Commercial Real Estate 2013 - Inside Tucson Business by Territorial Newspapers

SPECIAL REPORT Commercial Real Estate 2012 Multifamily sector: Student housing shines Industrial sector: Strong absorption retail sector: Challenging future

Ofﬁce sector: Frozen market warms up Land sector: Late land surge proﬁle: CCIM helps get deals done

Other than student housing, progress was good enough Rewind the tape. Play it again, Sam. Déjà vu all over again. In many ways, the Tucson region’s commercial real estate market performance in 2012 was akin to 2011. Improvement was slow, sluggish and incremental. The economic recovery was a grind, not fast enough to satisfy anyone.

After four years of doom and gloom, going slow was OK in 2011. Coming off the bottom, the progress made during 2012 was good enough. For 2013, expect more of the same — slow job growth, slow consumer spending, slow in-migration and slow population growth. Nationally, there is still much

uncertainty regarding the Affordable Health Care Act, business regulations, tax rates and the “spending cliff ” called sequestration. As a result, much of the commercial real estate market across the U.S. remains frozen in a wait-and-see position until the federal government clarifies its policies.

Except student housing. In the Tucson region, the multifamily category was the rock star of 2012, characterized by some as “the darling” of commercial real estate. About 1,000 units were completed in 2012 and another 1,200 are expected this year.

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george Howard

BY ROGER YOHEM

Downtown, a mix of new construction, rehabs and traditional apartment projects are developing. The jewel will be the $33 million Cadence, designed to house some 500 students.

2 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

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OVERVIEW

COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

Essentially, all new construction was build-to-suit, for owner-occupied businesses or by developers who had tenants pre-leased to occupy the space. Although the region has many outdated and functionally obsolete commercial buildings, little spec building is expected in 2013.

National players such as Campus Acquisitions and Core Campus came to Tucson after sitting offstage for years. The industrial sector also had a solid showing, highlighted by higher occupancy and the sale of several high-profile buildings. Last year, eight industrial buildings valued at $1 million or more were sold. Two of the more prominent parcels were the Pella manufacturing site on the southwest side that had been vacant since 2009 and the American Airlines reservations call center near the Tucson International Airport. Retail real estate remained in a cycle of “right-sizing,” a phase likely to continue through 2014. New competitive pressures from e-commerce, shifting population demographics, and a brutal financial hangover from the Great Recession have the market unsettled. The office category, which is reliant on small business growth, stagnated with few notable gains. More than any other sector, office activity was impacted by a fragile Tucson economy and the ongoing political issues coming from Washington, D.C. As businesses put off start-up and expansion plans due to the uncertainties, others moved to reduce their risks. National home builders returned

to Southern Arizona last year, creating a “land surge.” Builders now control all the developed lots along Marana’s hot Tangerine Corridor and have begun buying dirt again in Vail on the southeast side. Residential land sales doubled to $112 million in 2012 from $54 million in 2011. Of the new total, builders grabbed $71 million worth of land. While interviewing a few dozen real estate brokers, executives and analysts for this report, all made the same point, over and over again: Tucson’s economy is slowly getting better, but ... where are the jobs? Significant job creation is needed in the private sector. Until that happens, the Tucson region’s economic recovery will continue to lag behind other areas of the U.S.

Contact Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

About the data

statistics cited in this special report were provided by Picor commercial Real Estate services, chapman Lindsey commercial Real Estate services, Tucson Realty & Trust, costar Group, cBRE and Land Advisors organization. Inside Tucson Business soought to verify the accuracy and representation of the information and in cases where data did match exactly, either an average or median number was used to best represent those market conditions.

Tucson Medical Center’s towering 200,000 square-foot addition, known as The West Pavilion, will open this spring on the hospital’s campus at 5301 E. Grant Road. The expansion is part of an ongoing $109 million construction improvement program at the hospital. Tucson Orthopaedic Institute will occupy the first floor. The second and third floors will house 24 state-of-the-art operating rooms and the fourth floor is for 40 private patient rooms.

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PROGRESS Continued FRoM Page 1

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MULTIFAMILY SECTOR

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Student housing shines as ‘darling’ of regional market To loosely borrow a political quip about former President Bill Clinton, Tucson is caught up in a love affair of torrid “triangulation.” The City of Tucson, University of Arizona, and commercial developers have bonded over a red-hot passion for student housing. “That is the number one story in commercial real estate: the multi-family sector. We have a significant construction cycle,” said Michael Sandahl, senior vice president specializing in investment sales for CBRE. The rise of student housing near the UA campus and downtown along with traditional apartment projects across the region “is long overdue,” added Bob Kaplan, a principal with Picor Commercial Real Estate Services. “We have not had good-quality stock of student housing near campus. And Tucson is always way behind other cities when it comes to development in general.” Sandahl and Kaplan identified four key factors driving the multi-housing construction cycle. Two of them are sector-specific: most inventory is old and outdated and strong pent-up demand for amenity-heavy product. “Tucson has an aged apartment inventory. The construction pipeline has been at a very low number, virtually non-existent for years,” said Sandahl. About half the region’s 60,000 apartments were built in the mid-1980s. Today, that product is worn, inadequate and undesirable. Tenants want vibrant living spaces that feature upgraded appliances, upgraded ﬂoor and window coverings and access to technology. About 1,000 units were completed in 2012 and another 1,200 are expected this year. Occupancy has hovered at around 90 percent for the past few years. “This new construction is so positive for the community. To attract and keep younger people here, we need effective housing,” Kaplan noted. The third key factor driving multi-housing construction is financial. Low interest rates have made site acquisition, construction and financing costs more affordable. Kaplan said the Great Recession changed the economics of development and quite simply, “the numbers didn’t pencil out until recently.” The fourth factor is local politics. Ultimately, that dynamic may turn out to be the most significant element.

‘Up-zoning’ was key

In February 2012, the Tucson Mayor and Council approved the Main Gate Overlay District, basically an “up-zoning” of property west of the UA campus to create high-density development along the Sun Link modern street car route. The overlay district covers 54 acres surrounding the Main Gate Square de-

Hendricks & Partners

Roger Yohem Inside Tucson Business

Through 2014, over 3,000 new apartments for college students are being planned

“Mayor (Jonathan) Rothschild pushing through the Main Gate BY THE NUMBERS zoning changes was a huge accomplishment during his first year. It Tucson Multi-housing sales/prices could be his legacy achievement,” Year Units Total Sales Avg. Price/unit Avg. Price/SF said Amber Smith, executive direc2012 3,861 $287 million $74,399 $86.45 tor of the Metropolitan Pima Alli2011 3,106 $107 million $34,380 $59.04 ance. “Students must have hous2010 4,357 $148 million $33,858 $52.18 ing and these projects offer that as opposed to students being limited to living in the nearby historic velopment on University Boulevard. The overlay district plan removed the neighborhoods.” National companies that specialize in zone’s 40-foot building height limit and allowed for the construction of 16 new build- Class A student housing have for years wanted to do high-rise projects in Tucson. But ings, some up to 14-stories tall. The initiative was a game-changer, sig- with their narrow, precise business models naling to the broader banking and invest- and terms, the dynamics were never quite ment community that Tucson government right so they invested in other cities. “That changed with the up-zoning, the was taking action to change its anti-business trigger to getting them here,” said Kaplan. reputation.

BIZ FACTS

In May 2012, Chicago-based Campus Acquisitions broke ground on a $25 million, 14-story project called Level. The tower at 1020 N. Tyndall Ave. will house more than 550 students when it opens in August. The second phase is an adjacent 13-story tower called Park Avenue, at 1031 N. Park Ave., for about 580 students that will be ready for the UA’s 2014 fall semester. Also nearby, Core Campus, also based in Chicago, is planning The Hub at Tucson, a 14-story tower at the northwest corner of First Street and Tyndall Avenue that will house 600 students and also plans to open by August 2014. And south of the campus, at 1000 E. 22nd St. at Park Avenue, The Retreat, 183 cottagestyle units with a total of 774 beds on 22 acres is gearing up to open this year. A notable completion near campus in

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MULTIFAMILY SECTOR

COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

2012 was The District on Fifth, 550 N. Fifth Ave., a $67 million luxury project with 756 beds. Downtown, a mix of new construction, rehab and renovations, senior, and traditional multi-family projects are developing. The most prominent will be Cadence, a $33 million student housing project wedged onto 2.5 acres on downtown’s east edge. The tech-friendly complex is under the direction of developer Jim Campbell of Oasis Tucson in partnership with Capstone Development Partners, Birmingham, Ala. Two six-story buildings are rising across from each other on Toole Avenue; one at Broadway and Toole Avenue adjacent to the Rialto Theatre on East Congress Street and the other, three ﬂoors added to the top of Centro Garage that was opened in September 2012. The entire Cadence project includes commercial retail space as well as housing for about 500 and is due to open by August. “It’s an exciting project, that should add life to downtown,” said Sandahl. “To go downtown, the trigger was light rail. To revitalize downtown, you have to have people living there and Cadence will do that,” added Kaplan.

Contact reporter Roger Yohem at ryohem@azbiz. com or (520) 295-4254.

