AZRE September/October 2025

SPECIAL SPACES: TikTok’s new office at the iconic Scottsdale Galleria marks the next exciting chapter for the organization.

(Photo provided by TikTok)

SHOUTOUTS

Building the foundation for the future of mining

Copper World, a wholly-owned subsidiary of Hudbay Minerals, selected several companies in June to conduct feasibility studies and drive early-stage project development for the Copper World project. This milestone marks the continued advancement of the fully permitted mine that is one of the most significant economic development projects in Southern Arizona’s history.

The selected firms include Arizona-based Sundt Construction and M3 Engineering & Technology Corporation, each with extensive experience delivering complex infrastructure and mining projects across the state. They are joined by Ames Construction, DRA Global Limited, Knight Piésold, Mipac, and Stantec. Together, these firms bring a wealth of expertise in mine design, infrastructure development, mineral processing and environmental management.

Located 28 miles southeast of Tucson, Copper World is a fully permitted project that is expected to generate significant benefits for the community and local economy. Over the anticipated 20year life of the fully permitted mine, Hudbay expects to contribute more than $850 million in U.S. taxes, including over $420 million in state and local taxes. Copper World is also projected to create over 400 direct jobs and up to 3,000 indirect jobs in Arizona.

Pre-apprentice electricians give back

In July, a group of nearly 40 pre-apprentice electricians packed over 28,000 meals last week to fight global hunger. These high school students, studying in Canyon State Electric’s (CSE) summer pre-apprenticeship program, dedicated a day of the program to community service— helping international charity Feed My Starving Children.

CSE’s pre-apprenticeship program allows students to experience the electrical trade through interactive classroom sessions, hands-on education, and role-play exercises. The students, incoming juniors and seniors, are all part of the construction & technology education (CTE) program at Mesa Public Schools.

President and CEO: Michael Atkinson

Vice president and publisher: Amy Lindsey

EDITORIAL

Editor in chief: Michael Gossie

Associate editor: Kyle Backer

Staff writer: Lux Butler

Contributing writer: Jeanne Jensen

Intern: Isaac Chavez

ART

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Chief photographer: Mike Mertes

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OFFICE

Director of finance: Sara Fregapane

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Account executive: Tom Allen | Maria Hansen | Lula Hunteman

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EXPERIENCE ARIZONA | PLAY BALL

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RANKING ARIZONA

Director of sales: Sheri King

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.

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CHALLENGES AHEAD

Arizona real estate leaders reveal obstacles and the solutions needed for future success

Arizona real estate leaders can identify upcoming industry challenges by analyzing market trends, leveraging data, collaborating with peers and embracing innovation. Proactive planning, strategic investments and adaptive leadership will position

MOLLY CARSON, executive vice president and market leader, Ryan Companies US:

“There are several challenges our industry faces. This includes power accessibility, assurance of water and opposition to development in certain areas. We are preparing for this by staying informed, actively engaging in the communities where we serve, and being mindful of political dynamics.”

LARRY DOWNEY, vice chairman, Cushman & Wakefield:

“The office sector must adapt to hybrid work models, optimizing space through right-sizing, and balanced expansion or downsizing optimizing efficiency. We proactively embrace changes with tailored solutions, relocations, and data-driven strategies, reducing costs and ensuring our clients succeed in an evolving market driven by flexibility and innovation.”

SHARON HARPER, chairman and CEO, Plaza Companies:

“In an era of uncertainty, Plaza Companies will continue to rethink and refine our approach in how we navigate change. The future for Plaza Companies is built on optimism with diligence, consistency, and persistence. Plaza Companies strives to work in a broad base of construction types and industries to ensure we are positioned for success.”

them to navigate future obstacles and capitalize on emerging opportunities. Here is what some of Arizona’s most influential business leaders say are the biggest challenges their industry will face in the next five years and how they are preparing for it.

BOB MULHERN, managing director, Transwestern:

“Arizona needs to continue to stay at the forefront of the advanced manufacturing opportunities that are considering locating within our state. We also need to recognize the role that our stellar higher education institutions play in the decision making process of these companies and provide them appropriate financial support.”

NATE NATHAN, president, Nathan & Associates:

“The biggest challenge our industry is facing is the misinformation about our water supply. Our industry has united to ultimately bring the facts to surface.”

JACKIE ORCUTT, executive vice president, CBRE:

“A lot of my work is tied to specialized manufacturing, which requires heavy power. Coupled with the robust semiconductor, electric car/battery, and data center industries, power supply will be a large focus for years to come. My team is spending time preparing our developer clients, and working with renewable energy companies to help provide long term resources for power generation.”

TRENDSETTERS PROJECTS POWERING

GROWTH

Here are some of the projects delivering economic wins for Arizona in 2025

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 provided by Mayo Clinic)

Following an unprecedented streak of record setting years, Arizona economic development efforts reached still greater heights in fiscal year 2025, according to the Arizona Commerce Authority. Local

• Mayo Clinic announced a major $1.9 billion investment to significantly expand its Phoenix campus, which will increase Mayo’s clinical space and create thousands of skilled health care jobs.

• Axon will significantly expand its headquarters in Arizona, creating thousands of jobs.

• Dutch Bros. will relocate its corporate headquarters from Oregon to Tempe, supporting hundreds of jobs.

• Pure Wafer, a leading semiconductor supplier, announced plans to expand its silicon wafer reclamation facility in Prescott, supporting over 100 jobs.

• KoMiCo, a semiconductor supplier headquartered in the Republic of Korea, will establish a $50 million semiconductor equipment cleaning and coating facility in Mesa, creating over 200 jobs.

• GTI Energy will expand its manufacturing facility in Goodyear, investing a total of $53 million and creating 600 new jobs.

• Eternity Technologies will establish its North American headquarters and battery manufacturing facility in Phoenix, investing more than $20 million and creating 50 new jobs.

• Apex Power Conversion announced the establishment of its U.S. headquarters and manufacturing facility in Mesa, representing an over $60 million investment and creating up to 700 new jobs.

economic development agencies helped create a projected 24,285 new Arizona jobs with an average wage of $95,928. Here are some of the project driving the economy in 2025:

• Nucleus RadioPharma, a radiopharmaceutical manufacturer and developer, will build a new theranostics manufacturing facility in Mesa, creating 50 new jobs.

• Cognite, an industrial software company, relocated its global headquarters to Tempe from Norway, creating nearly 140 jobs.

• Komatsu broke ground on its new 210,000-square-foot mining facility in Mesa, representing an $80 million investment and creating up to 100 new jobs.

• Quantum Computing Inc. celebrated the grand opening of its quantum photonic chip manufacturing facility in Tempe, creating over 50 new jobs.

• MiiHealth, an AI-powered health tech company, relocated its headquarters to Phoenix from London, creating over 100 new jobs.

• Magna, a Canadian automotive supplier, announced a new 230,000-square-foot manufacturing facility in Mesa, creating hundreds of new jobs.

• Tricolor celebrated the grand opening of its 258,000-square-foot automotive reconditioning facility in Surprise, creating over 500 new jobs.

• Blue Polymers broke ground on its recycled plastics production facility in Buckeye, creating over 60 new jobs.

BREAKING GROUND

MIXED-USE

HERITAGE PARK

Developer: Creation, in partnership with Crescent Communities General contractor: LGE Design Build

Broker: Phoenix Commercial Advisors (PCA) Location: Gilbert Road and Juniper Avenue, Gilbert

Size: 10-acre mixed-use development Start date: May 2025

Completion: Heritage Park will open in phases, with the first openings anticipated in 2026, followed by NOVEL Heritage Park multifamily community opening in spring 2027

OFFICE REDEVELOPMENT ARBOR OLD TOWN

Developer: George Oliver, in partnership with Ascentris

General contractor: RSG Builders

Broker: JLL

Location: Scottsdale and Indian School roads, Scottsdale

Size: 360,000 square feet across three buildings and six acres

Start date: July 2025

Completion: Early 2026

MULTIFAMILY THE VILLAS ON SHELBY

Developer: HS Development Partners and the City of Sedona

General contractor: Wespac Residential

Architect: Athena Studio

Location: Sedona

Size: 24 one-bedroom units and six three-bedroom units

Start date: June 2025

Completion: May 2026

BIG DEALS

Here are the biggest commercial real estate deals in Metro Phoenix from June and July of 2025

5 biggest deals from June

1. JW Marriott Phoenix Desert Ridge Resort & Spa

Sale price: $865,000,000

Location: 5350 E. Marriott Drive, Phoenix

Description: 950 room (81 suites) luxury resort

Buyer: Ryman Hospitality Properties

Seller: Trinity Investments

2. Scottsdale Quarter

Sale price: $645,100,000

Location: Intersection of Scottsdale Road and Greenway-Hayden Loop, Scottsdale

Description: 755,000-square-foot open-air mixed-use

destination encompassing retail, dining, and office components, complemented by nearly 600 residential units

Buyer: FalconEye Ventures

Seller: SDQ II LLC

Broker: Berkadia Real Estate Advisors

3. Sarival Logistics Center - Building A

Sale price: $128,200,000

Location: 6390 N. Sarival Ave., Glendale

Description: 1,156,860 SF mega warehouse

Buyer: Exeter Property Group / EQT Exeter

Seller: WPT Capital

Broker: Cushman & Wakefield

4. Sundance Towne Center

Sale price: $101,203,806

Location: 700 S. Watson Rd., Buckeye

Description: Site consists of six fast food restaurants with drivethrus, three discount stores, one bank, five retail buildings, two vacant developable sites and two restaurants.

Buyer: Continental Realty Corporation

Seller: Shin Yen Investments

5. Finisterra Apartments

Sale price: $96,000,000

Location: 1250 W. Grove Pkwy., Tempe

Description: 356-unit apartment complex

Buyer: Kennedy Wilson Multifamily

Seller: Blackstone

5 biggest deals from July

1. PUMA @ 303 Crossroads

Price: $140,200,000

Location: 8900 N. Sarival Ave., Glendale

Property: 1,023,610-square-foot Class A mega warehouse

Buyer: LaSalle Investment Management

Seller: Clarius Partners

Broker: Cushman & Wakefield

2. The Laurel Apartments

Price: $120,200,000

Location: 800 W. Willis Rd., Chandler

Property: 383-unit apartment complex

Buyer: Fairfield Residential

Seller: Sunroad Enterprises

3. Lazo Apartment Homes

Price: $100,500,000

Location: 875 W. Pecos Rd., Chandler

Property: 346-unit apartment complex

Buyer: Fairfield Residential

Seller: Sunroad Enterprises

4. Slate Scottsdale - Apartments

Price: $97,375,000

Location: 18220 N. 68th St., Phoenix

Property: 278-unit apartment complex

Buyer: Fairfield Residential

Seller: Sunroad Enterprises

5. Zone Apartments

Price: $81,750,0000

Location: 7455 N. 95th Ave., Glendale

Property: 308-unit apartment complex

Buyer: Fairfield Residential

Seller: Sunroad Enterprises

EXECUTIVE PROFILE

Passing the torch

Justin Steltenpohl takes over as CEO of P.B. Bell

By ISAAC CHAVEZ

Long before becoming the CEO of P.B. Bell in 2025, Justin Steltenpohl dreamed of the courtroom. He became an attorney after graduating valedictorian from the University of Toledo College of Law, eventually working with Phil and Chapin Bell as outside counsel for P.B. Bell in 2007. As the company expanded, the need for in-house legal support grew, and Steltenpohl officially joined the team in 2015 as general counsel.

predecessors. The following responses have been edited for clarity and length.

AZRE: How did your career lead you to becoming CEO of P.B. Bell?

Justin Steltenpohl: If I had to describe my journey in one word, I would probably say surprising. I grew up on the wrong side of the railroad tracks, but when I read a book about lawyers and trials, I knew that’s what I wanted to be. I worked hard at making that dream come true, and I started practicing law.

In April 2015, I joined P.B. Bell full time, but I had zero inkling I was ever going to be the CEO. I knew very little about multifamily when I started — especially the back of the house side of the business, so I learned a lot in those first few years.

But I did manage to get a lateral promotion to COO, and then about a year ago, Chapin took me aside and said, “Listen buddy, I’m not gonna do this forever and I’d like to have more time away from the office, so how about you take over as CEO?”

My first reaction was, “What are you talking about?” But Chapin felt I was the right person to carry on the legacy of P.B. Bell because that is extremely important to me, and he felt comfortable that I would protect our culture moving forward.

AZRE: Now that you’re CEO, what are your goals for the business moving forward?

JS: The most important thing I can do is get the public, employees, vendors, investors, banks and the industry as a whole comfortable with the

fact that P.B. Bell is still the same P.B. Bell they know — that’s my No. 1 priority. The reason I think that’s critical is because it will set the stage for my successor, and that, to me, is crucial. I want to build a firm foundation for whoever that ends up being so they can continue growing our culture and reputation.

Moving forward, the company may not be run by a Bell, but the Bell logo everyone knows and trusts will always be on our front door. Their legacy will constantly be top of mind for anybody who runs this organization.

AZRE: Did you learn any lessons from the previous CEO that you plan to apply as the leader of P.B. Bell?

JS: More than anything, Chapin showed me that it’s okay to lead with heart in corporate America. In fact, it should be the driving force behind your decision making. The second thing he taught me is recognizing that you don’t always have to voice your opinion on every topic. As a lawyer, I’ve been trained to always state my case. That’s why people would come to me in the first place — it’s how I got paid — so turning that instinct off after 30 years is pretty hard.

But there are lots of times in meetings when it’s smart for you as the CEO to take a step back and let the discussion happen naturally without injecting your own views. That doesn’t mean you don’t care, but it lets people grow and discover why something might not be a good idea on their own. That’s how most folks are going to learn. I always say there is no such thing as failure. There’s just learning. If you’re always successful, you haven’t pushed yourself and that means you haven’t reached your potential.

...AND COUNTING Increasing the availability and certainty of environmental inspection, testing and consulting.

commercial.

AFTER HOURS

DOUBLE DUTY

Here’s how Parker and Emily Ganem use their construction chops as restaurateurs

By KYLE BACKER

Most people are lucky to have one job they enjoy, but Parker and Emily Ganem are in the fortunate position to have two. Parker serves as founder and CEO of Ganem Companies — a construction, architecture, development and property management firm located in Phoenix. In her role as executive vice president, Emily oversees the accounting and marketing teams, helping turn plans on paper into reallife results.

Together, the couple co-own Sky Restaurant Concepts — the group behind Squid Ink, Highball Cocktail Bar and Sparrow, which opens this fall at The Trailhead. AZRE magazine sat down with Parker and Emily to learn why the decision to enter a new sector was made and how finding success can look similar for both businesses.

The following responses have been edited for clarity and length.

AZRE: Parker, you founded Ganem Construction. Why venture into this sector?

Parker Ganem: Part of it was to diversify, but there was also the need for more restaurants in Peoria. The northern part of the city is pretty wealthy, but there aren’t many dining options beyond QSRs [quick service restaurants]. I thought Peoria needed something more sophisticated, and that’s how Squid Ink was born. People have been taking care of us ever since.

AZRE: Both Squid Ink and Sparrow are located in Peoria. Do you all have a connection to the city?

