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Building ourselves BaCk? industrial and multi-family are leading the CommerCial real estate reBound
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CommerCial real estate:
COMMERCIAL REAL ESTATE
22
SEPT. 2012
IN BUSINESS MAGAZINE
Contents
Special Section: Commercial Real Estate Players Profiled
September 2012
Building ourselves BaCk? industrial and multi-family are leading the CommerCial real estate reBound
SEPTEMBER 2012 • inbusinessmag.com
Commercial Real Estate: Building Ourselves Back?
Power Lunch By the Numbers Business Calendar
$4.95 INBUSINESSMAG.COM
This Issue Scottsdale Area Chamber of Commerce Arizona Small Business Association
The commercial real estate market was ravaged by the down economy. Office space, multi-tenant and industrial projects, only recently at all-time highs, took such a sharp decline the news was actually the fact that there were, literally, no new projects in our market. There are pockets, now, of growth, and commercial real estate developers, builders, brokers and land title professionals discuss with RaeAnne Marsh some of the elements impacting the market today. Departments
9 Guest Editor
Features
J. Doug Pruitt, chairman of The Sundt Companies, Inc. and Sundt Construction, Inc., introduces the “Commercial Real Estate” issue.
18 Design Plan Build for the Future
Industry leaders speak with writer Kathy McDonald about the innovations and challenges to the business of architecture since the onset of the real estate collapse.
18
10 Feedback
28
Noted business and community leaders Jay Kramer, Thad Seligman and Howard Weiner respond to IBM’s burning business question of the month.
29 Books
New releases offer views on how to leverage marketing strategies.
30 Nonprofit
Goodwill of Central Arizona Teen Lifeline
34
12 Briefs 28 Drive Business to Success with a
Winning Marketing Concept
Concept is critical for all businesses, Martha Guidry explains, and shares strategies to identify and develop it. Special Sections
Prese
nts
37 Commercial Real Estate A spotlight on the industry and leading players empowering the market
49 Scottsdale Area
Chamber of Commerce Partner Section
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“Get a Free Website,” “Pinterest for Business,” “ACA Small Business Services Online,” “SBA.gov is Resource to Funding,” “Education Means Business at Grand Canyon University, “ “Xceligent CEO Doug Curry Discusses Phoenix Launch,” “Diverse Quarters Indicate Signs of Life for Housing Market,” “New inbusinessmag.com,” “Touchscreen Service Newest Innovation in Airport Dining” and “Thunderbird’s Student ‘Action Learning’ Serves Free Consulting to Businesses”
16 By the Numbers
Assistance to Arizona businesses was part of the Minority Business Development Agency’s record-breaking performance in FY 2011.
20 Trickle Up
View from the top looks at how Kristin Bloomquist powers client campaigns and team tactics on relationships while promoting opportunities for women in the traditionally male-dominated field of advertising.
34 Assets
2013 Ford Explorer Limited Plus: Season tickets (sports and more) as a way of building business.
35 Power Lunch
Overwhelmingly urban, Blue Hound Kitchen and Cocktails emphasizes light and refreshing. Plus: “Meeting Mangia” (or Italian “Eats”)
66 Roundtable
“Hiring Military in the Civilian Work Force” On The Agenda
31 Spotlight
U.S. and Arizona’s Economic Outlook Employment Law Seminar
32 Calendar
Business events throughout the Valley
01
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S e p t e m b e r 2012
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September 2012 • Vol. 3, No. 9
Isn’t it time to lay your fears to rest…
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Publisher Rick McCartney Editor RaeAnne Marsh
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Vol. 3, No. 9. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2012 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.
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J. Doug Pruitt, Chairman, The Sundt Companies, Inc.
Guest Editor
Revving Up to Build Again in Arizona
Doug Pruitt joined the Sundt family of companies in 1966, assumed the position of President and COO of Sundt in 1992 and, in 1998, assumed the position of Chairman and CEO of Sundt. He currently serves as chairman of both The Sundt Companies, Inc. and Sundt Construction, Inc. The recipient of numerous leadership awards, Pruitt lends his voice and expertise as a member of the board of Arizona Commerce Authority and has also been active with the Associated General Contractors of America. He is an advocate for the development of better technology in estimating, scheduling and construction methods.
After a tumultuous past couple of years, commercial construction is beginning to make a comeback. So let’s look at what drives the construction market locally here in Arizona. The harsh reality we have had to deal with is that local construction starts collapsed from just over $20 billion back in 2006 to averaging less than $10 billion each of the last four years, including this year. With private owners making up 75 percent of the total spend, local construction was left on the life support of spending by public entities. And while it is not yet time to celebrate or to hit the gas on construction hiring, for the first time since the crash, our local leading indicators are showing a real jump up. At Sundt, we track the performance of a local housing market as the best leading indicator of commercial construction. Our work has shown that both office and manufacturing construction follow a lag of one year-plus on the volume and value of local housing stock, and construction in power, education and transportation are on about a two-year lag. We are all aware that Arizona, especially Phoenix, was one of the hardest hit housing markets in the U.S. — 18th on the Case-Shiller index of home values in the top 20 U.S. markets. But in complete contrast, over the last 12 months, Phoenix has become the leading market in the U.S. in terms of home appreciation, with an 11-percent rise in values and inventories returning to normal levels, all while national prices are still dropping. So here at Sundt, we are now actively using our investments in technology and tools that we sustained and enhanced during the downturn to help local developers and corporations work through the early stages of development. While 2012 will still be a tough year for employment growth in the industry, the development cycle has turned and construction is making its return. The next biggest challenge facing the construction industry will be an adequate skilled work force to build the projects as the economy improves. With input from commercial real estate developers, builders, brokers and land title professionals, In Business Magazine editor RaeAnne Marsh lays out the picture of our Valley’s current commercial real estate market. Spec, industrial, multi-tenant, transplanted newcomers to Arizona and expansion of existing companies are some of the elements impacting it. Also in this issue, our Commercial Real Estate special section spotlights the industry. A business sector that keeps its eye on the future is architecture, and Kathy McDonald speaks to industry leaders for the “Sector” article exploring the innovations and challenges in a field that defines much of the physical environment in which we live and work. In this issue’s “Marketing” article, nationally recognized expert Martha Guidry shares her expertise on this vital aspect of business in her article on developing the concept around which to build the marketing campaign. The “Roundtable” feature hones in on the hiring and employment environment faced by military veterans returning to the private sector as we look at how business is working with this talent pool. Presenting these stories and more, In Business Magazine offers a variety of information to help us build our businesses and empower the overall business community. It’s a great read. I hope you enjoy this issue of In Business Magazine. Sincerely,
J. Doug Pruitt Chairman, The Sundt Companies, Inc. Chairman, Sundt Construction, Inc.
Connect with us:
Commercial is Commerce The Commercial Real Estate market is a vital piece of our economy in Arizona and, as more and more businesses want to be here, developers, builders and commercial real estate companies assist in making our state their home. The slowing of the markets has had an impact, but as Doug Pruitt, this month’s Guest Editor, states so well, we are on the rise. Thank you to Doug and to Sundt for their leadership in developing this issue and thanks
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to all who are working so hard to”bring back” our commercial real estate market. RaeAnne Marsh talks about the future for us and comes to the conclusion that we are slowly but surely pulling out, with healthy and prosperous commercial projects on the horizon. In this issue we provide a comprehensive look at the state of commercial real estate in our Commercial Real Estate Special Section. —Rick McCartney, Publisher
Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com
S e p t e m b e r 2012
9
Feedback
Valley Leaders Sound Off
Executives Answer
Commercial real estate hit its low several months later than residential. Now that residential is coming back, how will that affect the commercial real estate market?
Jay Kramer
Thad W. Seligman Shareholder Fennemore Craig Sector: Law
The housing industry is, traditionally, one of the mainstays of growth in the Arizona economy. In addition to direct job creation in construction, a housing recovery also indirectly affects job creation in service industries, from mortgage lending to architecture, which creates a need for more office space, and job creation in services to homeowners such as landscaping and home repair. A housing recovery and the perceived increase in wealth creates optimism so that people are once again dining out, making capital purchases, vacationing, making home improvements and otherwise spending money, all of which create demand for the retail and hospitality space as well as distribution/warehouse/fulfillment facilities. However, in order to have sustainable growth in the commercial real estate market (as well as residential), we need primary job creation, i.e., businesses that generate a substantial portion of their revenue from exporting goods or services outside of the community, which brings new money into the community and creates wealth for residents of the community. The housing industry is not self-sustaining without other business sectors creating new primary jobs. Fennemore Craig fennemorecraig.com
Jay Kramer chairs Fennemore Craig’s real estate practice, one of the largest in the Southwest. He practices in the areas of real estate transactions and finance, and represents a wide variety of national and local homebuilders, planned community developers, commercial and industrial developers and financial institutions. Kramer is one of the leading Arizona attorneys with respect to the formation of community facilities districts to finance and construct regional public infrastructure facilities.
Howard G. Weiner President and County Manager Lawyers Title of Arizona Sector: Real Estate The return of a healthy commercial market is not necessarily tied to the return of a stronger residential market; however, history does show that the rebound of the residential market usually precedes the rebound of the commercial market. The return of a strong commercial market is tied to employment, consumer confidence in both the private and public sector, expansion of business and the
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President and CEO NAI Horizon Sector: Real Estate While there is a psychological lift from the recovery in sales velocity and price increases in the residential sector, that lift does not drive demand for lease space in the commercial sector. The commercial market will begin its recovery when the demand for office, retail and industrial space picks up and we see a resulting positive net absorption of vacant space. Any meaningful increase in demand will be driven solely by job growth, which at the current time is not sufficient enough to swing the market. The uncertainty in the outcome of the upcoming elections has caused a majority of business owners to pause until the direction of the country is better defined. Too many businesses are unwilling to move, expand or make capital investments in their businesses until the elections are over and they know what the rules of the game will be. For the commercial sector to improve, we must see real job growth return to the economy, both locally and nationally. NAI Horizon naihorizon.com naiglobal.com
Thad Seligman has been active in the commercial real estate industry for 40 years, owning and/or managing commercial real estate brokerage firms, property management companies, appraisal companies and a retail development firm. He is internationally recognized for his expertise in commercial real estate sales and development. He sits on the NAI Global Leadership Board of Directors and is a partner and CEO of Horizon Real Estate Group, which owns NAI Horizon Brokerage Company, NAI Horizon Property Management Company and NAI Horizon Valuation Group.
growth of both small and large companies. Once the above referenced factors start taking shape, the commercial market will see absorption of lease space and purchasing of retail, office and industrial properties for both use and investment. The stronger residential market is an indicator that the commercial market will follow, but there is certainly no way to know the time frame. The commercial real estate rebound is highly dependent on both political and economic factors and could be impacted by the upcoming election and global events evolving in Europe and Asia. Lawyers Title of Arizona ltic.com
Howard Weiner, president and county manager of Lawyers Title of Arizona operations in Maricopa, Pinal and Santa Cruz counties, has lived in the Phoenix area since 1958 and is an Arizona State University alumnus. Lawyers Title, founded in 1925, is a member of the Fidelity National Financial, Inc. family of title companies, which collectively represent the largest title insurance and escrow services company in the world.
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Education Means Business at Grand Canyon University
Grand Canyon University’s recently completed campus expansion represents a new business model for educational institutions that its president Brian Mueller believes will help solve two challenges: “We’ve got to figure out a way to provide higher education for far less money than we’re asking students to pay without so much burden on the taxpayer.” Key was the university’s change from a not-for-profit institution to a for-profit one, enabling it to invite investment. Prior to going public in 2008, GCU spent four years building a highly successful online program, thanks to a major investment by Endeavor Capital. The online program shares the infrastructure of the ground campus — president, deans, accounting department, etc. — and, with 40,000 students around the country, it has been profitable even though tuition rates are low. “Using efficiencies to reduce tuition levels for students, making it more affordable for them, that accelerates enrollment; and if we provide high-quality, low-cost education at no or little expense to the taxpayer and our investors get a reasonable return, that’s an example of a free-enterprise, investment-based model that everyone wins in,” says Mueller. In the past three years, GCU has been pouring money into its ground campus: $200 million in buildings and $80 million in technology. Mueller anticipates ground enrollment will grow from the current 6,500 students to 15,000 by 2015. Part of that expansion is the new Colangelo School of Sports Business, launched last October. Unique among sports business programs in that it is part of the business school rather than exercise science or physical education, it offers classes taught by business-trained faculty. “Coursework is key business skills, with specific application to the sports industry,” says Brian Smith, director of the school. Among the tremendously varied directions in which students could pursue careers in the sports market ($400 billion annually) are event management, sports merchandise, video games, endorsements and revenue producers for sports programs that range from youth to professional to international. Noting GCU’s programs draw upon industry experts, Smith observes, “This is a big-time sports town, and there is a lot of opportunity for students to connect with leaders in the [sports] industry.” For instance, with Colangelo involved with the USA basketball team, GCU students were able to visit the team’s training camp in Las Vegas as it prepared for the Olympics. —RaeAnne Marsh Grand Canyon University
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New inbuisnessmag.com Prepare yourselves for the new, interactive inbusinessmag.com coming this month. Get your subscription online with current-issue articles, business news, special reports, sectorrelated whitepapers and more to build your business.
