructing and the way we deliver next-level care will be a huge job opportunity and economically impact the area around us,” Humphreys says.

ASU Health On March 10, ASU announced the location for its ASU Health 33

TRUSTED CONSTRUCTION PARTNER FOR HEALTHCARE PROJECTS IN THE VALLEY ABOUT CLUNE Clune Construction is an employee-owned, national general contractor, providing construction management services for some of the most respected companies in the world. With seven offices across the U.S., Clune manages over $2.2 billion projects annually and has been ranked as a Best Place to Work across the nation.

HACI Mechanical Contractors, Inc. HACI Service, LLC 2108 W Shangri-La Road Phoenix, AZ 85029 Phone (602) 944-1555 https://hacimechanical.com

34 | May - June 2025

YOUR PARTNER IN HEALTHCARE DP Electric is the leading electrical contractor on Hospitals, Medical Centers, and Clinics. Whether its renovations, expansions, pharmacies, or ground-up construction, we provide trusted electrical solutions for critical healthcare environments.

See for more at www.dpelectric.com

35

HEALTHCARE

Mitchell Humphreys

Sherine Gabriel

Rick Naimark

HEALTHCARE PROJECTS TO KNOW Dignity Health and Phoenix Children’s Hospital Women’s and Children’s Pavillion: The Mercy Gilbert Medical Center partnered with Dignity Health and Phoenix Children’s Hospital for the construction of the Women’s and Children’s Tower. The 382,000-squarefoot tower provides specialized care for women and children.

Northern Arizona Healthcare’s New Outpatient Surgery Center: Located in Flagstaff, Northern Arizona Healthcare is undertaking a complete interior remodel and expansion of the former Summit Center. The project will include a 27,600-square-foot ambulatory surgery center, a 14,800-squarefoot wound and hyperbaric clinic, a 6,000-square-foot addition to the existing building and more.

The organization is also exploring locations for a new hospital.

36 | May - June 2025

Tucson Rehabilitation Hospital: The new 55,098-square-foot rehabilitation center will include 48 modern patient rooms and two rehab therapy gyms.

The project is set to open in June 2025, providing specialized care to Southern Arizona residents.

Banner Health Medical Center: Located in Scottsdale, the $400 million medical campus will include a medical office building, cancer center, and four-story hospital. The hospital is expected to open in 2026 with 106 licensed patient beds and 20 observation beds, along with shelled space for expansion as the community grows.

Banner Health Buckeye Hospital: The four-story, 330,000-square-foot hospital will have 120 beds and offer imaging, surgery, labor and delivery, intensive care and an emergency room.

There is also potential for adding more than 300 more beds in a build-out.

Abrazo Hospital in Buckeye: The 27-acre Abrazo Health campus in Buckeye is a series of projects meant to increase healthcare access in the West Valley and bolster the local economy. The project is near the completion of phase 1 — a 60,000-square-foot medical office building.

HonorHealth Deer Valley Medical Center Expansion: The $170 million expansion is a three-phase project, expected to be finished in the fourth quarter of 2025. The project will create four new operating rooms, a new support services building and a four-story, 166,000-square-foot structure.

POWERING THE NEXT GENERATION For the last 80 years, we have committed to investing in the next generation of talent for our future in the electrical industry.

Brandon J. | Virtual Construction Designer

cannon-wendt.com | 602.279.1681 ROC068027 - ROC027458 - ROC068026

37

HEALTHCARE

VITAL EDUCATION: On March 10, ASU announced the location of ASU Health’s headquarters. Located in Downtown Phoenix within the Phoenix Bioscience Core, it will be home to the School of Medicine and Advanced Medical Engineering, which blends medicine and STEM, and the new School of Technology for Public Health. (Rendering courtesy of CO Architects and DFDG Architecture.)

headquarters, which includes its new medical school. Situated in the heart of Downtown Phoenix between Fillmore and Fifth Street, the new hub is only a few blocks away from ASU’s Downtown Phoenix campus. The location was carefully selected so it could be part of the Phoenix Bioscience Core innovation zone, which hosts federal, corporate, start-up and educational medical science leaders.

“It was an obvious choice from our perspective,” says Rick Naimark, ASU’s associate vice president of program development planning.

The project was a result of the Arizona Board of Regents’ AZ Healthy Tomorrow initiative. The plan asked all three major 38 | May - June 2025

Arizona universities to develop ways to build the state’s healthcare workforce.

“Every single health profession is facing severe shortages in Arizona.

The number of doctors and nurses per population is extremely low per state,” Naimark says. “By building the ASU health programs, the school will dramatically increase the number of health professionals to serve the growing Arizona population.”

The project will also partner with other ASU colleges. The W.P. Carey School of Business will work on supply chain issues and the Walter Cronkite School of Journalism and Mass Communication will share health concerns with the public through patient interviews.

Sherine Gabriel, executive vice president of ASU Health, says ASU is leveraging talent, experience and infrastructure across the university to differentiate the medical school.

“Everything about the medical school is innovative. It’s not just a medical school, it’s a school of medicine and advanced medical engineering,” Gabriel says. “It’s a very unusual, atypical, innovative curriculum you won’t see anywhere else.”

The site is expected to be completed and open in time for the Fall 2028 semester. Over the next 10 years, the project is expected to add $19 billion to the state’s GDP and bring in 200,000 jobs.

When values hold strong everything else does too.

See how we live our philosophy at www.laytonconstruction.com

39

DOWNTOWN DEVELOPMENT

DOUBLING DOWN

Why Valley cities are going all in on downtown districts

By BELLA MAZZILLI

J

ust a few decades ago, Downtown Phoenix was a place where office workers commuted in the morning, before returning home as soon as the day’s work was finished.

Today, investments across multiple sectors have transformed Downtown Phoenix into a vibrant community at all hours.

40 | May - June 2025

Other municipalities in the Valley have followed suit, making concerted efforts to give their cities unique identities. Downtown Mesa has become a weekend destination, with access to light rail, plenty of bar and dining options, the Nile Theater, the ASU MIX Center and business accelerators.

Goodyear has taken advantage of the opportunity to carve out its own

downtown with GSQ — a new city center featuring dining, entertainment, office space and shopping, with multifamily living and a hotel to come.

“Thriving cities and towns across the U.S. have a common thread — vibrant public centers that enhance quality of life and reflect the spirit of community,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council.

“

There’s an incredibly dedicated resident base here that wants to see the area succeed.

” BIG CITY LIVING: A 2025 RED Awards winner, the 24-story Moontower brings 326 units to the Roosevelt Row Arts District, revitalizing a previously vacant lot. (Provided photo)

“These downtowns are also often drivers of arts and innovation through the mix of retail, hospitality, local businesses and design of spaces that drive a sense of pride for residents, create quality jobs and uplift the broader economy.”

Downtown Phoenix One of the initial projects that reshaped Downtown Phoenix was

CityScape. Jeff Moloznik, senior vice president of development at RED Development, emphasizes that people make a place, and at the time, there weren’t any residents living downtown.

“When we started CityScape, if we tried to get a restaurateur to come downtown, they’d say, ‘I can go anywhere else in the Valley and get a predictable stream of customer base and revenue,’”

he recalls. “A watershed moment was when the Arrogant Butcher opened up, and all of a sudden there was a restaurant doing $1,000 per square foot in retail sales.”

According to Moloznik, a projection showed that having a grocery store in the area increased annual residential growth projections from around 3% to 9%.