Emily Ganem: I’m born and raised in what we like to call the Upper West Side. Parker has roots in Phoenix, but we live in Peoria, and I don’t know if we’ll ever leave it. My family is there, and we’re deeply involved in the community. It’s where our hearts are.

AZRE: Construction and hospitality seem like two very different businesses. Is that the case?

With both companies, we always try to give clients the best product possible and a great customer experience, whether we’re serving food or delivering a building. But with restaurants, you’re only with them for maybe two hours, versus construction where a project could take two years. That short time span means people have a heightened sense of awareness. They’ll remember if something is off, especially because the point of leaving the house was to relax.

In construction, you might be working with someone who is making the biggest decision of their life by going forward with a project. Emotions are involved with that, just like in hospitality, but the difference is that those feelings are stretched out over many months.

EG: Like Parker said, the biggest distinction between the businesses is the time we have with the client. People go to restaurants for three things: the food, the ambiance and the experience. Delivering on those expectations in a short amount of time is our No. 1 priority.

But with both companies, having systems and processes in place is important for everything to run smoothly. We can’t do it all by ourselves, and we have incredible teams who are critical to our success.

AZRE: What should readers know about the menu at Sparrow?

PG: We call it American eclectic, because that’s what Americans are. We’re from all over the world and bring different cultures together — it’s what makes us special. Using that description also lets us change up the menu, so guests never know what we’re going to bring. But since it’s American-style food, it’ll be something people want to eat every day, as opposed to Squid Ink, which I’ve always seen more as a place people want to go on a Friday night.

EG: When I think of the word eclectic, I imagine a row of food trucks. You can grab a Korean fried chicken sandwich from one truck, then get mac and cheese from another. Is that American food? Maybe, but it’s definitely the American experience. Whether it’s food, music, language or just how people express themselves, it’s all a mix and constantly evolving — just like Sparrow will be.

INDUSTRIAL CONSTRUCTION

PHOENIX INDUSTRY RISES

How Arizona contractors are evolving to deliver historic industrial growth

After years of national positioning, the Phoenix metro area claimed the top spot among U.S. industrial markets in the first quarter of 2025 — an “overnight success” decades in the making. What didn’t make the headlines was the history of coordinated investment in infrastructure, innovation and workforce development that positioned Arizona to lead this industrial growth.

The Valley is beginning to reap the rewards. But as these missioncritical facilities like data centers and semiconductor facilities migrate to the desert in tandem, they’re straining utility grids, workforce pipelines and construction capacity. Contractors across the state are shedding outdated methods, retooling systems and tightening workflows to meet a level of industrial demand few regions have ever faced.

Growth at this scale calls for discipline, innovation and a relentless focus on people.

The drivers behind Arizona’s manufacturing momentum

Arizona’s dry climate, low natural disaster risk and robust industrial landscape have long made it an attractive base for data centers and large-scale operations. However, favorable conditions alone didn’t fuel the state’s high-tech surge.

When the push began to re-anchor advanced manufacturing on U.S. soil,

Arizona was ready. Since 2020, the state has secured more than $205 billion in semiconductor-related capital. That growth stems from coordinated efforts aligning federal policy with state-level investment.

• Federal acceleration through the CHIPS Act: The 2022 CHIPS and Science Act unlocked $52.7 billion in federal funding to expand U.S. semiconductor manufacturing and research. Arizona moved quickly to capture its share, securing multibillion-dollar commitments for high-tech infrastructure projects and establishing itself as a critical player in this chip resurgence.

• State investment in infrastructure and energy capacity: Arizona ramped up utility readiness to support fab-scale demand, with providers like Tucson Electric, Arizona Public Service and Salt River Project expanding grid capacity and resilience. Water infrastructure saw parallel attention, with reuse and recycling strategies designed to make

Jeanne Jensen Construction

large-scale operations sustainable in the desert. Fast-tracked permitting also ensured manufacturers could scale quickly.

• Workforce readiness through targeted programs: Statewide programs, like the Semiconductor Technician Quick Start from Maricopa Community Colleges, deliver targeted training to meet labor demands. Meanwhile, institutions like Arizona State University built engineering pipelines, advanced manufacturing labs, and research and development (R&D) centers, feeding the ecosystem with talent ready to work.

Building this future, however, doesn’t just happen on paper. It’s now up to contractors to bear the responsibility of delivering on what this growth demands.

How contractors are scaling to build Arizona’s next industrial era

Contractors are under pressure to match the speed and scale of Arizona’s industrial wave, without burning out the teams doing the work. That reality

has sparked a shift in how projects are planned, built and staffed.

1. Planning digitally to de-risk projects

Before a single trench is dug or conduit laid, Arizona contractors are leaning more heavily on digital construction tools to map every step of the build in advance. While not new to the industry, tools like building information modeling (BIM) have become indispensable on high-speed, high-stakes projects.

BIM provides a shared, data-rich environment where all trades align on design intent. Within that model, clash detection catches system conflicts — like ductwork intersecting piping — before crews ever step on site. Pairing 3D modeling with drone-captured site data, these systems allow crews to show up knowing exactly where to cut, weld and set.

2. Balancing efficiency with long-term crew sustainability

Contractors leverage lean planning and modular prefabrication approaches to marry precision with schedule efficiency — and these tools will only become more critical. Meeting Arizona’s accelerated industrial growth will demand more than efficiency alone; it requires a sustainable pace. Lean methods that eliminate wasted labor and modular strategies that minimize jobsite chaos are being paired intentionally with crew-focused practices.

Regular team rotations, scheduled recovery days and genuine responsiveness to worker feedback ensure crews can sustain high performance, project after project. While efficiency sets the rhythm, it’s careful attention to workforce health that makes that rhythm achievable long-term.

3. Making field execution responsive by design

As timelines compress and client demands shift, agility has become a non-negotiable. Contractors are adapting on the fly, restructuring crews, rerouting specialty fabrication and realigning with local partners to achieve “drop-dead” dates. Execution feels less like a straight line and more like a coordinated dance

that adjusts to the project’s demands.

To stay responsive, field teams are working with full project visibility and the authority to pivot and problem-solve in real time. This level of trust is what’s breeding innovation, making fast-paced builds possible and repeatable.

4. Building a scalable workforce from the ground ip

Arizona is projected to need 20,000 new construction workers by 2030, according to the Arizona Office of Economic Opportunity. Contractors are responding with trade school partnerships, tech bootcamps and rigorous screening processes to match workers with roles where they’re most likely to thrive. And once hired, training kicks off immediately.

New crew members shadow veteran colleagues, rotate through job phases and gain hands-on experience with BIM coordination, drone surveying and integrated data systems. It’s a deliberate, long-term investment in people designed to build a workforce with the depth and resilience to sustain Arizona’s industrial ascent now and for years to come.

The work ahead

Arizona’s momentum is undeniable, but it’s not immune to friction. Power, water, housing, labor — all are pressure points demanding foresight. In the face of that strain, the Valley is in the thick of transformation, shedding outdated constraints to take on something bigger.

What rises from this moment will depend on the space made for bold thinking and the people equipped to carry it forward. The next few years will test contractors, owners, utilities and policymakers alike, but they’ll also reveal what Arizona does best: adapt, build and push forward.

Jeanne Jensen is director of engineering at Nox Group, a large-scale industrial construction company focused on mission-critical infrastructure across the U.S. She oversees major public and private projects, guiding the delivery of some of the nation’s most technically demanding builds. Learn more at noxgroup.us.

(Image licensed from ©Adobe Stock)

A NEW ERA

NAIOP Arizona’s new CEO outlines opportunities and challenges to watch in commercial real estate

CHANGING THE LANDSCAPE: ReDiscover Logistics is ViaWest Group’s transformative industrial redevelopment at I-17 and Loop 101 in Phoenix’s Deer Valley submarket. Spanning 808,448 square feet across four Class A buildings, the project reimagines a former Intel and Discover site into a state-of-the-art logistics and light manufacturing campus. (Image provided by ViaWest Group)

Back in the sun

NAIOP’s new CEO Cheryl Lombard discusses her priorities and return to Arizona

By KYLE BACKER

evelopment is a complicated endeavor requiring coordination across multiple disciplines, companies and governmental entities. That’s why associations like NAIOP exist to bring industries together, offering opportunities for professionals to network, learn from one another and build solidarity around legislative issues. Every organization needs a leader who can rally people together, draw on a deep well of expertise and provide a clear vision for the future — and NAIOP is no exception.

AZRE magazine sat down with Cheryl Lombard, who started her tenure as the CEO of NAIOP in September, to learn more about her thoughts on leading NAIOP, the state of development and being back in the desert. The following responses have been edited for clarity and length.

AZRE: For those who don’t know, can you tell us a bit about your background?

Cheryl Lombard: My career has been focused on how we grow, encompassing critical areas such as water, conservation, environmental protection, infrastructure and more recently, energy. I have been fortunate enough to apply this expertise across the U.S., representing both energy and real estate development sectors.

This includes a decade with The Nature Conservancy and leading Valley Partnership here in Arizona. Most recently, I spent the past two years in Washington, D.C., at a conservative clean energy think tank, where I led a cross-functional team focused on advancing power, infrastructure, and minerals policy in Congress and across various states. My work there included testifying before Congress, speaking on numerous panels, and drafting federal permitting and judicial reform legislation.

AZRE: What drew you to NAIOP as an organization you’d be interested in leading?

CL: It is incredibly meaningful for me to return to Arizona — this state has given me so much personally and professionally. I’m eager to get to work building on NAIOP’s strong foundation and helping shape what’s next.

Arizona is at a pivotal moment. The growth we’re experiencing is historic, and commercial real estate is right at the center of it. That means our industry has a major responsibility to lead with vision and purpose.

NAIOP Arizona already has a strong track record of advocacy and influence. My goal is to build on that — amplifying our voice at the Capitol, with cities and our Congressional delegation, expanding engagement across the state, and making sure we’re driving the big conversations around growth and infrastructure.

We will be focused on implementing a bold strategic plan, enhancing our events and member experience, growing our sponsorships and solidifying NAIOP as the premier voice for commercial real estate in Arizona.

AZRE: What role do partnerships play in lifting up the industry?

CL: Commercial real estate doesn’t operate in a vacuum. Every project intersects with public policy — whether it’s water, permitting, energy or transportation. That’s where I’ve spent my career, and that’s where NAIOP can have a powerful impact.

I believe in results-driven advocacy and collaborative leadership. That means listening to our members, engaging with stakeholders, and delivering on a clear vision that supports responsible growth and economic success.

Beyond metropolitan areas, significant opportunities exist for sustainable growth. NAIOP focuses on fostering connections, advocating for interests and facilitating learning. We can leverage these resources to align with the statewide opportunities for employment and economic prosperity, ensuring the flourishing of all of Arizona.

AZRE: Can you talk more about NAIOP’s advocacy efforts?

CL: First, I’m glad to be working with NAIOP’s Director of Government Relations John Baumer. Having someone with his skills in-house is a great resource for the organization. I have a background in policy, but we’re a statewide organization, and we want to be connecting with not only

our state legislature, but key cities and our federal delegation about how we can continue to grow.

There’s plenty of opportunity here in Arizona, but there are also hurdles to overcome. John and I have been talking a lot about energy demand. We’ve done a great job as a state attracting companies like TSMC, but now we need to focus on energy development. That means working with the utilities and our rural co-ops on how to provide affordable, reliable power to everyone. Water is another important topic that we want to partner with people around the state to tackle.

AZRE: You mentioned meeting with Arizona’s Congressional delegation. Does NAIOP work on federal issues?

CL: Our role at NAIOP is to represent the industry in these conversations about how legislation at all levels might affect our state. For example, the reconciliation bill in Congress reauthorized Opportunity Zones and included a lot of tax benefits to encourage economic development in rural areas. John and I are looking at how that tool can be used here and plan to sit with Sandra Watson at the Arizona Commerce Authority to learn more about their plans. There’s also brownfield legislation that needs to be reauthorized and next year Congress will start working on transportation reauthorization, which we’ll be helping with as well.

AZRE: NAIOP has a large membership base — some are competitors and others may have differing views on what the best course of action is. How do you present a unified voice on behalf of the industry?

CL: All trade associations have to grapple with this, and it can be challenging on the policy side. But that’s why the first thing I’m going to do is put together a strategic plan so we come to an agreement among our board and

members on what we stand for. That helps bring focus and alleviate some of those conflicts as members take part in those discussions.

AZRE: What is your sense regarding the health of the industry as we start wrapping up 2025?

CL: Over the past decade or so, Arizona has implemented great policies around taxes and regulations at both the state and municipal levels. The groundwork laid thanks to measures like Prop 479 will set the Valley up for the next 20 years in terms of transportation infrastructure. But we still need to take a closer look at how to build and maintain roads across the state.

Right now, we have amazing energy resources, but what’s next? We need sustainable, affordable power — how will we move it around? Building transmission infrastructure is similar to highway construction since it takes some time, but people have different reactions when they see power lines going up.

That said, coming from Washington, D.C., where businesses and residents have to deal with regulatory burdens and instability, it’s clear to me that Arizona has created an environment where economic success can continue. More can be done to ensure predictability across all layers of government, but it’s nice to be outside the Beltway and back in a place where good policy and regulations — meaning less of them — are helping foster growth and innovation.

AZRE: Any parting thoughts you’d like to share about returning to the Valley?

CL: I went to college in Washington D.C., and it’s a lovely place. I learned a lot that I will apply in this new role, but I’m so happy to be back in Arizona. I missed our beautiful sunsets, my friends and the development community as a whole. I’m privileged to be here and getting to focus on commercial development.

MEMBERSHIP MATTERS

Why these professionals always make time for NAIOP

By KYLE BACKER

LUX BUTLER

Between the mundane requirements of life and the pressures of a demanding career, blank space on the calendar is a rare sight for those in the commercial real estate industry. Prioritizing participation in an association like NAIOP can be challenging when a lengthy task list awaits, but investing the extra effort can pay dividends over the long term.

AZRE magazine sat down with eight NAIOP members to learn more about their relationship to the association, how they’ve grown their careers from getting involved, the benefits of networking with competitors and what trends they’re seeing in the market. Responses have been edited for clarity and length.

Meet these professionals on the pages that follow:

ASHLEY HOFFMAN, Layton Construction

BRYCE TERVEEN, Colliers

CHUCK CAREFOOT, Ryan Companies US

JAMIE GODWIN, Stevens-Leinweber Construction

JIM ROLAND, Alcorn Construction

JOHN ORSAK, Lincoln Property Company

KOREY WILKES, Butler Design Group

TOM JARVIS, Willmeng Construction

Ashley Hoffman Director of business development

Layton Construction

AZRE: How long have you been a member of NAIOP?

Ashley Hoffman: I’ve been a member of NAIOP for 14 years. I started off my career in commercial furniture, and my focus was finding new business. Where do you find those people that are going to be occupying office buildings? The natural landing place was NAIOP, so I started off like most people — not knowing anyone and trying to figure out how everything works. I quickly discovered just how connected everybody is within the association and why it was so meaningful to them.

I dove right in and ended up serving on all the different events committees, then sat on the steering committee for the Developing Leaders program, which helps professionals age 35 and under grow. In 2016, I was named Developing Leader of the Year, which was so great. I’ve since aged out of Developing Leaders, but now I feel like my calling is to help the younger folks get more involved in the organization when they show an interest in it.