ABOVE The $25 million, 14-story Level will house some 550 students. RIGHT Robert Perez (left) of BSH Construction reviews plans for rehabbing The Herbert with Ron Schwabe of Peach Properties.

george Howard

The rehab-renovate-revitalize triangulation of the urban core also attracted traditional apartment builders in 2012. Tucson developer Ross Rulney bought and redeveloped the entire block of 118 S. Fifth Avenue for about $4 million. It is the site of the historic Julian Drew Building/ Lewis Hotel. On the same block, he converted an aged apartment building, Tiburon Apartments, to The Flats at Julian Drew and put 53 conventional apartment units into play. For low-income seniors, a $27 million complex called The Sentinel, 795 W. Congress St., was built by Senior Housing Group, based in Chicago, and Evergreen Partners, based in Portland, Maine. It is replacement housing for low-income residents of Armory Park Apartments, 211 S. Fifth Ave. In turn, the 40-year-old Armory Park Apartments were acquired for about $3 million by a partnership of Tucsonbased firms Peach Properties and Holualoa Arizona. They are spending another $4 million to convert them into 144 modern, market-rate apartments to be called The Herbert. Based on his other ventures, “we’re also seeing demand for product downtown for older, more mature tenants,” said Ron Schwabe, owner of Peach Properties. “We’re going the other direction away from students.” Although student housing gets the headlines, traditional apartment construction is happening across the region. Tucson developers Alta Vista Communities, HSL Properties, and MC Companies are all active “and more new product is being planned region wide,” Sandahl added. While all sectors of commercial real estate improved last year, “the darling of this cycle’s recovery has been multi-housing. People who lost their homes to foreclosure moved to rentals. Additionally, the demographic wave of Generation Y or Millennials, generally those born from the late 1970s to early 2000s, continue to support the rental stock. The age group has a greater likelihood of renting so they can remain footloose to follow job availabilities,” said Asieh Mansour, senior managing director of CBRE Global Research. “The demand has been driven by a change in the way households view multi-housing rentals. Rental housing is no longer viewed as an inferior product,” she said.

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Renovations active

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INDUSTRIAL SECTOR

Veiled improvements set stage for stable 2013 2012 largest transactions Largest building sales $13.4 million at 6990 S. Palo Verde 63,800 square-foot building Seller: Michael Wattis Inc. Buyer: Titanium Real Estate $5.25 million at 6700 S. Pella Dr. 257,600 square-foot building Seller: Pella Corporation Buyer: BH Properties LLC $5.1 million at 335 E. Valencia Road 85,000 square-foot building Seller: AMR Corporation Buyer: Freeport-McMoRan Corp.

Photo courtesy of ReCommunity Material Recovery

$4 million at 2650 E. Elvira Road 110,026 square-foot building Seller: Veeco Instruments Buyer: Zygo Corporation

ReCommunity Material Recovery completed its massive recycling facility in July.

By Roger Yohem Inside Tucson Business Commercial real estate’s industrial sector data deserves a close look. Critically close, because there are some hidden improvements to be found deep inside the numbers. As lease rates dropped slightly in 2012, occupancies ticked up. That’s logical: lower prices attract tenants back into the market. At year-end, the vacancy rate was 11.9 percent, down from 12.2 percent at the end of 2011. What’s a bit unexpected, unless you’re a stat-geek, is the veiled progress in occupancy. Last year, some 206,000 square feet was added to the inventory. That brought the sector’s total space to 39.4 million square feet. Net absorption for 2012 was positive 306,000 square feet. So a critical look at the stats shows that the demand for space was over 500,000 square feet. “With consolidation largely in the rear view mirror, signs point to a more stable market. With less concern about business survival, tenants are seeking longer-term leases, looking to lock in rates that are at or near the bottom,” said Rob Glaser, a principal and industrial broker with Picor Commercial Real Estate Services. “Absorption was the best since 2007,” he added. The sector’s lease market “is inching toward balance, but we do not predict

equilibrium until vacancy decreases to 8 “percent,” he added.

6 new buildings

Six new buildings were completed in 2012, adding 206,654 square feet to inventory, according to CoStar Group. American Tire Distributors built the largest new facility at 6720 S. Alvernon Way. The 100,000 square-foot warehouse and distribution complex is packed with high-tech lighting, fire and business technologies, and includes 17 loading docks. ReCommunity Material Recovery, 3780 E. Ajo Way, erected the second-largest building in the region at 59,041 squarefeet. The company processes aluminum, steel, glass, newspaper and mixed cardboard scrap from the City of Tucson’s residential recycling program. “Clearly, all of this construction was driven by build-to-suit activity. That is expected to dominate the market again in 2013 due to the limited supply of functional space,” said Tim Healy, vice president at CBRE.

8 large sales

During 2012, there were eight industrial building sales valued at $1 million or more. In the biggest, at $13.4 million, Chicago-based Titanium Real Estate Advisors acquired a 63,800 square-foot complex at 6990 S. Palo Verde Road. The sales price amounted to $209.48 per square foot.

The second largest sale, at $5.25 million, also was the largest property in size: the 257,600 square-foot building that was the former manufacturing facility for Pella Windows, 6700 S. Pella Drive. The building had been vacant for more than three years after Pella shut it down in 2008 in response to slow demand for its products. BH Properties LLC acquired the facility as an investment. The property had been listed at $9.9 million. The $5.25 million purchase price was considered a bargain at $20.38 per square foot. Although the Pella building sold, it remains empty, noted Glaser. But because “activity is percolating,” he believes there is a good chance the site could be leased sometime this year. The vacant 300,000 square-foot Lisa Frank Building, 6760 Lisa Frank Ave. near Tucson International Airport, also is likely to lease or sell this year. “Tucson is the only Southwest city with 11 vacant industrial buildings that are 100,000 square feet or larger. That could accommodate a company looking to relocate immediately and not have to wait for new construction,” said Chuck Blacher, industrial specialist with Tucson Realty & Trust. “There should be no new speculative building by investors until the inventory is reduced. It’s still a tenant’s market. Those are positives,” he added.

$2 million at 4400 S. Santa Rita Ave. 38,988 square-foot building Seller: Multi-Fineline Electronix Buyer: Involta LLC Largest lease 101,226 square feet at 6950 S. Country Club By: Solon America Largest new building 100,000 square feet at 6720 S. Alvernon Way Owner: American Tire Distributors

By the numbers Industrial sector stats

Base space 2012: 39.4 million square feet 2011: 39.2 million square feet 2010: 39.1 million square feet Vacancy rate 2012: 11.9 % 2011: 12.2 % 2010: 11.2 % New construction completed 2012: 206,654 square feet 2011: 128,659 square feet 2010: 55,873 square feet Net absorption 2012: 306,347 square feet 2011: -285,521 square feet 2010: 76,327 square feet Average asking rent 2012: $6.17 per square foot 2011: $6.33 per square foot 2010: $6.49 per square foot Flex space average rent 2012: $7.64 per square foot 2011: $7.64 per square foot 2010: $8.44 per square foot Warehouse space average rent 2012: $5.78 per square foot 2011: $6.00 per square foot 2010: $6.00 per square foot Source: CoStar and CBRE

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classified as warehouse: 29.9 million square feet in 1,971 buildings. Overall, only 103 buildings totaling 4 million square feet are owner-occupied. At year-end, only one industrial building was under construction, a 17,000 square-foot project at 4475 S. Coach Drive for the federal government. “Sales to owner/users are way up over the past five years. About 85 percent have been to owner/users and just 15 percent to investors,” Blacher noted. About 85 industrial properties sold last year and current listings offer about 150 buildings for sale at 1,000 square feet or larger. That leaves a 20-month supply in the market, said Blacher.

Currently, there is 4.7 million square feet of space for lease. Although that is only a net decrease of 99,700 square feet compared to 2011, the trend is significant. “Many tenants are seeking long-term leases again, a sign that confidence in their businesses and the economy is returning,” said Healy. “The market gained some momentum in 2012. This year, expect over a half-million square feet of positive absorption to drive down vacancy and new construction projects to push up rental rates.” Glaser characterized the new momentum as “a lot of little positives.” The sector should benefit from a “new synergy” of low interest rates; fewer distressed properties; improving consumer confidence; a better

In the hotel sub-sector, the high-proﬁle Aloft Tucson University Hotel, 1900 E. Speedway, will open in mid-2013. The 40-year-old, 95,000 square-foot building is undergoing a complete transformation into an urban, contemporary complex. It is being renovated by Scottsdale-based Linthicom Corp. at an undisclosed price.

Tucson housing market; growing business activity in Mexico; and “those eight big sales.” He also noted that the community’s economic development representatives “have re-engaged” after years of little activity. “We’ll also benefit from Phoenix, one of the nation’s three hottest commercial markets last year. As that space dwindles, investors and businesses will expand their search for properties into Tucson,” Glaser said.

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

Roger Yohem photos

Other large sales included Freeport-McMoRan Copper & Gold acquiring the former American Airlines call center at 3350 E. Valencia Road for $5.1 million a month after the airline shut it down. Also, Zygo Corporation bought the 110,000 square-foot former Veeco Instruments building at 2650 S. Elvira Road for $4 million. “The market for both user and investment sales is improving, aided by very competitive interest rates. Though values are still quite soft with no real pressure, activity is up, including a fair amount of REO listing and sales,” said Glaser. The Tucson market now has 39.4 million square feet of industrial space in 2,436 buildings. A large majority of that space is

INDUSTRIAL SECTOR

COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

At year-end, the only notable project under construction was a 15,000 square-foot building in the central industrial sector on south Palo Verde Blvd. north of Interstate 10. The structure is being built for the federal government.

8 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

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RETAIL SECTOR

Technology and demographics challenge retail’s future Largest Transactions Largest building sale Tucson Spectrum, Interstate 19 and Irvington Road $125.4 million ($176.58 per square foot) Cap Rate: 6.93% Largest new building 156,000 square feet 1260 E. Tucson Marketplace Blvd. Retailer: Wal-Mart Largest lease 50,000 square feet 5545 E. Broadway Retailer: Hobby Lobby Largest under construction 92,660 square feet 2711 S. Houghton Road Retailer: Wal-Mart Completion: April-June 2013

By the numbers

George Howard

Base space 2012: 50.99 million square feet 2011: 50.95 million square feet 2010: 50.48 million square feet

Six retailers will occupy the completely renovated Benenson Retail Center.