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Touchscreen Innovation Diverse Quarters Indicate Signs of in Airport Dining Life for Housing Market
HMSHost debuted the latest innovation in its dining service — Presto tablet, a table-top touchscreen that lets diners order and pay for their meals quickly and conveniently — at Phoenix Sky Harbor International Airport. “We wanted to test it out in an airport where management is open to new ideas. … Also, this is one of the busiest terminals,” says Paul Mamalian, chief innovation officer for HMSHost, a world leader in creating dining and shopping for travel venues. HMSHost also equips the device with games and plans to add additional features. Product developer E la Carte’s previous testing of the Presto tablet showed heightened customer satisfaction, as evidenced in an increase in both tips and sales. “It frees the server to be able to interact with the customer,” explains Mamalian, who says his company does not intend to use the technology to replace staff. From its first use at Taberna del Tequila, HMSHost will roll out the device to other restaurants in Sky Harbor — whose Terminal 4, Mamalian notes, has more local restaurants than any one terminal of any other airport in the country — and then to other airports. Says HMSHost Executive VP of Development Steve Johnson, “It’s truly the future of hospitality for airport dining.” —RaeAnne Marsh HMSHost hmshost.com
The foreclosure rate in the Phoenix-area housing market is dropping, with none of the shadow inventory (from anticipated foreclosures) in the wings, according to the latest report from Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. Investors are still driving the market, as the ordinary homebuyer who needs to secure mortgage funding from a bank can’t compete with investors’ all-cash offers — and in frustration, many homebuyers are turning to new-home sales and construction. This has fueled a 39-percent increase in new-home sales from June 2011 to June 2012. Permits for single-family-home construction were up 49 percent over last June. Property sale just closed in August on Chandler’s Pastorino Dairy, which was purchased by JEN Partners, a New York private equity firm, for $2.3 million, on which Arizonabased Maracay Homes will develop a new, 74-home community, Vaquero Ranch. Reporting a strong second quarter for home closings and closing revenue nationwide, Scottsdale-based Meritage Homes showed Arizona achieved a 61 percent increase in orders despite slightly fewer communities open in 2012. And Phoenix-based City Property Management recently announced it has added five more Arizona homeowners associations to its client base, four of them new construction. Although Orr’s report cites a 15.7-percent drop in sales of single-family homes in the Phoenix area from June 2011 to June 2012, it credits the decrease to the fact that fewer foreclosed homes were coming on the market. Homes.com’s most recent “State of the Home Buying Market” report, an industry standard for obtaining a pulse on the state of the housing market, cites a 49-percent increase in Phoenix property inquiries from the beginning of this year to August. —RaeAnne Marsh City Property Management cityproperty.com Homes.com homes.com Maracay Homes maracayhomes.com Meritage Homes meritagehomes.com W. P. Carey School of Business wpcarey.asu.edu
Thunderbird’s Student ‘Action Learning’ Serves Free Consulting to Businesses
Teams of students attending the world-renowned Thunderbird School of Global Management have, for years, been solidifying their classroom learning with “action learning” in the real world, working with businesses to consult on actual challenges. A new collaboration with Local First Arizona aims to encourage more local enterprises to get involved in this opportunity to gain highcaliber problem solving at no charge. In this “action learning” process, students work under the supervision and coaching of the school’s eminent faculty on projects customized
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S e p t e m b e r 2012
to the individual business’s needs. “The students are qualified because of the selection process to be at Thunderbird,” says Cindy Yeager, Thunderbird for Good operations manager, who also works as the point person to connect the project request submitted by a business with the appropriate professor. Courses for which volunteer businesses are needed are Marketing Communications, Business Intelligence (which may involve a charge to participating businesses), Leading Change and Transformation, Global Branding and Consulting. Each professor reviews the
applications to match the business need with the course learning goal. Local First was, itself, a participant recently, assisted by a team from the Marketing Communications class to hone its message to the Hispanic community because marketing requires “different messaging for different communities,” says Yeager. — RaeAnne Marsh Thunderbird School of Global Management thunderbird.edu
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S e p t e m b e r 2012
15
By the numbers
Metrics & Measurements
Minority Business Development Agency Key Indicators Breaks Records and Arizona Benefits The U.S. Department of Commerce’s Minority Business Development Agency experienced record-breaking performance in fiscal year 2011 according to its “Fiscal Year 2011 Annual Performance Report.” Nationally, the network of MBDA business centers helped minority-owned firms create more than 16,300 new jobs in the three years 2009 to 2011. In fiscal year 2011, MBDA helped Arizona minority-owned businesses obtain 42 contracts totaling $134,721,609 and $171,426,324 in capital through 12 financial transactions. For clients assisted by the agency with gross annual revenues of $500,000 or more, MBDA Business Centers completed 41 transactions totaling $305,566,289. For clients with annual gross revenues below $500,000, MBDA Business Centers in Arizona completed 13 transactions totaling $581,645. MBDA assisted Arizona minority-owned businesses in creating 446 new jobs that year and 799 from 2009 through 2011. Over the years, the Phoenix MBDA Business Center has assisted Andale Construction, Inc. with certifications and marketing. As a result, Andale negotiated a Mentor-Protégé Agreement with Sundt Construction, which enabled Andale to secure two large contracts with the
U.S. Navy for $31.6 million and $39.9 million, creating 380 new jobs. Says Luis de la Cruz, president and CEO of Andale Construction. “The MBDA Business Center has supported our company with strong outreach efforts, and constant e-mails with leads and links to projects and opportunities.” There are two business centers in Arizona: the MBDA Business Center in Phoenix, a part of the Arizona Hispanic Chamber of Commerce run by director Alika Kumar, and the Native American Business Enterprise Center in Mesa run by project director Mary Dolezal. The centers provide professional business consulting services and technical assistance to minorityowned businesses to manage, grow and expand their businesses. The centers focus on securing large public and private contracts, financing transactions, stimulating job creation and retention, and facilitating entry to global markets for eligible minority-owned businesses. Each of these offices is federally funded through the U.S. Department of Commerce. —Mike Hunter
Key indicators for the Metro Phoenix economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy. Economic Indicators (Arizona) Unemployment (July 2012)
American Indian & Alaska Native
2,393.5
1.0
No. of Housing Permits (July 2012)
1,996
25.35
Consumer Confidence* (Q2 2012) (Arizona)
68.6
24.34
$22.62
n/a
Eller Business Research
Retail Sales (Arizona) Retail Sales (in thousands)
May 2012
June 2012
Total Sales
$6,348,013
$6,753,385
6.99%
6.63%
Retail
$3,722,557
$4,044,640
Food
$1,042,109
$1,045,934
Restaurants & Bars
$839,613
$904,544
Gasoline
$743,734
$758,267
Contracting
$709,002
$700,947
Change Y0Y
Arizona Hispanic Chamber of Commerce azhcc.com Minority Business Development Center mbda.gov The National Center for American Indian Enterprise Development ncaied.org
Eller Business Research
Real Estate Commercial: Office***
27.8%
Net Absorption (in SF)
260,444
178,331
$24.43
$23.41
Gross Receipts ($1,000s)
Average Gross Receipt
Paid Employees
10,039
$ 634,558
$ 63,209
5,441
Rental Rates (Class A)
Commercial: Indust.***
9,106
$ 830,456
$ 91,199
6,788
16,333
$ 4,529,479
$ 277,321
31,339
Vacancy Rate
Hispanic American
52,667
$ 8,004,494
$ 151,983
54,530
Net Absorption (in SF)
All Minority-Owned
85,227
$ 14,183,639
$ 166,422
99,176
Rental Rates (General Industrial)
New Jobs Created by MBDA
# of Transactions
Value of Transactions
27
$ 241,925,679
Finance, Insurance, & Real Estate
1
$ 12,000
Mining
2
$ 243,125
Public Administration
2
$ 60,521
Retail Trade
1
$ 2,115
Services
7
$ 63,404,493
Wholesale Trade
1
$ 500,000
Construction
FY 2011 Performance Summary and State Overview — Arizona, by MBDA
S e p t e m b e r 2012
Residential:
799
Total Median Sale Price
FY09
FY10
FY11 FY09-11
11.8%
772,613
483,974
$0.51†
$0.43†
July 2012
7,890
8,272
$124,000
$150,000
416
672
New Median Sale Price
$220,164
$233,792
Resale Median Sale Price
157
Q2 2012
13.7%
New Build Sales Volume
Resale Sales Volume
196
Q2 2011
July 2011
Total Sales Volume
446
Q2 2012
28.0%
Asian American
Industry
Q2 2011
Vacancy Rate
Number of Firms
Assistance by Industry
16
-0.62
Average Hourly Earnings (July 2012)
Minority Business Community at-a-Glance (Based on 2007 Census)
African American
YOY % Change
8.3
Job Growth (in thousands) (July 2012)
Arizona MBDA Performance Business Owners
Number
7,474
7,600
$115,000
$ 145,000
* Rocky Mountain Poll ** Consumer Price Index refers to the increase or decrease of certain consumer goods priced month over month. *** Cassidy Turley BRE Commercial †
Industrial rents are expressed as triple net Latest data at time of press
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SE C TOR
Industry at Its Best
Design Plan Build for the Future
Architecture faces a new reality with optimism as construction rebounds from the down economy by Kathy A. McDonald
Tovrea Castle restoration near downtown Phoenix by Westlake Reed Leskosky
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S e p t e m b e r 2012
CyrusOne, a one-million-square-foot computer server farm and office project in Chandler designed by PHArchitecture
healthcare facilities, medical office buildings and the like). Design/build of private and charter schools, hospitality outlets (restaurant and hotels) and specialized big box buildings are actively being commissioned, too. Rebecca Olson, architect and director of Westlake Reed Leskosky’s Phoenix studio, where 50 percent of projects are in healthcare and the other 50 percent are cultural, saw a climb in billings during the first half of 2012. This has now stalled somewhat. She attributes it to the firm’s healthcare clients reviewing the implications of healthcare reform: Grander
projects have been delayed while smaller remodels, reflecting re-organization, are more typical. Orcutt/Winslow Partnership’s director of marketing and business development Kristine Mower finds that healthcare organizations are actively developing rehab facilities and senior living projects. “Many facilities have been waiting a long time to do renovations because of the uncertain economy,” says Mower, explaining this created pent-up demand for not only renovations but also upgrades to meet new standards required by healthcare reform.
Grand Canyon University College of Arts & Sciences building by Orcutt/Winslow
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Photos: PHArchitecture (top); Westlake Reed Leskowsky, photo by Kevin G. Reeves (bottom left); Orcutt/Winslow (bottom right)
Cautious optimism is the mood today at Greater Phoenix’s leading architecture and design firms. Hard hit by the economic downturn and fallout in formerly readily available financing for commercial projects, firms have found varying ways to come to terms with the economy. Tightening staff numbers, focusing on new kinds of projects and teaming with other architectural businesses are among the strategies employed. More than 2,000 are members of the state’s American Institute of Architects chapter based in Phoenix, a membership that includes practicing architects, students, contractors and other design affiliates; many more are in this highly specialized field that demands years of education and training. Fees for design and accompanying construction documents can range from the minimal (for smaller build-outs) to multi-millions for large-scale developments. In Phoenix, several industries are generating demand for architectural services. On the residential side, multi-unit housing has seen an uptick. Healthcare expansion and remodeling projects that keep organizations competitive are growing segments (hospital construction, remodels of existing facilities, senior
Urban Tavern restaurant at Scottsdale Quarter designed by Nelsen Partners
Photos: Nelsen Partners, Inc. (top left); Nelsen Partners, Inc. (top right); Orcutt/Winslow (bottom)
At Nelsen Partners, specialists in hospitality (restaurants and hotels) and mixed-used developments (phase three of Scottsdale Quarter is in progress), principal and managing director George Melara, A.I.A., finds market diversification is a proven strategy. “Different markets vary; while one is hot, we can leverage one off the other,” he says. “And we have clients with national presence that take us to other locations and projects.” An ongoing source for commissions is the restaurant business: Either new openings or renovations are a constant. Hotels, too, especially in Arizona’s competitive market, often look to refresh properties, ideally timing it with the off-season. Nelsen Partners is now overseeing a long-planned renovation of the Four Seasons Scottsdale’s Crescent Moon restaurant, which is closed for the summer months; the schedule is compressed, as the hotel wants to re-open with the new restaurant concept in time for high season.
Mixed-use developement at Scottsdale Quarter by Nelsen Partners
As architect Patrick Hayes of PHArchitecture describes it, “Phoenix was one of the epicenters of the construction downturn. Commercial real estate took a big hit,” he recalls. Although his firm has downsized, the company’s focus has evolved. Re-purposing older buildings, giving them face-lifts outside and tech upgrades inside, is now one area of expertise. Distressed buildings, such as the 180,000-square-foot former Honeywell Building that sat empty for several years, are creatively re-purposed by PHArchitecture. Improvements at the Honeywell site included the addition of windows and a new entry façade, which helped make the building appealing to 21st-century tenants. Another evolution for the company was on the industrial building side. After a significant investment in sophisticated Billing Information Modeling digital software that allows for an integrated, 3-D approach to spatial relationships and building documents,
Hayes has tackled and won data center design projects. “I started chasing the project two-and-a-half years ago,” says Hayes of the CyrusOne commission, a one-million-squarefoot computer server farm and office project. Phoenix has become a hot spot for data centers because of its lack of natural disasters — important to building these mission-critical structures, explains Hayes. One design and energy-efficient addition Hayes made to the often-standard big box structure: an angled butterfly roof (resembling the upward wing motion of a butterfly), which has helped lead to a second data center complex assignment. Because of Phoenix’s newness, the city has no specific signature architectural style. New design is part of the look that’s defined by “a lot of glass and steel and shade canopies; it’s more high-tech,” notes Hayes. As Rebecca Olson sees it, Phoenix is an emerging area for talented designers who often work from a blank slate, “There’s an appreciation for good design in Phoenix,” she contends. And then there’s the shadow of the United States’ most influential architect, Frank Lloyd Wright. “There are certain principles — sensitivity to the environment, desert climate and natural surroundings — that are the legacy of Frank Lloyd Wright,” observes Melara. “It is a great heritage from which to build, but as Arizona is a very young state, we don’t have a lot of history. In contrast to Back East, here we get to build a lot of stuff from scratch and have a new, wide-open canvas, where we can be expressive.” Nelsen Partners, Inc. nelsenpartners.com Orcutt/Winslow Partnership owp.com
Chandler Regional Medical Center patient tower designed by Orcutt/Winslow
PHArchitecture pharchitecture.com Westlake Reed Leskosky
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S e p t e m b e r 2012
19
Trickle Up
A View from the Top
Kristin Bloomquist: Harnessing the Power of Relationships Ad agency exec sees it help break the glass ceiling To Kristin Bloomquist, general manager of Cramer-Krasselt’s Phoenix office, an advertising career is all about creating relationships. “I got into the work of advertising because I was fascinated by the creativity of it,” she says. “I also loved the business part of it … [the ability] to partner with clients to grow their business.” Examples across a multitude of clients include brand positioning work, helping to craft both marketing and media strategies, and thinking both about the short as well as the long term. Cramer-Krasselt is the second-largest independent advertising agency in the country, run as a four-office network. Bloomquist, with more than two years under her belt as the first female general manager in C-K’s Phoenix office since it opened three decades ago, oversees all aspects of the office — from employees to client relationships to finances and operations. “I stay actively involved in all of our clients’ businesses,” says Bloomquist. “During the course of a day, I
On the Record
■■ Cramer-Krasselt offices: Chicago, Milwaukee, New York City and Phoenix ■■ Number of C-K employees: 551 agencywide; 75 in the Phoenix office ■■ Services C-K offers: Account strategy, ■■ ■■ ■■
20
account management, creative, media digital and public relations Notable C-K clients: SRP, MGM Grand, Valley Toyota Dealers, Truly Nolen, Blue Cross Blue Shield of Arizona, Arizona Science Center, Grand Canyon University C-K’s 2011 billing: $1,017 million total C-K; $110 million Phoenix office Giving back to the community: Bloomquist holds board member positions at the Walter Cronkite School, The Phoenix Symphony Board of Overseers and Fresh Start; chairman of the new business committee of the American Association of Advertising Agencies — Western Region
S e p t e m b e r 2012
may be in meetings on two or three different clients, counsel someone on a challenge or opportunity, be working on a presentation or researching new business opportunities. No two days are ever alike!” Employing an overarching approach to managing a firm, she’s been part of account management, human resources, operations and more, which has given her a “360 view” of how business operations and organizations work. Bloomquist believes success is about relationship-building — both internal and external. In a client setting, she points to Truly Nolen Pest Control as an example where building relationships is particularly important. “Like any good friendship, our communications needed to build a foundation of trust in Truly Nolen as an exceptional pest control provider that treats customers right,” she says. In the workplace, relationship-building means “bringing people together of all strengths, skills and personalities,” and she values collective wins over personal ones. “What we do is truly a team effort and when we have a win, whether that win is doing work that makes an impact on our client’s business or the actual winning of a piece of new business, it feels great,” she says. A case in point is the agency’s work with existing client Arizona Science Center to launch a new campaign. Through this project, C-K is putting its collective talents to work to bring science to the forefront of people’s lives. Comfortable with all niches, Bloomquist has worked with a host of retail-focused companies over the course of her career, including Atari, DIRECTTV, Expedia.com and Clairol. “[These experiences] have been a great opportunity to marry marketing with retail. The retail mindset has been the thrust of my career,” she says, sharing that the scope of brands and the breadth of product categories have been just as rewarding as the creativity. She started her career, fresh out of college, at DDB in New York City. After getting her feet wet, she moved up the corporate ladder to agencies like JWT Jordan, McGrath Case & Taylor (now Arnold). Before joining C-K
in 2009, her last agency stint was with Deutsch, where she was hired by industry leader Donny Deutsch to open Deutsch LA. Well aware of the advertising business’s male-dominated past, Bloomquist has seen the field become more accessible even in the 30 years since she entered it. “This is a business that has been one of the first to open up the glass ceiling. I’ve been fortunate to have great role models. You don’t need to be male to succeed,” she says. Her approach to success is one of constant improvement: “Bring passion and brainpower to the room every day. Stay ahead of the business by looking at trends both from a marketing/advertising standpoint, but also from a business point of view. Live and work with integrity.” Bloomquist is eager to pass on lessons like these to others. She gives back to upand-coming women in the business through internships in the firm that encourage handson roles in projects, telling them, “Work hard, show your passion and don’t be afraid. [Ask yourself], ‘How can I make an impact today?’ and don’t be shy.” This mentoring extends relationship-building well beyond that between vendor and client, Bloomquist observes, noting it is equally important in one’s career development. “Mentors can help young people attain their full potential. It takes a visionary to recognize the talent and not stop you because of your gender and let you shine,” she says. Cramer-Krasselt c-k.com
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Photo: Cramer-Krasselt
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21
Commercial Real Estate:
Building Ourselves Back?
Industrial and multi-family are leading the commercial real estate rebound by RaeAnne Marsh
T
he commercial real estate market was ravaged by the down economy, although it didn’t make disaster headlines like its residential counterpart. There was a day when the metropolitan Phoenix area was tops when it came to building companies expanding and actual construction of commercial projects here in the Valley. Office space, multi-tenant and industrial projects were at all-time highs, but then took such a sharp decline the news was actually the fact that there were, literally, no new projects in our market. Today, the commercial market is showing pockets of strength as it limps into the future.
UniSource corporate headquarters in Tucson, developed by Ryan Companies
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S e p t e m b e r 2012
New retail space takes the place of an old church and school at 7th Street and Osborne in Phoenix “Especially on the distribution side,” says Marty Hedlund, senior vice president and Southwest District manager of Tempe-based Sundt Construction, Inc. And Tom Louer, a principal at commercial brokerage Lee & Associates’ Phoenix office, notes there’s a pent-up demand for manufacturing space. “A lot of people have been working in less space and are beginning to grow again.” Smaller companies may find existing space, but, with nine consecutive quarters of positive net absorption, larger companies are looking for buildings to develop.