AZRE: Life gets busy for all of us, both in our personal and professional lives. Why invest so much time into NAIOP?

AH: My answer now might be a little different than it would’ve been 14 years ago. When I was younger, I knew I just needed to be there and the rest would follow, since I was more focused on building business relationships than anything else.

Now I show up because I want to, but I also feel like when I attend an event, I’m helping an organization that has given so much to me for so long. I can’t overstate just how deep the roots run in NAIOP. I’ve had relationships that started off with a handshake grow into lifelong friendships. I’m still doing business with some of the people I met at my first NAIOP mixer 14 years ago.

AZRE: Are there any trends in the market you’d like to share with readers?

AH: Electrical gear is still driving the schedule, which is important to know. When we start on a job, we always ask when the client wants to open their doors so we can order that equipment in time. Otherwise, construction costs continue to be more favorable. Even with all the talk around tariffs, those headlines don’t seem to be affecting prices much.

We’re also seeing more interest in million-square-foot-plus industrial in the West Valley. A lot of them are build-to-suits, meaning these businesses really want to sink their teeth into the region. The East Valley, however, is overbuilt with small bay and multitenant flex industrial in my opinion, so I expect that area will cool off for a bit, but there are still people who want to be in the West Valley.

To do more than build. To create. To innovate. And to do it with a holistic, intelligent balance of art and science that’s unmatched anywhere. We see our work through the eyes of the people who will use them every day. Through their eyes, we see places of entertainment, education, innovation, technology, healing and research. The result? Powerful structures with impacts that reach far beyond these walls.

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Korey Wilkes, principal, Butler Design Group

AZRE: How long have you been a part of NAIOP?

Korey Wilkes: When I joined Butler Design Group in ’99, the company was already a member of NAIOP, so since then. The organization does a lot for the industry, like promoting legislation that creates a positive development environment. From a social standpoint, NAIOP provides a great opportunity to make connections — developers, brokers, contractors and design professionals all attend events together, so we build relationships with one another.

AZRE: How long have you been in a leadership role at NAIOP?

KW: I previously served on the Night at the Fights committee, but I was just appointed to the board of directors this last year. When that happened, I was asked to join a committee, and working on the Best of NAIOP interested me most. It has always been a great event, but I wanted to bring some fresh ideas.

We ended up transitioning from a typical ballroom to a theater, and that was a significant shift in venue. But working with the committee and putting together some skits for the event was something I really enjoyed. It all ended up becoming a bit of a side job there for a while — and there a few hiccups the night of — but I think it was received well by the majority of people. Now we have an opportunity to improve again next year.

AZRE: What industry trends should readers be following?

KW: Five years after the pandemic started, there has been a healthy shift back into brick-and-mortar retail. We’re even seeing more power centers — a term that we hadn’t used for the last five to eight years. We’re working on a handful of those, mostly on the outskirts of town, but there are few infill power centers that are chasing rooftops. Some office development is happening, but it’s niche and in specific subregions.

During the pandemic, about 75% our work was industrial, but we’re as close to having a balanced portfolio as we have been in a long time, which is good for us because we want a stable, mixed profile. Industrial has slowed a little due to some oversaturation, but there’s still a lot of infill and a good amount of speculative development going on. The TSMC effect has helped keep demand going, which has been huge for the Valley and our business.

The unfortunate thing is we have a bad rap regarding water, but the reality is that Arizona has some of the best water policies in the U.S. — if not the world. I don’t know of another place that requires a 100-year guarantee for water supplies. Overall, we’ve had some great legislation over the years, and I’d like to think NAIOP was part of that.

Chuck Carefoot, president of Southwest Region, Ryan Companies US

AZRE: How long have you been a member of NAIOP?

Chuck Carefoot: I’ve been fortunate enough to be involved with NAIOP for around 29 years. I remember the first luncheon I attended — there were about 50 of us representing the whole industry. I was only six months into my career at Ryan Companies, and I’ve been going ever since. I’ve really enjoyed my years with NAIOP, and I hope to have many more — maybe not another 29, but certainly 10 or so.

AZRE: How has NAIOP supported your professional growth?

CC: NAIOP has something to offer at all stages of your career. At the beginning, it’s a place to grow your confidence and learn from those around you. After you gain some experience, there are educational programs that expand your skills and help develop relationships with your industry peers. Once you’re a more tenured professional, you get to meet people earlier in their career through NAIOP, which is a great mentoring opportunity and a way to give back some of what you received from others. There’s also the perk of interacting with new businesses when they come to town and join the organization.

AZRE: Are there any benefits to being in an association with companies who may be your competitors in the market?

CC: Absolutely. At the end of the day, we’re all competitors to a certain extent, but NAIOP helps us all build relationships with one another. That creates a healthy alignment where there’s a willingness to learn from each other and make our collective marketplace stronger.

AZRE: What is a trend you think readers should be aware of?

CC: Since the Phoenix Metro is still a new marketplace, we don’t have the kind of real estate blight that exists in some older communities across America.

That said, we need to be diligent and not allow that to happen. The biggest thing Ryan is doing today that we weren’t as much 20 years ago is the redevelopment of our city. Instead of continuing to build further out, there’s a emphasis on redeveloping existing sites into new, vibrant properties. That helps avoid the blight that could come to a community if we let an old, non-functioning building just sit there.

Generally, jurisdictions welcome the redevelopment of difficult assets. I think we’re in a great position to improve infill sites through good, constructive redevelopment. We need to focus on that here in the Valley — if we drag our heels and don’t allow this work to happen, we could end up in a situation where blight starts to compound as it has in other cities in the U.S.

Jim Roland, senior vice president, Arizona, Alcorn Construction

AZRE: Why do you believe industry associations like NAIOP are important for professionals and companies?

Jim Roland: Across all industries, associations are critical to the advancement and general knowledge of company staff. These groups help grow new talent, and they give an opportunity for seasoned professionals to mentor the next generation. Any parent wants their kids to be successful, so why wouldn’t you want the same for your business?

NAIOP is composed of the who’s who of deal makers in Arizona — developers, brokers, general contractors, architects and trade partners. Being involved lets you interact with these folks in both formal and informal settings, which broadens your reach and helps you make decisions on who to work with.

AZRE: What impact does NAIOP’s advocacy efforts have on commercial real estate as a whole?

JR: I think the legislation NAIOP promotes does more than just help our industry — it strengthens our community and benefits the general public. The growth that has happened across the state is because we’ve created an enticing market for companies to relocate to or start up. When these businesses come here, they need buildings to run their operations. That creates jobs and further development, which helps everyone.

AZRE: What trends are currently having the biggest effect on the market?

JR: The No. 1 thing on the forefront of people’s minds is the tariffs. Every financial institution, developer and contractor wants to protect themselves from the costs associated with those. That’s led to lots of conversations with trade partners and their suppliers when a project is getting started to figure out how to mitigate the impacts. All that has to happen up front so we can come to an understanding before promises are made.

Interest rates are another topic talked about frequently in our world. Cutting interest rates frees up money and makes deals happen — meaning we get exponentially busier. I’m pretty confident that when interest rates come down, Phoenix will be at the center of growth for the national economy because of the development that happened before rates went up.

Power is the other big concern considering all the data centers coming to town, as well as the manufacturing facilities. That has put a strain on the system, but the power authorities are working hard on that.

Jamie Godwin, president and CEO, Stevens-Leinweber Construction

AZRE: How did you first get involved with NAIOP?

Jamie Godwin: I moved to Arizona in 1996 and took a job with Opus, and they were already a part of NAIOP, so I’ve been participating nearly 30 years and I’m on my third year with the board of directors.

When I came to Stevens-Leinweber in 2014, the company was not engaged with the association. Changing that was a high priority for me since I knew it was a great way to get our name out there. Stevens-Leinweber has been in the market as a tenant improvement contractor for a long time, but prior to me joining, business attraction came mostly through word of mouth. Coming to the company, I saw that as a growth opportunity, and NAIOP is the best place to connect with people in the industry.

AZRE: What value does NAIOP bring to the commercial real estate industry as a whole?

JG: NAIOP is at the forefront of legislative advocacy for commercial real estate, and there has been a significant enhancement of those efforts with bringing John Baumer [NAIOP’s Director of Government Relations] on board as an inhouse lobbyist. Suzanne Kinny did a good job even prior to John, and it only got better when he started. I’m also excited to have Cheryl Lombard as the new CEO because of her background in this arena and the connections she brings with her.

All that said, NAIOP is engaged with government entities and trying to help shape what the legislative landscape looks like for our industry. There are always policy initiatives out there that will either help us or hurt us, and NAIOP truly is the organization working for the benefit of everyone in the industry — whether you’re a member or not.

AZRE: What are some trends folks should be aware of?

JG: In the last six or so months, there has been an increase in larger sized office tenant improvement projects, with clients taking full floors and larger buildings leasing upwards of 75,000 square feet to a single user. We went a long time coming out of the pandemic without that kind of movement in the market as businesses hunkered down and evaluated remote work plans.

A lot of companies have since made the decision that working from home isn’t the best structure and want people back in the office. They need the appropriate square footage to support that, so we’re seeing bigger deals happening out in the market, which is a positive change.

COMING NEXT ISSUE

 A look at the CRE companies that impact the community

 Healthcare development trends to watch in 2026

 A dive into the Arizona Association of Economic Development

 An analysis of a big deal that is shaping Scottsdale’s skyline

John Orsak, executive vice president, Lincoln Property Company

AZRE: When did you start participating in NAIOP?

John Orsak: I moved to Arizona in 2006, and it was shortly after that I became involved with NAIOP. From that point on, I’ve always stayed close to the organization, even when I’ve transitioned to other firms. I’ve sat on the membership, public policy, Night at the Fights and Thursday Night Live committees, then was asked to join the executive committee.

In 2024, I served as the chairman, which was an incredible capstone achievement. This is my last year on the board before I go back to being a member at large, which is unfortunate because spending time with my fellow board members and the NAIOP staff is so special to me. But having those limits in place is a good thing. It means the association is always evolving as the composition of the board changes.

When you’re in the business for a long time, you develop a sense of the quality of these associations. Between the membership, programming, events and overall structure, NAIOP has always been second to none.

AZRE: What are some of the benefits engaging with NAIOP?

JO: That’s an easy one. I always tell people, ‘Look, you don’t have to believe me but go to one of our events and see for yourself — everyone that you want to know is there.’ Even though NAIOP is at its core a developer-focused organization, our chairman this year, Phil Breidenbach, is a broker. Other folks on the board are engineers, bankers and contractors. That’s because we want everyone within our industry to be on the same page, have the chance to network and share in the opportunity to shape public policy.

And, candidly, all your competitors are already here, so you can join the party or not. And the only reason I can say that is because NAIOP has been built into a strong, well-respected organization. There’s no arguing the facts that getting involved brings a tremendous amount of value.

AZRE: Is there anything going on in the industry you think readers should be aware of?

JO: Everyone needs to pay attention to our regulatory environment. One of the reasons why we’ve notched so many wins in Arizona is because we enjoy a very business friendly market. That has started to erode a little bit, so folks should be cognizant of what our elected officials are doing. It may seem like subtle shifts here and there, but we don’t want to wake up one day asking ourselves how we ended up with an overly burdensome regulatory framework that makes it hard for people to do business here.

Tom Jarvis Partner and vice president of pre-lease estimating Willmeng Construction

AZRE: How did you first get involved with NAIOP?

Tom Jarvis: I was hired by Willmeng in the fall of 2004, and at that time we specialized in commercial tenant improvements. We only had nine employees and a handful of really good clients, and one of them was Lincoln Property Company. The head of the firm, David Krumweide, advised myself and James Murphy that we needed to get involved with this organization called NAIOP. I remember the first event I went to because I ran into some friends from college, so it felt right from the very beginning.

AZRE: You’ve gone from attending events to serving on the board and chairing committees. What motivated you to take on that level of commitment?

TJ: If I commit to doing something, whether it’s personally or professionally, I’m going to see it through. That means investing my time and energy, but I think that’s the right approach to take in life. Not only that, but NAIOP has given me far more in my career than I could ever repay through volunteering. I’ve made friends, met like-minded people to do business with — I even met my wife during a NAIOP event many years ago, so the organization will always have a special place in my heart because of that.

From a business perspective, Willmeng has grown into one of the largest general contractors in the state, and the relationships we’ve formed through NAIOP has allowed us to open offices throughout the region. Sure, some of our competitors are members too, but there will be a day where we need to stand by each other to fight a bill being considered at the state legislature. I don’t view being in an association with my competition as a threat — I see it as an opportunity to make Willmeng and our industry stronger.

AZRE: What industry trends should readers be watching?

TJ: Artificial intelligence is changing all our lives, and these advances will make the industry safer and more efficient. We’re getting extremely accurate information in real time, allowing us to provide better service to the developers and communicate more easily across the whole project team. That said, the labor shortage will continue to be a challenge as the baby boomer generation ages out of the workforce. As they do, we lose both a worker and the institutional knowledge they have.

But overall, Arizona is in a great position. As we go through deglobalization, international companies are choosing to open their facilities in our state more than ever before. Leaders of years past did an amazing job making sure Arizona can be great hosts to the businesses that want to come here.

Bryce Terveen Executive managing director Colliers

AZRE: How does NAIOP help build relationships with all the different players involved with commercial real estate?

Bryce Terveen: It takes specialties from many different parties to make our industry work, and having those contacts is what takes projects from inception to fulfillment. At the root of it, commercial real estate is a relationship business, and NAIOP facilitates those connections really well, and that’s never going to change. As you meet people in the community, you start to develop a sense of trust with them, and that helps spur more transactions than if everyone was siloed. If you don’t have those relationships, it makes being in this business harder than it already can be.

AZRE: Can you talk more about how the relationships NAIOP fosters can help working in commercial real estate a bit easier?

BT: The Developing Leaders program is a key part of this, because mentorship is paramount in this business. Starting out as a young professional in brokerage is like drinking from a fire house. The learning curve is daunting and you’re working 12hour days and weekends — there’s a lot to learn before you start making money.

The wisdom that seasoned brokers can provide is huge, whether you’re getting that through the Developing Leaders program, going to educational events or just being involved in the association. All of those things help younger professionals find their footing.

AZRE: What recent trends are shaping the market?

BT: There’s definitely some thawing happening in the office sector. The credit market has been fairly tight with interest rates, so we’ve seen office transactions be muted for the last two years. But companies are becoming more confident in their office usage as they come to the conclusion that it’s better for productivity and culture when people are working together in the same space, even if they don’t need as much square footage as they used to.

Some parts of the Valley are seeing some tenant activity as businesses make these decisions, and we’re still seeing the flight to quality. That happens during every down market because companies can take advantage of the current conditions to trade up into better Class A buildings — that’s happening in the Camelback Corridor, Scottsdale and Tempe. That trend will continue, but some submarkets will still have some pain. New office construction may not happen for some time, but as rents go up, more capital will get deployed to rehabilitate assets that need a little love.

SIGNATURE REQUIRED

How NAIOP shapes legislation bound for the governor’s desk

By KYLE BACKER

Each session, Arizona’s lawmakers consider stacks of new bills and revisions to current statutes, each one having the capacity to reshape the lives of residents and the way companies conduct business. According to statistics from the Arizona State Legislature’s website, 1,854 bills, memorials and resolutions were introduced in 2025. Of those, 439 were delivered to Gov. Katie Hobbs, with only 265 signed into law.