By Roger Yohem Inside Tucson Business Retailers have faced operational, economic and competitive pressures going back to before Rowland Hussey Macy estabalished R.H Macy Dry Goods in New York in 1858 or Montgomery Ward & Co. made its first sale in 1872 in Chicago. Delivering goods by stagecoach was a challenge and merchants in distant cities had grown to serve their consumers. After witnessing Ward’s mail-order success, Sears, Roebuck & Co. launched in 1893. James Cash Penney followed suit, opening his namesake store in 1902. Over the next 100-plus years, these and other dry-goods merchants expanded and became powerful retailers with thousands of stores across the nation. Other players, including Target and Wal-Mart gradually entered the field to compete for customers. For decades, business was good until a new kind of competition made a dramatic impact, e-commerce shifting demographics, and an economic hangover from the Great Recession. “Retail always has had cycles. Now there’s the technology evolution with the Internet. The recession cycle changed con-

sumer behavior, everyone is very price oriented. Getting a deal is in vogue,” said Greg Furrier, a partner in Picor Commercial Real Estate Services. “People are watching their money. That has spread through the entire economy.” E-commerce is one of the most dynamic changes. The technology is shredding traditional business models by taking away sales from physical “brick-and-mortar” store locations. Changing demographics are another game-changer. Aging Baby Boomers are saving for retirement and spending less on material items. Essentially, they already own most of what they want. Generation X, those born from 1965 to about 1980, is a smaller demographic group just now entering their prime earning years. Millenials, those born from about 1980 to 2000, prefer a high-density, urban lifestyle experience. “Shopping dynamics are changing. I don’t see the expansion of any traditional department stores. The opportunities being taken by the national retailers are to reposition their space in better locations,” said Nancy McClure, first vice president specializing in retail for CBRE. These younger consumers are likely to

reside and work in urban environments, and shop close-by while continuing their online purchasing. “That’s why the Benenson redevelopment is a statement piece. It is clearly a big space on a permanent corner in a major regional retail hub,” said McClure. “Projects on the periphery will be challenged. Unanchored, mid-block strip centers will continue to see more vacancies than wellanchored prime sites.” The Benenson Retail Center was developed on the 7.4 acre parcel at the northeast corner of East Broadway and Craycroft Road that had been vacant since late 2008. New York-based Benenson Capital Partners has redeveloped the corner, which now includes a Stein Mart that opened in November and will feature the Tucson market’s first Hobby Lobby store, due to open by Easter. The center will have six retailers.

8.2% vacancy

The Tucson market now has 51 million square feet of retail space in 546 centers and 5,311 buildings. By sector, shopping centers have the most space at 22.3 million square feet, then general retail at 19.9 million square feet. The smallest sector is continued on page 10

Vacancy rate 2012: 8.2% 2011: 8.4% 2010: 8.6% New construction 2012: 349,887 square feet 2011: 477,573 square feet 2010: 323,642 square feet Net absorption 2012: 313,801 square feet 2011: 218,961 square feet 2010: minus 72,519 square feet Average asking rent rate 2012: $14.78 per square foot 2011: $14.54 per square foot 2010: $15.10 per square foot CoStar and CBRE data

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CBRE CongRatulatEs its top REal EstatE pRofEssionals on thEiR aChiEvEmEnt.

john ash Senior Associate Investment Specialist

Buzz isaacson First Vice President Office Specialist

nancy mccluRe First Vice President Retail Specialist

david montijo First Vice President Office Specialist

#1 in Real estate seRvices WoRldWide www.cbre.com/tucson 520.323.5100

W. michael sandahl Senior Vice President Investment Specialist

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RETAIL SECTOR

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specialty centers at 155,400 square feet, according to CoStar. Vacancy rates improved slightly, falling to 8.2 percent in 2012, from 8.4 percent in 2011. Likewise, quoted lease rates firmed up, rising 24 cents to $14.78 per square foot. Overall, the retail sector has 4.2 million square feet of empty space. Last year, 350,000 square feet was added to the region’s inventory. At 156,000 square feet, Wal-Mart completed the largest new building, a new Supercenter at 1260 E. Tucson Marketplace Blvd. in The Bridges, between Kino Parkway and Park Avenue north of Interstate 10. No other new project was larger than 50,000 square feet. At year end, about 128,000 square feet of retail was under construction. The largest was a 92,600 square-foot Walmart at 2711 S. Houghton Road at the southeast corner of Golf Links Road. In 2013, any new buildings likely will be “for committed users,” Furrier said. Bourn Advisory Services had the year’s two largest sales. In August, the company sold Tucson Spectrum for $125.4 million to DDR Corp., Beachwood, Ohio. The 122-acre complex, west of Interstate 19 at Irvington Road, has more than 1 million square feet of retail space and is one of the largest openair power centers in the western U.S. The sales price was $176.58 per square foot. The sellers were private real estate companies Phoenix-based Barclay Group, which developed the center in two phases in 2001 and 2008, and Creswin Properties Inc., Winnipeg, Manitoba. In November, Bourn Advisory Services sold The Corner at Oracle Wetmore, an 80,059-square foot complex for $29.5 million. The center on the southeast corner of the intersection was acquired by Inland Diversified Real Estate Trust, based in Oak Brook, Ill., for $368.48 per square foot.

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The Corner at Oracle and Wetmore was acquired by Inland Diversiﬁed REIT for $29.5 million.

are vacated could attract “entertainment” tenants. “Look for more non-traditional tenants to fill space,” said Patrick Darcy, retail specialist with Tucson Realty & Trust. “I expect a move toward some type of activity, where people want an experience do-

ing something. The attraction is social, like a neighborhood center,” said McClure. Across the nation for example, malls, bowling alleys and other big boxes have successfully converted abandoned space into “experience venues” such as sky diving, laser tag, wind tunnels, skate parks, rock

climbing and even new car showrooms. “It’s a good, evolving use of space to recycle it into something different,” said Furrier. Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

The region’s retail sector improved in 2012 in most key metrics. And despite news that eight national chains plan to close a total of more than 2,000 stores beginning this year, Tucson brokers were unshaken. The projected closings include locations of Barnes & Noble, Best Buy, GameStop, JC Penney, Kmart/Sears, Office Depot, Office Max and Radio Shack. So far, the retailers haven’t identified any specific locations they plan to close. Such downsizing talk is not new, said Furrier, who characterized the moves as part of retail’s “natural cycle.” Plus, Tucson was never overbuilt like other cities, he adds. Before the housing crash, retailers expanded to the suburbs based on projections of 10,000 more homes there in a few years. Until then, the plan was to break even. “Then the faucet shut off. Now it’s five years later in the cycle and their leases are coming up. The growth was not there so why stay if you’re not profitable?” Furrier said. Furrier and McClure expect distressed retailers will “right-size” and maintain a presence in the region. Any large blocks that

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Natural cycle

Wal-Mart continued its aggressive expansion plans and currently has four projects underway, including this one at 2711 S. Houghton Road.

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REAL ESTATE POWERHOUSE

Sandy Alter Director

Tari Auletta, CCIM Director

Jesse Blum Associate

Hannah Carrillo Administrative Manager

Bob Davis Managing Director

William Divito Managing Director

Howard Kong, CCIM Director, Managing Broker

Justin Lanne Managing Director

Scott Soelter Associate Director

Suzanne Startt Property Manager

Ron Zimmerman Director

3709 N. Campbell Ave., Suite 135, Tucson, AZ 85719 P: 520.321.3330 F: 520.321.3331 www.newmarkkf.com

12 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

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LegaL Notice

To merchants who have accepted Visa and MasterCard at any time since January 1, 2004: Notice of a 6+ billion dollar class action settlement. Si desea leer este aviso en español, llámenos o visite nuestro sitio web. Notice of a class action settlement authorized by the U.S. District Court, Eastern District of New York. This notice is authorized by the Court to inform you about an agreement to settle a class action lawsuit that may affect you. The lawsuit claims that Visa and MasterCard, separately, and together with banks, violated antitrust laws and caused merchants to pay excessive fees for accepting Visa and MasterCard credit and debit cards, including by: • Agreeing to set, apply, and enforce rules about merchant fees (called default interchange fees); • Limiting what merchants could do to encourage their customers to use other forms of payment through, for example, charging customers an extra fee or offering discounts; and • Continuing that conduct after Visa and MasterCard changed their corporate structures. The defendants say they have done nothing wrong. They say that their business practices are legal and the result of competition, and have benefitted merchants and consumers. The Court has not decided who is right because the parties agreed to a settlement. On November 27, 2012, the Court gave preliminary approval to this settlement.

tHe settLement Under the settlement, Visa, MasterCard, and the bank defendants have agreed to make payments to two settlement funds: • The first is a “Cash Fund” – a $6.05 billion fund that will pay valid claims of merchants that accepted Visa or MasterCard credit or debit cards at any time between January 1, 2004 and November 28, 2012. • The second is an “Interchange Fund” – estimated to be approximately $1.2 billion

– that will be based on a portion of the interchange fees attributable to certain merchants that accept Visa or MasterCard credit cards for an eight-month “Interchange Period.” Additionally, the settlement changes some of the Visa and MasterCard rules applicable to merchants who accept their cards. This settlement creates two classes: • A Cash Settlement Class (Rule 23(b) (3) Settlement Class), which includes all persons, businesses, and other entities that accepted any Visa or MasterCard cards in the U.S. at any time from January 1, 2004 to November 28, 2012, and • A Rule Changes Settlement Class (Rule 23(b)(2) Settlement Class), which includes all persons, businesses, and entities that as of November 28, 2012 or in the future accept any Visa or MasterCard cards in the U.S.