Compared to other commercial real estate development, industrial projects cost “pennies on the dollar” to build, notes Mike Haenel, executive VP with Cassidy Turley’s industrial group. Haenel expects to see several spec developments in the next 18 to 36 months, building spaces of 250,000 to 1 million square feet. “The confidence [in this growth] is across the board — it’s the landlord, the tenant, the developer, the investor and the broker,” he says. “Industrial construction activity is dominated by build-to-suits and owneroccupied construction,” says Craig Henig, senior managing director and Arizona Market leader at real estate brokerage CBRE’s Phoenix office. “Build-to-suits represent 70 percent of the square footage under construction at the end of the second quarter.” Examples he cites include Dick’s Sporting Goods (600,000 square feet), Intel (1.2 million square feet) and First Solar (1.2 million square feet) — although, he says, “It is expected the building that was designed for First Solar will not be put on the market due to the change in the renewable energy sector.” Three distribution buildings that broke ground in the second quarter are the 600,000-square-foot Coldwater Depot Logistics Center and two buildings at Elliot Business Park that total 320,000 square feet. The office market, with an overall vacancy rate of 27 percent, remains weak, as builders can’t compete with lease rates. “Companies are more cautious about growth, rather than running wild and taking excess space,” observes Blake Hastings, senior VP of Cassidy Turley’s office group, noting also the trend to greater efficiency inbusine ssmag.com
Photos: Cassidy Turley (top); Ryan Companies (bottom)
Multi-family has been the segment of commercial first to recover. “New construction is dominated by the multi-family market,” says David S. Miller, vice president of national accounts, commercial sales manager with Chicago Title Agency. Jim Swanson, president and CEO of Kitchell Corporation, a Phoenixbased development and construction company, calls multi-family the “development hot spot.” “On the investment side, multi-family has led the commercial market in sales. We were the first to recover, so it was a safer place to invest,” says David Fogler, executive VP with the multi-housing investment group at real estate brokerage Cassidy Turley’s Phoenix office. While citing 62 projects with a total of 19,000 units in the pipeline — with the caveat that it’s unlikely all of them will ultimately be built — Fogler points out this comes on the heels of an economic downturn that saw many former homeowners foreclosed out of their homes. Home ownership had risen to the unusual high of 70 percent of households, so the drop in homeownership is really just taking it back to normal levels, he explains. However, the bottom line on the current strength of the multi-family market is it’s due to this drop in home ownership rather than to job growth. Industrial has remained relatively healthy.
as companies take advantage of technology to reduce the amount of space they need. Law firms, for instance, don’t need large libraries when the reference materials are available online. The good news is there are large users in the market that are starting to use up large blocks of space, and Hedlund points out there are not a lot of contiguous spaces greater than 25,00040,000 square feet. “Larger companies drive the potential for new buildings because they can’t get enough space in one building.” In general office, construction at this time is limited to one 92,000-square-foot building at Allred Park Place in Chandler’s Price Road Corridor, according to Henig. “The talk of office development at Hayden Ferry in Tempe and in Downtown Phoenix is increasing,” he says, noting several projects are currently going through the pre-development stages. There is some life in the medical office component of the office market, according to John Strittmatter, president of the Southwest Division of builder and developer Ryan Companies, who says Ryan is starting to see some activity on land it has around the Valley. Building for healthcare businesses is one of the stronger areas of commercial construction right now, observes Swanson, who says Kitchell is working with healthcare clients on different delivery methods, including community-based medicine. “There are a lot of good [healthcare] systems in town, and they’ll be looking at how to expand and how to deliver healthcare into the 21st century.”
Photo: Ryan Companies
Pockets of Activity “Retail construction is dominated by the outlet malls at Westgate City Center by Tanger and Simon’s outlet mall in Chandler,” says CBRE’s Henig. But the general trend is away from power center development, especially on the outlying perimeter, in favor of infill development or redevelopment in already densely populated areas. Says Brad Douglass, of Cassidy Turley’s retail group, “Retailers are getting excited about something they’ve never seen before: this opportunity … where population already exists and we know we can make these projects work, as opposed to out in the middle of nowhere where they’re begging people to come.” inbusine ssmag.com
One of few Arizona projects in Ryan Companies’ niche of corporate headquarters is the recently completed FBI Headquarters in north Phoenix Citing Central Phoenix and Scottsdale as the areas with the healthiest demographic and greatest density, Douglass notes the City of Phoenix is “receptive to incentivizing redevelopment” as part of a big trend called “adaptive reuse.” At 7th Street and Osborne in Phoenix, retail space now stands where there previously was an old church and school. Where previously had been a rundown golf course at Northern and 22nd avenues, there is retail now on the Northern Avenue frontage. A concurrent trend is for older, bigbox centers with high vacancy rates to be redeveloped as multi-family projects, such as happened to the Pure Fitness building at Scottsdale Road and Curry Avenue in Tempe, notes Ryan Leavitt, Douglass’s colleague in Cassidy Turley’s retail group. For Ryan Companies, all of its construction activity in the retail realm is for a single client — Target — with remodels at 16 of its stores but only one new store, in Chandler. Activity in the industrial segment is strongest on the west side of the Valley, where, says Strittmatter, “folks are talking about or actually starting spec.” With options limited for spaces of 300,000 square feet or more, interest in big boxes has grown “much quicker than anyone ever thought would happen.”
Proximity to the ports and the Southern California markets makes the area stretching west from Downtown Phoenix along Interstate 10 attractive for future development, especially on the distribution side of industrial, notes Henig. And Haenel, focused on industrial for Cassidy Turley, is finding the Sky Harbor area as well as the Southeast Valley to be active for leasing and developers buying for spec. The Southeast Valley is also the hottest market for land, according to Will French, of Cassidy Turley’s land group. Says his colleague Brian Rosella, “The biggest driver is homebuilders, due to a lack of supply in the resale market.” In the past six months, according to Rosella, the market for land has gotten overheated, prompting homebuilder companies to go to areas that weren’t viable before. In Gilbert, permits for housing starts nearly doubled this year over last year. “On finished lots, the pricing has gotten crazy, going from $35,000-$40,000 to more than $100,000,” says French, noting the companies are looking at raw farming land to take through the process themselves. For multi-family development, Chicago Title’s Miller sees most activity in Scottsdale, the southeast and northeast parts of the Valley and far north-central Phoenix, with very little in the far west. And Cassidy Turley’s Fogler notes a S e p t e m b e r 2012
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The 3,000-square-foot Sonntag Academic Pavilion at St. Joseph’s Hospital and Medical Center designed by Orcutt/Winslow opened in February 2012
heavier concentrated along the Loop 101. The office market, Henig reports, has seen very good leasing activity around Sky Harbor due to the availability of large blocks of space. For new construction, Sundt’s Hedlund expects the Camelback corridor to be in the first wave of building as the vacancy rates there are among the Valley’s lowest. Scottsdale has, historically, been the hottest submarket for office, according to Cassidy Turley’s Hastings. Tempe is also strong, particularly Mill Avenue because of its proximity to Arizona State University, although, he notes, “It’s small, so it doesn’t take much to fill up.” These two and Chandler — with a lot of customersupport call centers, the Intel fabrication plant and the only building in the segment currently under construction (tenantdriven construction of a 92,000-square-foot building for Infusionsoft) — Hastings sees as the best office submarkets.
Activity in Downtown Phoenix, with its vacancy rate of 27 percent, is “musical chairs,” says Hastings. “No one is headed to Downtown Phoenix from other submarkets.”
Profile of the Players The majority of building is user-driven, primarily due to companies moving or expanding into Arizona, observes Chicago Title’s Miller, who offers a perspective from an industry involved in the acquisition and the development of every real property transaction. Speaking for the industrial market, Haenel says Cassidy Turley is tracking more than 10 million square feet of projects it deems actually viable prospects that are looking to expand or relocate to Phoenix — the majority being relocations from other parts of the country. “Some of the sectors of note,” says CBRE’s Henig, “are advanced business services, R&D
firms, educational, data center, healthcare, e-commerce, financial institutions, insurance companies and technology firms.” Phoenix ranks in the top 10 nationally for the data center market of mission-critical facilities, thanks to its geographic situation being out of the line of fire of major natural disasters such as hurricanes and earthquakes. While that market is not “bowling things over,” says Sundt’s Hedlund, “there’s a lot of talk and some activity.” Hedlund also sees continued growth for the universities. Speaking of a general consensus that building an economy that supports growth in Arizona requires high-tech, whitecollar and high-education-level jobs which, in turn, requires a robust education system, Hedlund says, “Spending on the universities is one way to help get there, so we think that’s going to continue.” It’s local people who have the land and know the community who are ultimately behind development, observes Kitchell’s Swanson. “They’ll go out and find the users they want.” Redevelopment, especially, owes activity to local investors who see a need in the marketplace and an opportunity to capture that need, for instance driving by an old building or vacant lot and imagining it as something else, says Cassidy Turley’s retail specialist Leavitt.
Finding the Funding With the strength of the multi-family market, the investment side is also very active. Most of this is private, such as real estate investment trusts (REITs), and institutional,
Photo: Kitchell (top); CBRE (bottom)
New industrial construction includes the 600,000-square-foot Coldwater Depot Logistics Center underway in central Phoenix
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rather than individuals or exchanges, says Cassidy Turley’s multi-family expert Fogler. Financing for the equity portion, however, is difficult to obtain. “All developers are competing for a small pool of equity financing, so [funders] are very selective.” It’s the reverse of what the market saw in 2005, when there was more money than projects, he notes, adding, “It will be years before the pendulum swings back to that.” Speaking for the office side, Strittmatter says financing can be found for projects with at least 50 percent pre-leasing. “Lenders will not provide major financing with major speculative space.” Ryan Companies purchases the land outright on its development projects and then uses that equity to secure construction loans. “We have relationships that span 60 years with US Bank, Wells Fargo Bank and others, but it’s always contingent on preleasing,” he notes. CBRE’s Henig, with an industry-wide view, supports that assessment. “Buyers of all sizes of commercial properties are mostly closing all cash and financing after their purchase,” he says. “The equity is raised through a variety of sources — from private investors with cash from previous investment sales to money raises through a REIT structure or funds with institutional allocations.” He notes that ample capital and competitive terms are available for all property types, for deals that fit the lenders’ criteria. As Kitchell’s Swanson puts it, “Now more than ever, it’s available for good, well-thoughtout projects that have the right amount of equity in them.” There’s a great deal of variety as to sources. A lot of Kitchell’s traditional
92,000-square-foot building at Allred Park Place in Chandler’s Price Road Corridor
Construction begins on 320,000 square feet of industrial space at Elliot Business Park in Gilbert construction is funded through lending institutions, but Swanson sees healthcare floating bonds and some apartments being built with life insurance or pension fund money. Compared to pre-collapse practices, investors and lenders are following stricter underwriting methods in determining value and requiring more equity of the borrower. Says Henig, “On different product types and depending on the investor financial strength, we are seeing the loan to value’s range anywhere from 50 percent to 75 percent.” A dramatic change from the 90100 percent financing borrowers enjoyed only a few years ago.
Metro Phoenix in the Bigger Picture Phoenix generally shows strength ahead of other areas of the state. Cassidy Turley’s retail specialist Leavitt has found Phoenix is the leader in bringing new tenants to Arizona, who branch out from here to other cities. And Sundt’s Hedlund has found construction in Phoenix to always start more quickly than the next biggest metropolitan area, Tucson.
Providing perspective from some of Sundt’s other markets, Hedlund shares that California is very busy (“In the public sector, surprisingly.”), spending continues in Texas in both the public and private arenas, and Denver has experienced continual capital spending. “[Colorado’s] cities and state are in better shape than Arizona,” he says, “so there’s been continued funding for colleges and municipalities.” But Phoenix is also looking good in comparison to other parts of the country. “There’s a significant rebound ahead of [markets] Ryan Companies is operating in elsewhere,” Strittmatter says. “We finally seem to be coming out of the housing problem ... and that bodes well, for long term, for our recovery.” “There are good projects hoping to get legs,” Hedlund says, noting that solid developers who have been through a few of these real estate boom-and-bust cycles put themselves on the sidelines early and are positioning themselves to be on the first wave of the recovery. “They have projects that are shovel-ready and can go quickly if they get the right tenants and funding.” And he sees a lot of demand for people in fields such as geo-technical, civil engineering and title — who get involved in the early contemplation of projects. “It doesn’t mean everything [they work on] will happen, but we’re cautiously optimistic.” Cassidy Turley cassidyturley.com CBRE cbre.com Chicago Title Agency chicagotitlearizona.com Kitchell kitchell.com
Photos: CBRE
Lee & Associates lee-associates.com Ryan Companies U.S., Inc. ryancompanies.com Sundt Construction, Inc. sundt.com
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Marketing
Packaged to Impress
Drive Business to Success with a Winning Marketing Concept Determining concept, critical for all businesses, is harder than it may seem by Martha Guidry Behind every successful product, service, or brand is a powerful concept. It is really that simple. Products and services that win in the marketplace are successful in presenting an idea that combines a clear benefit with invisible consumer logic. Whether the business is big or small, just started or in some stage of maturity, it needs a marketing concept. Surprisingly, many marketers struggle with creating a unique and ownable concept — it is much more difficult than most think. So what exactly is a marketing concept? It is the mental picture of the benefit the target audience/buyers believe they will receive when they purchase the product or service. As Larry Huston of Procter & Gamble has described it, “A true measure of a [positioning] concept is its simplicity. When presenting the concept to the consumer, [we] must provide a clean, easily defensible, clearly articulated, emotionally satisfying, thoroughly convincing, superior answer to the deceptively simple question, ‘Why should I purchase from you?’” Two fundamental types of concepts exist. One is a core idea concept, which simply describes the product or service being offered and is used to determine whether an idea is of interest to a potential buyer. The other is a positioning (or marketing) concept, which attempts to sell the benefits of the product or service and must tap into a real customer belief and provide a relevant context for the idea. Every business, brand, product or service needs a positioning concept or it will look like every other business in the competitive set — or, even worse, its target audience or competitor might set the position to something other than what the business owner wants it to stand for.
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An example used in my book (with Apple’s permission) is the MacBook Air. The core idea for the Air is that it is thin and lightweight and has all sorts of nifty add-ons for storage and processing power. That sounds good; now we understand what the product is all about and we’ve gotten a laundry list of features that may or may not be relevant to a buyer. In contrast, the positioning concept sells a benefit — fundamentally, the new shape and size of the MacBook Air makes it “ultraportable” and not a space hog in your briefcase. The use of “ultra” suggests superiority versus other Mac and PC options. Being portable is a consumer benefit, while being thin and light are just features of the new product. In the positioning concept, theses features are used to support the consumer benefit. Consumers buy benefits, not features. Note that the positioning concept only selectively uses the useful product features — not all of them — to support the benefit. Creating the marketing concept requires some work on the part of the business owner. First is to understand the three primary areas needed to develop an effective business positioning: Content, language and relevance (“CLeAR” thinking). ■■ Content: First, make sure to communicate something meaningful in the content of the concept. Does the business solve a problem or overcome an existing negative? Are there believable and meaningful reasons that what the business is offering is beneficial? Does it fill a functional need (whiter teeth with a toothpaste) or an emotional need (feeling more comfortable smiling)? inbusine ssmag.com
Books ■■ Language: The language must be appropriate for the target audience — whether targeting a high-tech business professional or a nervous, new mom, use their language. Companies often develop an idea and communicate language that sounds like they are targeting the internal company owners and senior management rather than anyone who might actually want the service. The language must be outwardly focused, not be internal lingo. ■■ Relevant: Make the concept relevant to the target — novel and unique in the competitive set. In selling a shampoo, the mere claim that hair will be clean will not lead to the product jumping off the shelf. In contrast, the promise of healthy, radiant hair offers something that might be aspirational to many. Once the business has developed and qualified a winning concept, it must be then turned into a communications strategy, often called a positioning statement. Contrary to what some believe, a concept is not a selling line such as “Hallmark, when you care enough to send the very best” or “Disney, where dreams come true.” The marketing concept identifies the winning approach, the copy strategy, as the backbone of all communications — advertising, PR, sales, promotion, website, selling line, social media communications, etc. — and the communications strategy is used to execute a winning concept idea. Going back to the MacBook Air example, the positioning concept is first of four critical elements of the communications strategy (the benefit and the reason to believe). The other aspects incorporated include the target audience, the brand character and the purpose of the communications. Here’s what the MacBook Air strategy might look like: ■■ Communications will convince business people who travel a lot that smart professionals use the MacBook Air because it is the ultrathin, ultraportable choice for a personal computer. Only MacBook Air is encased in less than an inch of sleek, sturdy, anodized aluminum and weighs just three pounds, so it is the thinnest, lightest choice available. ■■ Apple’s brand character: Innovative, Simplicity, People-driven design, Passionate connection with its customer My own business is another example. When I first started, my company was called Consumer Reactions and I was a moderator of qualitative research. Most of my business was consumer-focused, so the company name made sense. I later recognized a unique opportunity to help my clients provide better concept stimuli for their research, and, having identified that niche, reopened my company as The Rite Concept. I was now something much broader than a moderator — I was now known as “The Concept Queen.” This new company name was created to reflect my new positioning as a company that does not merely do qualitative research but helps clients ideate, research and develop concepts. The new positioning and the name change created marketplace uniqueness in a somewhat cluttered target audience. Companies large and small can find the niche that will help their business, product or service grow much more rapidly. The time and effort focused on developing the concept and communicating it well will make new sales much more effortless. Martha Guidry is the principal of The Rite Concept (www.TheRiteConcept) and author of Marketing Concepts that Win! (www.MarketingConceptsThatWin. com). She presents at national conferences, writes articles, and blogs on www.ConceptTalk.com in addition to her consulting and research practice.