With less than 15% of all items surviving the crucible of lawmaking, many industries rely on associations to advocate at the Capitol on their behalf. In Arizona’s commercial real estate sector, NAIOP seeks to do just that — even if the process isn’t as simple as “Schoolhouse Rock!” made it seem.

“If you’re not in this world, it’s easy to think that all you have to do is come up with a great idea, write a bill and it gets signed into law,” explains John Baumer, NAIOP’s director of

government relations. “But the reality is that it’s not common to be successful on the first try, especially with more nuanced and technical matters.”

Enacting policy is, by design, a deliberative and thorough process. For professionals like Baumer, the journey starts with convincing one of the 90 members of the legislature to sponsor a bill. It then gets sent to a committee where it must be voted on before being presented to the wider legislative body.

“There are many hurdles to overcome just to have something make it to the governor’s desk — and even then it can be vetoed,” Baumer says. “You need to engage with stakeholders from the start, whether they support or oppose your policy. If a committee chairperson agrees to hear the bill and you tell them you haven’t talked with these other groups, they may hold the bill or just vote it down.”

Lobbying often evokes images of smoke-filled rooms and closed-door

deals, but Baumer argues that much of what he does involves education. The real-world implications of a measure can get lost when looking at statutory language, so Baumer provides the commercial real estate industry’s perspective on issues so policymakers understand the positive or negative consequences of a piece of legislation.

“At the end of the day, there are 90 elected officials who need to be wellversed on the topics that come before them. That’s a lot of information for anyone to handle,” he continues. “We want to be a resource for legislators to help them create the best policy proposals possible.”

Speaking as one

To authentically represent the views of its members, NAIOP has two groups dedicated to the association’s advocacy efforts. The Government Affairs Advisory Committee serves as the primary group tasked with monitoring

legislative issues and engaging with elected officials.

Those with a high level of commitment and expertise may be asked to take on a larger role in positioning NAIOP as the voice of commercial real estate by joining the Public Policy Executive Committee (PPEC).

Byron Sarhangian, partner at Snell & Wilmer and co-chair of the PPEC, helped form the committee with the goal of strengthening NAIOP’s ability to shape the lawmaking process. The PPEC works closely with NAIOP’s board of directors to identify legislative priorities, as well as other organizations such as GPEC and the Arizona Chamber of Commerce & Industry to find areas of alignment.

“Historically, the commercial real estate community has been underrepresented at the legislature. That’s unfortunate considering the industry’s significant role in the state’s economy,” he explains. “But we want our elected officials to have groups they can

go to and hear what the impact of their decisions will be, because oftentimes it’s not entirely clear to them.”

Developers, contractors and attorneys all participate in the committee, each bringing their own thoughts on how to address these problems. By having a diversity of perspectives, the PPEC is better equipped to uncover what friction points exist across the whole spectrum of commercial real estate rather than fixating on a particular subsector.

That collaboration, Sarhangian says, resulted in a list of what the group believes to be the top issues facing the industry from a legislative standpoint.

“We are advocating for down-thefairway solutions and talking with lawmakers about them, so at the very least our voice is being heard,” he says.

Promoting progress

Thanks to a series of high-profile investments from world-renown companies, Arizona’s reputation as a fruitful place to operate is spreading. Maintaining that status is crucial as more businesses consider coming to the state, and beating the competition may require action from the legislature.

“Arizona is at an inflection point,” Baumer says. “There will come a time where more assistance from the government will be needed to land the next big project. Right now, we’re fairly limited in what we can offer as incentives for any type of development.”

For example, Baumer notes that Arizona stands alone as the only state without tax increment financing, or

TIFF, after the legislature did away with it after a brief period in place. Even though Arizona has enjoyed great success in attracting businesses, the minimal economic development tools available today may throttle growth in the future.

That’s why NAIOP supported Rep. Michael Carbone’s legislation during the 2025 session that would have applied transaction privilege tax (TPT) reimbursements towards the on-site infrastructure built for projects, so long as they met statutory criteria. Allowing developers to recoup the TPT generated from creating these core facilities would help drive down overall costs and make further growth more manageable.

“This would’ve ensured no one was running afoul of the state constitution’s gift clause while understanding that water and power infrastructure have become huge expenses,” Baumer says.

Due to concerns surrounding potential impacts to the state’s general fund, the effort stalled out. Despite it failing, Baumer is encouraged to see more policymakers recognize that with all the headwinds facing the commercial real estate industry — from interest rates squeezing capital markets to uncertainty around tariffs — more robust incentives for development may be needed.

Another effort NAIOP advocated for was reforming Arizona’s construction defect statutes. Sarhangian explains that the status quo is overly harsh towards sellers of condominiums, constricting housing supply during a time of scarcity. He notes that the goal isn’t to eliminate

(Image licensed from ©Adobe Stock)

consumer protections but create more thoughtful mechanisms that don’t make condo construction unfeasible.

As currently written, if a construction defect issue occurs within the prescribed eight-year timeframe, there are grounds to initiate a class action lawsuit. This exposure discourages many developers and lenders from building condos, functionally removing an entire residential asset class from the market.

“Luxury condos are going up, but that’s because those projects can absorb the high insurance costs required thanks to the construction defect laws,” Baumer adds. “If we want this type of housing to be attainable for middle-income Arizonans, something has to change.”

A menu of reforms was presented to lawmakers, including having an independent third-party review claims and empowering condo associations to vote on whether to pursue a construction defect lawsuit instead of just the board, as is the case today.

“We had a number of other provisions that would’ve cleaned up the process, but unfortunately, that did not go far this session,” Baumer continues. “There was a lot of vocal opposition going into the committee hearing, so we opted to pull the bill back. We’re taking this intervening period to engage with more stakeholders and

build a broader coalition to see what we can accomplish in 2026.”

Measuring success

While not every item backed by NAIOP survived the gauntlet of policymaking, the 2025 legislative session did not adjourn without any wins for the commercial real estate industry. Baumer highlights a pair of bills pertaining to utilities as two achievements worthy of celebration.

“One had to do with mitigating wildfire liability, and the other dealt with utility securitization,” he continues. “We’ve grown considerably over the last few years, causing the demand for energy to spike. Those new pieces of legislation will help utilities manage their current load requirements while also enabling them to finance future developments related to power generation. That will allow our economy to continue expanding.”

The signing of House Bill 2110 was another victory, which revised statutory language around converting commercial buildings into multifamily or mixed-use properties. But in the world of policymaking, success isn’t defined solely by what becomes law.

“We opposed the [Government Property Lease Excise Tax (GPLET)] reduction bill that passed this year, and we were very appreciative of Gov. Hobbs for vetoing it for the second year in a row,”

Baumer says. “It’s a nuanced issue, but the governor and her team understood that GPLET is one of the few economic development incentives we still have in the state, and the legislation would have severely limited the ability for state and local governments to use that tool.”

Even when the passage of an imperfect law seems imminent, there is an opportunity to provide input and reduce potential downsides. This session, a push to restrict the ownership of property by foreign adversaries found a strong base of support, but Baumer notes that the original wording of the bill would’ve led to unintended consequences.

By working with coalition partners and policymakers, amendments were made to the legislation providing clarifying language and minimizing the adverse impacts on business attraction, while still maintaining the core vision of the bill’s sponsors.

“The key to public policy is being willing to have those conversations and negotiate,” Baumer concludes. “Despite the widening political divide, 2025 was an overall good year for Arizona and the commercial real estate industry, and we’ll build on those successes again next year. It was a long six months of robust debate, but it ended with a significant state budget. No one walked away entirely happy with the result — but that means the negotiation process worked.”

John Baumer

Byron Sarhangian

MASTERING REAL ESTATE

How NAIOP helps members be the best in the business

By KYLE BACKER

For the uninitiated, the commercial real estate sector can seem byzantine considering all the strategic planning, coordination and timelines involved with successfully delivering a project to an end user. Both rookie and seasoned industry professionals must stay abreast of trends and develop a deeper understanding of how the sector works if they want to operate at the highest levels. To ensure the industry has the opportunity to grow these skills, NAIOP provides a suite of educational programming throughout the year.

“We often have three events a month about the business,” explains Cathy Teeter, managing director at CBRE and chair of NAIOP’s Education Committee. “The association’s member base is a deep well of expertise to draw from, so we try to spread that information out to everyone.”

Considering the varying work schedules of members, Teeter says these meetings may take place during

breakfast, lunch or happy hour to have the broadest reach possible. For example, NAIOP recently hosted a lunch and learn focused on Arizona State University’s role in the state’s burgeoning semiconductor market — something Teeter says has appeal for people no matter what point they’re at in their career.

“We try to make sure our programming falls in our lane, but it’s not too hard to find topics that people need to hear about,” she continues. “Finding speakers in some places is a challenge, but people are generous with their time and knowledge here in the Valley. That’s what makes us unique — we have a welcoming and generous community that wants to make the industry better for everyone.”

Some of the learning opportunities are more technical in nature, diving deeper into cap rates or how common area charges are billed back to tenants. Others offer continuing education units so folks can keep their

certifications up to date.

For members age 35 and under, Teeter says NAIOP’s Developing Leaders program helps young professionals establish a solid foundation for their careers. Participants attend skill-building seminars, social outings to build a peer network and have the chance to be mentored by industry veterans.

“Our organization is one where competitors can come and grow together,” she continues. “The truth is that we need each other to get deals done and learning with one another strengthens those bonds. Competitors sit side by side on committees, and having differing viewpoints makes sure our programming stays relevant and meaningful.”

Master of Real Estate Development

While NAIOP’s educational events provide valuable industry insights, they do not award credits towards an advanced degree. That said, the

association has a relationship with ASU’s Master of Real Estate Development program for folks determined to grow their careers. Enrolled students are provided a NAIOP membership so they can begin engaging with the association — if they haven’t already.

“We believe it’s important to connect our students to the industry locally, nationally and globally,” explains Mark Stapp, executive director of the MRED program. “But we don’t just buy them a membership. We engage the association in multiple ways, including the Education Committee. Each semester, we conduct case studies where people from NAIOP come into the classroom to discuss a particular project in depth, that way students have a close-up look at how the industry operates.”

Stapp was originally part of the advisory group who helped ASU create this pathway and was later asked to lead it. At first, he didn’t intend to stay for long, but found the experience so personally and professionally rewarding

that he still hasn’t left. Through his commitment to the industry, Stapp was also named a Distinguished Fellow by the national NAIOP organization — one of only 14 across the nation.

“Being recognized by one of the leading organizations in the industry means an awful lot, but it’s also an honor for ASU’s real estate programs to have a Distinguished Fellow as part of their leadership,” Stapp says. “It signifies credibility, and I’m able to network with top minds locally and nationally. That helps me identify resources we may need and get connected with them.”

The MRED coursework is targeted at mid-career professionals who want to develop a well-rounded understanding of the entire development spectrum. Students are placed into small cohorts so they progress through the degree track together, with an emphasis on experiential learning.

“All programs across the country teach essentially the same things we do, but what sets us apart is how we teach

the concepts,” Stapp notes. “There are lectures, but students also have to take that knowledge and apply it to three realworld projects. We’re working with actual property owners to solve problems, and that’s the reason our learning outcomes are so bright.”

Stapp describes the relationship with the industry as a “two-way street” since employers benefit from the connections made with these highly motivated individuals. Each project students work on includes a review where they receive feedback from faculty, NAIOP members and participating firms. That way learners receive constructive criticism, and the wider commercial real estate community sees what students are capable of.

“The industry supports us because we are their farm team and employers know the quality of our students by engaging with us,” Stapp concludes. “Our objective is to produce the best talent possible, many of whom will go on to become leaders in the sector.”

Mark Stapp Cathy Teeter

(Image licensed from ©Adobe Stock)

NAIOP MEMBER PROJECTS TO WATCH 50

By KYLE BACKER

Each year, members of NAIOP Arizona bring some of the best commercial real estate projects to market, from monumental industrial facilities to best-inclass office spaces — and everything in between. Here are a sampling of just 50 projects that broke ground, were under construction or delivered in 2025. All photos were provided to AZRE.

55 RESORT SCOTTSDALE APARTMENTS

Developer: 55 Resort at McCormick Ranch

General Contractor: W.E. O’Neil Construction

Architect: Synectic Design

Notable subcontractors: Cruz Concrete, Global Roofing, Spectra

Electrical Services, Grounds Control

Location: 9449 N. 90th St., Scottsdale

17 North Corporate Center Phase II

General contractor: Ryan Companies US

Architect: Butler Design Group

Notable subcontractors: Riggs Companies, Shambaugh & Sons, Sunland Asphalt, Integrity Electrical Services, Deer Valley Plumbing Contractors

Location: 2350 & 2525 W. Corporate Center Dr., Phoenix

Start: January 2025

Completion: Q4 2025

Details: Comprised of two Class-A industrial buildings totaling more than 186,000 square feet, 17 North Corporate Center Phase II will provide users with several onsite features and accessibility to major freeways, residential options and proximity to TSMC.

AC Element Desert Ridge Hotel

Developer: LaPour & Holualoa Companies

General contractor: WhitingTurner

Architect: RSP Architects

Notable subcontractors: Studio 11, Colwell Shelor, IMEG, PK Associates, Sustainability

Engineering Group

Location: 5550 E. Crown Place, Phoenix

Start: June 2024

Completion: Q1 2027

Details: Located near City North at Desert Ridge, the 240-key property blends sophisticated business travel and wellness focused extended stay into one elevated experience. On the west, the AC Hotel offers a clean, modern experience designed around business

Start: August 2021

Completion: March 2025

Details: 55 Resort Scottsdale Apartments is a new, three-story, 102unit, age-restricted (55+) multifamily property totaling 143,032 square feet. The property is located right on the Scottsdale Greenbelt, making parks, restaurants and shopping easily accessible to residents.

travelers. On the east, Element by Westin serves as an all-suite, extended-stay hotel with a more residential feel and wellness-focus.

AF Distributors

General contractor: Sun State Builders

Architect: Cawley Architects

Notable subcontractors: AF Steel Fabricators, Suntec Concrete, Hawkeye Electric

Location: 3550 E. Roeser Rd., Phoenix

Start: January 2025

Completion: December 2025

Details: This project is a distribution facility for two businesses within the AF Family of companies. With rapid expansion across a national market, AFD requested that Cawley Architects provide a design

for a showplace building within their Phoenix campus.

AZUL

Developer: Baker Development

Architect: SmithGroup

Location: 52nd St. and McDowell Rd., Phoenix,

Start: January 2024

Completion: Q2 2026

Details: AZUL, or Arizona Unlimited, is a 62-acre redevelopment located in the heart of the Valley. A vision in the “Silicon Desert,” this prime site will be the future home to the next redefined corporate headquarters or news-breaking data center campus.

Astria Tempe

General contractor: Layton Construction

Architects: Niles Bolton Associates, Gensler (Design Architect)

Notable subcontractors: PK Associates, Sustainability Engineering Group

Location: 217 E. 7th St., Tempe

Start: April 2025 // Completion: July 2027

Details: Astria Tempe is a 27-story residential tower near ASU, offering 380 units and standout amenities like a rooftop pool, fitness center, co-working space and retail. With bold design and prime location, it meets growing housing demand while redefining Downtown Tempe living.