wHAt mercHAnts wiLL get from tHe settLement Every merchant in the Cash Settlement Class that files a valid claim will get money from the $6.05 billion Cash Fund, subject to a deduction (not to exceed 25% of the fund) to account for merchants who exclude themselves from the Cash Settlement Class. The value of each claim, where possible, will be based on the actual or estimated interchange fees attributable to the merchant’s MasterCard and Visa payment card transactions from January 1, 2004 to November 28, 2012. Payments to merchants who file valid claims for a portion of the Cash Fund will be based on: • The money available to pay all claims, • The total dollar value of all valid claims filed, • The deduction described above not to exceed 25% of the Cash Settlement Fund, and • The

cost

settlement

administration

and notice, money awarded to the class representatives, and attorneys’ fees and expenses all as approved by the Court. In addition, merchants in the Cash Settlement Class that accept Visa and MasterCard during the eight-month Interchange Period and file a valid claim will get money from the separate Interchange Fund, estimated to be approximately $1.2 billion. The value of each claim, where possible, will be based on an estimate of one-tenth of 1% of the merchant’s Visa and MasterCard credit card dollar sales volume during that period. Payments to merchants who file valid claims for a portion of the Interchange Fund will be based on: • The money available to pay all claims, • The total dollar value of all valid claims filed, and • The cost of settlement administration and notice, and any attorneys’ fees and expenses that may be approved by the Court. Attorneys’ fees and expenses and money awarded to the class representatives: For work done through final approval of the settlement by the district court, Class Counsel will ask the Court for attorneys’ fees in an amount that is a reasonable proportion of the Cash Settlement Fund, not to exceed 11.5% of the Cash Settlement Fund of $6.05 billion and 11.5% of the Interchange Fund estimated to be $1.2 billion to compensate all of the lawyers and their law firms that have worked on the class case. For additional work to administer the settlement, distribute both funds, and through any appeals, Class Counsel may seek reimbursement at their normal hourly rates, not to exceed an additional 1% of the Cash Settlement Fund of $6.05 billion and an additional 1% of the Interchange Fund estimated to be $1.2 billion. Class Counsel will also request reimbursement of their expenses (not including the administrative costs of settlement or notice), not to exceed $40 million and up to $200,000 per Class

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InsideTucsonBusiness.com

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COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

Plaintiff in service awards for their efforts on behalf of the classes.

How

Ask

for

PAyment

To receive payment, merchants must fill out a claim form. If the Court finally approves the settlement, and you do not exclude yourself from the Cash Settlement Class, you will receive a claim form in the mail or by email. Or you may ask for one at: www. PaymentCardSettlement.com, or call: 1-800625-6440.

otHer Benefits mercHAnts

for

Merchants will benefit from changes to certain MasterCard and Visa rules, which will allow merchants to, among other things: • Charge customers an extra fee if they pay with Visa or MasterCard credit cards, • Offer discounts to customers who do not pay with Visa or MasterCard credit or debit cards, and • Form buying groups that meet certain criteria to negotiate with Visa and MasterCard. Merchants that operate multiple businesses under different trade names or banners will also be able to accept Visa or MasterCard at fewer than all of the merchant’s trade names and banners.

LegAL rigHts

And

oPtions

Merchants who are included in this lawsuit have the legal rights and options explained below. You may: • File a claim to ask for payment. You will receive a claim form in the mail or email or file online at: www.PaymentCardSettlement. com. • Exclude yourself from the Cash Settlement Class (Rule 23(b)(3) Settlement Class). If you exclude yourself, you can sue the Defendants for damages based on alleged conduct occurring on or before November 27, 2012 on your own at your own expense, if you want to. If you exclude yourself, you will not get any money from this settlement. If you are a merchant and wish to exclude yourself, you must make a written request, place it in an envelope, and mail it with

postage prepaid and postmarked no later than May 28, 2013 to Class Administrator, Payment Card Interchange Fee Settlement, P.O. Box 2530, Portland, OR 97208-2530. The written request must be signed by a person authorized to do so and provide all of the following information: (1) the words “In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation,” (2) your full name, address, telephone number, and taxpayer identification number, (3) the merchant that wishes to be excluded from the Cash Settlement Class (Rule 23(b)(3) Settlement Class), and what position or authority you have to exclude the merchant, and (4) the business names, brand names, and addresses of any stores or sales locations whose sales the merchant desires to be excluded. Note: You cannot be excluded from the Rule Changes Settlement Class (Rule 23(b)(2) Settlement Class). • Object to the settlement. The deadline to object is: May 28, 2013. To learn how to object, see: www.PaymentCardSettlement.com or call 1-800-625-6440. Note: If you exclude yourself from the Cash Settlement Class you cannot object to the terms of that portion of the settlement. For more information about these rights and options, visit: www.PaymentCardSettlement.com.

court APProves finAL settLement

tHe

Members of the Rule Changes Settlement Class are bound by the terms of this settlement. Members of the Cash Settlement Class, who do not exclude themselves by the deadline, are bound by the terms of this settlement whether or not they file a claim for payment. Members of both classes release all claims against all released parties listed in the Settlement Agreement. The settlement will resolve and release any claims by merchants against Visa, MasterCard or other defendants that were or could have been alleged in the lawsuit, including any claims based on interchange or other fees, no-surcharge rules, no-discounting rules, honor-all-cards rules and other rules. The settlement will also resolve any merchant claims based upon the future effect of any Visa or MasterCard rules, as of November 27, 2012 and not to be modified pursuant to the

settlement, the modified rules provided for in the settlement, or any other rules substantially similar to any such rules. The releases will not bar claims involving certain specified standard commercial disputes arising in the ordinary course of business. For more information on the release, see the settlement agreement at: www.PaymentCardSettlement.com.

tHe court HeAring ABout tHis settLement On September 12, 2013, there will be a Court hearing to decide whether to approve the proposed settlement, class counsels’ requests for attorneys’ fees and expenses, and awards for the class representatives. The hearing will take place at: United States District Court for the Eastern District of New York 225 Cadman Plaza Brooklyn, NY 11201 You do not have to go to the court hearing or hire an attorney. But you can if you want to, at your own cost. The Court has appointed the law firms of Robins, Kaplan, Miller & Ciresi LLP, Berger & Montague, PC, and Robbins Geller Rudman & Dowd LLP to represent the Class (“Class Counsel”).

Questions? For more information about this case (In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, MDL 1720), you may: Call toll-free: 1-800-625-6440 Visit: www.PaymentCardSettlement.com Write to the Class Administrator: Payment Card Interchange Fee Settlement P.O. Box 2530 Portland, OR 97208-2530 Email: info@PaymentCardSettlement.com Please check www.PaymentCardSettlement.com for any updates relating to the settlement or the settlement approval process.

1-800-625-6440 • info@PaymentCardSettlement.com

14 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

Inside Tucson BusinesS

OFFICE SECTOR

Frozen market warms up to health care interests By the numbers

Office Sector stats

Base space 2012: 23.9 million square feet 2011: 23.8 million square feet 2010: 23.6 million square feet Vacancy rate 2012: 12.2 % 2011: 12.1 % 2010: 12.3% New construction 2012: 113,072 square feet 2011: 235,950 square feet 2010: 132,428 square feet Net absorption 2012: 80,800 square feet 2011: 248,304 square feet 2010: -175,861 square feet Avg. asking rent 2012: $18.57/square foot 2011: $18.98/square foot 2010: $19.47/square foot Class A average ask rent 2012: $22.69/square foot 2011: $22.97/square foot 2010: $23.06/square foot Class B average asking rent 2012: $18.52/square foot 2011: $19.10/square foot 2010: $19.76/square foot

Otis Blank

Source: CBRE and CoStar

Pima County’s new justice court complex is progressing as scheduled on a 4.3-acre downtown site at 300 N. Stone Ave. Sundt Construction holds a $48 million contract to build out the seven-story tower’s core and shell.

By Roger Yohem Inside Tucson Business Throughout 2012, the office sector of commercial real estate likely was impacted the most by the ongoing political discourse in Washington, D.C., and a fragile economy locally. Historically, small businesses have been the largest job creators, both nationally and locally. During 2012, however, most start-up and expansion plans were frozen by uncertainty about future federal regulations and taxes. The crushing lack of confidence caused small business owners to shun risk-taking. “As Congress continues to defer decisions on spending cuts, uncertainty continues among investors and consumers,” said David Montijo, first vice president and office specialist at CBRE. Southern Arizona’s office sector “seemed to be in a quandary, waiting for the elec-

tions. Once the elections were over, there was a rash of head-scratching asking is it going to improve or get worse?” added Michael Gross, office specialist with Tucson Realty & Trust Co. Those national political, economic, tax and regulatory issues “and a lack of local market drivers supported a wait and see attitude,” said Rick Kleiner, a principal with Picor Commercial Real Estate Services. Other than eight million-dollar property sales, movement in the sector was narrow. Occupancy rates, for example, have idled for three years. At the end of 2010, the sector had 87.7 percent occupancy. It nudged up to 87.9 percent in 2011 and slipped to 87.8 percent last year. There is 23.9 million square feet of office space in the region, according to CoStar. The most is in 1,216 Class B buildings at 16.5 million square feet. Class C space has 5 million square feet in 1,172 buildings. Class A office space has only 18 proper-

ties totaling 2.4 million square feet. Regionwide, only 84 offices over 10,000 square feet are owner-occupied, accounting for 1.8 million square feet of space. “Class A office will be next sector to shore up fundamentals, continuing to attract tenants seeking to upgrade their space,” said Asieh Mansour, senior managing director of CBRE Global Research. “Central business districts continue to outperform the suburbs as tenants increasingly prefer to locate in urban centers closer to a younger workforce, mass transit and cultural amenities.” Changing economics also are luring back companies that traditionally located in a suburban campus setting. In general, cities that appeal to the hightech and energy sectors will see strong absorption. Another major tenant pool will be health care, “which is being driven by the needs of the aging baby boomer generation,” added Mansour. For prospective tenants, Class A space

is about $20 to $25 per square foot for firstyear, effective full-service, according to Gross. “Negotiating is still the key. This market is a two-way street. The landlord can only survive if the tenant survives, and vice versa,” Gross said.