“That doesn’t seem like a lot, but when you start talking about tens of thousands of people being there, it’s a huge difference,” he says. “There’s an incredibly dedicated resident base here that wants to see the area succeed.”

Reflecting the demand for downtown living, more than 8,000 apartment units have been added since 2015.

Devney Majerle, president and CEO of Downtown Phoenix Inc., says that that intentionality is key in any revitalization effort, and multifamily construction has been “incredibly transformative for the 41

DOWNTOWN DEVELOPMENT

DOWNTOWN LEARNING: Arizona State University and the City of Mesa partnered to bring the MIX Center to Downtown Mesa — a three-story, 118,000-square-foot facility with programs related to digital technology, experience design, film production and immersive media. (Provided photo)

street-level vibrancy, the density in downtown and all the retail that tends to follow that.”

“We want to make sure downtown continues to be for anyone who wants to live, work or learn here,” she continues.

Due to the efforts of Downtown Phoenix Inc. and many others, the area is also an entertainment and leisure district, with venues like Chase Field, Phoenix Convention Center, PHX Arena and Arizona Financial Theater bringing in large crowds throughout the year.

Downtown Mesa The City of Mesa has a storied history, and its downtown is part of that legacy. Jeff McVay, manager of urban transformation at City of Mesa, notes that John Giles, the former mayor, was “very focused on downtown,” and created the Office of Downtown Transformation in 2015.

42 | May - June 2025

Mesa’s plethora of small, owneroperated businesses creates what McVay calls richly invested residents.

“There’s a community here. We’re a city of 510,000 people, but we have a downtown that is approachable,” he continues. “The fact that almost every one of our businesses is owner operated — you can go into most of our shops and actually talk with the owner — it creates a unique feeling.”

In 2022, Arizona State University expanded its presence into Downtown Mesa with the Media and Immersive eXperience (MIX) Center, a joint project between the city and ASU. The three-story, 118,000-square-foot facility houses programs from the Herberger Institute of Design and the Arts and the Sydney Poitier New American Film School related to digital technology, experience design, film production and immersive media.

The MIX Center is located within the

larger Plaza at Mesa City Center, which includes a public park with an event lawn, splash pad and seasonal ice rink.

The J. Orin Edson Entrepreneurship + Innovation Institute at ASU provides resources to entrepreneurs in Mesa, along with students and faculty interested in launching new ideas.

Between the Nile Theater, boutique shops, trendy restaurants and light rail accessibility, Downtown Mesa is a rapidly changing landscape of revitalization and innovation, according to McVay. “We do as many events downtown as possible to help drive traffic here. I tell people all the time that we just have to get people to Downtown Mesa,” he says. “Once they’ve been here, they’ll come back.”

Downtown Goodyear Once an agricultural town, Goodyear has grown exponentially in recent decades, following a similar trend of

THE FOUNDATION OF DEVELOPMENT Through the hard work of our skilled craftsmen, a dedication to safety, and our commitment to clients and community, SUNTEC CONCRETE has become the region’s largest commercial concrete company and the foundation of development across the West.

AZ | CO | ID | NV | UT ROC #138389

sun teccon crete.com

DOWNTOWN DEVELOPMENT

Chris Camacho

many West Valley municipalities.

“Our population is growing and evolving from an agricultural community into a thriving city, [with a] strong economic base,” says Wendy Bridges, economic development director for the City of Goodyear.

In what once was a scallion farm, Goodyear is taking advantage of a special opportunity — helping build a downtown from the ground up. When Globe Corporation reacquired the property, Bridges explains, the concept of it serving as Goodyear’s downtown came up in conversations with the city.

“Rather than going through and

Devney Majerle

Jeff Moloznik

retrofitting something that already existed, like what is happening in other communities, we had a blank slate to start with,” Bridges explains. “This is a once-in-a-career kind of opportunity.”

Surveys of residents showed that they desired a city center that could serve as a focal point for the community. That connection to community is reflected in the makeup of GSQ, with Bridges noting that there is a focus on attracting the kinds of amenities residents ask for.

“Downtowns are more than businesses and buildings,” she explains. “If it’s done right, it can be the heart of the city and serve many generations to come.”

Wendy Bridges

Phase one of GSQ includes Goodyear’s new city hall, a library, a two-acre park, two parking garages and an office space called GEN1. Meeting residents’ desire for walkability, GSQ is a mixed-use space with high-end and fast-casual restaurants, along with both boutique and big-box stores. In the future, the area will also include multifamily residential, additional offices and a hotel.

Camacho concludes, “The intentional efforts of these municipalities to develop downtowns show commitment to elevating the identity of a community and its people while driving diverse economic opportunities.”

GROWING OPPORTUNITIES: In what was once a scallion field, the City of Goodyear is building its own downtown, called GSQ, that will serve as “the heart of the city.”

(Provided photo)

44 | May - June 2025

Ground Up Tenant Improvement Medical Office Buildings Automotive Wireless Communication Buildouts Industrial/Warehouse

Wolverine Builders Commercial Construction.....

We build more than just structures, We build trust and relationships

480.474.2107 office 602.363.1093 mobile wolverinebuilders.com

3654 N. Power Road, Bld 9, Ste# 152 Mesa, Arizona 85215

ROC # 24995

45

REAL ESTATE LAW

Unaffordable Arizona Ben Graff explains how NIMBYs drive up housing costs

By KYLE BACKER

B

en Graff, partner at Quarles, has made a career of ushering in new possibilities. As a zoning attorney, he helps clients change a site’s designation to a higher and better use.

Sometimes that means an adjustment to how dense an apartment building can be. On other occasions, the transformation is more drastic — like getting approvals for the development of retail, restaurant, Class A office and luxury multifamily where a landfill once stood.

“That’s a great example of what I do for a living,” Graff explains. “In that case, it was taking a literal pile

46 | May - June 2025

Ben Graff Real Estate Law

of garbage and turning into one of Tempe’s prominent developments — Rio2100. That came with every challenge under the sun, but over the years, we were able to slowly but surely rezone the property to MU-4, which is the most intense mixed-use category in Tempe.”

AZRE magazine sat down with Graff to learn more about the housing affordability issue in the Valley, how the rezoning process can be used to halt development and the importance of consensus building.

The following responses have been edited for clarity and length.

on are ground up, not conversions.

There’s not an appetite in the market for conversions because they come with a lot of unexpected costs and challenges.

Office space and even hotels aren’t up to the correct code for residential living.

When they do happen, conversions work better for market-rate or luxury living, where the deals pencil out with more profit margin. But I don’t see it as an avenue for affordable units, especially under the current tax credit process.

LANDFILL TO LUXURY LIVING: Located in Rio2100, The Cameron offers 349 units in a convienient location adjacent to Tempe Marketplace. Ben Graff, who helped rezone Rio2100 into a 60-acre mixed-use development, says visitors “would be surprised to learn they are standing over a former landfill.”

(Provided photo)

AZRE: There has been talk about converting spaces such as hotels or office buildings into apartments to address the demand for affordable housing in the Valley. Is this a viable path for creating more units?

Ben Graff: For context, I work with a lot of multifamily clients, and what make my practice interesting is I represent luxury multifamily developers — like at Rio2100 — but I also do a large amount of affordable housing rezoning and development work, almost all of which is dependent on the state [Low-Income Housing Tax Credit] program.

Most of the developments I’m working

AZRE: Looking at the issue of affordable housing more broadly, what makes developing affordable housing difficult?

BG: The biggest disconnect comes from NIMBYism — organized efforts at the neighborhood level to push back against multifamily and density in general.