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Marketing Leverage The Referral Engine: Teaching Your Business to Market Itself
The small-business guru behind Duct Tape Marketing shares his most valuable lesson: how to get your customers to do your best marketing for you. The power of glitzy advertising and elaborate marketing campaigns is on the wane; word- of-mouth referrals are what drive business today. People trust the recommendation of a friend, family member, colleague or even stranger with similar tastes over anything thrust at them by a faceless company. This practical, smart and original guide is essential reading for any company looking to grow without a fat marketing budget. John Jantsch $25.95 Penguin Group This month
Sexy Little Numbers: How to Grow Your Business Using the Data You Already Have Imagine if you could identify your business’s most profitable customers, craft a better marketing strategy to communicate with them and inspire them to buy more. Today, everything we do creates data, and the volumes are enormous. We no longer need expertise in math or statistics or even expensive modeling software to get the most out of all these revealing consumer insights. A revolution in data analysis is underway, and the methods and tools for aggregating and analyzing this “data deluge” are suddenly far simpler, less expensive and more precise. Dimitri Maex and Paul B. Brown $27.50 Crown Publishing This month
Small Message, Big Impact: The Elevator Speech Effect Acclaimed speaker and consultant Terri Sjodin defines an elevator speech as a brief presentation that introduces a product, service or idea. Its purpose isn’t to say everything about the topic — just to intrigue and inspire the listener to want to hear more. And Sjodin suggests businesspeople expand their vision of what it can do. In this newly updated edition, Sjodin offers her time-tested strategies and advice, including simple outlines, worksheets, a sample elevator speech, evaluation forms and much more. Terri L. Sjodin $24.95 Penguin Group On shelves and online
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NonProfit
by RaeAnne Marsh
Actions to build Community
Goodwill of Central Arizona: Celebrating Good Works with a Good Time Arizona of $380 million — achieved through its own business operations that generate about 90 percent of its budget. Goodwill of Central Arizona goodwillaz.org
Snapshot
■■ EVENT: Teen Lifeline’s Connections of Hope gala ■■ ■■ ■■ ■■ ■■
will be held Oct. 6 at the Montelucia Resort & Spa in Scottsdale. Arizona was second in the country in the number of teen suicides when Teen Lifeline was conceived in 1985 and has remained in the top 10 every year since; it now ranks number 9. The all-teen volunteers who deliver the organization’s mission are supported by masterlevel clinicians who help the teens deal with the issues they confront. Approximately 70 volunteers, ages 15-21, each year handle more than 11,000 calls on the suicide hotline and serve more than 35,000 teens in outreach programs, donating more than 12,000 hours. Teen Lifeline offers the peer counseling training four times each year and trains an average of 56 teens annually. For its annual budget of $475,000, Teen Lifeline relies on grants for about half its revenue and the Connections of Hope gala for about one-third, with some support also from individuals and service clubs.
Snapshot
■■ EVENT: Evening of Goodwill, Denim & ■■ ■■ ■■ ■■
Diamonds will be held Oct. 13 at JW Marriott Camelback Inn Scottsdale Resort & Spa. Goodwill of Central Arizona expects to serve more than 40,000 people this year in its skills training. Approximately 14,000 of the people it trains will find employment in the community, plus Goodwill of Arizona employs approximately 2,000 in its own operations. Goodwill of Arizona operates 51 stores and 14 career centers in the Greater Phoenix area plus a few locations in surrounding areas. Stores are run like a full-line retailer. Well
merchandised, each store puts out 5,0007,000 new items each day. “Resellers use us as their inventory,” Teter observes.
■■ As a recipient of donated items, Goodwill ■■ ■■
of Arizona keeps approximately 100 million pounds of discarded items out of landfills. Of its $100 million in annual revenue, approximately 5 percent comes from a few federally funded programs, 2 percent from traditional philanthropy, and the remainder from its business operations. Goodwill was started in Boston in 1902; Goodwill of Central Arizona was founded in 1947.
Teen Lifeline: Hope and a Helping Hotline Talented teen performers headlining Teen Lifeline’s black-tieoptional Connections of Hope gala at the Montelucia on Oct. 6 will add a new vibe to the annual fundraiser, as the organization syncs the evening’s program to its mission of empowering teens to make healthy decisions. “We utilize teens in our delivery of service [of training and providing peer counselors to man the suicide hotlines],” says Teen Lifeline’s executive director Michelle Moorhead. “This will really celebrate Arizona’s youth.” The gala also features the presentation of the Alfred J. Molina Community Lifeline Award, named in honor of its inaugural recipient in 2005. Honored this year will be Jerry Colangelo, who, says Moorhead, has been a force for making Phoenix a better place to raise a family. She admits there’s an extra aura of excitement now as Colangelo “is just
back from London with a gold medal with the USA basketball team.” Peer counseling remains an innovative approach to combating teen suicide, says Moorhead. “Teens turn to peers, not adults. [We] reach kids where they’re at and [help them] make better decisions for themselves.” Teen Lifeline teenlifeline.org
In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.
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Photos: Goodwill of Central Arizona (top); Teen Lifeline (bottom)
Goodwill of Central Arizona’s Denim & Diamonds affair is more about the denim than the diamonds since it dropped the formal flair it once had for a casual boots-and-jeans evening with an emphasis on fun that last year drew a sell-out crowd of 600. “People have a really good time,” says Jim Teter, president and CEO. Sustaining the event’s thoroughly Western theme — taking place in the beautiful outdoor setting on the backside of Mummy Mountain at the Camelback Inn — are rodeo-themed games and some line dancing (instruction included) and, of course, a barbecue dinner. The higher purpose of The Evening of Goodwill is the presentation of this year’s awards for youth, adult business partners and clients as the organization highlights its impact on the community. “Goodwill is all about putting people with barriers to employment to work,” Teter says. Goodwill’s successful skills training program, helping people get employment, has an economic impact to
www.inbusinessmag.com
September 2012
O n t h e Ag e n D a
A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.
Chandler Chamber of Commerce
United States and Arizona’s Economic Outlook Wed., Sept. 26 — 11:30a – 1:30p The economic update luncheon presented by the Chandler Chamber of Commerce on September 26 at the Radisson Hotel will touch not only on the situation locally but take in a wide view of the broader economy in which businesses operate. “Going into the fourth quarter this year, it will be interesting to see the projections for the local community and the country as a whole,” says Terri Kimble, president and CEO of the Chandler Chamber of Commerce, observing that one of Chandler’s resident businesses, Intel Corp., creates more than 1 percent of the nation’s GDP in just its U.S. operations. The economic forecast will look forward into 2013, and Kimble notes the upcoming Presidential election adds an important element to the mix at this time. “The election always plays a key role on the economy.” Presenting the economic outlook will be Alan Maguire, president and principal economist of Phoenix-based economic forecasting and public policy consulting firm The Maguire Company and an original member of the Arizona, Western States and Metro Phoenix blue chip economic forecast panels. His experience includes six years as economic advisor to the Arizona Senate and four years as Arizona State Treasurer. —RaeAnne Marsh Chandler Chamber of Commerce chandlerchamber.com The Maguire Company aemaguire.com
Steptoe & Johnson, L.L.P.
Employment Law Seminar Wed., Sept. 19 — 9:00a – 4:30p An extensive look at the continually evolving field of labor law is the agenda at Steptoe & Johnson’s Labor Law Seminar on Sept. 19 at the Arizona Biltmore. Limited to corporate Human Resources and legal personnel, the seminar is focused on providing them practical and creative answers, especially to new challenges they may be encountering. “We select topics that are recent trends in lawsuits filed by private plaintiffs as well as federal and state agencies, both in litigation and agency actions. The topics are ones that can result in large liabilities for employers, from mistakes that are commonly made,” says Stephanie Quincy, a Labor and Employment partner in Steptoe’s Phoenix office. She notes, “Most of the topics are issues we see seasoned human resources professionals often doing incorrectly because they are not necessarily intuitive.” Specifically, Quincy will examine American with Disabilities Act topics, such as automatic terminations of employees on extended leave, attendance policies, and requiring full releases of employees returning from leave. Other Steptoe attorneys will share their expertise on such topics as pre-hire screening and potential legal implications, the EEOC mediation program, and new EEOC guidelines on discrimination issues in previously unspecified categories. Several guest presenters will join the team of Steptoe lawyers presenting, including recognized consultant Chris De Santis, who will speak on the art of mentoring, and Tod Schleier, one of Arizona’s preeminent plaintiff ’s lawyers, who will give attendees an inside look into how he chooses his employment cases. General registration is $150 per person; $100 for members of Arizona Industry Liaison Group and the Society for Human Resource Management. Registration is complimentary to companies sending groups of three or more. Registration is open only to corporate Human Resources and legal personnel, and CLE and HRCI credit is available. —RaeAnne Marsh Steptoe & Johnson, L.L.P. steptoe.com
Notable Dates This Month Mon., Sept. 3 Labor Day Sat., Sept. 22 Autumnal Equinox Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.
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O n t h e Ag e n d a
September 2012
AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE
ASU SkySong 1475 N. Scottsdale Rd., Scottsdale www.aztechcouncil.org
Trade Show and Luncheon
Lunch and Learn
Tues., Sept. 18 11:00a – noon (Trade Show); noon – 1:00p (luncheon)
Luncheon speaker: Cathie Kelly from Local First to speak on “How to Support Local Businesses.” Members: $35; non-members: $45; trade show admission free Arizona Grand Resort 8000 S. Arizona Grand Pkwy., Phoenix ahwatukeechamber.com
ARIZONA SMALL BUSINESS ASSOCIATION The Process of Business Development Thurs., Sept. 13 9:00a – noon
This seminar consists of a three-hour presentation and one-hour business review process for each client. Members: $25; non-members: $40 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com
What: The ABC’s of Cash Flow Tues., Sept. 18 9:00a – 10:30a
Learn the strategic importance of managing and improving your business’s cash flow, the most common mistakes and most important steps to begin improving cash flow. Members: $15; non-members: $30 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com
Annual Open House + Business Expo Thurs., Sept. 20 4:00p – 7:00p
Free; RSVP requested ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com
Tues., Sept. 25 11:30a – 1:00p
“Social Media — Finding, Harvesting and Effectively Using This New Source of Evidence” presented by eLit (CLE Credit Available). Members: free; non-members: $15; includes lunch Seasons 52 2502 E. Camelback Rd., Phoenix aztechcouncil.org
Growing Technology in Arizona Thurs., Oct. 4 10:00a – 6:00p
The dynamics of sustaining and expanding Arizona’s technology competitiveness while achieving success and job growth. Members: $75; non-members: $100; includes lunch and evening networking reception Hilton Scottsdale Resort & Villas 6333 N. Scottsdale Rd., Scottsdale aztechcouncil.org
CENTRAL PHOENIX WOMEN Annual Media Dinner Mon., Sept. 10 5:30p – 7:30p
Media panel: Cheryl Green, publisher of AZ BIG MEDIA; Bret McKeand, publisher andVP of operations of Independent Newsmedia, Inc.; Rick McCartney, president & CEO of InMedia; and Ilana Lowery, editor of Phoenix Business Journal $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org
CHANDLER CHAMBER OF COMMERCE
ARIZONA TECHNOLOGY COUNCIL
Employers’ Seminar Series
Lunch and Learn
“Exempt vs. Non-exempt, Employers Continue To Fight The Battle” presented by Josh Woodard of Snell & Wilmer Members: $5; non-members; $10 Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler chandlerchamber.com
Tues., Sept. 11 11:30a – 1:00p
“What is the Best Retirement Plan for Your Business or Personal Situation?” presented by John Driscoll & Company. Members: free; non-members: $15; includes lunch John Driscoll & Company, Inc. 5080 N. 40th St., Phoenix aztechcouncil.org
Lunch and Learn Tues., Sept. 18 11:30a – 1:00p
“R&D, It’s Not What You Think It Is” presented by BDO USA. Members: free; non-members: $15; includes lunch
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Tues., Sept. 25 8:00a – 9:15a
United States and Arizona’s Economic Outlook Wed., Sept. 26 11:30a – 1:00p
A brief review of developments in the U.S. and Arizona economies since the financial crisis and a look forward through the current uncertainties to the economic recovery ahead, presented by Alan Maguire of The Maguire Company. Members: $20; non-members: $25
Radisson Hotel Phoenix – Chandler 7475 W. Chandler Blvd., Chandler chandlerchamber.com (See story on page 31.)
ECONOMIC CLUB OF PHOENIX Inspiration and Motivation as Leadership Tools Fri., Sept. 7 8:00a - noon
How to go beyond recognition, praise and money to find unique and actionable ways to motivate and inspire people toward collaboration, loyalty and performance, presented by Suzanne Peterson, assistant professor of management at ASU. $550; discounts available for some groups ASU Research Park 7700 S. River Pkwy., Tempe (480) 965-7579
GREATER PHOENIX BLACK CHAMBER OF COMMERCE Executive Luncheon Series Fri., Sept. 14 11:30am – 1:00p
Topic: Business Law Members: $20; non-members $35 The Hyatt Regency 122 N. 2nd St., Phoenix (602) 307-5200
GREATER PHOENIX CHAMBER OF COMMERCE Economic Outlook 2013 Fri., Sept. 14 7:00a – 10:00a
Economic Outlook 2013, featuring a new international perspective, will present information from three speakers: Paul Thomas, Chief Economist and Manager of Market Sizing and Forecasting at Intel Corporation, Dr. Beckie Holmes of Cox Communications and Elliott Pollack of Elliott D. Pollack & Company. Early Bird Pricing Arizona Biltmore Resort & Spa 2400 E. Missouri Ave., Phoenix (602) 495-2182
NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS September NAWBO University Wed., Sept. 12 9:30a – 11:00a
“One ‘Site’ Fits All — The latest trend of website design — Responsive Web Design” presented by M.C. Tay, VP of technology for Media88 Members: free; non-members: $30 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org
September NAWBO Luncheon Wed., Sept. 12 11:00a – 1:00p
“The State of the State of Arizona — Economic Forecast for the Coming Year” presented by Dennis Hoffman, Ph.D., professor of economics at Arizona State University. Members: $38; non-members: $48; additional $15 after Sept. 7 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org
PEORIA CHAMBER OF COMMERCE Small Business Tax Information Seminar Wed., Sept. 5 11:30a – 1:00p
Free City of Peoria Point of View Room 9875 N. 85th Ave., Peoria (623) 979-3601
Apps Grow Your Business Presentation Fri., Sept. 7 11:00a – 1:00p
Presentation by Peoria Chamber member and apps expert Dennis Connolly, owner of Appsgrowyourbusiness. Free Peoria Chamber of Commerce 8631 W. Union Hills Dr., Peoria peoriachamber.com
Power of Leadership Wed., Sept. 26 9:00a – 11:00a
Pamela Howard and Cheryl Toney of What Now Coaching presents an interactive, insightful workshop designed to provide proven tools for achieving greater success. Free City of Peoria Point of View Room 9875 N. 85th Ave., Peoria Debbie Pearson, (623) 773-5210
SCOTTSDALE AREA CHAMBER OF COMMERCE Airpark Forum: Airpark Real Estate Update Fri., Sept. 7 7:30a – 9:30a
Panel discussion about recent additions, changes and rumors about real estate in the Airpark. Members: $20; guests: $30; day of event: additional $5 Scottsdale Thunderbird Suites 7515 E. Butherus Dr., Scottsdale scottsdalechamber.com
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Please confirm, as dates & times are subject to change.
Scottsdale Business Showcase Fall Tradeshow 2012 Thurs., Sept. 20 3:00p – 7:00p
More than 70 booths and more than 1,000 attendees, with great food and drinks. Free Chaparral Suites Resort Scottsdale 5001 N. Scottsdale Rd., Scottsdale scottsdalechamber.com
SURPRISE REGIONAL CHAMBER OF COMMERCE Business Education Seminar Fri., Sept. 28 8:30a – 10:00a
Continuing the Chamber’s partnership with Greater Phoenix SCORE, this session is entitled “Handling the Appointment and Getting the Sale,” presented by Allan Himmelstein. Communiversity @ Surprise 15950 N. Civic Center Plaza, Surprise Mary Orta, (623) 583-0692
WEST VALLEY WOMEN Luncheon
Tues., Sept. 4 11:30a – 1:00p
“Spotlight our Members” $35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org
WOMEN OF SCOTTSDALE Luncheon
Fri., Sept. 21 11:30a – 1:30p
$35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
OTHER BUSINESS EVENTS National Black MBA Association Meeting Mon., Sept. 3 6:30pm – 9pm
This 501(c)(3) professional organization will host a variety of monthly meetings (general meetings, orientations, workshops, etc.). The Microsoft Store 7014 E. Camelback Rd., Scottsdale (877) 529-4504
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Technology Workshop Thurs., Sept. 6 6:00p – 8:30p
Microsoft Store hosts partners from the Arizona Hispanic Chamber of Commerce in a monthly technology workshop. Free The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com
Business Professionals Breakfast Fri., Sept. 14 8:30a – 10:00a
This is an open format for attendees to get the answers pertaining to their business or industry. Starbucks coffee and a continental breakfast will be served. Free The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com
The Arizona Biltmore Resort 2400 E. Missouri Ave., Phoenix steptoe.com (See story on page 31.)