Health care boost

The Affordable Care Act will have “widespread implications” on the market, emphasized Mansour. Typical demand-drivers of jobs, consumer spending and real estate will be replaced by health care demanddrivers “due to emerging, new alternative models of delivering medical care.” Specifically, abundant vacancies in Class B retail centers and suburban office “make them prime candidates to meet the immediate demand for space,” Mansour said. “Suburban offices near hospitals are a conversion opportunity that will allow doctors continued on page 16

InsideTucsonBusiness.com

COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

ATTENTION to the CLIENT. FOCUS on the GOAL. FIND the SOLUTION.

V REAL ESTATE SOLUTIONS Commercial Property - Investment Property - Commercial leasing Asset Management - Property Management - Land and Development

www.vasttucson.com Jon Oâ&#x20AC;&#x2122;Shea - Director of Sales and Leasing Rob Fischrup - Asset Manager Thrac Paulette - Land and Development

5102 E Pima Street Tucson, AZ 85712 info@vasttucson.com

520.624.9400

16 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

OFFICE SECTOR

InsIdE TUcson BUsInEss

OFFICE Continued FRoM Page 14

Last year, an additional 30,000 square feet was vacated there. “Business disruption from construction of the streetcar also has driven potential tenants to other areas. Will they come back once the streetcar is complete? Only time will tell,” Montijo said. At 1 E. Broadway, Caylor Construction is building a mixed-use, six-story office building with street-level retail and two ﬂoors of apartments. The $16 million building’s main tenants will be Pima Association of Governments and Regional Transportation Authority. Although there is a lot of excitement downtown from an entertainment and lifestyle perspective, the long-term impact on the office market is unknown. Space is readily available elsewhere at competitive prices, easier access and more parking. “Whether all the downtown activity leads to small and mid-sized companies renting office space there is a question in my mind.

You’d have to want an office downtown, have a specific reason to be down there,” said Kleiner. By size, the largest new office was 84,353 square feet at 275 N. Commerce Park Loop. The three-story complex houses a new FBI regional office. Overall leasing activity was very narrow with only two deals over 20,000 square feet.

Investor sales

Sales transactions were the only metric to excel last year. Eight buildings sold for $1 million or more, representing $44 million worth of property. The largest sale was $17.8 million for a 129,000 square-foot building at 950 N. Finance Center Drive. It was acquired by the H.N. & Frances C. Berger Foundation as an investment and is leased by Gieco Insurance. The price was $137.86 per square foot. The second-largest acquisition was $10

million for the 42,000 square-foot University of Phoenix South Campus Building, 300 S. Craycroft Road. It was acquired by the Paramount Group for $237.90 per square foot. Other notable buys were $3.7 million by the Arizona Institute of Urology for 5668 N. Professional Park Drive; $3.4 million by Source Two Investments 1161 N. El Dorado Place; $3.35 million by Fenton Investments for Oracle Office Plaza at 7491 N. Oracle Road; and $2.8 million by the Easter Seals Blake Foundation for the Corporate Center on Broadway at 7750 E. Broadway. “We saw a frenzy of buying at the end of the year in anticipation of tax changes. I suspect there could be even larger investment sales this year. As larger markets overheat, investors will look at smaller markets like ours,” said Kleiner.

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

george Howard

and patients to move seamlessly between the two environments.” “Now that the state is expanding its role with the Affordable Care Act, medical would be a most interesting niche to focus on this year. There could be some real activity for large blocks of former retail buildings to be converted to medical offices,” said Picor’s Kleiner. For two consecutive years, the office sector has had positive absorption: 80,800 square feet in 2012 and 248,300 square feet in 2011, according to CoStar. That offset a net loss of 176,000 square feet in 2010, primarily due to large tenants that moved out of the UniSource Tower downtown. The downtown district is still struggling to recover and “continues to have its challenges,” said Montijo. Major move-outs and limited demand increased the vacancy rate by 310 basis points over the past 12 months, ending 2012 at 31.7 percent, the highest vacancy rate of all zones, according to CBRE.

Caylor Construction’s six-story, mixed-use tower is rising from a vacant lot downtown at 1 E. Broadway. The $16 million development will feature ofﬁce, retail and apartments.

InsideTucsonBusiness.com

LAND SECTOR

COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

Late land surge strong, but not quite a land rush By Roger Yohem Inside Tucson Business They’re baaaack. Pounding away, helping to build up the economy again. Large, national home building companies that pulled back or pulled out of Southern Arizona following the housing collapse in 2007 came back into market last year looking for “dirt.” Driven by improving economics, builders spent $71 million to acquire land — the key asset in their business plans. Although pent-up demand for dirt was far from a land rush, it was “definitely a land surge,” said Will White, Tucson manager for Land Advi-

sors Organization. “Builders purchased about four times the amount of lots in 2012 than in 2011, a positive sign for the market. For the first time in seven years, national homebuilders are building their own lots again. Late in the year was incredible activity,” said White. “The big story of the year and continuing into this year is the booming northwest. The land market in that district is very warm right now. Builders are looking at not only fully improved and platted lots but finally looking at vacant land they want to title,” said Jim Marian, a founding member of Chapman Lindsey Commercial Real Estate Services. “We even have a builder looking at a deal

LARGEST LAND DEALS Sales price

Buyer

Homebuilder transactions Location

Acres/Lots

Price per lot

$14.3 million DR Horton Homes

Saguaro Bloom, Marana

68/265 finished

$53,656

$7.2 million

Vistoso Town Center, Oro Valley

50/128 finished

$56,250

37/83 finished

$52,843

Meritage Homes

$4.38 million DR Horton Homes

Rancho Sahuarita

$4.2 million

Maracay Homes

Tangerine/La Cholla, Oro Valley

53/68 platted

$61,867

$3.5 million

Richmond American Tangerine/R. Vistoso, Oro Valley

9/68 finished

$50,544

$10 million

True Life Communities

Rancho Vistoso, Oro Valley

$2.8 million

SBH Sendero LLP

Sendero Pass, SW Pima County

$2 million

Southwest DVI Property Stone Canyon, Oro Valley

that would require a rezoning. I can’t remember when last we had that conversation,” he added. Marana’s Tangerine Corridor has had a strong three-year run and most of the remaining finished lots were bought in 2012. White said the Dove Mountain and Rancho Vistoso master-planned communities will provide the next round of entitled land, at a substantial premium due to low supply, rising new home prices and strong consumer demand in the area. The largest builder transaction in 2012 was D.R. Horton Homes’ $14.3 million acquisition (see table) of 265 finished lots on 68 acres at Saguaro Bloom on West Twin Peaks Road near Rattlesnake Pass at the north end of the Tucson

Mountains in Marana. Formerly known as Saguaro Springs, Horton’s purchase price works out to $53,656 per lot. There were two large acquisitions in Oro Valley’s Rancho Vistoso, including the regions second largest land purchase, 128 finished lots on 50 acres bought by Meritage Homes for $7.2 million. Investors also were active, led by a $10 million acquisition by True Life Communities for 96 acres known as “The Donut Hole” at Rancho Vistoso Golf Course. Total residential land sales doubled to $112 million in 2012 from $54 million in 2011, Marian said. Continued on neXt Page

The Donut Hole, 96 acres of prime developable land in and around the Rancho Vistoso Golf Course, was acquired by True Life Communities for $10 million last year. It was the region’s largest sale to investors.

Investor transactions 96 acres 515 acres 146 acres

george Howard

Source: Land Advisors Organization

18 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

LAND Continued FRoM Page 17

Looking back, 2011 “is clearly our rock bottom year for residential sales. But still, we are ebbing and ﬂowing along the bottom, nowhere near where the market was in healthy years.” Of the $112 million, builders spent about $71 million to buy land. Investors spent $22.5 million on land last year and apartment developers spent $18 million.

Permits up

Pima County, at 572, followed by Marana at 526 permits. Marian quipped that Oro Valley experienced “statistical euphoria” because its permit count soared 400 percent to 167 permits last year from 43 in 2011. At year-end, there were 69 active singlefamily communities in the Tucson region. Based on sales trends, 30 of those developments could sell out by December 2013, according to Dan Feig, a partner at Chapman Lindsey, and his associate, Aaron Mendenhall. Based on 99 active communities in 2010, there were just 10.7 new home starts on average per community for the year. In 2011 based on 86 active communities, the average fell to just 6.0 starts per community. Last year, in only 69 communities, the pace jumped to 20.6 starts. “These starts per community average will remain high in 2013. The new home market has been gaining momentum, but the bottle-

neck of lot supply and limited communities will prevent the market from recognizing its full potential,” said Feig.

Market share

The top five public homebuilders now command about 75 percent of the region’s market share, noted White. The intense competition for market share and access to private equity and Wall Street funding has knocked most small, private companies out of the game. “With builders, it’s about who controls the land,” he said. The recession and housing collapse in 2007 changed the market’s dynamics so much that White believes “the 30-year history of speculative land development around here is over.” Debt is dead as a financing tool. Cash buys “have made the market healthier,” Marian added. “Builders will have to be aggressive to achieve their goals over the next three years.