Chandler Freeways Business Park

General contractor: Ryan Companies US

Architect: Butler Design Group

Notable subcontractors: Riggs Companies, Next Level Steel, Progressive Services, Integrity Electrical Services, Deer Valley Plumbing Contractors

Location: 6955 W. Morelos Place, Chandler

Start: February 2025

Completion: Q4 2025

Details: Chandler Freeways Business Park involves converting a former office building on site that was originally built by Ryan in 2004 into an 87,600-square-foot single-story Class-A industrial building. A second 102,875-square-foot Class-A industrial building will also be constructed. The project is located conveniently near the I-10 and Loop 202 freeways.

C|303

Developer: Merit Partners

General contractor: Stevens-Leinweber Construction

Architect: Butler Design Group

Notable subcontractors: Suntec Concrete, Denny Clark

Masonry & Concrete, 3D Pipelines, Brown & Sons Electrical Contracting, Triad Steel Services

Location: 5101 – 5501 N. Cotton Ln., Litchfield Park

Corona Commerce Center

Developer: Schnitzer Properties

Architect: VLMK Engineering + Design

Notable subcontractors: High Quality Electric, B&B Concrete Contractors, Structures Group, Markade Plumbing, Graydaze Contracting

Location: 2717 E. Corona Rd., Tucson

Start: November 2024

Completion: December 2025

Details: Corona Commerce Center is directly adjacent to Tucson International Airport and three miles to the I-10, providing fully built out spec suites, air-conditioned warehouse and move-in ready suites ranging from 12,000 square feet up to 102,000 square feet.

Start: Q3 2022

Completion: Q2 2025

Details: Occupying one mile along Loop 303, C|303’s 1.75-million-square-foot Phase I includes three Class A buildings, attracting news-making leases and state-of-the-art TIs for Steelcase, Dansons and PartsTown. Bookended by fulldiamond interchanges, C|303 easily accesses key distribution networks and 5-plus million residents within 30 minutes.

Drexel Commerce Center

Developer: Schnitzer Properties

General contractor: Willmeng Construction

Architect: VLMK Engineering + Design

Notable subcontractors: Icon Electric, Panelized Structures, Suntec Concrete, Global Roofing Group, Graydaze Contracting

Location: 2730 E. Drexel Rd., Tucson

Start: December 2024

Completion: November 2025

Details: Drexel Commerce Center is a new industrial park in the Tucson market, consisting of two new, concrete tilt-up shell buildings designed for multi-tenant use. Drexel Commerce Center will have 184,080 square feet in two buildings. The facilities are designed to accommodate small businesses as well as tenants seeking larger warehouse distribution space.

Your Success is Built-In

The FCL Experience is custom-built to ensure your success, lower your stress, bypass red tape, keep you fully informed, and guarantee our work is delivered on time, on budget and of the highest quality. We’re industrial design-build specialists with the expertise and experience needed to troubleshoot potential obstacles, deliver highly-detailed and precise estimates and move every mountain to make the project go as smoothly as possible from pre-construction through completion.

At FCL, we ensure the building process is as world class as each building we deliver. To date, we’ve delivered more than 625 million sq. ft. of industrial space in 32 states, each project built upon a foundation of human connection.

We measure our success by the depth of our relationships and repeat client business, earning a 97% CUSTOMER RETENTION RATE. We truly make your needs our own, and will always put you first.

That’s how we succeed.

NAIOP

Novus Place

Developer: Catellus // General contractor: A.R. Mays Construction

Architects: Nelsen Partners, Field Paoli Architects

Notable subcontractors: PK Associates, Energy Systems Design, Dig Studio

Luke Field

Developer: Lincoln Property Company

General contractor: Layton Construction

Architect: Butler Design Group

Notable subcontractors: EPS Group, Suntec Concrete, Global Roofing, AF Steel Fabricators, Panelized Structures

Location: 13803 Northern Ave., Glendale

Start: Q4 2023

Completion: Q3 2025

Details: This 2.3-millionsquare-foot modern industrial project spans three buildings and 140 acres next to Luke Air Force Base. Developed in one phase, it holds a rare LEED Gold Certification, with quick regional access via Loop 303, I-10, and Northern Parkway. At full occupancy, it has the potential to create 1,300 high-quality jobs.

McCormick-Stillman

Railroad

Park

Developer: City of Scottsdale

General contractor: Willmeng Construction

Architect: DWL Architects + Planners

Location: 7301 E. Indian Bend Rd., Scottsdale

Start: April 2024

Completion: June 2025

Details: Improvements include a new 7,500-squarefoot roundhouse housing a railroad-themed indoor play structure, public restrooms, offices, conference rooms and support spaces.

Mesa Grandview

Business

Park

Developer: Sunbelt Investment Holdings, Inc.

General contractor: Okland Construction

Architect: Balmer

Architectural Group

Location: 4152 E. Virginia St., Mesa

Location: 777 S. Novus Pl., Ste. 100, Tempe

Start: February 2024 // Completion: February 2025

Details: Novus Place is a vibrant mixed-use destination in Tempe’s Novus Innovation Corridor, featuring three Fox Restaurant Concepts establishments and the district’s iconic Shade Canopy.

Start: February 2025

Completion: February 2026

Details: Mesa Grandview Business Park is a LEEDcertified development offering innovative industrial design with modern architecture and site features. The three Class A industrial buildings will feature heavy power, speed bays and dock levelers.

Modera Kierland

Developer: Mill Creek

Residential

Architect: Davis Partnership Architects

Notable subcontractors: Encon Arizona, doing business as Tpac

Location: 7171 E. Paradise

Ln., Scottsdale

Start: January 2022

Completion: August 2025

Details: Modera Kierland features 360 modern apartments, offering studios, one-, two-, and threebedroom homes averaging 938 square feet. Located

near Scottsdale Quarter, residents enjoy proximity to upscale dining, shopping, golf and major freeways.

Mountain Modern Sedona

Developer: Crystal Creek

Capital Real Estate Advisors

General contractor: Chanen Construction

Architect: RSP Architects

Notable subcontractors: Berghoff Art Consultants, IMEG, PK Associates

Location: 95 Arroyo Pinon Dr., Sedona

Start: October 2023

Completion: April 2025

Details: Mountain Modern Sedona offers a launchpad for desert adventures with a streamlined design and a modern reinterpretation of the traditional American Travelodge. With 89 oversized rooms, studios, and suites across eight buildings, this boutique hotel welcomes travelers seeking an authentic Arizona experience.

Chandler Innovation Park

General contractor: Alcorn Construction

Architect: Balmer Architectural Group

Notable subcontractors: Suntec Concrete, AF Steel Fabricators, Alta Glazing, Markade

Plumbing, AME Electrical

Location: 19051 S. Arizona Ave., Chandler

Start: May 2026

Completion: June 2026

Details: Chandler Innovation Park is a three-building industrial development on a 21-acre site totaling 327,776 square feet. It features 32-foot clear heights, dock-high and grade-level loading, and proximity to the Loop 202 and Chandler Airport.

Chapman Ford Pro Elite Sales and Service Center

General contractor: Primak

Construction Group

Architect: Barry R. Barcus Architect

Location: 3400 N. 89th St., Scottsdale

Start: November 2023

Completion: Q1 2025

Details: Chapman Ford Pro Elite is a 115,000-square-foot commercial sales and service facility located in Scottsdale. The property includes 48 large service bays that can service most vehicles, including Ford and non-Ford makes and models ranging from Class 1-7, as well as top-of-theline electric vehicles.

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Hilton Family Holocaust Education Center

Developer: Arizona Jewish Historical Society

General contractor: A.R. Mays Construction

Architect: Deutsch Architecture Group

Notable subcontractors: RVi Planning + Landscape

Architecture, Ardurra

Location: 122 E. Culver St., Phoenix

Garfield Terrace

Developer: Pennrose and Butler

Housing

General contractor: W.E. O’Neil

Construction

Architect: Dekker

Notable subcontractors: Advanced

Mechanical, AME Electric, Ironhorse Plumbing, Mirasol Paint, Largo

Concrete

Location: 1510 E. Portland St., Phoenix

Start: August 2023

Completion: June 2025

Details: Garfield Terrace is a new fourstory, 61,148-square-foot affordable senior housing community featuring a mix of 48 one-bedroom and 12 studio apartments. Resident amenities include onsite parking, a leasing office, mail and parcel lockers, laundry rooms, a community room and a fitness center.

Start: August 2025

Completion date: October 2026

Details: The Hilton Family Holocaust Education Center is a new 32,000-square-foot facility in Phoenix featuring immersive Holocaust exhibits, expanded galleries, event space, archives and administrative offices, offering a state-of-the-art educational experience.

Gold Dust Apartments

Developer: High Street Residential

General contractor: Wespac Residential

Architect: ESG Architecture & Design

Notable subcontractors: Suntec

Concrete, Hilty’s Electric, Re-Create Companies, Paul Johnson Drywall

Location: 10050 N. Scottsdale Rd., Scottsdale

Start: November 2024

Completion: January 2027

Details: Located at the southwest corner of Scottsdale Road and Gold Dust Avenue, this 215-unit, highend development features a mix of one-bedroom and two-bedroom units. The property will offer underground parking, a landscaped community space, resort-style pool and spa area, as well as a cutting-edge fitness center and dedicated yoga space.

Goodyear Crossing Industrial Park Phase II

Developer: ViaWest Group

General contractor: Stevens-Leinweber

Construction // Architects: McCall Associates, K&I Architects & Interiors

Notable subcontractors: Suntec

Concrete, Gunsight Construction, McCain Construction, Structures Group

Location: NWC of Sarival Ave. & Commerce Dr., Goodyear

Start: Q4 2023 // Completion: Q1 2025

Details: The final building at ViaWest’s fourbuilding, 500,000-square-foot Goodyear Crossing Industrial Park is nearby to Phoenix-Goodyear Airport, Loop 303, I-10 and MC 85. The 86,875-square-foot Class

A building caters to smaller enterprises seeking top-tier, mid-size space with stateof-the-art features, spec office and active park environment.

Fender Corporate Co-Headquarters

Developer: RED Development

General contractor: Layton Construction // Architect: SmithGroup

Notable subcontractors: S&H Steel, Diversified Interiors, Ryan Mechanical, Integrated Masonry

Location: 4625 E. Paradise Village Pkwy., Phoenix

Start: November 2024 // Completion: October 2025

Details: Fender’s new 77,000-square-foot, three-story headquarters will feature a custom-built sound studio, kaboom room, model shop and private practice spaces. Designed for innovation, the space includes a café, flexible work areas and outdoor amenities.

Edward Jones Generations

General contractor: Brien Contracting

Architect: Remiger Design

Notable subcontractors: LAS Energies, Wholesale Floors

Location: 18655 N. Claret Dr., Scottsdale

Start: March 2025

Completion: July 2025

Details: This Class A office build for Edward Jones features upscale finishes including designer wall coverings, custom wood ceilings and architectural baffles — all executed with precision to meet the client’s elevated brand standards and schedule expectations.

Formation 17

Developer: Formation Interests

General contractor: Willmeng Construction

Architect: Deutsch Architecture Group

Notable subcontractors: Kimley-Horn, RVi Planning + Landscape Architecture, Trademark Visual, AZ Specialty Demo

Location: 10200 N. 25th Ave., Phoenix

Everly Morrison Ranch

General contractor: P.B. Bell

Architect: BMA Architecture

Notable subcontractors: MT Builders, Anderson Design Company, EPS Group

Location: 4353 E Elliot Rd., Gilbert

Start: June 2023

Completion: June 2025

Details: Everly is a luxury apartment community in Gilbert featuring 236 units across multiple two-story residential and carriage-style buildings. The 16.7-acre development includes a mix of one-, two-, and three-bedroom units and an amenityrich clubhouse.

Start: June 2025

Completion: November 2026

Details: This project will transform an obsolete office park into a Class A industrial park. Totaling 430,000 square feet in four buildings, Formation 17 will offer occupiers between 25,000 square feet and 200,000 square feet with unmatched amenities.

Fiesta Tech Center

General contractor: Alcorn Construction

Architect: DLR Group

Notable subcontractors: Riggs Concrete, AME Electric, Builder Services Group, Deer Valley Plumbing, Desert Structures

Location: 1352 N. Fiesta Blvd., Gilbert

Start: August 2024

Completion: May 2025

Details: Fiesta Tech Center is a 59,723-square-foot industrial facility developed for Seefried Industrial Properties. Strategically located near US 60 and SR 87, it features 28foot clear heights, 19 dock-high doors and flexible tenant configurations.

GSQ Medical Building

General contractor: Ryan Companies US

Architects: Butler Design Group, Devenney Group

Notable subcontractors: RKS Plumbing & Mechanical, Kearney Electric & Communications, Western Partitions, Hardrock, Saguaro Steel

Location: 1800 N. Civic Square, Goodyear // Start: August 2024 // Completion: July 2025

Details: The three-story, 62,475-square-foot GSQ Medical Building is a Class A medical outpatient building at Goodyear Civic Square, within the GSQ master development. Already preleased to Banner Health, services will include primary care, orthopedics, cardiovascular, on-site labs and imaging.

George & Gather

General contractor: Overton

Construction

Architect: Reset Studios

Location: 336 S. Washington St., Chandler Start: 2023

Completion: January 2025

Details: George & Gather is a midcentury-inspired neighborhood hub blending work and play. It features Art Deco interiors, bold tilework, brass accents and a marble community table. With clean ingredients and an exhibition kitchen, it’s a modern nod to timeless hospitality and thoughtful design.

Papago Arroyo office reposition

Developer: Southwest Value Partners // Architect: Gensler

Notable subcontractors: Energy System Design, PK Associates, TRUEFORM

Landscape Architecture Studio

Location: 1275 W. Washington St., Tempe

Start: March 2021 // Completion: May 2025

Details: Papago Arroyo reimagines a fragmented Tempe office campus into a unified, hospitality-forward destination. Inspired by Arizona’s desert and monsoon palette, the design centers around a vibrant amenity hub with a café and fitness center.

Park 10 at Avondale

Developer: Parkland Development

General contractor: A.R. Mays

Construction

Architect: Butler Design Group

Notable subcontractors: PK Associates, Kraemer Consulting Engineers

Location: 10315 W. McDowell Rd., Avondale

Start: March 2025

Completion: January 2026

Details: Located in Avondale, Park 10 offers entertainment and dining options such as Main Event, Mountainside Fitness, Portillo’s Hot Dogs and Barrio Queen, among others.

I-10 Broadway Curve Improvement

Construction by: Pulice Construction, FNF Construction, Flatiron

Architect: AZTEC Engineering Group

Notable subcontractors: Encon Arizona, doing business as Tpac

Start: July 2021

Completion date: June 2025

Details: This transformative infrastructure project serves as one of Arizona’s key commerce corridors. Over 5,000 businesses are located along the 11-miles of interstate near Sky Harbor Airport.