Men In Business Breakfast Event Thurs., Sept. 20 8:00a – 10:30a
Gather with fellow executives and business owners to network and establish business relationships with other highlevel executives. Free The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com
Women in Business Breakfast Social Tues., Sept. 25 8:30a – 10:00a
Free The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com
Employment Law Seminar Wed., Sept. 19 9:00a – 4:30p
The latest developments and practical advice to help corporate HR professionals and in-house counsel navigate workplace challenges. $150
If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Email the information to: events@inbusinessmag.com.
S e p t e m b e r 2012
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ASSETS
by Mike Hunter
We Value What We Own
Today’s Practical SUV: Ford Explorer Limited The grandfather of the SUV movement over the last 20 years, the Ford Explorer has evolved. In a market where gas mileage, eco-friendly options and technology are the attraction, the 2013 Ford Explorer Limited edition is a top option, exuding practicality, style, quality and comfort. Redesigned in 2012, the Explorer has some exciting new features by Ford that will make this year’s model a prized one. MyFord Touch™ and Ford SYNC® are the technology highlights. MyFord Touch™ with SYNC® is the new touchscreen technology that boasts an 8-inch customizable touchscreen that allows drivers to customize their driving experience through voice recognition like “Find me a restaurant,” verbalize climate controls, find SiriusXM radio
2013 Explorer Limited
stations, get directions and auto health reports, among other options. It take drivers a while to get used to these options and to customize them (and keep eyes on the road), but the full use of this technology makes commands simple. Bluetooth technology syncs the smartphone to the on-board MyFord Touch™ capabilities, allowing for contacts, calendars and call to be organized and implemented conveniently. The 3.5L TiVCT V6 engine with 290 horsepower and 255 lb.-ft. of torque falls just short of what one might expect under the hood in a Ford. Boosting fuel economy and still outputing some good power and towing capacity drove the decision to offer only the V6, but to match the sporty styling and luxe features, the Explorer feels like it needs more power. (The available Sport model does come with an enhanced 3.5L Ecoboost® V6
City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3 sec Transmission. . . . . . . . . . . . . . . . . 6-speed automatic MSRP. . . . . . . . . . . . . . . . . . . $37,855 (Sport: $40,720)
that delivers instantaneous, low-end torque responsiveness with 350 horsepower and 350 lb.-ft. of torque, six-speed SelectShift Automatic® transmission, with paddle shifters providing for better performance.) The sleek, Euro-styling of the Explorer feels a bit boxy, but it is well crafted and has impressive curb appeal. The dual chrome exhaust tips, halogen headlamps, LED tail lamps and liftgate spoiler compare to the features on the Range Rover Sport. Interiors are also impressive, with seating for seven, variable cargo space configurations and midlevel luxury throughout. Leather heated or cooled seats (optional), rear captain’s chairs and automatic-stow far rear seats make for a full cabin, but with ample room. Standard is the Audio System from Sony® with HD Radio™, which includes 12 premium speakers for razor-sharp sound reception.
The Season Ticket
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Arts & Cultural Actors Theatre (602) 256-6995 actorstheatrephx.org
Arizona Opera (602) 266-7464 azopera.com
Ballet Arizona (602) 381-1096 balletaz.org
Phoenix Symphony (602) 495-1999 phoenixsymphony.org
Sports Teams Arizona Cardinals (602) 379-0102 azcardinals.com
Arizona Rattlers (602) 514-8383 azrattlers.com
Phoenix Mercury (602) 252-9622 phoenixmercury.com
Arizona Diamondbacks (602) 462-4600 dbacks.com
Phoenix Coyotes (480) 563-7825 coyotes.nhl.com
Phoenix Suns (602) 379-7867 suns.com
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Photos: Ford
Companies purchase season tickets and use them to please, impress or thank clients, associates, staff and/or family and friends. The season ticket is an asset that was once a standard option for a corporation and has quickly become an asset for small businesses as well — especially in the Valley. Supporting our local arts and cultural organizations and sports teams is a benefit to our economy and a gift to business.
by Mike Hunter
Meals that matter
Power Lunch
Meeting Mangia “Mangia” is Italian for “eats.” Here is a list of some of the Valley’s best Italian restaurants for lunch, where it is not all about pasta and heavy meals.
Anzio Landing — Mesa
This unique and quaint alternative to the usual big-box Italian has character and dishes that will entice a return visit. Salads, light fare and many of the Roman-inspired dishes make up this vast lunch menu. White tablecloths set the perfect tone for an intimate client meeting and make Anzio Landing an impressive and tasty pick. Catch its last days at historic Falcon Field in early September before it moves to Las Sendas at Power and McDowell roads in late September. 2613 N. Thunderbird Circle, Mesa (480) 832-1188 • anziolanding.com
Brio Tuscan Grille — Scottsdale and Gilbert
Photos: Blue Hound Kitchen & Cocktails (top); Anzio Landing (bottom)
Blue Hound: Lunch with a Bite
Heavy meals seem to be OK for lunch in Manhattan or in Chicago, but lunch in the Valley is more palatable when it is light, refreshing and flavorful. That is the concept behind this contempo-American bistro, Blue Hound, located at the new Palomar Hotel in CityScape. Overwhelmingly urban and meant to be comfortable and “casually polished,” this recently opened eatery boasts chef-inspired fare composed of fresh, local ingredients. A lunch menu that is meant to be shared around the table offers hors d’oeuvres, fish, meats, farm & garden, and brick oven flatbreads — called “social plates,” they are a sampling of “the best of the region’s seasonal organic produce and free-range meats.” Reported favorites include the Hickman’s Farm Deviled Eggs, Mini Harris Ranch Patty Melt, Heirloom Tomato Salad and the Blue Hound Burger made with Rogue Blue Cheese. Many of the choices are available in whole or half portions, as well as portions for two, four or six. Touting the synergies among the food and the drinks available at the bar, lunch offers some inventive and refreshing alternatives to the vast spirits, cocktails, wines and beers available. A tasty treat is the Jasmine Tea Lemonade with Peach Bitters or the Strawberry Honey-Infused Bitter Lemon Soda. To compliment that light cuisine, servers will be happy to take requests for other lunchtime favorites that will cool and refresh guests. Imbued with casual comfort in a living-room setting of worn leather armchairs and lounge-like vignettes, Blue Hound is reminiscent of an urban contemporary hunting club where the loyal hound dog would be faithfully at your side. Blue Hound is all about exuding that feeling of “tail-wagging” comfort in an atmosphere of attentive service, high-quality food and drink and a satisfaction that will put lunch and dinner on frontof-mind for all who experience it.
Hard to go wrong here. Brio is a traditional modern Italian hot spot in the heart of urban Scottsdale, at Scottsdale Quarter, and in Gilbert, at SanTan Village. The lunch menu includes splits of flatbreads and salads and Mediterraneaninspired seafood dishes. 15301 N. Scottsdale Road, Scottsdale (480) 607-1100 2150 E. Williams Field Road, Gilbert (480) 917-9177 • brioitalian.com
Cibo — Phoenix
Set in an old Downtown Phoenix home complete with hardwood floors, exposed brick walls and stained glass, this urban pizzeria café uses locally grown and imported ingredients that delight in simple Italian lunch items and is a creative setting for a business lunch. 603 N. 5th Avenue, Phoenix (602) 441-2697 • cibophoenix.com Anzio Landing
Blue Hound Kitchen and Cocktails 2 E. Jefferson Street, Phoenix (602) 258-0231 bluehoundkitchen.com
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S e p t e m b e r 2012
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425 W. GEMINI DRIVE | TEMPE, AZ 85283 PHONE 480-831-0532 | FAX 480-838-1268
WWW.DELTADIV.COM Licensed in Arizona, Nevada, New Mexico and California
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Presents
Commercial Real Estate A special Commercial Real Estate Section spotlighting the industry “players� who are working hard to empower our commercial real estate market.
Office | Retail | Industrial | Multi-Family Dwellings
Commercial Real Estate Spotlight on the Best
Commercial Real Estate: Lows Make Highs for Investment by J. Rentilly
T
he rebound of the Phoenix-area commercial real estate market remains a long, dark night, with sunnier skies forecast over the next three years, according to Mark Stapp of Arizona State University’s W. P. Carey School of Business. “The good news is that it appears the commercial market has reached its bottom and has stabilized,” says Stapp. “The bad news is we don’t know exactly how long a recovery will take. A lot of things need to shift for that to happen. We’re probably looking at 2014 or 2015.” Andrew Cheney, principal/partner in the Coppola/Cheney Group at Lee & Associates Arizona, agrees that an extended Darwinistic trial is more likely than a quick fix. “Ten years ago, the Phoenix-area commercial market was recovering from a recession. Today, it is trying to recover from the Great Recession,” he says, though he remains hopeful that Arizona’s surge of job creations — launching it to seventh-fastest in the nation status — will aid in a quicker recovery. “When we have sustainable job growth, we will see considerable improvement in the commercial markets.” By way of facts and figures, Phoenix-area commercial real estate — comprised of industrial and office space, retail, storefronts and apartment buildings — is in a holding pattern, at best, for now, which creates interesting challenges and opportunities in the marketplace. As office space vacancies hit above 27 percent — higher, even, than in the immediate aftermath of 9/11 — and industrial space vacancies hover around 12 percent, rental is at “rock bottom rates,” and may continue to decline in many locations. Stapp notes that a few submarkets — Southeast Valley, Downtown Phoenix — have made more recovery progress than surrounding areas. Multi-tenant properties, conversely, are moving comparatively quickly on the market, primarily because Phoenix’s residential housing market has been so hard hit by foreclosures. Displaced homeowners — who “need to live somewhere, and usually fast,” says Stapp — are migrating to apartment buildings.
Such shifts in the area housing market critically impact the commercial market, according to Stapp. “Even if it looks as if the overall market is recovering, commercial is lagging — retail in particular,” he says. “The primary reason for that: With so many people negatively impacted by the overall economy and home foreclosures, there is a scarcity of disposable income. A lot of people are only spending the bare minimum on the bare essentials these days, and that is devastating to a large portion of the commercial market.” For a more substantial, wider-ranging recovery for commercial real estate to occur, the Phoenix region’s overall economy must rebound from its harrowing five-year decline. When an economy grows, unemployment rates drop, property prices rise, consumer spending moves upward, businesses expand or begin and developers launch new projects. For more than two years, commercial development in the Phoenix area has been, essentially, static, although Bloomberg-reported corporate earnings forecasts of Phoenix-based businesses indicate a move toward normalcy. Traditionally, a company’s earnings forecasts link quite directly with the quantity of commercial real estate they’ll need. Stapp remains cautiously optimistic, as changing business models and spatial needs shift dramatically, particularly for retailers, many of
Commercial Real Estate: Now is Choice Time for Purchase or Lease In today’s real estate market, there are bountiful reasons for a business to consider purchasing a property over leasing, especially for a stable company with a long-term growth plan. Says Kent Hanson, who fronts the Industrial Group at Cassidy Turley, “Leasing definitely gives you flexibility if you’re not sure what your next couple of years are going to look like, but a lease cost versus a purchase cost right now is almost exactly even. If you’ve got the down payment, the financing and a little bit of guts to weather the storm, lock in these record-low interest rates and do it. This is a great time to buy.” Hanson also suggests investors or muscular business owners projecting long-term growth consider purchasing properties twice the size they presently need. “Use what you need now and lease out the other half to get some
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income happening to pay down your debt,” Hanson says. “When you need the space, it’s there, and it’s there at today’s price and interest rate. The market today supports that kind of progressive thinking for qualified buyers.” Although office vacancies of more than 27 percent and industrial vacancies of almost half that are white-knuckle challenges for investors and property owners, that can be a silver lining for business owners otherwise sweating the down economy. “What you’re seeing with landlords is concessions to tenants and business owners: lower rates, rent reductions and sometimes even forbearances,” says Mark Stapp of Arizona State University’s W. P. Carey School of Business. “Those concessions are mostly over, but they do exist. And that’s an argument for leasing in today’s market.”
“Office rental rates are low, and will probably continue to decline in the foreseeable future,” says Justin Himelstein of the Office Group at Cassidy Turley, noting there are a few exceptions in desirable submarkets like Downtown Phoenix. “We’re seeing more leasing for offices now than sales.” One of the leasing trends noted by Himelstein is clients moving up from C-level properties to A-level real estate, often without spending an extra penny. “If you’re leasing today, you’re going to get a lot more for your money than you would have in, say, 2004.” Cassidy Turley cassidyturley.com W. P. Carey School of Business at Arizona State University wpcarey.asu.edu
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The good news for savvy investors with solid credit and financial wherewithal to hold properties for the long term is that commercial prices in today’s market are highly accessible, and ample loan monies are available to qualified buyers. whom are downsizing or moving from traditional storefronts or big boxes to order fulfillment warehouses. “Investors need to really know the market today before making a move, and the market has a lot of moving parts today. What’s going on socio-economically, what’s going on demographically, what’s going on with location, with competing businesses, with public policy in general — all of these things affect the quality of your investment,” says Stapp. The good news for savvy investors with solid credit and financial wherewithal to hold properties for the long term is that commercial prices in today’s market are highly accessible, and ample loan monies are available to qualified buyers. “I have lenders literally calling me now trying to place money,” says Kent Hanson of the Industrial Group for Cassidy Turley. “Prices are almost at all-time lows; interest rates are incredible; and there’s a good amount of nice, available properties. The time is great to buy.” Lee & Associate’s Cheney agrees, noting that “the large majority” of the 300-plus office condos developed and sold in the area since 2002 “went
back to the lender when the market collapsed,” and many are available now at deeply discounted prices. “For buyers, there will continue to be outstanding opportunities to lock in low real estate costs,” says Cheney. Stapp says that this is clearly a buyer’s market, but warns that investments must be carefully considered and held over a long-term. “This is not a ‘flip it’ market. Opportunity does exist in this market, but it has to be carefully vetted with an eye toward the changes that are occurring — political, technological, socio-economic, demographic — and how they impact the market,” he says. “If you’re able to buy and hold onto portfolio elements over a longer period of time, this is a workable market, and multitenant properties still look like your best investment. People will always need a place to live.” Cassidy Turley cassidyturley.com Lee & Associates lee-associates.com Rd W. P. Carey School of Business at Arizona State Universitytt Dam wpcarey.asu.edu rtle
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Commercial Real Estate Spotlight on the Best
Cassidy Turley At Cassidy Turley, we are market leaders, industry leaders and community leaders. Nationwide, clients recognize us for the creative sophistication of our real estate advice as well as for the discipline and accuracy of our service delivery. We are a trusted partner and advocate, supporting our clients’ overall business performance. In markets across the country, we are respected as a leading provider of commercial real estate services as well as for our community engagement. Our thorough understanding of local business practices and market dynamics, combined with our customer focus and service commitment, give our clients a distinct edge in commercial real estate across the globe. Cassidy Turley provides real estate services with more than 3,600 professionals in more than 60 offices nationwide. The company represents a wide range of clients — from small businesses to Fortune 500 companies, from local nonprofits to major institutions. The firm completed transactions valued at $22 billion in 2011; manages 455 million square feet on behalf of institutional, corporate and private clients; and supports more than 28,000 domestic corporate services locations. Cassidy Turley enhances its global service delivery outside of North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Local Market Leadership Cassidy Turley Arizona has a strong legacy of commercial real estate market leadership in Arizona. In 2011, the office
completed 882 transactions with an overall transaction value of $776 million, and in 2012 was again named the No. 1 commercial real estate brokerage firm in the market by the Phoenix Business Journal. Based in Phoenix, we deliver tailored solutions in most major Arizona markets to help clients undertake any real estate challenge and achieve optimum, measurable outcomes. Cassidy Turley professionals provide their clients with unparalleled market knowledge backed by the industry’s finest research, marketing, mapping and support services. Committed to our community, we continue to give back through our work with industry and charitable organizations. Services Cassidy Turley Arizona is a full-service commercial real estate firm offering brokerage investment and advisory services in Capital Markets, Corporate Services, Project & Development Management, Project Leasing, Property Management and Tenant Representation for asset classes that include Office, Industrial, Retail, Multi-Family and Land. With every assignment, we focus on our clients’ real estate needs so they can focus on their business. We invite you to visit www.cassidyturley.com or call (602) 9549000 for more information about Cassidy Turley Arizona.