Larger transactions and eye-opening deals can be expected. The market will become very competitive for well-positioned lots and land deals,” White said. “This should be a monster year.” Hmmm… Bob Solfisburg, land specialist with Tucson Realty & Trust, was a lone voice of caution, tempering the enthusiastic optimism just a bit. Although he agrees the dirt deals will be strong this year, he was the only land broker to mention that a dark cloud still hangs over the market. It’s that proverbial skeleton in the closet. Following the market collapse, “a record number of homeowners have battled negative equity,” Solfisburg said. “Keep in mind, all those residential loans underwater brings about the argument of shadow inventory.”

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

aeiral photo courtesy of WalMart

An increase in building permits is driving land sales and builders’ business decisions to re-enter the market. Single-family permits rose from to 2,040 in 2012 from 1,438 in 2011, according to Ginger Kneup, owner of Bright Future Real Estate Research. The two-year total for multi-family is 2,638 units and preliminary estimates show another 2,000 units being planned but not yet permitted for this year. The jurisdiction that issued the most permits last year for single-family homes was

LAND SECTOR

InsIdE TUcson BUsInEss

WalMart continued its aggressive land acquisition program in 2012 and currently has at least four new projects planned throughout the region. In October, the company opened its newest Super Center in the market at 1260 E. Tucson Marketplace Blvd. near Kino Parkway and 36th Street, known as The Bridges.

InsideTucsonBusiness.com

COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

Commercial Real Estate Brokers Rank 2013 2012

Business Address

Phone Company Email Website

No. of F-T Licensed Commercial Real Estate Agents

No. of F-T No. Offices: Support Staff Local National

CBRE 3719 N. Campbell Ave. Tucson, AZ 85719

(520) 323-5100 N/A cbre.com/tucson

1 188

PICOR Commercial Real Estate Services 1100 N. Wilmot Rd., Ste. 200 Tucson, AZ 85712

(520) 748-7100 info@picor.com picor.com

Tucson Realty & Trust Co. 333 N. Wilmot Rd., Ste 340 Tucson, AZ 85711

(520) 577-7000 commercial@tucsonrealty.com tucsonrealty.com

Oxford Realty Advisor, Inc. 6340 N. Campbell Ave., Ste. 200 Tucson, AZ 85718

(520) 232-0200 dmarsh@oxfordrealtyadvisors.com oxfordrealtyadvisors.com

Tierra Antigua Realty 1650 E. River Rd., Ste. 202 Tucson, AZ 85718

(520) 544-2335 kimclifton@tierraantigua.net tierraantigua.com

Long Realty Commercial Real Estate Services 900 E. River Rd. Tucson, AZ 85718

Specialties

Top Local Executives

Year Establ. Locally

Industrial, retail, office, multi-family, land, hospitality, finance, valuation Don Ahee Ike Isaacson

1963

1 1

Sales and leasing of commercial property and property management

Michael S. Hammond Eileen M. Lewis

1985

2 2

Sales and leasing of office, industrial and retail. Investments, land, farm and ranch and corporate services.

George H. Amos III

1907

1 1

Office, medical, retail, industrial and investments

Douglas E. Marsh

2000

4 4

Residential and commercial resale

Kimberly Clifton Matthew Clifton

2001

(520) 918-3704 clientconnection@longrealty.com longrealty.com

9 21

All commercial real estate

Don Booth

1926

Larsen Baker, LLC 6298 E. Grant Rd., Ste. 100 Tucson, AZ 85712

(520) 296-0200 info@larsenbaker.com larsenbaker.com

1 1

Brokerage, management and development of real estate in southern Arizona

Donald Baker George C. Larsen Andy Seleznov

1993

Volk Company 2730 E. Broadway, Ste. 200 Tucson, AZ 85716

(520) 326-3200 info@volkco.com volkco.com

1 1

Shopping centers, restaurants, investments

Rick Volk

1987

Venture West Real Estate Services, LLC 6007 E. Grant Rd. Tucson, AZ 85712

(520) 722-9292 jsimon@venturewestaz.com venturewestaz.com

1 1

Development, construction, brokerage, leasing, property and asset management

Neil R. Simon Jordan S. Simon

1981

Burris, Hennessy & Co. 1802 W. Grant Rd., Ste. 110 Tucson, AZ 85704

(520) 882-4343 tim@burrishennessy.com burrishennessy.com

1 1

Commercial, industrial, residential

W. Tim Burris Michael Hennessy

1989

Chapman Lindsey Commercial Real Estate Svcs., LLC 7411 E. Tanque Verde Rd. Tucson, AZ 85715

(520) 747-4000 info@chapmanlindsey.com chapmanlindsey.com

1 1

Commercial and large residential land sales, brokerage, and leasing consultation

Alan G. Moore James B. Marian Daniel Feig

1990

Key Group, Ltd. 7459 E. Broadway Tucson, AZ 85710

(520) 290-5656 info@keygroupltd.com keygroupltd.com

1 1

Property tax appeals, commercial properties, land

Alain G. Hartmann Timothy M. Abrams Kathryn Wiseman

1989

Terramar Properties Inc. 2200 E. River Rd., Ste. 105 Tucson, AZ 85718

(520) 577-7800 bobmorken@mac.com N/A

1 1

Development, investment and asset management

Terry L. Klipp Bob Morken Sr.

1973

Romano Real Estate Corp. 3900 E. Via Palomita Tucson, AZ 85718

(520) 577-1000 diane@romanorealestate.com romanorealestate.com

1 1

Retail shopping centers, office buildings, industrial

Bruce A. Romano Diane Cain

1986

Shenkarow Realty Advisors 7059 N. Oracle Rd. Tucson, AZ 85704

(520) 299-2610 rqs@shenkarow.com shenkarow.com

1 1

Retail, office, development, investment

Richard Shenkarow

1999

The Harpel Company 6057 E. Grant Rd. Tucson, AZ 85712

(520) 721-7999 info@harpelco.com harpelco.com

1 1

Retail brokerage

Brian K. Harpel

2000

Vast Commercial Real Estate Solutions, LLC 5102 E. Pima St. Tucson, AZ 85712

(520) 398-7104 info@vasttucson.com vasttucson.com

1 1

Commercial leasing, sales, property management, residential sales, development consulting

Robert Fischrup Jon O'Shea

2008

A.W. Marrs, Inc. 3573 E. Sunrise Dr., Ste. 233 Tucson, AZ 85718

(520) 299-0099 awmarrsinc@earthlink.net awmarrsinc.com

1 1

Land sales, development

Tony Marrs Kit Marrs

1983

Arizona Acquisition Strategies 9601 E. Catalina Hwy. Tucson, AZ 85749

(520) 749-2100 tj@azacquisitions.biz azacquisitions.biz

1 1

Industrial property and business brokerage

Timothy J. Bathen

2008

Camwest Group Inc. 1743 W. Prince Rd., Ste. 101 Tucson, AZ 85705

(520) 297-2171 info@camwestgroup.com camwestgroup.com

1 1

Development, property management and brokerage

Edward J. Kocis Jr.

1991

Commercial Real Estate Group Tucson 4525 E. Skyline, Ste. 113 Tucson, AZ 85718

(520) 299-3400 michael@cretucson.com commercial-real-estate-tucson.com

1 35

Tenant and user representation

Michael Coretz Tim DeNiro

2008

DESCO Southwest 1795 E. Skyline Dr., Ste. 193 Tucson, AZ 85718

(520) 297-8929 info@descogroup.com descogroup.com

1 3

Marcus & Millichap Real Estate Investment Services 4031 E. Sunrise Dr., Ste. 151 Tucson, AZ 85718

(520) 202-2900 georgia.knoop@marcusmillichap.com marcusmillichap.com

1 72

Mark Irvin Commercial Real Estate Services, LLC 3777 E. Broadway, Ste. 210 Tucson, AZ 85716

(520) 620-1833 mark@markirvin.com markirvin.com

N/A

Tierra Antigua Realty - Downtown 216 E. Congress Tucson, AZ 85701

(520) 302-5368 kent@tucsonkent.com tucsonkent.com/commercial

Art Kelley, CCIM 1955 W. Grant Rd. Tucson, AZ 85745

(520) 884-5315 akelley@ccim.net artkelleyccim.com

Commercial Retail Advisors, LLC 5420 E. Broadway, Ste. 200 Tucson, AZ 85711

Ownership of major commercial properties, real estate development and Michael Sarabia brokerage services

2001

Multi-family, office, retail, self-storage and manufactured housing communities

Steven Chaben

1995

1 1

Office and medical, office leasing and sales

Mark C. Irvin Janine C. Irvin

1995

4 4

Retail, development, multi-family

Marylou Thompson

2010

1 1

Land, investment property, exchanges, retail

Art Kelley

1996

(520) 290-3200 cfinfrock@cradvisorsllc.com cradvisorsllc.com

1 1

Retail

R. Craig Finfrock

2001

Land Advisors Organization 3561 E. Sunrise Dr., Ste. 207 Tucson, AZ 85718

(520) 514-7454 N/A landadvisors.com

1 21

Land brokerage

William C. White III Gregory J. Vogel

2001

Marquez Peterson Group LLC 5874 E. Calle del Ciervo Tucson, AZ 85750

(520) 331-3763 ptrsn@aol.com tucsonbiz4sale.com

1 1

Business brokering, commercial real estate

Lea Marquez Peterson

2005

Trident Commercial Real Estate Company 2730 E. Broadway Blvd., Ste. 135 Tucson, AZ 85716