IWG at Goodyear Civic Square

Developer: GSQ Goodyear Office, LLC

c/o Globe Management Company

General contractor: Stevens-Leinweber

Construction

Architect: Phoenix Design One

Notable subcontractors: Maplewood, Interstate Glass, Todek Acoustics, Total Care Plumbing, RCI Fire

Location: 15150 W. Park Place, Goodyear

Start: August 2024

Completion: February 2025

Details: This coworking hub draws on IWG’s Scandinavian roots, mixing oak wood, curved motifs and soft tones with a functional main reception, break area, furniture clusters with varied table heights, lounge seating and offices — all part of a groundbreaking master plan in the new heart of Goodyear.

Komatsu Sales and Service Facility

General contractor: Haydon

Architect: Cawley Architects

Notable subcontractors: Hardrock

Concrete, Amber Steel, EMH Cranes

Location: 9927 E. Pecos Rd., Mesa

Start: March 2025

Completion: Summer 2026

Details: The 25-acre site and 215,000-square-foot facility supports sales and service of mining equipment and components. The various building volumes include four distinct spaces for component remanufacturing and manufacturing operations, warehousing, employee services and administration.

We like to look on the bright side. Where others see problems, we find opportunities. Our work is focused on enhancing the lives of our employees, clients and communities we serve —always. Isn’t it nice to make life just a little bit sweeter? Experience the Difference.

ReDiscover Logistics

Developer: ViaWest Group // General contractor: Willmeng Construction

Architect: Butler Design Group // Location: 2402 W. Beardsley Rd., Phoenix

Start: October 2025 // Completion: January 2027

Details: ReDiscover Logistics is ViaWest Group’s transformative industrial redevelopment at I-17 and Loop 101 in Phoenix’s Deer Valley submarket. Spanning 808,448 square feet across four Class A buildings, the project reimagines a former Intel and Discover site into a state-of-the-art logistics and light manufacturing campus.

Sacaton Retail Center

General contractor: Alcorn

Construction

Architect: RSP Architects

Notable subcontractors: R&M

Concrete, AME Electrical

Location: SEC of Ocotillo Rd. & Blue Bird Rd., Sacaton

Start: January 2024

Completion: July 2025

Details: The Sacaton Retail Center is a 24,000-square-foot market on Gila River Indian Community land. The project features a fueling station, laundromat and desert-inspired design. It quadruples the size of the previous store and prioritizes local produce, community needs, and cultural respect throughout its construction and operations.

Sprouts Farmers Market headquarters

Developer: Trammell Crow Company // General contractor: Wespac Construction

Architect: RSP Architects

Notable subcontractors: Cuhaci Peterson, Colwell Shelor Landscape Architecture, Energy Systems Design, PK Associates

Location: 20555 N. 55th St., Phoenix // Start: August 2024 // Completion: Q3 2026

Details: Currently under construction, the 180,000-square-foot campus will house the new Sprouts Farmers Market corporate headquarters in a four-story, 144,500-square-foot office building, including a 25,000-square-foot flagship grocery store, a test kitchen, a Press Coffee shop and a merchandising lab space.

St. Thomas the Apostle School

Developer: Roman Catholic Diocese of Phoenix

General contractor: Wespac

Construction

Architect: Hamilton Architecture

Notable subcontractors: Wilson Electric, Riggs Concrete, Apex Mechanical, Integrated Masonry, Pete King Drywall

Location: 2312 E. Campbell Ave., Phoenix

Start: May 2024

Completion: March 2026

Details: Located in the heart of Phoenix’s Biltmore area, this transformative project is poised to redefine the campus experience and inspire generations of learners to come. The new multistory facility will bring to life a modern educational environment featuring thoughtfully designed classrooms and administrative offices, an inviting lobby and a cafeteria.

The

Marshall Tempe

General contractor: A.R. Mays Construction

Architect: BKV Group

Location: 1057 E. Apache Blvd., Tempe

Start: January 2024

Tempe 48

Developer: Evergreen Devco

General contractor: Derek Builders

Architect: Butler Design Group

Notable subcontractors: Modern Paving, Integrated Masonry, Elevate Flooring, Riggs Concrete, Milam Glass

Location: 48th St. & Alameda Dr., Tempe

Start: August 2024

Completion: October 2025

Details: The new development includes two single-story, gray shell dock warehouse buildings — Building 1 being 88,700 square feet and Building 2 consisting of 82,325 square feet.

The Base

Developer: ViaWest Group

General contractor: Willmeng Construction

Architect: DLR Group

Notable subcontractors: Suntec Concrete

Completion: July 2026

Details: The Marshall Tempe is an eight-story, 325,676-squarefoot luxury student housing community near ASU, featuring 188 units and 14,000 square feet of amenities including a rooftop terrace, resort-style pool, fitness center, study lounges, and outdoor dining, redefining the student living experience.

Location: 6302 N Litchfield Road, Litchfield Park AZ 85340

Start: October 2023

Completion: February 2025

Details: The Base is a new, 144-acre industrial campus, with Phase I consisting of seven Class A buildings totaling 1.18 million square feet. Phase II adds 780,000 square feet across eight buildings.

Three Five Logistics

Developer: GO Industrial

General contractor: Willmeng Construction

Architect: DLR Group

Notable subcontractors: Suntec Concrete, Scott’s Diversified Construction, Structures Group

Southwest

Location: 3050 S. 35th St. Phoenix

Start: March 2025

Completion: March 2026

Details: Three Five Logistics is a 159,305-square-foot Class A industrial

facility, positioned just off I-10 and minutes from Sky Harbor Airport. The project will offer 32-foot clear height, 27 dock doors, 47 trailer stalls, and 3,000 amps of expandable power to 6,000 amps total.

West 101 Logistics Center

Developer: Trammell Crow Company

General contractor: Wespac

Construction

Architect: DLR Group

Notable subcontractors: Suntec Concrete, Desert Structures, Saguaro Steel, JJ Sprague, Wilson Electric

Location: 3438 N. 93rd Ave., Phoenix

Start: July 2025

Completion: October 2026

Details: Sitting on 61 acres in the West Valley, this commerce campus consists of five buildings totaling 1,088,824 square feet of industrial space with ramp-up and grade-level sectional doors.

XNRGY At Gateway East

General contractor: Wespac Construction // Architect: Gensler

Notable subcontractors: Suntec Concrete, Next Level Steel, HACI Mechanical, Progressive Roofing, Aspen Construction

Location: 9019 E. Technology Ave., Mesa

Start: March 2024 // Completion: May 2025

Details: This LEED Silver manufacturing facility features a two-story, 25,300-squarefoot Class A office space. The high-end office interior showcases premium finishes including polished concrete, carpet, ceramic tile, quartz surfaces, plastic laminate doors and millwork.

WillScot Headquarters

General contractor: Wespac

Construction

Architect: Corgan

Notable subcontractors: Wilson Electric, Adobe Drywall, Barrett Homes, Wholesale Floors

Location: 6400 E. McDowell Rd., Scottsdale

Start: December 2024

Completion: October 2025

Details: This first-generation tenant improvement project is located within the Class A Entrada office building. Situated within an occupied structure, the space features high-end elements including an outdoor balcony, a spacious kitchen, an open office area, private offices, and a state-ofthe-art conference room.

MEET THE BIG PERSONALITIES OF AZ BIG MEDIA

As a second-generation Arizonan, I’ve witnessed Phoenix’s rebirth into a thriving metropolis firsthand. Exploring how the built environment makes my hometown even more dynamic is a great source of pride — and a whole lot of fun!

Kyle Backer Associate editor AZ Big Media

YOUR COMPLETE MULTIMEDIA SOLUTION!

DESIGNED FOR HUMANKIND

What office spaces are prioritizing in the new 9 to 5

By KYLE BACKER

Morning commutes have been standard practice in the professional world for decades — a routine that can feel somewhat irritating or even outright dreary. For many, this requirement remained an unchallenged part of their careers until the outbreak of COVID-19, when the phrase “unprecedented times” began cropping up in emails and businesses scrambled to establish remote work policies. But today, more companies are calling for a return to the office as the true purpose of a physical gathering space is redefined.

a make-or-break element for creating spaces people want to be in,”

“What we learned from the pandemic is the importance of human connection and collaboration,” explains Layna Justice, director of interior design at LGE Design Build. “People are more efficient when they are together, but the question is how to get them to come back.”

Answering emails in pajamas and enjoying more free time generally are hard-to-beat benefits of working from home, but a recent study shows these perks do not necessarily translate into a deeper sense of wellbeing.

According to Gallup’s 2025 State of the Global Workplace Report, fully remote employees “are more likely

CULTIVATING COLLABORATION: For Brian Farling, co-owner and principal of Jones Studio, designing offices that encourage teamwork starts with ample daylight. “Being connected to the movement of the sun and nature is

he says.

(Photo courtesy of Jones Studio)

“Having partitions in the common areas makes it hard to share with your neighbors, because as soon as you sit down in a cubicle, you’re not interacting in the same visceral way.

– Brian Farling

to report experiencing anger, sadness and loneliness than hybrid and onsite workers.” The survey also found that engagement fell from 23% to 21% in 2024 — only the second time this metric has decreased in the past 12 years — representing $438 billion in lost productivity across the globe.

With data suggesting even a partial return to office can result in greater quality of life for workers and increased profitability for companies, creating purposeful, well-designed offices is more important now than ever.

Remaining flexible

If the physical environment people occupy can have such an impact on performance, what can architects and designers even do to encourage collaboration? Part of the answer, says Beth Katz, principal at KatzDesignGroup, is to understand what folks want in the first place. For example, one of her clients conducted an employee survey to identify how the office could be reoriented to make the return more successful.

“One of the big things people asked for was more private space to speak freely on the phone like they did from home,” Katz continues. “But they also wanted these rooms to still be big enough for small group collaboration. It used to be common for workplaces to have open areas alongside tiny telephone rooms for a single person, but people are saying they don’t want that.”

At Jones Studio, Brian Farling, coowner and principal of the firm, says

that they’re incorporating these types of rooms for focused work or smaller breakouts within their office designs.

“That variety accommodates the needs of employees while keeping the focus on people sharing the larger space,” he continues. “When there are partitions in the common areas, it’s hard to share with your neighbors, because as soon as you sit down in a cubicle, you’re not interacting in the same visceral way.”

Different professions have their own work styles, so Justice suggests that companies should evaluate their operations to identify the right balance of collaborative and private spaces. Having options is always nice, and offering different environments makes the office seem more inviting and centered on the human experience.

“If someone is feeling sociable, they can go sit in an open collaborative area. Maybe the next day, they’re stressed or need to really focus, which are what the quiet rooms are for,” Justice says. “People love making choices, and it gives them a stake in how they’re using the space.”

That said, too many options can be paralyzing, which is why Justice says the trend of having completely open offices with no assigned seating is starting to fade.

“Not knowing where you’re going to sit each day can cause some anxiety, and having a landing zone helps relieve some of that,” she continues. “We all have a natural inclination for personalization, so I think keeping dedicated desks is an important part of making the office feel pleasant and welcoming.”

Natural connection

To the untrained eye, elegant design tends to be imperceptible despite the concrete effect it has on how someone experiences an environment. Farling says the key to creating human-centric spaces starts with lighting.

“Having more than one source of daylight connects the time spent working with the movement of the sun, but it must be carefully planned. If the windows aren’t oriented correctly, you’ll end up with sharp, high contrast sunlight coming in, which also causes heat gain issues,” he continues. “I’ve always felt that our office is serene and peaceful thanks to the soft, indirect light that comes into the space.”

Whenever Katz starts a new design, she ensures natural light penetrates the entire room because of the calming effect it has. A previous boss, she recalls, once told her if people have a comfortable chair, good air conditioning and natural light, they’ll be happy.

“Those three things may sound simple, but being comfortable in a space does make people more willing to interact with each other,” Katz says.

Once seen as an amenity, Justice notes that access to sunlight is now expected. This desire is reflected in the trend of shuffling the traditional organization of the workplace. Rather than placing offices along the perimeter, more layouts are clustering them in the middle.

“That way, light filters through the open space while still reaching the private offices,” Justice continues. “It also prioritizes employees, so they can enjoy

OFFICE TRENDS

the scenic views.”

Beyond access to sunlight, outdoor spaces help establish a sense of place and belonging. Todd Briggs, principal at TRUEFORM Landscape Architecture Studio, says success comes down to integrating experiences — helping the overall design feel greater than the sum of its parts.

“It’s not enough to just put in a couple trees and a table,” he says. “The landscape has to be like an extension of the interior. When we work with great architects, the outdoors starts to fold inwards, creating a seamless transition that make both spaces more memorable and magnetic.”

For example, at the Jones Studio office, a six-foot strip of garden space lines the north side of the building that opens up into the parking area. Farling says that at certain times of the day, the sun reflects off the plants and cacti causing green light to pour indoors.

“It doesn’t take much exterior space to make a powerful contribution to the interior — just a lot of thoughtful planning of how to connect what’s happening inside with the daylight outside,” he continues.

Creating culture

Designing spaces that prioritize flexibility and connection to nature facilitates collaboration — but there’s also a push to include more creature

comforts for workers. Jennifer Swanton, director of business strategy and growth for DAVIS, says that amenities tilted towards physical and mental wellbeing are a growing trend.

She points to a general contractor client who has two locker rooms with showers as an example of providing a useful resource for employees. Many of the company’s workers spend their days on job sites, so providing a place to wash up before an important meeting or going out to dinner after hours is a welcome benefit.

“Companies are being very intentional with what they’re providing employees,” Swanton continues. “Lots of people are threatening to leave if they are required to come back into the office, but I think working in-person is becoming the norm again. That means it’s even more important to be thoughtful of what we’re creating to attract and retain talent.”

Beyond gyms and locker rooms, Justice says more spa-like features like saunas and cold plunges act as a counterweight to the stresses of work. Designers and architects are also incorporating more food and beverage options into offices.

“Companies can use those for clients as a sales tactic, but it’s also a cool amenity for employees,” she continues. “The trend of putting in activities like ping pong tables is fading because

realistically, people weren’t getting up in the middle of the day to play games.”

Alongside breakrooms and cafes for workers, some offices are building speakeasies into their spaces. Katz mentions she recently finished a project that converted an executive’s office into a small cocktail lounge after he retired. The company needed more conference space and wanted a memorable and sophisticated location to ink deals.

“The speakeasy is themed like old Wall Street since they’re a financial firm,” she continues. “You enter through a bookcase, transitioning from a modern environment into one with Old World molding, lots of brass and cozy chairs. We also asked employees for their work anniversaries dates or kids’ birthdays and created a custom wallpaper that looks like a stock ticker. Adding that personalized touch helped employees feel like that room belonged to them too.”

Despite the chaos created by the pandemic, today’s office space are — to use another overwrought phrase from the era — adapting to this “new normal” in working life.

“COVID-19 turned everything upside down, and everyone is still learning from that experience,” Farling concludes. “We’re all trying to figure out how to optimize our daily lives so we’re both productive and happy, balancing all the elements that make us human beings.”

Layna Justice Brian Farling Beth Katz

Jennifer Swanton Todd Briggs

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CULTURE IS KING

10 cool offices that foster creativity and culture

By KYLE BACKER

The expansion of remote work in recent years has altered perceptions around the purpose of an office. People whose daily commute was a simple fact of life suddenly found themselves performing their duties from the comfort of their own home. But in some professions, being physically present is the only way to be successful, and other businesses discovered that these arrangements come at the cost of culture and collaboration.