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Profile Company Name: Cassidy Turley Main Office Address: 2375 E. Camelback Road, Suite 300 Phoenix, AZ 85016 Phone: (602) 954-9000 Website: www.cassidyturley.com Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 75 City Nationally Headquartered: St. Louis, MO CEO / Managing Director: Bryon R. Carney, President & Managing Partner No. of Years with Firm: 25 years Year Est. Locally: 1973 Specialties: Brokerage investment and advisory services in Capital Markets, Corporate Services, Project & Development Management, Project Leasing, Property Management and Tenant Representation for asset classes including Office, Industrial, Retail, Multi-Family and Land
FINANCIAL: Property Sold in 2011 Value: $484,000,000 Square Footage: 5,200,000 SF and 1,250 acres Property Leased in 2010 Value: $292,000,000 Square Footage: 4,700,000 SF No. of Commercial Transactions Closed in 2011: 882 inbusine ssmag.com
Commercial Real Estate Spotlight on the Best
CBRE CBRE has been serving clients in Arizona for 60 years, growing to become a dominant player in the commercial real estate market. From asset services to brokerage services, and throughout its business lines, CBRE has earned a reputation as a respected leader in the business community with its vast market knowledge and enduring culture of client service. Despite its market dominance, CBRE believes that the truest measure of its success comes from providing superior service to clients — delivered by knowledgeable, creative and tenured employees, many boasting more than 20 years in the marketplace. It is their dedication to teamwork and commitment to excellence that makes it possible to serve the diverse needs of clients. Whether facilitating the design, construction and move of a new corporate headquarters or strategically planning and negotiating complex lease agreements, CBRE is the only commercial real estate firm
in the state to offer a fully integrated, global service platform to its clients, delivering seamless execution and measurable results. CBRE is a leader within the commercial real estate community. It has been recognized by numerous organizations and publications. Here are just a few of its company awards: “100 Best Arizona Companies of the Past Decade that Shaped the State” — In conjunction with the state’s Centennial, CBRE has been selected one of Arizona’s “100 Best” companies. The “100 Best” were selected by BestCompaniesAZ, along with community and business leaders, based on their research of award-winning companies over the past 10 years. CBRE received a “Best of Heart” award for building sustainable relationships with employees, customers and the community. “Arizona’s 2011 Most Admired Companies” — Arizona Business Magazine and BestCompaniesAZ have selected CBRE one of 60 winners for the 2011 “Arizona’s
Most Admired Companies Awards.” This esteemed honor is based on how the company has performed in the following areas: Workplace Culture, Leadership Excellence, Corporate and Social Responsibility and Customer Opinion. “Ranking Arizona — #1 Commercial Brokerage Firm” — As a result of the largest business opinion poll in the state, CBRE has topped the list of commercial brokerage firms in Ranking Arizona Magazine’s 2012 list of the “Best of Arizona Business.” This marks the 14th year CBRE has ranked No. 1 in this category. “Best Places to Work 2011” — CBRE is proud to be chosen as one of the “Best Places to Work” in the Valley by the Phoenix Business Journal and BestCompaniesAZ. This is the eighth year in a row CBRE has received this prestigious award.
Profile C ompany Name: CBRE Main Office Address: 2415 E. Camelback Road, Phoenix, AZ 85016 Phone: (602) 735-5555 Website: www.cbre.com/phoenix Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 79 City Nationally Headquartered: Los Angeles, Calif. CEO / Managing Director: Craig S. Henig, Senior Managing Director, Arizona Market Leader No. of Years with Firm: 12 Year Est. Locally: 1952 Specialties: CBRE serves real estate owners, investors and occupiers of all commercial property types, offering strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting.
FINANCIAL: Metro Phoenix Property Sold in 2011 Value: $1.2B Metro Phoenix Property Leased in 2011 Value: $800M
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Any firm can claim to be the best. We let the facts speak for themselves. #1 brokerage in Arizona1 #1 in financial performance—by any measure2 #1 real estate outsourcing firm3 #1 in investment sales4 #1 in loan origination and loan sales5 #1 in brokerage services6 #1 most admired brand7 #1 property management firm8 #1 in multi-housing brokerage services9 #1 Freddie Mac seller/servicer10 #1 in facilities management11 #1 in environmental sustainability12 #1 in corporate responsibility13 #1 in real estate technology14 Only Fortune 500 real estate services firm15 Only Arizona “most admired” full-service real estate firm
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We thank our clients for making our success possible. #1 in real estate services worldwide www.cbre.com/phoenix | 602.735.5555 www.cbre.com/tucson | 520.323.5100 1) “Top Commercial Brokerage Firms: 25 Brokers or More,” Ranking Arizona, 2012. 2) Company financial filings; CBRE 2011 revenue: $5.9 billion; CBRE 2011 normalized EBITDA: $802.6 million; CBRE 2011 normalized EBITDA margin: 13.6%. 3) #1 outsourcing company among real estate services firms, IAOP, Fortune, May 23, 2011. 4) Real Capital Analytics, December 2011. 5) “Top 20 Financial Intermediaries,” National Real Estate Investor, June/July 2011 (with the inclusion of loan sales volume). 6) “Top 25 Brokerages,” National Real Estate Investor, April 2012, 9th consecutive year. 7) The Lipsey Company Brand Survey, 2012, 11th consecutive year; Highest-ranked commercial real estate services firm in Fortune’s Most Admired Companies ranking, March 2012. 8) “Top 25 Property Managers,” National Real Estate Investor, June/July 2011. 9) Best multi-housing brokerage firm, Multi-Housing News, October 2011. 10) Freddie Mac ranking, 2010 through Q3 2011. 11) Best facilities manager for financial services (U.K.), European CEO Facilities Management Awards, September 2011. 12) Newsweek, October 16, 2011; U.S. EPA 2011 Sustained Excellence Award (Partner of the Year status four consecutive years). 13) Only commercial real estate services company on “Companies That Care Honor Roll,” The Center for Companies That Care, 2012, 5th consecutive year; Winner of the IAOP/ISG Global Outsourcing Social Responsibility Impact Award. 14) Only commercial real estate services firm in the top 100, InformationWeek 500, September 2011. 15) Fortune, May 21, 2012. 16) Only full-service commercial real estate firm among the 60 winners, Arizona Business Magazine, September 2011.
Commercial Real Estate Spotlight on the Best
GPE Companies GPE Companies is a privately held, thirdparty real estate company serving a range of clients, from private individual investors to publicly traded corporations to international investment groups. Now in its fifth decade, GPE is a leader in Arizona’s commercial real estate market, offering services for all property types, including office, retail, flex/industrial, dental international clients. GPE’s commitment to and land. GPE has facilitated acquisitions, exceptional service and creative marketing sales and leasing transactions exceeding $2 strategies solidifies its position in the Phoenix billion in real estate value. In addition, it has a market and beyond in successfully forging division specializing in all areas of healthcare close and lasting relationships with its clients. real estate. 2012 Ranking Arizona ranks GPE GPE Commercial Advisors and its Commercial Advisors as the Valley’s No.1 property management and construction commercial real estate company in the supervision company, GPE Management category of 24 brokers or fewer and GPE Services, collectively represent more than 10 Management Services among the top ten million square feet of commercial space in property management companies. GPE has the Phoenix Metro area. also been named a Top Leasing Firm by The name GPE has earned an enviable CoStar Power Broker Awards and one of the reputation GPE_InBusiness_Sept12-outlined.ai of providing expert knowledge, Valley’s “Best Places to Work” by Phoenix 1 8/3/2012 10:36:02 AM research and resources to its national and Business Journal.
Profile Company Name: GPE Companies Main Office Address: 2777 E. Camelback Road, Suite 230, Phoenix, AZ 85016 Phone: (480) 944-8155 Website: www.gpe1.com Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 26 City Nationally Headquartered: Phoenix, AZ CEO / Managing Director: David M. Genovese, P.C. No. of Years with Firm: 29 Year Est. Locally: 1973 Specialties: Sales, Leasing and Property Management of Office, Retail, Flex/Industrial, Medical, Dental, Land and REO
FINANCIAL: Property Sold in 2011, Value: $39.6M Property Leased in 2011, Value: $38.4M Number of Commercial Transactions Closed in 2011: 246
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Commercial Real Estate Spotlight on the Best
Lee & Associates Arizona Profile Company Name: Lee & Associates Main Office Address: 3200 E. Camelback Road, Suite 100, Phoenix, AZ 85018 Phone: (602) 956-7777 Website: www.leearizona.com Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 39 City Nationally Headquartered: Irvine, CA Managing Principal: Fred Darche No. of Years with Firm: 21 Year Est. Locally: 1991 Specialties: Industrial, Office, Investment, Land and Consulting
FINANCIAL: Property Sold in 2011 Value: $189M Property Leased in 2011 Value: $335M No. of Commercial Transactions Closed in 2011: 558
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LEE & ASSOCIATES Arizona is the Phoenix area’s premier commercial real estate brokerage firm and specializes in providing exceptional brokerage services to the industrial, office, investment and land sectors. The Phoenix office was established with 12 brokers in 1991 and is now recognized as one of the most successful brokerage firms in Arizona, with 39 brokers today. Each of the 45 nationwide Lee & Associates offices has a strong local ownership supported by a powerful platform from the national Lee & Associates network. Our unique business model empowers our brokers to provide the highest quality brokerage services and the most timely and accurate market information available. Our
dedicated staff provides our brokers the tools and support they need to focus on the best opportunities available for their clients. Lee & Associates Arizona is enjoying exceptional success, with some of the Valley’s largest lease and sales transactions placing it among the elite commercial real estate firms in the state. We are poised for even greater success in 2013 and beyond.
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scottsdalechamber.com
MEMBER COMMUNIQUÉ Scottsdale’s Busy Summer The dog days of summer in Scottsdale are anything but lazy. There is tremendous activity in our city this summer with a few corporate relocations, the political season in full swing and even an office move for the Scottsdale Area Chamber of Commerce. The City of Scottsdale’s Economic Vitality office has created a new and informative web presence called ChooseScottsdale.com. The site is dedicated to business relocation, business attraction and is a one-stop shop for folks from around the world Rick Kidder interested in establishing a business presence in Scottsdale. Several new businesses have chosen Scottsdale for their home, and slowly the city is beginning to lower commercial vacancy rates. The Chamber has been working with a diverse group, including Congressman Schweikert’s office, ASU, the Scottsdale Business Development Forum, the Convention and Visitors Bureau and private business leaders in the finance area with a goal to increasing Scottsdale’s market share within the finance area. The initiative, called “Scottsdale – America’s Financial Oasis,” is dedicated to leveraging opportunities to attract regional headquarters and finance practitioners to our city. Numerous conferences and significant events take place annually in Scottsdale, bringing to our city astounding business leadership, and the initiative members will be working to get the attention of those leaders to help sell our great city as a place for doing business. With the strong support from a Congressman and the business leadership of the Chamber and others, we are working to bring clean, high-paying jobs to Scottsdale. Eleven candidates are vying for three seats on the Scottsdale City Council, and the Mayor’s seat is also being contested this summer. For political observers, one cannot envision sharper lines being drawn between and among the individuals looking to represent our city. By the time this piece is printed, the picture may be somewhat clearer, but Scottsdale never ceases to be entertaining for political junkies! Consuming the Chamber itself this summer has been our move to new offices. Necessitated by the sale of the building where the Chamber has lived for six years, our new offices are located in central Scottsdale at 7501 E. McCormick Parkway, Suite 202N, in the beautiful Forever Living Corporate Plaza. Situated between the vibrant Downtown area and the economic powerhouse that is the Airpark, the Chamber opens its doors in its new home on September 4. All telephone and email addresses remain unchanged. So, summer in Scottsdale may have been hot, but it was also busy. There is an excitement in the air, and one feels that Scottsdale, Arizona, and the region as a whole are poised for great days ahead.
Rick Kidder, President/CEO
September 2012 - December 2012
Save The Date 2012 Scottsdale Business Showcase Tradeshow: Scottsdale’s premiere business-to-business tradeshow is the most anticipated tradeshow of the year! Each year has a fun and unique Scottsdale Business Showcase Tradeshow theme, fantastic food and drinks, lots of giveaways, a booth decorating contest and more! This event regularly sells out in part because it’s just so much fun! For 2012, the Tradeshow has a “Roaring Twenties” theme. Exhibitors can decorate their booth and dress their staff in their favorite Gatsby motif! This high-energy event always provides great face-to-face networking opportunities in a unique and fun environment. Don’t miss the fantastic food and drinks, fun giveaways, booth decorating contest, and more! Free and open to the public! Event Details Thursday, September 20th | 3:00pm - 7:00pm Chaparral Suites Resort Scottsdale 5001 N. Scottsdale Rd., Scottsdale, 85250 For information on sponsorship and booths, contact Anna Mineer at amineer@scottsdalechamber.com or call 480.355.2708.
27th Annual Sterling Awards As the Chamber’s marquee event, the Sterling Awards program embodies the spirit of our organization by celebrating the people and companies that make our community a great place to live, work and play. Over the past 26 years we have honored our city’s best corporate neighbors and brightest rising stars. The prestigious Sterling Award is one of the most coveted business awards in the Valley, with a rigorous application, judging and selection process. One of the highlights of the Sterling Awards Celebration is the highly anticipated video presentation of each of the 12 finalists. Only members of the Scottsdale Area Chamber of Commerce are eligible to apply for the Sterling Award. vent Details E Tuesday, November 13th | 11:30am-1:30pm Chaparral Suites Resort Scottsdale 5001 N. Scottsdale Rd., Scottsdale, 85250 Interested in being a Sterling Awards Sponsor or learning more about the event? Contact Anna Mineer at amineer@scottsdalechamber.com or call 480.355.2708.
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Stars Among Us
The Chamber’s annual Business Volunteer Awards honor some of Scottsdale’s most respected individuals and organizations for their commitment to voluntary service benefiting the city and its people. In recognition of those who encourage and instill the spirit of volunteerism into their business philosophy, the Scottsdale Area Chamber of Commerce hosts the Business Volunteer Awards, a program dedicated to acknowledging business leaders who go above and beyond to improve the lives of others and create a stronger community. The awards were presented on Friday, May 11th at
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the Chamber’s 65th Anniversary Gala. The awards are divided into four categories: the Legacy Award, Segner Award, Rising Star Award, and Dale B. Fingersh Volunteer of the Year Award. Each year, a committee of volunteers receives nominations by category from the Chamber membership and staff. Those nominations are reviewed and ultimately sent in the form of
recommendations to the chair of the board of directors for acceptance and review. “Every one of our many volunteer deserves recognition and gratitude for the fine work they do,” said Rick Kidder, President and CEO of the Chamber. “Our volunteers make the Chamber strong and vibrant and help make Scottsdale a better place to live and work.”
The Legacy Award honors a Scottsdale Area Chamber of Commerce member who has risen above the call of duty over a significant number of years, contributing not only to the Chamber, but to the community at large. This year’s Legacy Award recipient is Kurt Brueckner of Titus, Brueckner & Levine, PLC. Kurt is a member of the Chamber’s Executive Committee, former Chair of the Chamber Board of Directors, former chair of the Scottsdale History Hall of Fame Committee, a graduate and advisory board member of Scottsdale Leadership and a truly involved citizen who has served on numerous Scottsdale boards, commissions and task forces.
The Segner Award celebrates the impact of an outstanding Chamber member. Named after the Chamber’s first board chairman, Wesley Segner, the Segner Award honors those who have followed in his legacy of leadership, community stewardship and active contributions to the success of the Chamber. This year’s Segner Award recipient is Camille Hill of Merestone Productions. Camille has served on the Board of Directors of the Chamber for many years and has been an integral part of helping the organization achieve first-class events at a cost that otherwise would be out of reach. Her familyowned and operated company (which includes her husband Ted, all of her children, and 2 dogs) is a true Scottsdale success story.
The Rising Star Award recognizes the accomplishments of promising
The Dale B. Fingersh Volunteer of the Year Award recognizes
new leaders whose volunteer spirit contributes to the success of the Chamber and the community. This year’s recipient is Kevin Sellers of First Fidelity Bank. A member of the Partner Council and chairman of the Partner Council Steering Committee, Kevin has been actively involved in the Chamber through the Economic Development Advisory Council, the Public Policy Advisory Council, the Board of Directors and the Executive Committee. Kevin also leads an incredibly talented golf team each year at the Scottsdale Chamber Open!
an outstanding volunteer for his/her dedication, commitment, and service to the Chamber. This year’s recipient is Jane Blacker of Russ Lyon/Sotheby’s International Realty. Jane has taken on the newly formed Program Committee to assist staff in developing compelling and profitable programs and events for the Chamber. A board member for many years and the former chair of the Ambassadors Committee, Jane also worked extremely hard to make the 65th Anniversary Gala a huge success.
In Business Magazine
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For the 2012 campaign season, the Scottsdale Chamber convened two forums to allow candidates for City Council and Congress to state their case to the citizens of Scottsdale.
City Council Candidates Forum Wednesday, July 18th, City Hall Kiva Eleven people are vying for three seats on the council. In this spirited debate, each candidate had an opportunity to answer questions about how they would perform on the city council regarding the issues that face the city. Denny Brown is a sexton who serves on the Scottsdale Unified School District Governing Board. Bill Crawford is a downtown Scottsdale business owner, resident and president of the Association to Preserve Downtown Scottsdale’s Quality of Life. Suzanne Klapp (incumbent) owns and manages and Fast Frame store in Scottsdale. She began her first term on the council in January 2009. Debra Komarnicki is a former nurse and nursing supervisor. She recently opened a small assisted living home in Scottsdale. Virginia Korte served as president and chief executive of the Scottsdale Area Chamber of Commerce. She is now president and CEO of Scottsdale Training and Rehabilitation Services (STARS).
Eric Luoma is president and owner of Scottsdalebased Cactus Flower Florists and Flowershop.com. Joe Meli, a Chicago native, has been in sales and marketing for 30 years. Joanne “Copper” Phillips is the former deputy associate superintendent of special education for Arizona. Upon retirement, she opened her own educational consulting firm, Arizona Education Cadre. Guy Phillips (no relation to Joanne) owns an A/C contracting business. Chris Schaffner an account manager for Milliken & Co., a textile and chemical manufacturer based in South Carolina. Christian Serena has been an account executive at Swiss America Trading Corp.