Arizona embraced sprawling growth early on, and people argue that’s part of the state's charm.

Whether you’re looking at water savings or affordability, density is where it’s at. But I’ve been in some very contentious public hearings where affordable housing is talked about like it’s a blight on the community. These are projects that house our teachers, first responders, retail workers — the people we interact with daily who are the building blocks of our community.

Ultimately, if a developer gets the pushback we’re seeing in our cities when they try to bring affordable housing, they may decide to develop somewhere else.

AZRE: How are NIMBYs driving away development?

BG: If a rezoning case is involved, then it’s a public process by definition and design — as it should be. Specifically,

it’s a discretionary approval by the local legislative body where the surrounding community is given notice and the opportunity to give their opinion on the project.

This is the first place where people can stand in the way of development — by speaking out against it in a public forum and asking their elected officials to vote against the case. Whether it’s a mayor and city council or board of supervisors, they should be listening to their constituents, but we need elected officials who balance those opinions against the demand for affordable housing and the benefits these projects bring to our cities.

AZRE: Is there another way NIMBYs can stymie projects?

BG: After a rezoning case is approved, there are multiple ways it can be repealed. One mechanism allowed under Arizona law is a referendum. If organizers collect enough signatures, then the zoning case — which was a legislative decision — is turned into an election ballot item.

And we’re talking about a true election where both sides put up campaign signs and send out flyers. But instead of voting for a mayor, people are giving a thumbs up or down on a rezoning case that was previously approved by board supervisors or the city. We’re seeing a growing number of these.

AZRE: All the opposition has to do is collect enough signatures to trigger a referendum on something that has already been approved?

BG: Yes, and the signatures needed is based on the number of voters from the last mayoral election in that 47

REAL ESTATE LAW

specific jurisdiction. City of Phoenix requires thousands upon thousands of signatures to get that through, but we had a multifamily rezoning case in Youngtown that only required around 400 signatures.

Imagine you go through the process of hiring architects, engineers and a zoning lawyer. You work with the municipality, pay all the fees involved and get your case approved — but all of that can be undone by 400 residents signing a petition.

AZRE: Did enough people sign to send the decision to the ballot box?

BG: Despite their efforts, the form and format of the petitions — and how they were filed — did not comply with Arizona law. More than 300 affordable housing units were saved as a result.

But from an economic development standpoint, when groups are looking into the state and see the headlines about, for example, how Axon may leave Scottsdale because of the referendum on its headquarters [due to the 1,895 apartment units planned on site] that can push people away from Arizona.

AZRE: If a piece of land is already zoned multifamily, is there still an opportunity for NIMBY groups to oppose the project?

BG: Assuming the site meets the developer’s needs and doesn’t require 48 | May - June 2025

any variances or exceptions, that’s called an as of right use. In that scenario, they still have to go through site plan approval, site plan review, building permits — but in most jurisdictions those are administrative approvals that are not subject to a public process.

AZRE: Is it rare for multifamily projects to have an as of right use?

BG: I’d say anywhere from a third to a half of our due diligence work for multifamily are for sites that allow as of right use, and the rest require some kind of entitlement or public process.

As we have less and less land to play with in the Valley, more sites will need to be rezoned to multifamily. That will require healthy debate between the city, the council and its economic development department when we are rezoning from commercial, because a city can see that as a loss of revenue generation from sales tax.

In reality, there are situations where it’s better to rezone commercial to multifamily, because that will bring the rooftops needed to support the retail. At neighborhood meetings, I hear people say all the time that they want a Trader Joe’s or Whole Foods built instead of apartments. But those grocery vendors need to see there are enough potential customers to justify building in that spot.

AZRE: What are your thoughts about some of the legislative efforts in recent years addressing housing affordability, such as the state stepping into local zoning matters?

BG: Every year, there are bills aimed at creating affordable housing through making more land automatically multifamily. I’m always torn on this topic, because I’ve studied the history of zoning and have developed a deep appreciation for why these matters are decided locally.

Zoning at a macro level doesn’t make sense. City councils and county supervisors understand their communities. At the same time, a lot of the folks at the legislature have the right intentions in making housing more available.

People may think that as a zoning attorney, I’d like a process where there’s no public input. But they’d be wrong — that’s not how our democracy was set up. The other hat I wear is as an elected official on the Central Arizona Project Board, so I have a strong belief in community involvement.

It’s also why I chose to be a consensus builder as a lawyer rather than something more binary like litigation. I enjoy getting the city, community members and my client into a room to find a compromise.

So, I’d have concerns about any measure that completely removed the people’s voice from a zoning process.

But I also recognize the significant economic detriment to Arizona if we get a reputation of losing opportunities to the referendum process.

House Bill 2925 and Senate Bill 1352 are being proposed to change state law and remove the right to referendum from zoning cases, so that will be interesting to watch.

Ryan W. Anderson Has 25 Years Experience in Receiverships Mr. Anderson has 25 years of experience in the representation of Court appointed Receivers and fiduciaries. With arguably the largest dedicated practice to the representation of receivers, Mr. Anderson and his team at Burch & Cracchiolo are equipped to address any and all issues that may arise in these complex matters including the representation of Receivers and creditors that may be affected by a state or federal receivership proceeding, including secured and unsecured commercial creditors, landlords and investor victims. In addition to representation of Receivers and creditors, Mr. Anderson regularly consults with lawyers and parties exploring a potential receivership in Arizona State and Federal Courts.

Contact him at randerson@bcattorneys.com or 602.234.8773.

Burch & Cracchiolo, P.A. 1850 N. Central Avenue, Suite 1700 Phoenix, Arizona 85004 bcattorneys.com

602.274.7611

@bcattorneys

49

DATA CENTER DEVELOPEMENT

All in on AI

As new tech is adopted, the need for data centers grows

By KYLE BACKER

I

n January, tech sector stocks tumbled when a Chinese artificial intelligence startup, DeepSeek, unveiled a large language model that operates at a much lower cost than U.S. versions while maintaining similar capabilities.

DeepSeek reports that it spent just $5.6 million to train its AI, compared to the more than $100 million committed by OpenAI for GPT-4. While some critics question the veracity of DeepSeek’s claims, the intensifying demand for data centers to support AI and other technologies is undisputed.

“The news related to DeepSeek hasn’t impacted our long-term forecast of where AI workloads in the data center sector are going,” explains Andrew Batson, senior director of Americas data center research and strategy for JLL, during a webinar. “Our view is that the cost per query for AI will

50 | May - June 2025

decline over time. You’ll hear about Jevons paradox, or the idea that as the cost of any resource — in this case AI — declines, the usage increases. That’s what we’re seeing in the AI space.”

America’s tech companies understand the growing need for this digital infrastructure and are spending big.

Batson says that Amazon, Microsoft, Google and Meta have announced close to $1 trillion in capital expenditures towards data centers over the last five years. That investment, he continues, could translate into approximately 30 gigawatts of new and redeveloped data center space worldwide.

Due to the media attention AI receives, Batson says many people overemphasize how much it’s currently driving data center development.

The reality is that internet traffic, enterprise processes and storage

are still massive users of computing power. The sheer amount of data being created each year is increasing at a 24% compound annual rate, and AI is just one vector of that growth.

According to data from Avison Young, the global datasphere is expanding exponentially and is expected to double from 101 zettabytes in 2022 to 221 zettabytes by the end of 2026. The report highlights the internet of things, autonomous vehicles and AI as examples of emerging technologies with “the potential to consume orders of magnitude more data than typical applications today.”