(520) 320-9311 mike@tridentcommercial.net tridentcommercial.net

1 1

Commercial property brokerage and consulting

Michael L. Ebert

2004

Tucson Industrial Realty, LLC 6061 E. Grant Rd., Ste. 119 Tucson, AZ 85712

(520) 294-1610 dave@tucsonindustrialrealty.com tucsonindustrialrealty.com

1 1

Industrial real estate sales and leasing, tenant and owner representation Dave Gallaher Susan Gallaher

Ranked by the number of full-time licensed commercial real estate agents (2 P-T = 1 F-T) Ranked information is provided by business representatives at no charge and is ranked alphabetically in case of ties. Other businesses were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings. N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided

1984

20 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

Inside Tucson BusinesS

Commercial Real Estate Management Rank 2013 2012

Business Address

Phone Company Email Website

Specialties

Top Local Executives

Year Establ. Locally

PICOR Commercial Real Estate Services 1100 N. Wilmot Rd., Ste. 200 Tucson, AZ 85712

(520) 748-7100 info@picor.com picor.com

4,496,805

617,669 2,138,138 1,740,998

Sales and leasing of commercial property and property management

Michael S. Hammond Eileen M. Lewis

1985

Venture West 6007 E. Grant Rd. Tucson, AZ 85712

(520) 722-9292 jsimon@venturewestaz.com venturewestaz.com

2,750,000

1,900,000 850,000 0

Developing owner-occupied medical and office buildings, tenant improvements

Neil R. Simon Fred D. Steiniger Jordan S. Simon

1981

Larsen Baker, LLC 6298 E. Grant Rd., Ste. 100 Tucson, AZ 85712

(520) 296-0200 info@larsenbaker.com larsenbaker.com

2,500,000

2,480,000 20,000 0

Brokerage, management and development of real estate in southern Arizona

Donald Baker George C. Larsen Andy Seleznov

1993

Romano Real Estate Corp. 3900 E. Via Palomita Tucson, AZ 85718

(520) 577-1000 diane@romanorealestate.com romanorealestate.com

2,200,000

1,373,000 741,000 86,000

Retail shopping centers, office buildings, industrial

Bruce A. Romano Diane Cain

1986

Partners Management & Consultants, Inc. 5055 E. Broadway, Ste. B100 Tucson, AZ 85711

(520) 745-6221 info@partnersmanagement.com partnersmanagement.com

2,047,743

1,207,459 721,506 118,778

All commercial real estate

Steven Schuyler Valerie Schuyler

1987

Chapman Management Group 33 W. Congress St., Ste. 205 Tucson, AZ 85701

(520) 622-5544 info@chapmanmanagement.com chapmanmanagementgroup.com

1,927,400

361,000 959,400 607,000

Office, retail, industrial

Swain R. Chapman

1990

Paul Ash Management Co. LLC 3499 N. Campbell Ave., Ste. 907 Tucson, AZ 85719

(520) 795-2100 bash@paulashmgt.com paulashmgt.com

1,745,316

1,054,767 659,745 30,804

Apartment communities, commercial properties

Bruce Ash Paul Ash Barry Edberg

1970

Southwest Commercial Management, LLC 2900 E. Broadway, Ste. 116 Tucson, AZ 85716

(520) 290-4500 lkastella@swcmgmt.com swcmgmt.com

1,202,100

855,695 346,405 0

Retail, government, medical, high-rise office

Lynn Kastella

1989

Tucson Realty & Trust Co. Management Services, LLC 2525 E. Broadway, Ste. 111 Tucson, AZ 85716

(520) 327-0009 info@trtmanagement.com trtmanagement.com

750,000

205,000 350,000 195,000

Full-service management, single family, multi-family, commercial, HOA and trustee/receivership George H. Amos III services Marcy Kline

1911

DESCO Southwest 1795 E. Skyline Dr., Ste. 193 Tucson, AZ 85718

(520) 297-8929 info@descogroup.com descogroup.com

350,000

0 100 0

Ownership of major commercial properties, real estate development and brokerage services

Michael Sarabia

2001

Holladay Properties 6130 N. La Cholla, Ste. 230 Tucson, AZ 85741

(520) 308-4555 sfrizzell@holladayprop.com holladayhealth.com

321,816

0 321,816 0

Medical office buildings

Susan Frizzell Elizabeth "Betsy" Johnson

2010

Tucson Industrial Realty, LLC 6061 E. Grant Rd., Ste. 119 Tucson, AZ 85712

(520) 294-1610 dave@tucsonindustrialrealty.com tucsonindustrialrealty.com

298,000

0 0 298,000

Industrial real estate sales and leasing, tenant and owner representation

Dave Gallaher Susan Gallaher

1984

Anthem Equity Group, Inc. 1600 N. Kolb Rd., Ste. 118 Tucson, AZ 85715

(520) 886-1226 ddessy@anthem-equity.com anthemequity.com

180,000

0 68,000 112,000

Property management, investments, development

Rodger Ford David Mackstaller Diana Dessy

1991

Hazen Enterprises 3320 N. Country Club Rd. Tucson, AZ 85716

(520) 795-8429 info@hazentownhomes.com hazentownhomes.com

165,000

0 165,000 0

Townhomes, commercial office space

Brandt Hazen

1980

Peach Properties Inc. 44 E. Broadway, Ste. 300 Tucson, AZ 85701

(520) 798-3331 contact@peachprops.com peachprops.com

143,138

123,902 19,236 0

Small communities

Ron Schwabe Jeanne Tolin

1982

Oxford Realty Advisors, Inc. 6340 N. Campbell Ave., Ste. 200 Tucson, AZ 85718

(520) 232-0200 dmarsh@oxfordrealtyadvisors.com oxfordrealtyadvisors.com

110,000

0 110,000 0

Office, medical, retail, industrial and investments

Douglas E. Marsh

2000

Total Sq Ft Managed

Retail Office Industrial

Ranked by the total square footage managed Ranked information is provided by business representatives at no charge and is ranked alphabetically in case of ties. Other businesses were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings. N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided

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COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

PROFILE

BIZ FACTS

CCIM designation helps get deals done By Christy Krueger Inside Tucson Business Only a few dozen commercial real estate professionals in Tucson have earned the privilege to add the letters CCIM after their name. And those who have feel it’s an important credential that can help open doors and boost their careers. A Certified Commercial Investment Member (CCIM) designation represents a grueling educational program and a high level of realworld industry experience. “It’s a group who have taken four, oneweek-long courses and submitted a resume of transactions and taken an exam to qualify,” explained J. Terry Lavery, CCIM, associate broker with Tucson Realty and Trust Co. and a CCIM board member. Advantages of such membership, Lavery added, include access to cutting-edge technology and pooled resources, as well as opportunities to network with others in the industry who feel an obligation to support one another. CCIM Southern Arizona chapter has about 150 members, 48 of which are designees. This year’s president, David Blanchette, CCIM, of CBRE, said the organization has members from all types of services related to commercial real estate, such as brokers, lenders, title company representatives and appraisers. Blanchette agrees that the networking aspects of CCIM membership can be a significant help in their business. “Any member has a lot of resources at hand. I refer to these people for information to make deals happen or make decisions for clients regarding business opportunities. It’s a close-knit group of people who want the networking support of other members,” Blanchette said. Lavery pointed to the group’s strength when it comes to lobbying local governments. “We work as a unit, especially meeting with county and city officials, when trying to get political clout,” he said. The CCIM chapter holds lunch meetings the second Tuesday of each month. Attendees

CCIM Southern Arizona Chapter President: david Blanchette, senior associate, industrial properties, CBRe Vice President: James Robertson, senior commercial associate broker, Realty executives tucson elite Treasurer: Brandon Rodgers, industrial specialist, Cushman & Wakeﬁeld/ Picor Commercial Real estate Services Secretary: gary andros, managing member, andros Commercial Properties Designation promotion: J. terry Lavery, commercial broker, tucson Realty & trust Scholarship and candidates: Melissa Lal, leasing agent, Larsen Baker Community service: Lori Schroeder, vice president and escrow administrator, Catalina title agency Immediate past president: Howard Kong, director and managing broker, newmark grubb Knight Frank Chapter Administrator: aaron Reid

ing contributions to the local commercial real estate industry. Blanchette predicts a continuation of the past year’s upward trend. “Vacancy rates have come down in the last year and there’s been a tremendous amount of investment by public and private organizations in Tucson, so the community is more robust,” he said. “I have a positive view of commercial real estate in Southern Arizona.”

are given a chance to network before the guest speaker presents a topic. Members also are involved in community service activities, Blanchette noted. “We assist the U.S. Postal Service in collecting food for the Food Bank. We helped with lunch and dinner at the Ronald McDonald House last year. We also have different fundraising events as they develop,” he said. “We raised money to send troops in Afghanistan gift boxes and care packages.” The group’s largest event of the year is the Pima County Commercial Real Estate Market Forecast Competition. It was started in the 1990s by James Marian, CCIM, of Chapman Lindsey Commercial Real Estate Services. The friendly contest features top professionals in their specialties predicting market data for the upcoming year. Metrics such as vacancy rates and cost per square foot are used in the industrial, office, retail and multi-family categories. In the land segment, contestants forecast the number of building permits that will be issued in Pima County. “At the end of the year, we’ll go through data and determine who has the closest prediction in each category,” said Blanchette. Winners are determined by comparing forecasts to year-end numbers available from CoStar and other real estate reports. During the Forecast Competition, the winner from each category gives a presentation and then joins the other two top finalists from his specialty area for a panel discussion, answering questions from the audience. Blanchette said it’s always open to non-members and is a good place to receive information on market conditions and opportunities. This year’s event was Feb. 12 at the Marriott University Park, 880 E. Second Street. The keynote speaker was Fletcher McCusker, chairman of Rio Nuevo Board, who will give an update on downtown Tucson development. In addition, Louise Marshall (posthumously), who established he Marshall Foundation; and builder/developer Peter Herder were honored with a Legends Award for their pioneer-

chapters.ccim.com/southernarizona

Services Offered: • Acquisition Loans • Refinance Loans • Bridge Loans

• Construction Loans • Equity Placement • Property Tax Appeal

$1.8 Billion Funded

Newmark Realty Capital, Inc. is proud to announce that it closed over $1.8 Billion in commercial and multi‐family real estate loans in 2012 representing over 200 transactions with more than 60 different lenders. Contact Ryan Johnson Call Ryan: 520.305.3222 Email Ryan: rjohnson@newmarkrealtycapital.com

otis Blank

Office:

Local chapter ofﬁcers, from left, are: vice president James Robertson; treasurer Brandon Rodgers; secretary Gary Andros; and president David Blanchette.