Congressional District 6 Candidates Forum Tuesday, August 14th, Le Cordon Bleu College of Culinary Arts It is a rare occurrence to have two sitting congressmen running for the same seat, but after Arizona won a ninth congressional seat following the 2010 census, the state’s redistricting commission carved up Metro Phoenix’s four districts to add a fifth, moving Quayle into the new and much more competitive 9th District. Quayle is the son of former Vice President Dan Quayle. Quayle currently represents Arizona’s 3rd Congressional District, Quayle announced in February that he would be running against Schweikert in the 6th District.
Schweikert currently holds the 5th District seat, and is a former state legislator and county treasurer. David is serving his first term in the United States House of Representatives and serves on the Financial Services Committee.
Mayoral Candidates Forum Wednesday, August 22nd, DoubleTree Resort by Hilton Hotel Paradise Valley – Scottsdale Incumbent Scottsdale Mayor Jim Lane and mayoral candidates Drew Bernhardt and John Washington squared off in an election forum at the Chamber’s Breakfast With a Side of Politics event. Lane graduated from St. Joseph’s University, is a retired accountant and has been Scottsdale’s mayor since 2009.
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Bernhardt is a Marine Corps combat veteran, has an MBA from Pepperdine University, and is currently the owner of a small business.
Washington has a degree in aerospace engineering, is a former Air Force officer and is a small business owner.
In Business Magazine
The Scottsdale Chamber has been growing, and would like to introduce you to three new members of our staff! TERRY FINCH Terry grew up in Charlotte, North Carolina and graduated from the University of North Caroline with a degree in Journalism, and followed that up with an MBA from Wake Forest University. Terry worked in marketing and communications with First Union Corporation, and then headed to Hong Kong to handle business development and client relations for Artlink Design Associates. Terry was put in charge of Artlink’s Shanghai office in 2002 and remained there until 2007. She returned to Hong Kong to work for the Adrianse Group and Blue Horizons Ltd., serving as General Manager and Director, respectively. Terry returned to the States in 2012 and became Partner Council Account Manager for the Chamber. Terry works with the Public Policy and Economic Development Advisory Committees, and is responsible for Partner Council membership and events. Terry Finch Partner Council Account Manager tfinch@scottsdalechamber.com | 480.355.2704
In Business Magazine
KELLY RICH Kelly grew up in the Phoenix Area and graduated from the University of Pittsburgh with a BA in Developmental Psychology and a Post-Baccalaureate degree in Elementary Teaching. She returned to the Valley and gained 15 years experience in business development, event management, and sales. Kelly is very knowledgeable about what it takes for a business to grow and exceed their goals. She credits her sales success with being very involved with many of the chambers in the Phoenix Metropolitan Area during her career, and leveraging those memberships to help her reach her goals. Kelly is in charge of Membership Development and Sales, as well as being the staff liaison to the SoSco Committee and the Ambassadors Committee. Kelly Rich Membership Development krich@scottsdalechamber.com | 480.355.2714
NIKKI HOFFMAN In 2010, Nikki graduated from the University of Iowa with a Bachelor’s Degree in Management and Marketing. After college, she joined the Special Events Team at Anheuser-Busch, traveling the nation to help with a variety of events including the Super Bowl, cycling events, food and wine festivals and more. She then became an Assistant Tour Manager for Budweiser’s “Band of Buds” program producing live events. In March 2012 she moved to Arizona, and in July started with the Scottsdale Chamber as Manager of Programs and Connectivity. Nikki will oversee the A.M. and P.M. Connect events, Breakfast with a Side of…, and Airpark Forum, as well as assisting with all other events as needed. She is also the staff liaison to the GET Young Professionals, the Programs Committee and the A.M. Connect committee. Nikki Hoffman Manager of Programs & Connectivity nhoffman@scottsdalechamber.com | 480-355-2712
Scottsdale@WOrk - 5
Decrease Your Group Health Costs 30% This Year! Healthcare costs are front page news seemingly every day. Premiums increase. Coverage changes. Employers constantly face tough choices. Employees are being asked to carry more and more of the load. Politicians debate over what to do about lowering costs and maintaining quality coverage. Wouldn’t it be great to take control of your group health insurance costs and coverage? With Chamber Benefit Administration (CBA), a division of IIS Benefit Administrators, that’s exactly what you can do. The Scottsdale Chamber has a new group health insurance plan that will result in significant dollar savings for many business and nonprofit members. It uses a proven and established concept called Health Reimbursement Accounts. The plan will provide average savings of about $1,000 per employee per year. Designed by the Chamber Benefit Administration, the program is now available to Scottsdale Chamber members with ten or more employees.
A Track Record of Success High-deductible health plans are proven to significantly reduce premium dollar expenditures. “Everyone has deductibles on auto and home insurance because insuring first dollar is prohibitively expensive,” says Amy Shuckhart of Amalyn Consulting. “It is the same for an employer and their group health insurance. Premiums can be up to 50 percent less going from a $500 or $1,000 deductible to a $5,000 or greater deductible.” Just as everyone self-insures the first dollars on auto and home, with this plan the employer self-insures the underlying medical expenses. “However, with health insurance,” says Paul Breslau of Breslau Insurance, “Section 105 of the federal tax codes favors this process by allowing Health Reimbursement Accounts.” With dollars that are tax deductible, the employer custom designs coverage for part of the underlying medical expenses. The employee subsequently receives these benefits without tax obligation.
Sustainability is the Key The Chamber plan is designed to be sustainable over time. The ability to use several different companies for the insured portion of the plan (Aetna, Assurant, and Health Net) is how sustainability is secured. Each participating employer group is underwritten following fundamental principles. IIS Benefit Administrators is the third-party administrator that coordinates the claim processing and reporting in a highly automated and efficient manner. In fact, any properly licensed health insurance agent who is a Scottsdale Area Chamber member can market the plan. The chamber receives a small marketing allowance for their promotion of the plan. All of these combine to make it sustainable over time.
Start Saving Now! Don’t continue to mail your exorbitant premiums to the health insurance company with little feedback on when and how the money is used. Contact the Scottsdale Area Chamber of Commerce or CBA’s local designated benefit advisors to learn about how to get a free evaluation to help you start saving now! Paul Breslau of Breslau Insurance at Paul@HRaz.com 602-692-6832 Amy Shuckhart or Amalyn Consulting at Amy@HRaz.com 602-741-8500
Significant Savings The savings are usually very significant. Premium illustrations show the expected savings as well as the range of scenarios on every proposal. “Using industry-accepted assumed claim estimates, an accurate picture of the annual savings is provided,” says Mark Dennis of Chamber Benefit Administration. “Also provided is the best case as well as the worst case scenarios. The bottom line is a high probability that employers enjoy significant savings while employees maintain excellent health care coverage.”
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In Business Magazine
The Chamber Has Moved! The Scottsdale Area Chamber of Commerce has moved its offices from 4725 N. Scottsdale Road, Suite 210, to 7501 E. McCormick Parkway, Suite 202-N. The move was completed on September 4, 2012. The move stems from the sale of the building that the Chamber has been in since 2005 to a new owner with plans for the use of all or most of the 80,000-square-foot structure. The new offices are inside the beautiful Forever Living Corporate Plaza. The facility is just east of Scottsdale Road on McCormick Parkway, placing the new Chamber offices midway between the vibrant Downtown area and the extraordinary business center that is the Airpark. Eric Larson, Chamber Board of Directors Chair, added, “We explored dozens of potential sites, taking into account every possible pro and con. This location was the best fit, keeping us close to southern Scottsdale, while also making the Chamber more centrally located for businesses in central and north Scottsdale. We could not be more pleased!” The move took take place during the week of August 27, with the intention of minimizing any interruption of direct, personal service to a few days near the Labor Day weekend. The Chamber will be open for business at the new location on Tuesday, September 4th, the day after Labor Day. Telephone numbers and email addresses will remain unchanged.
In Business Magazine
Mike Binder Managing Editor Scottsdale Area Chamber of Commerce
Rick Kidder President & CEO Scottsdale Area Chamber of Commerce rkidder@scottsdalechamber.com 4725 N. Scottsdale Road, Suite 210 Scottsdale, AZ 85251 Ph 480.355.2700 fax 480.355.2710 www.scottsdalechamber.com
Board of Directors Executive Committee Board Chair Kurt Zitzer Meagher & Geer, PLLP
Public Policy Advisory Committee Bill Heckman Heckman Marketing, Inc.
Vice Chair Eric Larson AVB Development Partners Immediate Past Chair Karen Wittmer-Jekel Treasurer Mark Eberle Henry & Horne, LLP
Member Value Advisory Council Steve Helm Scottsdale Fashion Square AT LARGE MEMBERS Jennifer Karas The Karas Group
Economic Development Kurt Brueckner Titus Brueckner & Advisory Council Levine , PLC Bryce Lloyd FirstBank of Arizona Dale Fingersh Emerging Issues The Right Direction Angela Creedon ASU Public Affairs Rick Kidder Scottsdale Partnership Kevin Sellers First Fidelity Bank
Scottsdale Area Chamber of Commerce
© 2011 Scottsdale Area Chamber of Commerce. A publication of the Scottsdale Area Chamber of Commerce. For more information or to join the Scottsdale Chamber, please contact us at www.scottsdalechamber.com. Section designed by InMedia Company, LLC.
Scottsdale@WOrk - 7
Infocus: 65th Anniversary Gala and Business Volunteer Awards The 65th Anniversary Gala and Business Volunteer Awards honored 65 years of Chamber achievements both past and present, as well as Scottsdale, our beloved hometown. Also honored were the Honorable Jon Kyl, retiring member of the U.S. Senate, and the Honorable Carolyn Allen, retired State Senator, for their service to the community. In addition, the 2012 Business Volunteer Awards were presented to four amazing citizens of Scottsdale who have made a real impact on the city with their generous efforts.
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1. The Cowgirls Historical Foundation dressed in authentic period western wear at the reception! 2. Dancing was the order of the evening as the festivities wound down. 3. Kait Patterson recreated the famous Howdy Dudettes! 4. This incredible charity auction greeted guests. 5. The Business Volunteer Awards awaiting their new owners! 6. Michele Greenberg posing with a vintage F-100. 7. Chamber President Rick Kidder entered the event atop “Gus” the Brahma bull. 8. The event was hosted by local television legend Pat McMahon! 9. Retiring United States Senator Jon Kyl accepts his Lifetime Service Award. 10. Retired State Senator Carolyn Allen with her Lifetime Service Award. 11. Camille Hill of Merestone Productions with her Segner Award. 12. Kevin Sellers of First Fidelity Bank with his Rising Star Award. 13. Jane Blacker of Russ Lyon/Sotheby’s International Realty with her Dale B. Fingersh Volunteer of the Year Award. 14. Austin Brueckner accepted the Legacy Award for his father, Kurt Brueckner of Titus, Brueckner & Levine, PLC.. 15. A huge display of confetti marked the end to a perfect evening!
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In Business Magazine
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You Can’t Believe Everything You Read by Rick Murray, ASBA Chief Executive Officer I consider myself somewhat plugged in when it comes to news on the
About ASBA
economy. Because I’m a small business owner myself, I think it is important to know what’s going on around me. However, in my role as
The Arizona Small Business Association
CEO of the Arizona Small Business Association, it’s my job to know what
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is going on and in turn inform members and the general public. So I may
in the state representing 11,000+
have a greater interest in the news on the economy than most. But I’m
member businesses, and over 1/2
sure I’m not alone in being completely confused when the news on the
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So when there is a news report one week that the housing market is recovering and home values have risen (as slight as it may be), and then the next week another report stating that foreclosures are on the rise and the job outlook is poor, it leaves most of us scratching our heads in confusion.
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If we can remember that all news has been sensationalized to some degree (that’s how they get our attention) and to just take the basis of the message and lessen its importance by about half,
in this issue
then that’s probably the real effect it has on us and our businesses. I’ve decided to take a different approach. I am going to be aware of what all the “experts” are saying. I’m going to continue to watch for news reports and economic indicators, but I’m going to
Prosperity Project Launches
go ahead with my daily business and not let it completely take over the way I make business
in Arizona. . . . . . . . . . . . . . . . . . . . . . pg. 2
decisions. I am not too different from everyone else, which means I know we can sometimes get too caught up in what everyone is saying and forget, or even completely stop doing, what we
Fall Back into Business. . . . . . . . . . . pg. 4 Have Better Healthcare Costs. . . . . .pg. 7
I remember my mother giving me advice on being a leader and making decisions for myself, asking me if my friend jumps off a cliff, am I going to jump, too. It is vitally important for all of us to not get caught up in the hysteria, good or bad, and continue to do what we know is best.
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© 2012 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
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ASBA Board of Directors
Prosperity Project Launched in Arizona
Joe Higgins | Chair Serial Entrepreneur Roy Irwin | Vice Chair Irwin Insurance & Investments, LLC Donna Robinson | Secretary Network Dogs, Inc. Jacob Gregory | Treasurer CliftonLarsenAllen LLP Tracy Carlson Go Daddy John Ficorilli Executive Training Solutions Glenn Hamer Arizona Chamber of Commerce and Industry Ben J. Himmelstein Wong Fuji Carter, PC Karen Karr Clark Hill PLC Doug Martin Good News Radio Broadcasting Ryan McMullen RSI Enterprises, Inc. Jan Northup Management Training Systems, Inc. Lynn Paige PerfectPower, Inc. Kim Marie Branch-Pettid LeTip International Paul Smiley Sonoran Technology and Professional Services Linda Stanfield Benjamin Franklin Plumbing Mark Staudohar ACCENT' Hiring Group Victoria Trafton Victoria Trafton, Inc. Janice Washington Arizona Small Business Development Network
by Jerry Bustamante, ASBA Sr. VP, Public Policy + Southern Arizona Election season is in full swing, and it’s hard to ignore with all the political signs, television commercials and mailboxes filled with campaign pieces. It can be very overwhelming, enough to discourage people from voting or, even worse, being an uninformed voter. I do believe that the average voter wants to do the right thing and not waste their vote. I also believe that the renewed value placed on job security encourages American workers to consider how their vote will impact their employer and clients. With so much information competing for our attention, much of it driven by partisanship, where can a person go for unbiased and factual information? Arizona workers and employers now have a new resource, the recently launched Arizona Prosperity Project (P2). The program is independently managed by local organizations, and is currently in forty states. The Arizona Small Business Association is pleased to be among the first organizations, along with the Arizona Chamber of Commerce and Industry, to take the lead in bringing the Prosperity Project to Arizona. The Prosperity Project is a national, grassroots program that provides employers with straightforward, non-partisan information for their
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employees on issues and candidates at the state and federal level. When workers are informed and active in government and elections, our families, our communities and our state will benefit. That is a fundamental belief that the Prosperity Project is built upon. Given the impact that elections have on the bottom line of every business, voters should not make decisions based on “attack” ads and limited information. Many narrowly focused interest groups are making great use of social media and other technology to spread their message to voters. Meanwhile, how the outcomes of an election will impact competitiveness, job security and future prosperity are rarely addressed. Research has shown that employers are viewed by their employees as a credible source of election information and welcome their feedback. The Arizona Prosperity Project gives employers the tools to help their employees be better-informed voters, while respecting their individual beliefs and their right to choose. In other words, it will not tell people how to vote, but will empower voters and help them better understand the top issues facing Arizona businesses. I invite you to visit the Arizona Prosperity Project at www.azprosperity.org to learn more about the top issues facing Arizona businesses and explore the available resources, such as voter registration & polling place finder, zip code search displaying candidates running in your district and the voting records of incumbent state legislators on business-friendly legislation. I also encourage you to discuss with your staff the potential impact that election outcomes could have on your business. This dialogue is totally acceptable because business and politics do mix nicely; we’re not talking religion here. Finally, help your employees learn how to find their elected officials and candidates running for public office and encourage them to be informed voters.
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Don’t miss our biggest event of the year! Thursday, September 20 | 4pm - 7pm
ASBA Office at Washington Corporate Center | 4600 E. Washington St. | Phoenix Join us for this highly anticipated event, packed with quality networking and the opportunity to interact with some of the valley’s most influential leaders in small business.
Enter to win exciting giveaways, including the newest iPad!
Free to attend! Register at asba.com/openhouse or call 602.306.4000.
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Ken Blanchard College of Business | College of Education | College of Nursing & Health Sciences | College of Liberal Arts | College of Fine Arts & Production
Online • Campus
A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).
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Fall Back into Business A
s we near the fourth and final quarter of 2012, we are all looking for ways to finish out the year strong. While the days may be flying by, there are still many opportunities to do something exciting and innovative to move your business forward. ASBA offers many valuable and unique opportunities for you to get the help you need to discover new ideas to make your business more successful this year and for years to come.