In 2025, Baston estimates that 15% of data center workloads are related to AI since most people interface with it in a limited capacity. But as AI embeds itself into other technologies, programs and services, that number

Dan Diorio

could balloon up to 40% by the end of the decade.

“Within the industry, there’s a wide range of forecasts,” he continues. “We don’t know how quickly AI adoption will happen across sectors, but for now, AI is an important yet small component of overall data center workloads, but we expect that to increase over time.”

Arizona’s data centers In recent years, Greater Phoenix has established itself as a data center darling thanks to its low propensity for natural disasters, available infrastructure and ability to offer low-latency connectivity to nearby by West Coast tech hubs. A JLL market report notes that operators want to deploy quickly, making speed to market an advantage for the region.

“The [region] is seeing huge demand, with very low vacancy and most new facilities fully preleasing before completion,” the report reads.

Data from Cushman & Wakefield corroborates this claim, with the market posting an 84% prelease rate, showing that wholesale occupiers are turning to underconstruction product for their needs.

The report also highlights that Greater Phoenix saw 411 megawatts of colocation leasing activity in 2022, expanding to 669 megawatts by the end of 2024.

As data centers have become a more regular sight in the Valley, some municipalities have started to restrict their construction over concerns about water consumption and a perception that they don’t create enough jobs considering how much land these projects require.

Andrew Baston

JD Beatty

During ULI Trends Day, JD Beatty, senior manager of site selection for Americas at Iron Mountain Data Centers, notes that water efficiency is also a top concern. Newer builds from Iron Mountain, he continues, are aircooled and utilize a closed loop system, meaning the facilities consume about the same amount of water as other similarly-sized industrial buildings — several thousand gallons daily.

“Certainly, previous data center developments were using a lot more water,” Beatty says. “But the industry has listened, and the majority of what’s being built in Arizona uses an air-cooled design because we know how critical that is for the state.”

Dan Diorio, senior director of state policy for the Data Center Coalition, adds that since the sector is the “new kid on

the block” for many states, addressing these concerns and showing the value data centers bring is crucial.

Nationwide, Diorio says that every one job at a data center has to be supported by six and a half jobs elsewhere.

Counting the direct, indirect and induced jobs in Arizona, he notes there were 81,730 jobs created in 2023, a 34% increase from 2017. During that same period, labor income increased 60% to $6.23 billion.

“Just from ‘22 to ‘23, the contribution [to Arizona’s] GDP was $21.59 billion, and tax revenues were $1.69 billion,” Diorio concludes. “The key point is that [data centers] have a substantial impact net of any incentives, and that affects the quality of life in these communities, from [helping fund] schools to hospitals.”

51

TECHNOLOGY DEVELOPMENT

CLEAR SKIES AHEAD

How TSMC Arizona is committing to environmental stewardship

By KYLE BACKER

O

n March 3, TSMC reported that its total investment in Arizona will now reach $165 billion — a 1,275% increase from the initial $12 billion announcement made in 2020. Now the largest single foreign direct investment in U.S. history, TSMC Arizona’s site will include six semiconductor fabs, two advanced packaging facilities, an R&D center and a host of other supporting buildings. Manufacturing next-generation chips is a water and energy intensive process, but TSMC has plans in place to minimize its ecological footprint.

52 | May - June 2025

“We have a major responsibility to be good stewards of natural resources,” says Greg Jackson, director of facilities at TSMC Arizona.

The first fab, which has started producing 4 nanometer (nm) chips, incorporates best practices from the “mother factory” in Taiwan, including energy conservation methods. For example, TSMC utilizes variable frequency drives that allow the company to optimize power output. Jackson notes that this is not new technology, but it helps minimize overall utilization.

Greg Jackson

$165 BILLION SITE: Now the largest single foreign direct investment in U.S. history, TSMC Arizona will include six semiconductor fabs, two advanced packaging facilities, an R&D center and other supporting buildings. (Photo

by Mike Mertes, AZRE magazine, a publication of AZ Big Media.)

The production line is where the bulk of electricity is needed, so working groups have been formed to identify opportunities to make tweaks to ensure maximum efficiency. Jackson says that another way the facility saves energy is by harnessing a common byproduct.

“We have waste heat that comes from the plant,” he continues. “Through a series of processes, it ultimately goes out the cooling towers. On cold mornings, you can see the water vapor coming off, but we also use a system that diverts some of that heat back into the process.

That way we don’t have to run boilers, which is significant.”

TSMC also purchases renewable energy credits to cover all of its power usage. Additionally, the site includes a solar array that provides shaded parking for 4,000 spots that generates roughly 14.5 megawatts of electricity.

That, Jacksons says, provides the same amount of power that approximately 2,200 houses need each year.

“It’s one of the largest, if not the largest, privately owned [solar arrays] in Arizona,” he continues.

Air quality Even in the beginning phases of the $165-billion project, TSMC Arizona is already a massive site emerging from the desert of North Phoenix. According to a press release, the company’s expanded investment is expected to support 40,000 construction jobs over the next four years and create tens of thousands of jobs in advanced chip manufacturing and R&D. It is also expected to drive more than $200 billion of indirect economic output in Arizona and across the U.S. over the next decade.

But economic impacts are harder to see, unlike the facilities under construction, and manufacturing plants loom in the popular imagination as polluters that belch out noxious fumes.

Some residents may even see water vapor escaping the cooling towers and mistake it for harmful emissions.

Producing semiconductors requires chemicals and gasses, but Jackson notes these aren’t just released into the environment. Some of these inputs, he says, get deposited on the production wafer, but the excess is siphoned off through an exhaust system or taken away as wastewater.

“There are localized scrubbers tied to a production tool, and then it makes its way to the rooftop, where we have monster-sized air scrubbers that [filter] out [any remaining] acids, alkalines or bases,” Jackson explains. “There’s nothing bad coming out of the stacks because the air has been cleaned. It’s all regulated by Maricopa County, and ultimately, the EPA.” Water In a drought-stricken climate such as Phoenix, the availability of water is 53

TECHNOLOGY DEVELOPMENT COOLING OFF: Manufacturing semiconductors generates heat, but TSMC Arizona utilizes a system to redirect it back into the process. Any excess heat escapes through the cooling towers, which can be observed as water vapor on chilly mornings. (Photo by Mike Mertes, AZRE magazine, a publication of AZ Big Media.)

REDUCE, REUSE, RECYCLE: Water is a precious resource in the desert, so TSMC Arizona incorporates systems in the fabs and the Water Resource Center (pictured) to maximize every drop. Today, about 65% of water used is recycled, but the Industrial Reclamation Water Plant will help the site reach “near-zero liquid discharge” once built. (Photo by Mike Mertes, AZRE magazine, a publication of AZ Big Media.)

paramount. That’s why the state has been at the forefront of water use planning for decades — the seminal 1980 Groundwater Management Act created the Arizona Department of Water Resources and mandated developers guarantee a 100-year supply of water in designated areas to ensure the tap does not run dry.

Even with policies in place to protect water supplies, residents are understandably concerned when large projects such as TSMC come to town.

But Jackson notes that the company is committed to being responsible neighbors for decades to come.

From an economic standpoint, TSMC’s recent $165 billion announcement underscores the vested interest the company has in the longterm health of the community. That 54 | May - June 2025

investment, Jackson says, couldn’t happen without a strategic assessment of water supplies in conjunction with the city and state.

To reduce its overall water needs, TSMC is finding ways to reuse the same supplies. The first fab recycles about 65% of the water it uses thanks to systems within the factory and at the on-site Water Resource Center.