As more companies call their employees back into the office, the design, amenities and comfort of these spaces are more important than ever. The following pages showcase some of the best examples of offices with these features in Arizona, from spa-like wellness centers to hidden speakeasies. All photos were provided to AZRE magazine.

Bond

OWNER: George Oliver

GENERAL CONTRACTOR: RSG Builders

ARCHITECT/DESIGNER: George Oliver Design

BROKERAGE: JLL

LOCATION: 3200 E. Camelback Rd., Phoenix

SIZE: 287,000 square feet

WHY IT’S AWESOME: Bond is George Oliver’s most ambitious office transformation yet, delivering a market-leading amenity package that sets a new standard for experiential work, wellness and culinary excellence in the heart of the Camelback Corridor. The effort encompassed a complete rebranding and architectural reinvention of all interior and exterior spaces, pushing the limits of Bond’s structural envelope. The result is a hospitality-centric experience, including a spa-inspired fitness center with yoga studio and locker rooms, glass enclosed “treehouse” boardroom, billiards and darts room, 200-person training room, private belowgrade speakeasy and fully outfitted podcast studio — all complemented by food and beverage from award-winning chef Mark Tarbell.

Jones Studio Office

OWNER: Jones Studio

GENERAL CONTRACTOR: Build, Inc.

ARCHITECT/DESIGNER: Jones Studio

LOCATION: 205 S. Wilson St., Tempe

SIZE: 6,700 square feet

WHY IT’S AWESOME: Jones Studio’s Tempe office functions as more than a workspace — it’s a living expression of the firm’s design ethos. A dynamic veil of rotated concrete block creates privacy, frames lush entry gardens and filters desert light into the studio. Inside, a long “family table” anchors the collaborative work environment, bathed in balanced natural light from a clerestory and full-height glazing. Materials like weathered steel, sandblasted block, red carpet and shimmering brass reflect the colors and character of the region. A dichroic skylight shifts color with the sun, while rainwater harvesting systems feed xeriscaped gardens — making sustainability both visible and poetic.

TikTok U.S. Data Security Office

OWNER: TikTok

GENERAL CONTRACTOR: JT Magen

ARCHITECT/DESIGNER: Gensler

BROKERAGE: JLL

LOCATION: 4343 N. Scottsdale Rd., Scottsdale

SIZE: 56,000 square feet

WHY IT’S AWESOME: TikTok USDS’s new office at the Scottsdale Galleria emphasizes the well-being of the site’s 400 dedicated employees as they solve challenging data security issues. The office features wellness rooms, group therapy spaces that double as workout areas and a cantina. A large screen at the entrance celebrates the achievements of employees of this round-the-clock operation.

Crest Insurance Group Office

OWNER: Hines & Cousins Properties

GENERAL CONTRACTOR: RWI Construction

ARCHITECT/DESIGNER: Phoenix Design One

LOCATION: 100 S. Mill Ave., #930, Tempe

SIZE: 16,819 square feet

WHY IT’S AWESOME: Crest Insurance Group’s new Tempe office — boasting LEED Silver, Fitwel and Well Building certifications — creates an energized atmosphere anchored by warm tones contrasted against dramatic black marble, with ample natural and artificial lighting. Extensive acoustic treatments support everything from sensitive client conversations to team interactions, and modular furniture, adjustable workstations and an open layout provides Crest with room to grow.

COOL OFFICES

Dutch Bros Headquarters

OWNER: Boersma Bros // GENERAL CONTRACTOR: Wespac Construction // ARCHITECT/DESIGNER: Corgan

LOCATION : 1930 W. Rio Salado Pkwy., Tempe // SIZE: 107,185 square feet

WHY IT’S AWESOME: Located in the heart of Tempe at Liberty Center at Rio Salado, Dutch Bros’ new headquarters reflects the company’s eclectic vibe through custom murals, bold graphics and the “hype tunnel” — creating a dynamic space matching the brand’s culture. Employees enjoy top-tier amenities such as an arcade, pickleball court and dedicated social spaces, fostering collaboration, innovation and community.

Hype Studio Office

OWNER: Hype Dunlap

GENERAL CONTRACTOR: Hype Studio

ARCHITECT/DESIGNER: Hype Studio

LOCATION: 340 E. Dunlap Ave., Phoenix

SIZE: 2,200 square feet

WHY IT’S AWESOME: Drawn to the industrial aesthetic and raw character of a commercial building originally constructed in 1950, the designers and craftspeople of Hype Studio took on much of the work to convert this forgotten mid-century structure into the company’s new home. Carefully placed skylights and new glazing invites in natural daylight — a critical component for the creative work of the people who inhabit the space.

Hines Phoenix Office

OWNER: Columbus Properties

GENERAL CONTRACTOR: RSG Builders

ARCHITECT/DESIGNER: Phoenix Design One

BROKERAGE: CBRE

LOCATION: 2375 E. Camelback Rd., Ste. 210, Phoenix

SIZE: 8,469 square feet

WHY IT’S AWESOME: This small but mighty office refresh gives the Hines-Phoenix team a new highly amenitized landing pad in a prized commercial corridor — all in a building it developed in 2000 and continues to manage. Spaces range from a striking reception area and breakroom retreat to practical workspaces and numerous collaboration zones. Walnut wood and veined marble create a speakeasy feel, while floor-toceiling glass provide picturesque views in this showcase office space.

Offerpad Office

OWNER: Offerpad Solutions Inc.

GENERAL CONTRACTOR: Wespac Construction

ARCHITECT/DESIGNER: RSP Architects, Transact Commercial

LOCATION: 433 S. Farmer Ave., Tempe

SIZE: 37,289 square feet

WHY IT’S AWESOME: Located on the fifth floor of The Beam — known for its distinctive mass timber construction — Offerpad Solutions’ contemporary workplace was built to inspire flexibility and connection. The layout includes open workstations, breakout zones and private offices featuring Teknion demountable glass fronts. To preserve the architectural beauty of the exposed timber, an innovative access flooring system conceals the mechanical, electrical and plumbing systems.

Smead Capital Management Headquarters

OWNER: RED Development

GENERAL CONTRACTOR: Stevens-Leinweber Construction

ARCHITECT/DESIGNER: Ajanta Design

LOCATION: 2502 E. Camelback Rd., Ste. 210, Phoenix

SIZE: 7,468 square feet

WHY IT’S AWESOME: Located in what was once a windowless second-floor storage area at Biltmore Fashion Park, the new corporate HQ for Smead Capital Management centers around a 225-foot window line that was cut into the building’s exterior wall, creating new site lines to Biltmore’s trademark courtyards — exemplifying the power of adaptive reuse. Interior spaces include a main reception area, formal boardroom, private offices, central bullpen, employee kitchen, nook dining, collab rooms and soundproof studio.

The Esplanade

OWNER: Monarch Alternative Capital // GENERAL CONTRACTOR: Layton Construction

ARCHITECT/DESIGNER: Corgan // LOCATION: 2415 - 2575 E. Camelback Rd., Phoenix // SIZE: 60,000 square feet

WHY IT’S AWESOME: Positioned in the heart of the Biltmore area, this 1-millionsquare-foot campus now offers a next-level blend of hospitality, wellness and curated experiences. Anchoring the campus is a sleek 16,000-square-foot amenity hub featuring coworking zones, a boutique fitness center, a gaming lounge, and standout spaces like a podcast studio and music listening room.

NORTHERN ARIZONA UPDATE

PROGRESS AMID THE PINES

How communities in Northern Arizona are growing their economies

By LUX BUTLER

Northern Arizona is beloved by many Arizonans as a shaded retreat from the desert heat, where Ponderosa pine trees and small-town charm define daily life and weekend trips. In recent years, the region, stretching from Flagstaff’s highaltitude innovation corridor to the fast-growing communities of Show Low, is turning its attention to making a larger impact on Arizona’s economic landscape.

Strategic investments in infrastructure, housing and workforce development are helping Northern Arizona transition from a quiet getaway into a dynamic hub for industry, entrepreneurship and sustainable growth.

Flagstaff

Perched at 7,000 feet and surrounded by the San Francisco Peaks, Flagstaff has always had a unique economic identity built on environmental conscientiousness and ski town entertainment. Today, that identity is evolving as the city doubles down on innovation, business attraction, and, as

always, sustainability.

“We break it down into business attraction and then business retention and expansion,” says Jeff McCormick, Flagstaff’s economic development manager. “Our strategic plan highlighted our strengths in astronomy, aerospace, aviation, advanced manufacturing, biomedical sectors, food processing, forestry products and of course, our strong sustainability focus.”

A centerpiece of Flagstaff’s entrepreneurial ecosystem is Moonshot, the city’s business incubator and accelerator. Currently home to 31 startup tenants, Moonshot offers local

entrepreneurs access to capital guidance, marketing support, legal counsel and mentorship, helping tenants transform ideas into scalable companies.

This focus on innovation is supported by targeted infrastructure projects:

- Flagstaff Pulliam Airport improvements and plans for a 32-acre adjacent technology park to attract bioscience and advanced manufacturing firms.

- Direct access to two interstate highways and the BNSF rail line, providing competitive logistical advantages.

- Business-friendly partnerships with Northern Arizona University (NAU) to connect graduates in engineering,

business, and healthcare with local employers.

Flagstaff is also tackling two of Arizona’s most prominent hurdles for growth in 2025: housing and skilled workforce shortages. McCormick points to projects like Milltown, a mixed-use residential development, and the J.W. Powell corridor plan as examples of the city’s continuing commitment to addressing these issues. Collectively the projects will add 5,000 new housing units over time, including options for students and workforce housing.

Sustainability remains a guiding principle for the municipality’s growth, with Flagstaff’s Climate Action and Adaptation Plan encouraging development with a commitment to long-term environmental stewardship. Local initiatives like the Innovate Green Challenge incentivize businesses to reduce emissions, conserve water and introduce green practices.

“Flagstaff wants to be around for the next hundred years,” McCormick emphasizes. “Sustainability isn’t just a buzzword, it’s embedded in every decision we make.”

Show Low

Nestled along the Mogollon Rim among the White Mountains, Show Low is experiencing its own transformation. Historically known as a tourism and recreation hub, the city is now diversifying its economic portfolio with industrial development, entrepreneurship and workforce-focused housing.

“We are very pro-growth and pro-development,” says Economic Development Director Steve North. “Our processes are designed to be quick, collaborative, and business-friendly. If you want to build in Show Low, we’re ready for you.”

Key focus areas for Show Low include:

- Industrial recruitment, particularly outdoor-focused manufacturers and aviation-related companies.

- The arrival of a new Amazon distribution facility, supporting distribution and logistics activity.

- A 20,000-square-foot business incubator and commercial kitchen, funded through Economic Development Administration

(EDA) grants, to support local entrepreneurs and food-related startups.

To support this growth, housing development are always top of mind.

Show Low’s workforce housing initiative provides impact fee waivers, sales tax rebates and flexible development standards targeted to residents earning 60-120% of area median income. In addition, public-private partnerships could deliver 250 new multifamily units, supporting teachers, first responders and retail employees.

North also highlights Show Low’s regional collaboration efforts. Through the REAL AZ development group, the city works with neighboring municipalities in Navajo and Apache counties to recruit companies and coordinate economic strategies, helping the broader region to grow together.

Building the foundation

Northern Arizona’s success hinges on more than just beautiful landscapes — it’s supported by strategic investments in infrastructure and workforce readiness. Companies such as Loven Contracting — which has active projects across the region — are delivering infrastructure built to connect communities, improve mobility and lay the groundwork for growth.

Among Loven’s most impactful projects are:

- Flagstaff’s Downtown Connection Center, a $25 million federally funded project serving as a transit and civic hub, built with American-sourced mass timber.

- Overpass and underpass improvements, including the Lone Tree overpass, designed to alleviate longstanding rail-related traffic bottlenecks.

- Transit-oriented housing connections, such as a new underpass linking future housing developments to Northern Arizona University.

“Flagstaff’s construction market remains strong,” says Jon Hansen, president of Loven Contracting. “We’re seeing a lot of investment in housing, infrastructure and community facilities that reinforce local workforces and support sustainable growth.”

This hands-on approach to infrastructure ensures that as new industries and residents arrive, Northern

EVOLVING IDENTITY: Flagstaff’s Econonomic Development Manager Jeff McCormick say the city plans to strengthen manufacturing, biomedical and other industries while remaining committed to sustainability.

(Photo by mdurson - Adobe Stock)

NORTHERN ARIZONA UPDATE

Arizona is prepared with the housing, roads and skilled labor needed to sustain long-term prosperity.

Northern Arizona on the rise

From Flagstaff’s tech-forward, sustainability-driven growth to Show Low’s pro-development, workforcefocused expansion, Northern Arizona is charting a clear path toward longterm economic success.

The formula is consistent across communities:

1. Invest in infrastructure to unlock new development.

2. Support workforce housing and training to keep talent local.

3. Foster entrepreneurship and industry diversification to build resilience.

As the Valley grows hotter and busier, the call of the high country is not just for recreation, it’s for the future. Businesses and residents alike are finding a place in Northern Arizona to thrive, innovate and contribute to another part of the state’s great economic story.

“We see a lot of opportunity within individual communities,” Hansen says, “from housing and workforce to making sure we have the fire stations, the police stations, the healthcare to support growth.”

As summer temperatures continue to creep up in the Valley and Tucson, McCormick concludes “Flagstaff will be the benefactor of that, attracting businesses that want to expand but also enjoy the 25- to 30-degree difference.”

Jeff McCormick Steve North Jon Hansen

SHOW LOW GROWTH: Historically known as a tourism and recreation hub, the city is now diversifying its economic portfolio, focusing on industrial development and entrepreneurship, while encouraging the construction of workforce housing for employees. (Photo by Jacob - Adobe Stock)

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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

BALANCING ACT

Will more multifamily units tip the Valley’s market into oversupply?

ARIZONA MULTIHOUSING ASSOCIATION

WHAT’S THE OVER/UNDER?

Phoenix’s multifamily growth leaves market balance in question

By KYLE BACKER

Following the onset of the pandemic, Arizona managed to further diversify and expand its economy, cementing its reputation as a top-tier commercial hub — bringing both prosperity and new problems. As residents and businesses poured into the Valley, demand for multifamily housing outstripped supply, leading to higher rents and diminished affordability across the region. Developers responded with a burst of apartment construction that tamped down rents and increased vacancy, leaving some observers concerned about the balance of the market.

“To be candid, I’m not sure if we’re over or underbuilt,” says Justin Steltenpohl, CEO of P.B. Bell. “If I had to choose, I’d say Greater Phoenix is still under. 2022 was the first year we had around 10,000 units built, then that number increased substantially to 28,000 in 2025.”

Even though more multifamily housing has been built recently, Steltenpohl says focusing just on the past few years doesn’t capture the long-term trends. He sees it like this: if 12,000 units were needed annually for a decade and a half, but during 12 of those years only 8,000 were built, there would be an 84,000-unit shortfall.

“The problem is the entire backlog came to market within a few years,” Steltenpohl continues. “It reminds me of ‘Tom and Jerry’ when there’d be kinked garden hose, and a huge bubble would grow until it sprayed water everywhere. Right now, we’re all feeling like a wet cat.”