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The one-on-one support available through ASBA is unmatched. Through our extensive network of business mentors, coaches and business development experts, there are multiple opportunities for you to get the support and expertise you need to take your business to the next level. As the summer winds down, the temperatures dip under 100 degrees, and the kids are back in school, now is the time to refocus your energy and attention on developing your business and yourself as an entrepreneur. ASBA is here to help. Read on to learn more about our unique, one-on-one support programs and find out how you can get started today!
with ASBA! Entrepreneurs START here:
Business owners GROW here:
Business professionals EXCEL here:
Business Development
Business Mentoring
Professional Coaching
From idea to operations, ASBA’s business development program will take you through each category of business and properly position your business for continued success.
Details: •
FREE, one-hour business review - walk away with five implementable goals
•
Business development workshops
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Once you have launched your business, it’s time to grow! Through the ASBA Business Mentoring Program, you will receive guidance by seasoned entrepreneurs & executives willing to share real-life experience and offer proven advice and assistance in identifying key objectives, accountability and a stable sounding board for ideas.
A business is only as successful as its leaders allow. Business owners, leaders and managers have the opportunity to take part in a collaborative, confidential partnership, focused on gaining results and increasing their effectiveness in the workplace through ASBA’s Coaching Cadre with the International Coach Federation.
Details:
Details:
Business plan assistance
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Matched with an experienced mentor for 4 months
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FREE, one-hour, initial coaching session with certified professional coach
How to get started:
•
Valuable advice from seasoned business owners
•
•
Applications accepted year-round
Integration of personal strengths to improve business
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Discounted rates on ongoing coaching packages
Set up your one-on-one appointment by calling ASBA at 602-306-4000.
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How to get started: Visit asba.com/mentoring to download an application.
How to get started:
Set up your free, initial session by calling ASBA at 602-306-4000.
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Member Testimonials Every day, ASBA is creating opportunities for small business owners to save money and work more efficiently. Here are just a few recent examples.
“Immediate improvement realized...” "We moved to the ASBA endorsed AIP Solutions credit card processing from a bank-owned system and immediately realized
Credit Card Processing
2 major improvements: 1) The cost of each transaction was reduced; 2) The amount of time required to deposit money into our account went from 48 - 72 hours to 24 hours. We are pleased with the results of this transition and endorse this program to any small business. We are also able to clearly see our cost per transaction....something that was previously hidden in the multitude of miscellaneous charges and fees." Andy H. | Fountain Hills Door and Supply
Virtual Healthcare
“Couldn’t be easier...”
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"Great service. I was sick for a week and did not want to wait another week to get in to see my doctor (and then sit there for an hour to be seen). I registered with Stat Doctors and within 3 minutes of completing my registration, a doctor called. After consulting with me, he called in a prescription to my pharmacy. For routine matters, this saves me money and time, and couldn't be easier." Connie M. | Mableson Law Group
“Saving me time and money...” "The Arizona Small Business Association (ASBA) is also a small business, and is concerned with cutting costs while maintaining a
Payroll + Employee Services
quality work environment. While the thought of switching payroll companies was enough to make me want to lose my mind, after watching a demo of how the payroll system works, I was sold! The functionality and abundance of options is saving me time each month… and costs less than what we were paying. I encourage you to look at the ASBA payroll program through Qqest Employer Services and see if making the switch could benefit you as well." Debbie H. | VP, Finance + Administration, ASBA
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Visit asba.com or call 602.306.4000 to start saving today!
Helping Arizona Employers Have Healthier Employees & Better Healthcare Costs
Addressing employees’ health within the worksite can have a positive impact on helping your employees adopt healthier lifestyles and lower their risk of developing costly chronic illnesses. The Arizona Small Business Association (ASBA) Can Help
by Christy Coe, ASBA Director, Member Benefits Whether you own a small family-owned business or you are a CEO of a big corporation, the rapid rise in healthcare costs has become a problem for all Arizona businesses. The most costly reason for increased healthcare premiums are insurance claims attributed to health conditions resulting from employees’ unhealthy personal lifestyle choices. The most recent data from the Arizona Health Status and Vital Statistics report and Centers for Disease Control and Prevention (CDC) provide some insights into the state of Arizona’s health:
• • • •
Nearly 65% of Arizonans are overweight or obese Deaths from diabetes increased 27% over the past year 15% of Arizonans are smokers The leading underlying causes of death in 2010 included cancer, heart disease, chronic lower respiratory diseases, accidents and Alzheimer’s disease
ASBA, in partnership with Viridian Health Management (Viridian), an Arizona-based company, recently received grant funding to expand the Maricopa County Public Health Department and the Arizona Department of Health Services worksite wellness program to ASBA members. The program, Arizona Healthy Worksites, is available to Arizona businesses and includes a comprehensive training program that will provide businesses the tools they need to create a sustainable wellness program. Key components include innovative ways to encourage employees to increase physical activity, improve nutritional status, encourage health screenings, reduce tobacco use, and provide incentives for healthy behaviors. ASBA will provide training sessions throughout Arizona to companies interested in learning how to implement a comprehensive worksite health program and they will learn where no- or low-cost resources are available to support sustainable wellness programs.
For more information, contact ASBA at (602) 306-4000.
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In Business Magazine is read by those vested in business Valleywide
To get your Marketshare . . . Advertise with www.inbusinessmag.com • info@inbusinessmag.com • (480) 588-9505
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ASBA Staff Rick Murray, Chief Executive Officer
Small Business Month Recap A glimpse at some of the fun ways we celebrated our members. Visit facebook.com/beamazed to view more pictures.
Kristen Lopez, Chief Operating Officer Debbie Hann, VP, Finance + Administration Jerry Bustamante, Sr. VP, Public Policy + Southern Arizona Christy Coe, Director, Member Benefits Harold Gribow, Director, Association Safety Program Rhette Baughman, Marketing Manager Robin Duncan, Business Development Manager Carol Mangen, Member Services Manager
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Gabe Salcido, Creative Design Manager Jason Sealy, Healthy Arizona Worksite Program Manager Sarah Travis, Administrative Assistant Louise Abbott, Member Services Coordinator, Southern Arizona Marlee Roushey, Member Services Coordinator, Southern Arizona
Central Arizona
4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p | 602.306.4000 f | 602.306.4001
Southern Arizona
4811 E. Grant Road, Suite 262 Tucson, AZ 85712 p | 520.327.0222 f | 520.327.0440
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Be amAZed速 at what ASBA can do for your business.
Index Index by Name
Hadley, Mike, 66
Lane, Jim, Mayor, 52
Rebholz, James G., 66
Bernhardt, Drew, 52
Haenel, Mike, 22
Leavitt, Ryan, 22
Rich, Kelly, 53
Blacker, Jane, 51
Hanson, Kent, 38
Louer, Tom, 22
Rosella, Brian, 22
Bloomquist, Kristin, 20
Hastings, Blake, 22
Luoma, Eric, 52
Schaffner, Chris, 52
Breslau, Paul, 54
Hayes, Patrick, 18
Maex, Dimitri, 29
Schweikert, David, 52
Brown, Denny, 52
Hedlund, Marty, 22
Mamalian, Paul, 14
Seligman, Thad, 10
Brown, Paul B., 29
Henig, Craig, 22
Melara, George, 18
Sellers, Kevin, 51
Brueckner, Kurt, 51
Hill, Camille, 51
Meli, Joe, 52
Serena, Christian, 52
Bustamante, Jerry, 58
Himelstein, Justin, 38
Miller, David S., 22
Shuckhart, Amy, 54
Cheney, Andrew, 38
Hoffman, Nikki, 53
Moorhead, Michelle, 30
Sjodin, Terri L., 29
Coe, Christy, 63
Huston, Larry, 28
Mower, Kristine, 18
Smith, Brian, 12
Crawford, Bill, 52
Jantsch, John, 29
Mueller, Brian, 12
Stapp, Mark, 38
Curry, Doug, 12
Jenkins, Trina, 66
Murray, Rick, 57
Strittmatter, John, 22
de la Cruz, Luis, 18
Johnson, Steve, 14
Olson, Rebecca, 18
Swanson, Jim, 22
Dolezal, Mary, 18
Kidder, Rick, 49, 50
Orr, Mike, 14
Teter, Jim, 30
Douglass, Brad, 22
Klapp, Suzanne, 52
Phillips, Guy, 52
Washington, John, 52
Essex, Scott, 66
Komarnicki, Debra, 52
Phillips, Joanne “Copper,” 52
Weiner, Howard G., 10
Finch, Terry, 53
Korte, Virginia, 52
Pruitt, J. Doug, 9
Yeager, Cindy, 14
Fogler, David, 22
Kramer, Jay, 10
Quayle, Ben, 52
French, Will, 22
Kumar, Alika, 18
Quincy, Stephanie, 31
City Property Management, 12
Minority Business
Index by Company
Scottsdale Area Chamber of Commerce, 32
5 Arts Circle, 4
Cox Communications, 13
Actors Theatre, 34
Cramer-Krasselt, 20
NAI Horizon, 10
SRP, 7
Ahwatukee Foothills
Delta Diversified Enterprise, Inc., 36
National Association of Women
Stat Doctors, 62
Chamber of Commerce, 32
Driver Provider, The, 21
Development Center, 18
Business Owners, 32, 33
Small Business Association, 12
Steptoe & Johnson, L.L.P., 31
AIP Solutions, 62
Economic Club of Phoenix, 32
National Bank of Arizona, 68
Sundt Companies, The, Inc., 9
Airport Property
Edward Jones, 66
National Center for American Indian
Sundt Construction, Inc., 9, 22
Specialists, L.L.C., 47 Alerus Bank & Trust, 15
Employer Support of the Guard and Reserve, 66
Enterprise Development, The, 18 Nelsen Partners, 18
Sunstate Equipment Co., 36 Surprise Regional
Alliance Bank of Arizona, 2, 48
Fennemore Craig, 10
Orcutt/Winslow Partnership, 18
Amalyn Consulting, 54
First Fidelity Bank, 51
Peoria Chamber of Commerce, 32
Team Caliber, 17
Andale Construction, Inc., 18
FirstBank, 55
PGA Golf, 3
Teen Lifeline, 30
Anzio Landing, 35
Fountain Hills Door and Supply, 62
PHArchitecture, 18
Thunderbird School of
Apple, 28
Goodwill of Central Arizona, 30
Phoenix Coyotes, 34
Arizona Cardinals, 34
Google, 12
Phoenix Mercury, 34
Titus, Brueckner & Levine, P.L.C., 51
Arizona Commerce Authority, 12
GPE Companies, 44
Phoenix Suns, 34
US Airways Center, 11
Arizona Diamondbacks, 34
Grand Canyon University, 12, 59
Phoenix Symphony, 34
Victoria Properties Management, 47
Arizona Hispanic
Greater Phoenix Black
Pinterest, 12
W. P. Carey School of Business, 12, 38
Procter & Gamble, 28
Wells Fargo Bank, 21
Qqest Employer Services, 62
West Valley Women, 33
Chamber of Commerce, 32
Rite Concept, The, 28
Westlake Reed Leskosky, 18
Arizona Small Business Association, 32
H. A. Mackey and Associates, 8
Russ Lyon, Sotheby’s
Whitestone REIT, 44
Arizona Small Business
Healthcare Trust of America, Inc., 46
Chamber of Commerce, 18 Arizona Opera, 34 Arizona Rattlers, 34
Development Centers Network, 12
Chamber of Commerce, 32 Greater Phoenix
International Realty, 51
HMSHost, 12
Ryan Companies, 22
Arizona State University, 12, 38
Holmes Murphy, 4
Satrix Solutions, 15
Arizona Technology Council, 32
Homes.com, 12
SCORE, 12
AT&T, 5
Interstate Mechanical Corp., 46
Ballet Arizona, 34
Intuit, 12
Blue Hound Kitchen & Cocktails, 35
Kitchell Corporation, 22
Breslau Insurance, 54
Lawyer’s Title of Arizona, 10
Brio Tuscan Grille, 35
Lee & Associates, 22, 38, 45
Capital Review Group, 46 Cassidy Turley, 22, 38, 40, 41 CBRE, 22, 42, 43 Centerline Mechanical, L.L.C., 66
Global Management, 12
Women of Scottsdale, 33 Xceligent, 12 Bold listings are advertisers supporting this issue of In Business Magazine.
Download Us Now www.inbusinessmag.com
Mableson Law Group, 62 Maracay Homes, 12 Maricopa County Attorney’s Office Check Enforcement Program, 8
Central Phoenix Women, 32
Maricopa Workforce Connections, 66
Chandler Chamber of Commerce, 31, 32
Mayo Clinic, 67
Chicago Title Agency, 22
Merestone Productions, 51
Cibo, 35
Meritage Homes, 12
inbusine ssmag.com
Chamber of Commerce, 33
/inbusinessmagphx @inbusinessmag
It's a Hub to Building Business S e p t e m b e r 2012
65
Roundtable
A Candid Forum
Hiring Military in the Civilian Work Force Are employers availing themselves of the resources in an employee pool of former military? by RaeAnne Marsh They come into the work force with a strong goal and task orientation, bringing an ethic of hard work, discipline and the ability to lead a team. This, explains Mike Hadley, financial advisor talent acquisition recruiter for Edward Jones, is why his company actively seeks out returning military men and women. “Edward Jones puts the needs of the client first, and where else but the military do you get this spirit of service excellence?” he asks. “They’re ideal [employees] with respect to being someone focused on getting things done, being able to work and adapt. It’s what they’ve been doing when they’ve been deployed,” says Scott Essex, chairman of the Arizona office of Employer Support of the Guard and Reserve. Established as a Department of Defense agency 40 years ago, ESGR advocates relevant initiatives, recognizes outstanding support, increases awareness of applicable laws and resolves conflict between service members and employers. Few employers, however, expressly seek out returning military, Essex notes. “Only 5 percent of employers across the nation employ Guardsmen and Reservists. Some don’t know how to go about hiring or looking for service veterans,” he says, naming Edward Jones, Chase Bank and security companies among the few that do. “They need to know avenues to approach.” ESGR Arizona’s job fairs, which it holds in locations throughout the state, are one such avenue. “We don’t see employers champing at the bit asking for veterans,” says Trina Jenkins, special program supervisor for Maricopa Workforce Connections. And many veterans, she’s found, lack the skills needed to effectively search for a job. The military may have been their first job, so they need assistance with such basic steps as writing a resume — and not in military language — composition and typing. And, because so much of the job search and application process is now done online, they may find it intimidating. Herself a veteran, she oversees the establishment of satellite offices of MWC’s one-stops in such access points at churches and community colleges. The types of jobs she’s found veterans most interested in are IT, security, healthcare and truck driving. These build on skills they developed during their military service, but Jenkins says those who worked on the front lines, such as in artillery, will most likely need retraining for civilian employment. Edward Jones’s program recognizes that the veterans they recruit may not have a background in financial services, and in April launched its FORCES program to provide more hands-on training in product knowledge and tool training — as well as special compensation to give them the stability of an income in their first years of growing their business, to help them transition back to civilian life. Unemployment among Arizona veterans, Reserve and Guard, according to comprehensive ESGR estimates, is currently a whopping 13.5 percent. Because of the high unemployment rate facing veterans upon their return to civilian life, ESGR added job placement activities to its programs. Educating employers about the professionalism of service
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S e p t e m b e r 2012
members is among its goals, and it will take employers to military bases — even land on an aircraft carrier — to show them the training military members go through. Paramount to ESGR’s mission is encouraging employment of Guardsmen and Reservists — nearly half of the U.S. military — and promoting the integrity, global perspective and proven leadership they bring to the civilian work force. Free symposia and hot lines offer employers information on what to look for and how to deal with issues of mental health, physical health and spiritual health as well as the rights and responsibilities of employers under the Uniformed Services Employment and Reemployment Rights Act. ESGR’s ombudsman program works with employers over issues of employee time off for Guard or Reserve duty and how to reinstate employees when they come back from military service. Among ESGR’s many recognition programs is the Defense Employer Support Freedom Award, the DoD’s highest recognition given to employers for exceptional support of Guard and Reserve employees. Centerline Mechanical, L.L.C., of Cave Creek, was a finalist this year for the award, one of 30 selected by a review board comprised of military and civilian leaders from 3,236 nominations received from Guard and Reserve service members or family members acting on their behalf. “These 30 finalists span the diversity of America’s work force and prove every employer can go above and beyond for our Citizen Warriors,” says ESGR National Chair James G. Rebholz. Edward Jones edwardjones.com Employer Support of the Guard and Reserve esgr.org Maricopa Workforce Connections maricopaworkforceconnection.com
inbusine ssmag.com
Most people my age don’t think they can get skin cancer. But I was diagnosed with stage one melanoma at 17. Now, I wear my scar proudly and tell my friends how important it is to get regular skin checks. My answer was Mayo Clinic. Caitlyn Potter, Phoenix, AZ
Because of Mayo Clinic’s collaborative model of care, Caity had an entire team on her side, focused on her recovery. Now, she is cancer-free and attending college. For over 100 years, people from all walks of life have come to Mayo Clinic for answers. Mayo is an in-network provider for millions of people. In most cases you don’t need a physician referral. For more information or to schedule an appointment, visit mayoclinic.org/arizona.