“We’re doing ion exchange to pull [contaminants] out of the water, as well as other treatments,” Jackson explains.

“It’s like the water softener you might have at home, but a lot bigger and more complicated.”

Once recovered, those supplies can then be deployed in multiple ways, such as in cooling towers or for air abatement. Even though TSMC already recycles at a high rate, that will only

increase as the Industrial Reclamation Water Plant is built, helping the site reach “near-zero liquid discharge.”

This will be achieved in part by recycling water up to the ultra-pure standards required to be reintroduced back into the production line — a significant feat. Semiconductors are highly sensitive and can be rendered defective by insufficiently clean water. For context, Jackson notes that trace elements in water are typically measured in the parts per million, whereas this facility reduces those levels to parts per billion and lower.

“Recycling and reclamation help minimize our footprint on the environment,” he concludes. “We’re not trying to use up all the groundwater so everyone runs out. We all live here, and we don’t want to create an issue in our own backyard.”

ROC# 326359 | www.kovach.net | AZ TX CA NV UT

WE BUILD PEOPLE

Building Arizona and Arizona families for over 80 years.

INDUSTRIAL

Pete King is committed to providing an environment where employees are treated like family, careers are built, and safety is a top priority.

HEALTHCARE

SENIOR LIVING 11040 North 19th Avenue, Phoenix, Arizona 85029 | 602.944.4441 • petekingaz.com

55

AVIATION

FLYING HIGH Exploring the evolving role of sustainability in the business aviation industry

T

he aviation industry is driven by a growing emphasis on sustainability, efficiency and strategic development. Airport planning and infrastructure are at the center of these changes, as efforts to modernize facilities increasingly focus on integrating energy-efficient technologies and environmentally responsible solutions.

Sustainability in airport development One of the most notable shifts in aviation infrastructure is the focus on sustainability. Airports and aviation facilities are incorporating LEEDcertified designs, solar power and high-performance insulation to reduce energy costs and enhance long-term

56 | May - June 2025

David Wakefield Aviation

reliability. Hangar designs are also evolving to support these initiatives, with energy-efficient features such as climate-controlled systems powered by high-efficiency split-system HVAC

units, LED overhead lighting, and solar energy storage capable of a 90-minute hold cycle. Insulated walls, TPO roofing, and R100 windows contribute to temperature regulation, minimizing energy waste while ensuring operational efficiency.

Environmental protection measures are also being integrated into aviation infrastructure to mitigate operational impacts. Raised, leakproof foundations, grease traps and washdown trench drains manage oil runoff and prevent contamination, while foam fire suppression systems provide a safer alternative to traditional methods. High-volume, low-speed (HVLS) fan systems enhance airflow efficiency, further reducing energy

relevance in aviation. Updated facilities will incorporate energy-efficient materials and renewable energy sources, supporting long-term operational resilience.

consumption. As the industry seeks to minimize its environmental impact, investments in these green technologies are becoming essential for future development.

Revitalizing historic aviation sites In addition to building new infrastructure, efforts to preserve and modernize historic airports are gaining traction. Arizona’s WinslowLindbergh Regional Airport, built in 1927, once played a significant role in transcontinental travel and firefighting operations but has remained inactive in recent years. Plans are underway to renovate the site, blending historical preservation with modern sustainable infrastructure to ensure its continued

Strategic infrastructure for economic growth Aviation infrastructure is a key driver of regional economic development, with modern facilities increasingly prioritizing efficiency and sustainability.

The Winslow I-40 TradePort, for example, is positioned to support industrial expansion by leveraging its access to water resources and renewable energy potential. Similarly, Falcon Field in Mesa stands at the forefront of innovation, with the Mesa Hangar development setting a new standard for sustainable aviation infrastructure.

These achievements are made possible through a combination of cutting-edge design features, including a highly insulated building envelope, low solar gain glass to counter Mesa’s intense sunlight, LED lighting with daylight and occupancy controls and state-of-the-art variable refrigerant flow air-conditioning technology. Additionally, the hangars are powered by an extensive rooftop photovoltaic system, with battery storage technology that allows stored solar energy to be used even when the sun isn’t shining, reducing reliance on high-emission power plants. Notably, battery storage remains rare in the region, making Mesa Hangar a leader in advancing renewable energy integration.

The success of Mesa Hangar is already evident. Phase 2 buildings received the Designed to Earn ENERGY STAR designation and recognition in the

Decarbonize Your Design challenge, while the first six buildings have exceeded initial energy performance expectations. Phase 1 buildings are on track to achieve the maximum ENERGY STAR rating of 100, and the project has secured nearly $100,000 in utility rebates from Salt River Project (SRP). Beyond financial savings, the environmental impact is substantial, with sustainability measures estimated to save more than 1,900 metric tons of CO2 annually. This is the equivalent of removing 422 cars from the road, offsetting the energy use of 224 typical U.S. homes, or planting more than 32,000 trees.

With Falcon Field leading the way in sustainable hangar design, Arizona is solidifying its role as a national leader in aviation infrastructure investment, proving that economic growth and environmental responsibility can go hand in hand.

Aviation’s future: Efficiency and connectivity As aviation continues to evolve, efficiency and connectivity will remain central to infrastructure planning.

Sustainable airports, revitalized historic sites, and large-scale trade infrastructure projects reflect a broader trend in which strategic investment and innovation are shaping the industry’s future. These efforts highlight how aviation can balance modernization with environmental responsibility while supporting economic and community development.

David Wakefield is president and principal at Davcon Aviation.

57

TOP PRODUCERS

TOP

PRODUCERS

These deal-makers help shape Arizona’s future and attract continued investment and development

By MICHAEL GOSSIE

B

ecoming a top-producing commercial real estate broker in Arizona requires a unique blend of market knowledge, strategic networking and relentless drive. These professionals must stay ahead of shifting market trends, zoning laws, and economic developments—especially in fast-growing regions like Phoenix, Scottsdale, and Tucson. Success in this field demands long hours, strong negotiation skills and the ability to cultivate long-term client relationships while managing multimillion-dollar transactions.

58 | May - June 2025

Top producers differentiate themselves through their deep understanding of client needs, innovative deal structuring and exceptional customer service.

They often work across diverse sectors, including industrial, office, retail, and land development, requiring adaptability and a thorough grasp of complex financing and investment strategies.

Leveraging data, technology and local insight, they maximize value for clients while ensuring timely, profitable deals.

Recognizing top producers is essential because it highlights excellence in an

Capital Asset Management TOP PRODUCERS 1. Dena Zell 2. GTO Team (Chris Gerow, Shelby Tworek and Gabriel Ortega) 3. Horth Hong 4. Natalie Jaafar DEAL OF THE YEAR: Capital Asset Management’s brokerage team successfully revitalized Mesa Ranch Plaza, located at Stapley and Southern Avenue in Mesa, increasing occupancy from 68.4% to 99.2%. By curating a strong mix of local and national tenants, Capital Asset Management transformed the center into a thriving community hub. National brands like Dollar Tree, Five Below and Buffalo Wild Wings now anchor the plaza, alongside a diverse range of local businesses. This lease-up not only maximized the center’s value but also enhanced its offerings, providing a wide variety of services to the surrounding community.

HOME RUN: CBRE represented the seller in the $183 million sale of he Blake (now AVE Paradise Valley). (Provided photo)

industry that drives Arizona’s economic growth and development. Celebrating these professionals not only honors individual achievement but also sets a benchmark for others in the field, encouraging innovation and high standards. By spotlighting top performers, the industry fosters a culture of professionalism, integrity and leadership — qualities that help shape Arizona’s future and attract continued investment and development across the state. Here are some of 2024’s top producers from Arizona’s commercial real estate sector.