Data drivers

The factors leading to the surge of apartment construction can be traced back to a combination of economic and demographic drivers. Connor Devereux, director of market analytics for CoStar Group, notes that Maricopa County was the third fastest growing in the nation in 2024, climbing up a spot in the rankings. New residents tend to be renters, adding to overall demand.

“One of the explanations for why folks continue moving to Phoenix is that we’re a relatively affordable market. People leave places like L.A. or the Bay Area and end up saving thousands each month on housing expenses,” Devereux says. “We also draw population from the Midwest, primarily for career reasons.”

Steltenpohl points out that the development of multiple industries in the Valley — such as advanced manufacturing, biotechnology and

healthcare — over the past decade has made the market more attractive.

“That brings people here, and they need places to live,” he continues. “It’s impressive that we’ve been able to absorb all the units we have in the past few quarters considering the sheer amount that have come online.”

Prior to the pandemic, the Valley consistently outperformed the U.S. average in terms of job creation. In the half-decade leading to the outbreak of COVID-19, Devereux notes Phoenix recorded approximately 4% annual job growth compared to the nation’s nearly 3%.

“Phoenix also did not lose as many jobs as the U.S. overall, making our pandemic recovery much swifter,” he continues. “But employment growth has slowed considerably during the back half of 2024 and into 2025. That’s worth monitoring to see how it impacts underlying apartment demand.”

The unemployment rate is still lower than the national average, but Devereux describes the Phoenix market as being in a holding pattern where most companies aren’t accelerating the pace of hiring — but not enacting layoffs either.

“There’s this weird paralyzing stalemate, which I think is largely driven by uncertainty around tariffs and the future path of monetary policy. It’s hard for businesses to make long-term hiring decisions when they don’t know what sort of environment they’ll be operating in,” Devereux continues. “Hopefully, once we move past these current challenges, we’ll see employment pick up again as employers have a better understanding of the playing field.”

Another metric influencing multifamily demand is consumer confidence, which is a survey of people’s feelings regarding the direction of the economy. When people feel uneasy about their financial situation, they’re less

(Image licensed from ©Adobe Stock)

ARIZONA MULTIHOUSING ASSOCIATION

likely to sign a new lease or move across the country to take a job in Phoenix.

During the first half of 2025, Devereux notes that consumer confidence plummeted, but as tariffs were delayed and the stock market improved, optimism started to build. The big question, Devereux says, is if the recent period of low consumer confidence will translate to less renters overall as it has in the past.

“So far, there has been a disconnect between soft data like consumer confidence versus hard data like inflation,” he continues. “A lot of economists are wondering if this negative soft data reading portends future macroeconomic weakness. If consumer confidence bounces back to 2024 levels, that bodes well for the demand outlook. If it weakens again, we might be in for some softening.”

Correction incoming

As it stands today, renter demand has remained strong in the Phoenix market. Devereux notes that over the last four quarters, almost 18,000 units were absorbed — nearly twice the amount when compared to prepandemic data.

“We’re actually above where we were in 2020 and 2021,” he continues. “The challenge is that demand is being spread out across a greater number of units since construction has also been high. This means individual property owners aren’t feeling the impact as much, especially since many of these renters end up in newly built apartments.”

Jamison Manwaring, co-founder, managing partner and CEO of Neighborhood Ventures, adds that an important milestone was reached

early this year when more units were absorbed than delivered.

“That suggests demand is now basically equal to supply,” he continues. “If you look at the next few years, new construction falls off a cliff. It takes anywhere from two to four years to build, so once interest rates come down and projects start again, there will be a period where we’ll have a shortage of units compared to demand.”

One of the factors supporting this demand is that wages have risen faster than rent over the last two years, making housing more affordable. At the same time, single-family homes have become more expensive.

“It used to be much easier for someone to jump from a Class A apartment to owning a house,” Devereux explains. “But home prices have surged 65% from the fourth quarter of 2019 through the first quarter of 2025 and mortgage rates have more than doubled.”

On the other hand, Steltenpohl notes that renter demographics are also shifting. More young people are choosing to live in apartments after seeing how the Great Recession impacted their parents’ finances.

“Most of the people who rent our apartments could afford a home, but they either just don’t want to, or they want to live in area where homeownership would be too expensive,” he continues.

Even though multifamily demand is robust, it hasn’t kept pace with apartment deliveries. The good news, Devereux says, is the spread between these two indicators has narrowed recently, signaling that the market is approaching stability. Still, with

upwards of 30,000 excess units to work through, vacancies have risen — leading to lower rents and stiffer competition for tenants.

“Something like 55% of properties are offering some form of discount,” he continues. “New builds in high growth areas are where renters are most likely to find the best deals — six to eight weeks of free rent is pretty standard right now. I expect concessions will remain elevated throughout 2025 and the first half of 2026 as supply side pressure abates.”

Manwaring adds that the influx of new supply has given renters more options, with many opting to move into new builds because those operators need to lease hundreds of units quickly and are offering rich incentives to reach that goal.

“That has kept rents flat, but we do forecast that we’ll get back to a deficit of new construction in the next few years,” he continues. “Right now, we’re still absorbing all the supply that has come to market.”

As that happens, Steltenpohl expects rents to start ticking up and concessions to come down. This correction, he says, has already begun and will allow the Phoenix market to reach relative normalcy within 12 to 18 months.

Looking forward, some unknowns remain regarding whether the Valley is over or underbuilt, but Devereux is sure of one thing:

“Between the Phoenix apartment market’s incredible performance following the pandemic and this slowdown over the last couple of years,” he concludes, “it feels like we’ve been in the front row of a rollercoaster.”

Jamison Manwaring Justin Steltenpohl Connor Devereux

MONEY

AMA Board Chair Adam Greco explains how the association goes beyond boosting profits

By ISAAC CHAVEZ

rizona is amid an economic expansion, with companies from around the country and world choosing the state as a worthwhile place to do business. At the same time, population numbers continue to tick up as more people answer the desert’s call. Having the appropriate amount of housing for newcomers and sunsoaked locals alike is crucial to maintaining sustainable growth. That’s why the Arizona Multihousing Association (AMA) seeks to bolster the apartment industry, ensuring ethical, quality rental housing is available throughout the Grand Canyon State. AZRE magazine sat down with AMA Executive Board Chair Adam Greco, director of portfolio development for Mark-Taylor Residential, to learn more about his involvement with the association, the value it brings to members and the community at large, and his thoughts on the multifamily market. The following responses have been edited for clarity and length.

AZRE: How did you get involved with the AMA?

Adam Greco: When I first moved here from Chicago in 1999, I had a drive to understand real estate here in the great state of Arizona. After I made a few connections while preparing for my licensure test, someone suggested that the multifamily sector might be the best fit for my personality. Over the next couple of years, I gradually worked my way up from a leasing agent to a manager, and that’s when I was introduced to the AMA.

A big part of what the association does is education, so I attended some classes and networking events where I met people who ended up being mentors and long-term friends. I started to get more involved with committees, then I

(Image licensed from ©Adobe Stock)

I’ll say this time and time again — I was never so scared in my life. As a young professional, I just wanted to make sure I didn’t mess anything up and was actually contributing to the board’s initiatives. From then on, my role and engagement continued to grow. I’ve been in the business for 27 year now, and I consider myself lucky to be involved with the AMA and our industry.

AZRE: As chair of the executive committee, what are some of the goals the AMA is currently working towards?

AG: There are four pillars that we are focusing on this year: engage, elevate, advocate and promote. On the last point, we want to show the public that our industry creates jobs and champions philanthropic initiatives — not just the AMA itself, but what management companies and ownership groups are doing throughout the state. Promoting these efforts isn’t so people can make more money — it’s about giving back and being a part of the community.

AZRE: What value do you think the AMA provides its members?

AG: Beyond the learning opportunities, the AMA is involved in legislative advocacy. Most people think we only do

AZRE: In light of the growth we are experiencing, what are your thoughts regarding the state of the market?

AG: We’ve been in a pretty substantial growth period when it comes to delivering new products. In the Valley, we have delivered over 70,000 units, with another 30,000 units or so coming over the next two years. This means that it’s never been a better time to be a renter. Since we have a bit of an oversupply in the multifamily market, people have options. Rents aren’t high, and depending on the area of town, they can receive some great concessions.

AZRE: You mentioned the multifamily market has added a significant number of units. Are we in danger of being over built?

AG: As our population continues to increase, we will probably find an equilibrium going into the end of 2026 maybe the beginning of 2027. Right now, we do have an influx of apartment units in Phoenix, Tucson and Flagstaff, so there will be a bit of struggle to lease those up.

But again, that is a direct result of Arizona being such an desirable,

more units?

AG: There will always be a couple hoops you have to jump through, but the AMA and Capitol Consulting have done an amazing job on the development side. House Bill 2447 was signed this year which requires municipal legislative bodies to authorize administrative personnel to review and approve site plans, land divisions, design review plans and related applications based on objective standards. That will speed up a process that would sometimes take several years to finish, resulting in lower costs for developers and greater affordability for residents.

AZRE: There has been talk of turning old hotels or offices into multifamily spaces — do you think this is a feasible route to bringing more units to the market?

AG: It’s something that we absolutely need to look at. Converting an office may be a little bit more difficult than it sounds because you’re taking a large open space and redesigning where plumbing and electrical lines need to go. Hotels will be a little bit easier to do that with. It won’t solve all our challenges, but it is a good option.

(Image licensed from ©Adobe Stock)

ARIZONA’S POPULATION IS EXPLODING

We can solve the housing supply shortage. To do so, we must build more rental apartments and homes to meet our growth in population. If we don’t, Arizona risks falling further behind, sending housing prices higher.

Arizona needs 17k new apartments annually to meet demand

is what Arizona apartment residents contribute to the local economy annually

Over 97% of valley rentals are occupied (highest rate ever recorded)

17k 270k 300 $66.8B 97% 20

For every available rental unit, there are 20 applicants

According to the Arizona Department of Housing, 270,000 new housing units are needed to meet demand people on average move to Arizona daily

ARIZONA MULTIHOUSING ASSOCIATION

HOUSE RULES

How the 2025 legislative session will impact Arizona’s multifamily industry

By KYLE BACKER

After 169 days of deliberation, the Arizona Legislature adjourned on June 27, avoiding a government shutdown and concluding the lawmaking season. Of the issues affecting the state, the current housing shortage remains a highly salient topic for voters due to its impact on affordability today and its potential to hinder future growth. A coalition of organizations are advocating for policy solutions to this mounting problem, including the Arizona Mulithousing Association (AMA).

“During the last few legislative sessions, we’ve been fixated on the zoning and entitlement process so projects can go from concept to certificate of occupancy as quickly as possible,” explains Courtney LeVinus, president and CEO of the AMA.

In 2025, she continues, two bills were signed by Gov. Hobbs that streamline

local approvals and expand opportunities for multifamily development. House Bill 2447 requires municipalities to authorize administrative personnel to approve site plans, land divisions and design review plans — removing the need for a public hearing.

The goal, LeVinus says, isn’t to prevent local governments and residents from having a say on what is built. Instead, she advocates for striking a balance where municipalities can respond to the needs of their communities without having drawn out entitlement procedures.

“We’ve seen a rise in NIMBY groups weaponizing the process to drive off multifamily developments,” LeVinus notes. “There is a lot of misinformation out there, like apartments bring crime, increase traffic and overburden schools. We deal with these false narratives on a daily basis.”

Another successful effort to expedite multifamily development was House Bill 2110, which directs cities with populations of 150,000 or more to permit adaptive reuse or new development on at least 10% of commercial, office or mixed-use parcels.

“This bill was a cleanup of last year’s House Bill 2297,” LeVinus says. “Commercial space that is functionally economically obsolete can now be converted to multifamily either by using the existing structure or demolishing it and building new units from the ground up.”

Elliot D. Pollack & Company was commissioned by the AMA in 2024 to conduct an economic impact study following the signing of House Bill 2297, which found:

• Up to 150,263 multifamily units and 15,026 affordable and workforce housing units could be brought to

(Image licensed from ©Adobe Stock)

ARIZONA MULTIHOUSING ASSOCIATION

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” One of these perennial initiatives is a push for rent control as a solution for housing affordability.

market throughout Arizona.

• One-time tax revenues generated by construction are estimated to be $4 billion for the state, counties and cities.

• The legislation removes barriers of multifamily development that will help the market more easily respond to future demand, keeping future rent increases more stable.

“All those units could be brought online without going through rezoning, which can be anywhere from a twoto-four-year process,” LeVinus adds. “We’re trying to get more housing to market as quickly and efficiently as we can. This legislation helps us get there.”

Protecting operators

The construction of new apartments will help meet increasing demand as Arizona continues to grow, but the sticks and bricks are only one side of the housing equation. These communities require companies to manage them, and the AMA supports policies that create a fair regulatory environment for the industry.

For example, the association supported House Bill 2068, which provides liability protection if a service animal injures another resident, their pet or otherwise causes damage.

“We have seen a surge in these kinds of lawsuits,” LeVinus says. “The challenge for property owners and managers is that they have to allow service animals because of the Fair Housing Act and the Americans with Disabilities Act. House Bill 2068 was

patterned after what other states have implemented, and its signing was a big accomplishment for us.”

During the 2025 legislative session, the AMA also fought to preserve the Arizona Residential Landlord Tenant Act, which outlines the obligations and remedies for both parties in a rental agreement. LeVinus notes that 41 bills were introduced targeting the law — all of which were defeated.

“More bills like these are coming forward each year,” she continues. “For the most part, they don’t make it through committee, but it’s still concerning for the industry.”

One of these perennial initiatives is a push for rent control as a solution for housing affordability. LeVinus argues that it may sound like a simple solution, but the reality is rent control reduces supply, making housing more expensive. Property values tend to decrease in rentcontrolled communities, which she says ultimately reduces revenue for local governments, impacting public services.

Instead, the AMA advocates for solving the underlying issue — a lack of housing — through policies that enable units to come to market quickly.

“We know that price controls don’t work,” LeVinus says. “Just look at Saint Paul. Several years ago, they implemented a stringent rent control ordinance, and new development dropped 80% because it doesn’t make financial sense for companies to build

there. In Arizona, rent has decreased in many submarkets because we’ve permitted more rental housing in the last few years than we have in decades.”

Work remains

While the AMA had victories to celebrate after the close of the legislative session, LeVinus says there is still much to be done. The association supported the continuation of the Arizona Department of Housing, which did succeed — but only for two years. The hope was for a longer extension, but she says the AMA will continue to advocate for the department’s existence.

The state’s Low Income Housing Tax Credit program, however, was not lucky enough to merit even a half-measure.

“Arizona is now the only state in the union to implement something like this and then allow it to sunset,” LeVinus says. “That is unfortunate because those public-private partnerships help create the most affordable units, which are the ones we need. We’ll be back next session focusing on resurrecting that program.”

When evaluating the progress made in 2025, LeVinus says there was a mix of good and bad.

“Positive steps were taken to get more units to the market faster, which is good. But I feel Arizona missed the boat on supporting programs that help those that need it most,” she concludes. “That means we’ll have more to do next year — there’s never a dull moment when it comes to the legislature.”

Courtney LeVinus

at ann.mcsherry@azbigmedia.com and let AZ

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