Ryan Johnson Vice President

2601 N. Campbell Ave, Suite 201-7 Tucson, AZ 85719

22 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

Inside Tucson BusinesS

Commercial Building Contractors Rank 2013 2012

Business Address

Phone Company Email Website

Sundt Construction, Inc. 2015 W. River Rd., Ste. 101 Tucson, AZ 85704

(520) 750-4600 info@sundt.com sundt.com

Lloyd Construction Co., Inc. 2180 N. Wilmot Rd. Tucson, AZ 85712

Total Contracts Completed Last Year $

% of Work No. of F-T Subcontracted Local Employees

Specialties

Top Local Executives

Year Establ. Locally

Education, laboratory, office, public safety, justice, medical, industrial

David Crawford Kurt Wadlington Marty Hedlund

1929

123.8M

70%

202

(520) 884-9821 info@lloydconstruction.com lloydconstruction.com

56.7M

85%

K-12 and higher education, public works, health care

William E. Lloyd Bryan J. Lloyd Bradley J. Lloyd

1969

Barker Morrissey Contracting, Inc. 3619 E. Speedway, Ste. 101 Tucson, AZ 85716

(520) 323-3831 N/A barkermorrissey.com

42.0M

90%

General contracting, design/build, solar fields, medical facilities, historic restoration Kevin Morrissey Brian Barker

2004

Concord General Contracting, Inc. 1636 N. Swan Rd., Ste. 103 Tucson, AZ 85713

(520) 327-2010 jvnyman@concordinc.com concordinc.com

40.0M

85%

Design/build, construction manager at risk, historic renovation, commercial, religious, education and health care

John R. Nyman Dale Marr Eric Peterson

1992

W.E. O'Neil Construction 710 S. Campbell Ave. Tucson, AZ 85719

(520) 792-0734 tlroof@weoneil.com weoneil.com

34.6M

85%

Design/build, construction manager at risk, healthcare, multi-family, senior living, hospitality, education, retail, office, high tech

John Hobbs Tommy Roof Dick Schmidt

1982

BFL Construction Co., Inc. 700 E. Broadway, Ste. 200 Tucson, AZ 85719

(520) 882-4800 billvan@bflconstruction.com bflconstruction.com

20.5M

85%

Health care, bio medical, construction manager at risk

Garry Brav Bill VandenBerg

1973

Chestnut Construction Corp. 2127 E. Speedway, Ste. 101 Tucson, AZ 85719

(520) 733-3300 tchestnut@chestnutconstruction.com chestnutconstruction.com

20.0M

85%

General commercial contractor, design/build, construction manager at risk

Thomas E. Chestnut Patrick S. Johnson

1990

Division II Construction P.O. Box 85250 Tucson, AZ 85754

(520) 628-1663 email@divisionii.com N/A

18.4M

75%

Retail, medical, educational, religious - new construction and tenant improvements Lynn James Catalfamo Dennis Cole Robert Kline

1982

Lang Wyatt Construction 2127 E. 14th St. Tucson, AZ 85719

(520) 792-0244 jwyatt@langwyatt.com langwyatt.com

18.0M

98%

Commercial construction

Janice L. Wyatt

1984

Epstein Construction LLC 990 E. 17th St., Ste. 106 Tucson, AZ 85719

(520) 806-4000 mepstein@epsteinconstructionaz.com epsteinconstructionaz.com

11.0M

N/A

Design/build, medical, health care, dental, office, retail, new construction

Michael B. Epstein

2008

Rio West Development & Construction, Inc. 2440 S. 34th Pl. Tucson, AZ 85713

(520) 318-4233 whoge@riowestinc.com riowestinc.com

10.2M

80%

General contracting, tenant improvements, solar/renewable energy

Walter E. Hoge Brad K. Hoge

1994

Caylor Construction Co. 6422 E. Speedway, Ste. 130 Tucson, AZ 85715

(520) 298-2200 paula@caylor.net caylor.net

8.5M

85%

Construction and development

Rob Caylor

1961

Desert Mountain Construction 911 W. Grant Rd. Tucson, AZ 85705

(520) 742-0565 tom@dmcbuilds.com dmcbuilds.com

8.0M

50%

Custom home building, residential remodel, commercial construction and remodel

Thomas Rae Douglas Gratzer

1997

Eastern Style Builders Inc., dba ESB Modular Mfg. 11280 W. Adonis Rd. Marana, AZ 85658

(520) 682-9024 lois@esbmodular.com esbmodular.com

8.0M

Modular building manufacturing, commercial general contractor

Lois Morey Patricia See Paul See

1984

Camwest Group Inc. 1743 W. Prince Rd., Ste. 101 Tucson, AZ 85705

(520) 297-2171 info@camwestgroup.com camwestgroup.com

7.0M

85%

Development, property management and brokerage

Edward J. Kocis Jr.

1991

Kittle Design and Construction, LLC 2539 N. Balboa Ave. Tucson, AZ 85705

(520) 299-0404 info@kittlearizona.com kittlearizona.com

5.8M

75%

Commercial remodels and new construction, design/build

Tom Kittle

2001

Venture West 6007 E. Grant Rd. Tucson, AZ 85712

(520) 722-9292 jsimon@venturewestaz.com venturewestaz.com

5.2M

100%

Developing owner-occupied medical and office buildings, tenant improvements

Neil R. Simon Fred D. Steiniger Jordan S. Simon

1981

United Builders, LLC 3366 N. Dodge Blvd. Tucson, AZ 85716

(520) 622-2884 andy.karic@unitedbuildersllc.com N/A

5.0M

80%

Government, medical, design/build, office

Andrew Karic

2008

Ventura Pacific Development 10371 N. Oracle Rd., Ste. 104 Oro Valley, AZ 85737

(520) 327-6400 doug@venturapacificdevelopment.com venturapacificdevelopment.com

3.5M

95%

N/A

Health care and hospitality

Douglas Peery

2009

Cutshaw Construction, Inc. 3900 E. Timrod St., Ste. 1 Tucson, AZ 85711

(520) 791-0030 dave@cutshawconstruction.com cutshawconstruction.com

2.0M

90%

Custom, boutique

David Cutshaw

1991

The J.R. Tuttle Co. 2713 W. Violet Ave. Tucson, AZ 85705

(520) 624-9099 pbrownell@thejrtuttleco.com N/A

1.8M

60%

Steel fabricators and erectors

Mark Brownell Patricia Brownell

1985

Baird Builders, Inc. 1600 N. Tucson Blvd., Ste. 200 Tucson, AZ 85716

(520) 327-5100 mbaird@bairdbuildersinc.com N/A

1.6M

90%

All commercial real estate, custom homes

Michael S. Baird Sean Baird

1987

Maly & Associates and Maly Construction 4729 E. Sunrise Dr., Ste. 312 Tucson, AZ 85718

(520) 299-0856 info@malyandassociates.com malyandassociates.com

1.5M

20%

Remodels, room additions, tenant improvements

Marigale Maly

1982

Presidio Construction Company 739 E. Ninth St. Tucson, AZ 85719

(520) 622-2929 presidioco@msn.com presidioconstruction.com

1.2M

60%

Commercial, restaurants, tenant improvements, remodeling, new construction

Richard A. Kepner

1977

American Play Systems, LLC 5128 N. Casa Grande Hwy. Tucson, AZ 85743

(520) 791-7529 craig@americanplaysystems.com americanplaysystems.com

1.0M

N/A

Playground equipment, shade structures, park equipment, ramadas, ground surfacing, park and site furnishings

Debbie A. Moore Craig H. Moore

1997

Turnkey Corporation 3260 S. Chrysler Ave. Tucson, AZ 85713

(520) 571-8819 turnkeycorp@msn.com turnkeycorptucson.com

750,000

N/A

Work stations, cabinets, reception desks, information booths, nurses stations, laboratory casework, as well as custom millings for contractors

John Henderson

1972

IronHawk Elevator LLC 1830 E. Broadway, #124-148 Tucson, AZ 85719

(866) 672-1963 lmullen@ironhawkelevator.com ironhawkelevator.com

550,000

Elevator service, maintenance, upgrade/modernize, repair, refurbish, troubleshoot, construct

Laura J.F. Mullen William I. Mullen

2010

Ranked by the total value of contracts completed last year in millions of dollars Ranked information is provided by business representatives at no charge and is ranked alphabetically in case of ties. Other businesses were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings. N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided

InsideTucsonBusiness.com

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COMMERCIAL REAL ESTATE FEBRUARY 15, 2013

Hats off to our 2012 Division Leaders Office Retail

Rick Kleiner Rob Tomlinson

Industrial Multifamily

Rob Glaser Bob Kaplan

LEADERSHIP MATTERS

CONGRATULATIONS 2012 AWARD RECIPIENTS

www.PICOR.com • 520.748.7100

24 FEBRUARY 15, 2013 COMMERCIAL REAL ESTATE

Inside Tucson BusinesS