CBRE TOP PRODUCERS (IN ALPHABETICAL ORDER) John Lenio Dan Calihan Rocco Mandala Kevin Calihan Jackie Orcutt Pat Feeney Bryan Taute Cooper Fratt John Werstler John Grady DEAL OF THE YEAR: CBRE represented the seller in the $183 million sale of he Blake (now AVE Paradise Valley). The 400-unit property sits at 4568 East Cactus Road and is part of the mixed-use project being developed on the former Paradise Valley Mall site. This transaction was the highest price per unit achieved and Phoenix’s second-largest multifamily transaction in 2024.

59

TOP PRODUCERS Cushman & Wakefield

MAKING THE GRADE: Colliers International Mortgage Advisory in Phoenix worked on behalf of Grand Canyon University to arrange the $520 million refinancing through the Industrial Development Authority of the County of Maricopa Education Bonds. (Provided photo)

Colliers TOP PRODUCERS 1. Todd Noel 2. Don MacWilliam/ Payson MacWilliam 3. Bob Kline 4. Brian Ackerman 5. Rob Martensen 6. Phil Breidenbach 7. Keri Scott 8. Chris Reese 9. Jenn Thomas 10. Pepsi Windland

COLLIERS: Colliers International Mortgage Advisory, LLC in Phoenix worked on behalf of Grand Canyon University to arrange the $520 million refinancing through the Industrial Development Authority of the County of Maricopa Education Bonds (Grand Canyon University Project Taxable Series 2024). This refinances two bridge loans that Colliers had arranged in October of this year and pays off its credit line. The new debt is a 3a2 bond financing and was issued as a partial refinance of the bonds issued in 2021 by the university.

Commercial Properties, Inc./CORFAC International TOP PRODUCERS 1. Tyson Breinholt, Cliff Jenkins 2. Leroy Breinholt, David Bean, Cory Sposi, Kelli Jelinek, Cory Breinholt Team 3. Brandon Koplin 4. Jeff Hays, Sam Rutledge 5. Matt Zaccardi 6. Eric Jones, John G. Soldo, SIOR 7. Phill Tomlinson, Eric Butler, Tanner Ramsay 8. Darin Edwards 9. Langdon Bridges 10. Kenneth Elmer 11. Keith Clark 12. Toby Campbell DEAL OF THE YEAR: The 5050 N. 40th St., Phoenix sale completed by Tyson Breinholt, president and designated broker of Commercial Properties, Inc./CORFAC International is one of the company’s top office deals of the year. This $9.5 million Phoenix office deal, amidst a challenging post-pandemic market, is a significant win. Securing a buyer, Mustang Stampede One, for a 71,717-square-feet property demonstrates the team’s strategic prowess and market expertise. While office spaces faced headwinds, Commercial Properties delivered, showcasing its ability to navigate complexities and close successfully. This deal reinforces Commercial Properties’ reputation, proving its commitment to client success and solidifying its position as a leader in commercial real estate.

60 | May - June 2025

Will Strong, No. 1, Industrial Capital Markets Mike Haenel, No. 2, Industrial Advisory Phil Haenel, No. 2, Industrial Advisory Andy Markham, No. 2, Industrial Advisory Chris Hollenbeck, No. 3, Retail Capital Markets Larry Downey, No. 4, Office Advisory - Tenant Rep Chris Nord, No. 5, Office Advisory - Tenant Rep Michael Strittmatter, No. 6, Office Advisory Brad Anderson, No. 6, Office Advisory Eric Wichterman, No. 7, Office Capital Markets Joshua Wyss, No. 8, Industrial Advisory Brent Mallonee, No. 9, Retail Advisory Scott Boardman, No. 10, Office Advisory DEAL OF THE YEAR: Broadway 101 Commerce Park, an 809,230 SF Class-A industrial park in Mesa sold for $168.3 million on December 30, 2024, to CIP Real Estate. The sale set records as Phoenix’s largest industrial transaction of 2024, the largest legacy industrial sale, and the biggest single Southeast Valley industrial deal. Cushman & Wakefield’s National Industrial Advisory Group represented the seller, while their Equity, Debt & Structured Finance team arranged $93.8 million in acquisition financing.

With 34 tenants and significant mark-tomarket potential, the deal highlights Phoenix’s industrial strength and CIP’s strategic expansion into the market.

Davis Commercial AZ TOP PRODUCER Christine Juby is the top producer for Davis Commercial for four years running DEAL OF THE YEAR: Juby has represented Transitions Counseling and Consulting, a growing behavioral healthcare provider that began expanding its services in Greater Phoenix in 2021. Since that time, Juby has negotiated and closed nine transactions for this client that include securing four new office locations in 2024. Juby and the team at Davis Commercial AZ take great pride in the work she has done on behalf of her client to successfully combat and overcome challenges that behavioral health services face in securing space. Her representation and persistence allow Transitions Counseling to expand its operations and bring much needed services to the community.

Congratulations

TOP PRODUCERS 2

0

2

4

Todd Noel

Don MacWilliam

Payson MacWilliam

Robert Kline

Brian Ackerman

Rob Martensen

Phillip Breidenbach

Keri Scott

Chris Reese

Jenn Thomas

Pepsi Windland

Kyle Campbell

John Burns

Bob Broyles

John Jackson

Michael Marsh

colliers.com/arizona 61

TOP PRODUCERS Matthews Real Estate Investment Services

BIG DEAL: JLL’s sale of 24th at Camelback II represented the largest office transaction in the metro area since 2022. (Provided photo)

JLL TOP PRODUCERS 1. Kevin Mackenzie 2. Pat Williams 3. Mark Bauer 4. Andrew Medley

5. Marc Hertzberg 6. Tony Lydon 7. Carl Beardsley 8. Riley Gilbert 9. Keith Lammersen 10. John Lydon

DEAL OF THE YEAR: The sale of 24th at Camelback II marked a significant milestone in the Phoenix commercial real estate market, representing the largest office transaction in the metro area since 2022. The transaction is noteworthy not only for its size, but also for what it signifies in the current market context. It demonstrates that despite broader challenges in the office sector, prime assets in key locations continue to attract substantial investment. The sale indicates stronger investor confidence in highquality office spaces and in Phoenix’s economic fundamentals. It also reinforces Phoenix’s position as an attractive destination for commercial real estate investment, which could stimulate further market activity and potentially drive-up values for similar high-quality assets in premier locations.

Kidder Mathews TOP PRODUCERS 1. Eric Bell & Mike Ciosek (industrial team) 2. Michael Dupuy, Fletcher Perry, Perry Gabuzzi (healthcare team) 3. Tyson Switzenberg (retail) 4. Ryan Eustice (retail) 5. Dave Carder (office) 6. Rachael Thompson (healthcare) 7. Tim Dulany (investments) 8. Michelle Gardner (office) 9. Darren Tappen (investments) 10. Tyler Smith (office)

62 | May - June 2025

TOP PRODUCERS (IN ALPHABETICAL ORDER) Simon Assaf Alex DeSoto Ben Tracy Andrew Senatore Erik Manarino John Stroud Kyle Inman Ethan McAffee Samuel Griffeth Elias Zakas DEAL OF THE YEAR: One of Matthews’ most prominent deals was the $8,500,000 sale of Urban Falls, a 27-unit multifamily complex located at 2940 N. 40th St., Scottsdale. The deal closed for $314,815 per unit and $393 per square foot. This was a major accomplishment given that there have only been two other multifamily deals to sell over $300,000 per unit in the last year, which were in the 10-100 unit range and built before 1990. Senior Associate Kyle Inman facilitated the transaction. Through the shared Matthews Database, agents were able to target some of the investors in Orange County, San Diego, Los Angeles, Walnut Creek and Encino while also targeting the large majority of multifamily investors in Arizona. They then posted it to third-party websites such as Crexi and LoopNet and continued to market this property through calls and emails relentlessly. The agent emailed and called hundreds of other multifamily brokers, investors, property management companies, lenders, and 1031 exchange accommodators to cast the widest possible net for this owner. Ultimately, the buyer was found through a cold call, an investor who already owned an 80+ unit building in Phoenix. The deal was put under contract at the end of May and closed 14 days later.

Menlo Group Commercial Real Estate TOP PRODUCERS 1. Rich Andrus, MBA, SIOR, CCIM 2. Grafton Milne, SIOR, CCIM 3. Steve Berghoff, SIOR, CCIM 4. Stuart Milne, SIOR, CCIM 5. Mark Haslip, MBA, SIOR, CCIM 6. Jason Triano, CCIM 7. Tom Ellixson, CCIM 8. Tanner Milne, MBA, SIOR, CCIM 9. Nicholas Aldini DEAL OF THE YEAR: Steve Berghoff, SIOR, CCIM, and Stuart Milne, SIOR, CCIM of Menlo Group represented the buyers of Arrowhead Professional Medical Plaza, located at 16222 N. 59th Ave., Glendale. Totaling more than 40,000 square feet, the four-building office complex sold for $7.5 million.

The property presented a prime investment opportunity for the new owners with two existing tenants in place and the potential for further development through the sale of individual condominium units. Menlo Group has continued to work closely with the new owners to sell individual condos in the high demand Phoenix West Valley. In addition to handling the sales, Menlo Group also took over the management of the complex.

The Land Agency TOP PRODUCERS Howard Weinstein Patty Lafferty DEAL OF THE YEAR: The $32,500,000 sale of a 260-acre mixed-use land site in Goodyear.

The sire is located near the confluence of the 303 and Interstate 10. The site will eventually accommodate business park and industrial uses.

NEW LEASE ON LIFE: NAI Horizon, led by Isy Sonabend, alongside Arie Salomon of NAI P-S-P, successfully represented Steelcase in a 211,360-squarefeet, $10.8 million lease at C|303 in Glendale. (Provided photo)

NAI Horizon TOP PRODUCERS 1. Matt Harper 2. Laurel Lewis 3. Richard Foss 4. Troy Giammarco 5. Lane Neville 6. Michael Gaida 7. Thomas Bean 8. Isy Sonabend 9. Larson Wilcke 10. Kevin Higgins

DEAL OF THE YEAR: NAI Horizon, led by Isy Sonabend, alongside Arie Salomon of NAI P-S-P, successfully represented Steelcase Inc. in a 211,360-square-feet, $10.8 million lease at C|303 in Glendale.

This transaction reflects our deep expertise in industrial real estate and strategic site selection. Steelcase’s new facility will enhance its Southwest distribution capabilities while benefiting from C|303’s cutting-edge infrastructure and prime location. This deal highlights NAI Horizon’s commitment to facilitating high-impact transactions that support business growth and strengthen Arizona’s position as a leading industrial hub.

Newmark TOP PRODUCERS 1. Barry Gabel 2. Chris Marchildon 3. CJ Osbrink 4. Gary Cornish 5. Mike Garlick 6. Pat Devine 7. Steve Julius 8. Jesse Goldsmith 9. Chase Dorsett DEAL OF THE YEAR: The Beam on Farmer distinguished itself as one of the most highly sought after office transactions on the west coast in 2024, with a sale price of $56.2 million. The Property is Arizona’s only Cross-Laminated Timber constructed building, which was compelling to investors through it’s uniqueness, environmental benefits, and overall aesthetic appeal. The 0roperty’s prime, walkable, downtown Tempe location further enhanced its appeal. Investors foresaw both immediate and long-term returns due to these strategic factors. The transaction captured the investment community’s attention, resulting in 52 property tours, which sparked competitive bidding, resulting in over 20 offers from highly qualified office investors from across the globe.

RETAIL THERAPY COMING: In 2024, retail brokerage specialist Western Retail Advisors achieved 81% occupancy at Vestar’s Verrado Marketplace. (Provided rendering)

Western Retail Advisors TOP PRODUCERS (IN ALPHABETICAL ORDER) Bryan Babits Neil Board Jared Cauffield Ryan Desmond Brian Gausden Bryan Ledbetter Jake McClaughry Charles Skaggs Eric Termansen Dave Uhles DEAL OF THE YEAR: In 2024, retail brokerage specialist Western Retail Advisors achieved 81% occupancy at Vestar’s Verrado Marketplace — with additional leases in negotiation at the project, more than one year before it is slated for completion. In addition to serving as Verrado’s exclusive leasing broker, Western Retail Advisors also represented multiple tenants in their leases at the project, including Target, Ross, Ulta, Shake Shack and Harkins, which will bring its new BackLot family entertainment concept. Totaling more than 500,000 square feet, Verrado follows the elevated shopping, dining and entertainment tradition of Vestar’s Desert Ridge Marketplace and Tempe Marketplace. Verrado is under construction now, with completion anticipated in May 2026.

63

VALLEY PARTNERSHIP

BUILDING

PARTNERSHIPS How collaboration ensures development is done right

By KYLE BACKER

W

hen it opened in 1957, Park Central Mall converted what once was a dairy farm into an open-air mall featuring soughtafter retailers. But as the city continued to grow northwards and enclosed malls offered relief from the heat, Park Central Mall’s popularity and profitability started to recede. Today, Park Central has been reimagined again into a modern mixed-use property — one of many projects that showcase why rethinking a site’s best use is a powerful tool for a growing metropolis such as Greater Phoenix.

64 | May - June 2025

Sharon Harper, CEO, chairman and co-founder of Plaza Companies, says that working well with the municipality is critical for the success of projects such as Park Central.

“One group after another tried [to redevelop the property], but were unsuccessful,” she continues. “It was the partnership with the city and

NEW LIFE: Located in the heart of the Phoenix Medical Quarter, Park Central has been transformed from a struggling open-air mall into a modern mixed-use property, home to Creighton University, office spaces, restaurants, apartments and a dual-branded Tru/Home2 Suites by Hilton hotel. (Photo courtesy of Plaza Companies.)

our shared vision to do something transformational that got it done.

[Chris Mackey, community and economic development director at City of Phoenix] used to call Park Central the hole in the doughnut for Phoenix, and now it’s the jewel.”

Part of the planning process included gathering feedback from nearby

residents on what they wanted to see from the project. After dozens of neighborhood meetings, Harper says that a common thread was a desire for historical preservation. Rather than bulldozing all the existing structures, Plaza Companies and its partner Holualoa decided to convert approximately 600,000 square feet of

existing department stores.

“The mall was built in the ‘50s, so when you talk about midcentury modern architecture, it was the real deal,” Harper says. “When we got involved, it had been covered up with stucco and paint, so we scraped that all off to get back to its original look. Even our signage is patterned after the early days of Park 65

VALLEY PARTNERSHIP

IN THE ZONE: After multiple attempts to repurpose the Los Arcos Mall in Scottsdale failed, ASU acquired and redeveloped the site in partnership with the city and Plaza Companies. Today, SkySong generates an estimated annual economic impact of $1.3 billion. (Photo by Nate LeVang, ASU.)

Central Mall because we wanted to be embedded in our history as we bring these new industries to our state.”

While celebrating its past, Park Central is also grounded in the 21st century. Harper notes that attracting Creighton University was a milestone for the site and its connection to healthcare. In 2023, Phoenix Mayor Kate Gallego announced the Phoenix Medical Quarter — a designated bioscience hub that includes St. Joseph’s Hospital, Barrow Neurological Institute, Park Central and more within the 100-acre ecosystem.

The university spurred on more development, such as the apartments 66 | May - June 2025

After the Great Recession, a concerted effort was made by both public and private entities to make the region’s economy more resilient to future downturns in the market.

67

VALLEY PARTNERSHIP

MODERN LIVING: RED Development — the company that reshaped Downtown Phoenix with its CityScape project — is now reimagining the former Paradise Valley Mall into a mixed-use district with dining, retail and entertainment options interwoven with residential and office complexes. AVE Paradise Valley, pictured, brings 400 units to the more than 100-acre site.

(Rendering courtesy of AVE by Korman Communities.)

and hotel located on site, and attracted other healthcare organizations, including two nursing schools, a medical device startup, a radiology center and others. Harper says that Creighton bought the land south of its campus and will be starting construction of a second phase soon.

“Honestly, I never dreamed we’d recruit Creighton,” she continues.

“Bringing in that level of user required a team effort from everyone, including the governor, the county board of supervisors and the mayor.”

Mall Makeover Another Phoenix landmark getting a new lease on life is Paradise Valley Mall. Now known simply as PV, Jeff Moloznik, senior vice president of development at RED Development, says that having fruitful relationships with equity and debt partners, landowners, the city and neighborhood is the only way to make these projects flourish.

68 | May - June 2025

“There’s always a couple things that initiate our development process,” Moloznik explains. “One of those is familiarity with a property owner, which brings about ideas for new projects or how to redevelop existing real estate.”

At the same time, Moloznik says the company will see if there are any large users looking to operate in the area of the project.

“With PV, RED Development has 20plus years of experience collaborating with property owner, Macerich,” he continues. “We also knew there was active interest from a multifamily community and a Whole Foods.

Coupling user interest with a long-term partner helps create the momentum that propels us through the rest of the development process.”

Redeveloping a large property like PV doesn’t happen overnight — Moloznik notes that RED first looked at the mall back in 2012, highlighting the ongoing nature of these

collaborations.

“If you spend a decade doing due diligence, planning and zoning, then another decade in construction, we’re engaged with that property for 20 years,” he continues. “The city is at the table from the start. It’s one thing to have interest from a landowner or end users, but you need to be sure you can execute on that vision with the city supporting what you’re trying to do.”

In the case of PV, Moloznik says that RED Development has a positive working relationship with Phoenix Councilwoman Deb Stark dating back to 2005 when she was the planning director for Phoenix. At the time, the company was redeveloping CityScape in the downtown area, and Moloznik says that she shepherded the project through the planning and development department.

“We essentially had to create our own downtown core zoning code using over a dozen variances to design and construct the project the way our

69

VALLEY PARTNERSHIP

Sharon Harper

tenants wanted,” he continues. “When we started the initial discussions with the city and Councilwoman Stark about PV, we had a legacy of success from CityScape that gave them the confidence we could bring about something unique.”

Innovative development After the Great Recession, a concerted effort was made by both public and private entities to make the region’s economy more resilient to future downturns in the market. One of the institutions involved in this initiative — Arizona State University — has dedicated considerable resources to realize this goal.

Beyond graduating tens of thousands of students each year, ASU also plays a significant role in the state’s growth. According to an ASU report on the university’s economic impact in Arizona for fiscal year 2024, it contributed a gross product of $6.2 billion, labor income of $3.9 billion, and employed 55,688 people.

One way ASU is diversifying Greater Phoenix’s economy is through its eight 70 | May - June 2025

Jeff Moloznik

Jay Donnelly

Innovation Zones. Jay Donnelly, vice president of university real estate development at ASU, explains that the purpose of these master-planned developments is to create a mutually beneficial ecosystem between the university’s knowledge assets and businesses.

“They create an opportunity for private sector companies to collaborate with ASU on research and inform our curriculum,” he continues. “Students can take on internships, which creates a talent pipeline for that company. It’s a symbiotic relationship.”

To make these Innovation Zones a reality, ASU partners with developers who capitalize it with their debt and equity under a 99-year ground lease for a use that aligns with the institution’s educational mission.

“At the end of the ground lease, the improvements made to the land stay within the university’s portfolio,” Donnelly says. “For example, if an office was built, we may need it for our purposes, or we can do another ground lease and generate additional proceeds.”

The municipalities in which these

Innovation Zones reside also reap benefits from these relationships. After multiple attempts to repurpose the Los Arcos Mall in Scottsdale fell apart, ASU acquired the property. Plaza Companies was selected by ASU to redevelop the site into SkySong, which Harpers says, “overhauled not just the 42 acres, but that whole region of Scottsdale.”

A 2021 study conducted by Elliott D. Pollack and Company shows that SkySong generates an estimated annual impact of 9,350 total jobs, $584.4 million in wages and $1.3 billion in economic activity. Additionally, the project returned $27.1 million in revenue to Scottsdale at the time of the report and is expected to receive more than $362.3 million over the next three decades.

“When the Secretary of Commerce under President Obama, Penny Pritzker, visited SkySong, she told us that projects like these should be duplicated across the country,” Harper concludes. “The creativity of bringing together a university, a city and private developer is something special, and SkySong is the epitome of that.”

Continuing Our Legacy of Building Enduring Communities

Harvard Communities

Cadence at Gateway - Mesa, AZ Estrella - Goodyear, AZ Fox Creek - Bullhead City, AZ The Lakes at Rancho El Dorado - Maricopa, AZ Rio 1900 - Goodyear, AZ Verde Trails - Avondale, AZ Mariposa - Rio Rancho, NM Gregg Ranch - Marble Falls, TX

Harvard FirstStreet

FirstStreet Ballpark Village - Goodyear, AZ FirstStreet Happy Valley - Phoenix, AZ FirstStreet Skyline - Buckeye, AZ Quarter North - North Las Vegas, NV

Office & Industrial

Goodyear Airpark - Goodyear, AZ Harvard Corporate Office- Scottsdale, AZ Union at Riverview - Mesa, AZ Waypoint - Mesa, AZ Washington Square - Phoenix, AZ Third Creek - Commerce City, CO Freeport Centre - San Antonio, TX Round Rock Industrial Park - Round Rock, TX

17700 N. Pacesetter Way, Scottsdale, AZ 85255 ¬ 480-348-1118 ¬ HarvardInvestments.com 71

BUILDING YOUR

COMMUNITY IMPACT

ADVANCING YOUR INTERESTS IN REAL ESTATE DEVELOPMENT Valley Partnership advocates for public policies that advance the interests of the commercial, industrial and master planned real estate development industries.

Our goal? To build a legacy for the future of development. We hope you’ll join us.

Membership Benefits - Education + Networking - Annual Community Project - Advocacy - Recognition Become A Member valleypartnership.org l 602.266.7844

Scan the QR code to learm more

Networking Events | Membership | Sponsorship | Advocacy | Young Leaders Group

Learn More at www.valleypartnership.org