Q&A with Phoenix Community Alliance

Western Retail Advisors is a proud new member of Phoenix Community Alliance. We recently shared our thoughts on downtown Phoenix and our PCA membership. To learn more about PCA, visit phoenixcommunityalliance.com.

 Why did you/your organization become a member?

We became a member because we believe in PCA’s mission and values. As a retail-focused brokerage firm, we have always been a champion of Downtown’s position as a sophisticated employment corridor and an evolving live-work-play (and shopping) destination.

What are your goals for your membership?

We are here to collaborate, learn from the expertise of others, and contribute our skills and knowledge. We also aim to expand our professional network and create meaningful connections that can lead to future opportunities for our company and the community.

How do you hope to impact and engage with the community?

We want to contribute by bringing new ideas to the table and supporting initiatives aligning with our expertise and passions. We will actively participate in events, volunteer, and share our insights. We understand how elements like retail and restaurants bring a community together, and we want to support that positive impact.

What attracted your organization to Downtown Phoenix?

We love this vibrant urban environment, its diverse and talented workforce, and its thriving business community. We live, work, and play in Downtown Phoenix and see it as a hub of opportunity.

Western Retail Advisors Will Bring Whole Foods to the Heart of Scottsdale

Fifth metro Phoenix Whole Foods to locate at Downtown East Shopping Center

SCOTTSDALE, ARIZONA, April 30, 2024 – On behalf of Miller Plaza LLC, Phoenix-based retail brokerage specialist Western Retail Advisors has completed a 35,222-square-foot lease that will bring a new Whole Foods store to Downtown East Shopping Center, located at Indian School and Miller roads in the heart of Scottsdale. The store will become the fifth metro Phoenix location for Whole Foods, a leading natural and organic foods retailer.

Downtown East is located at 7628 E. Indian School Rd., minutes from historic Old Town Scottsdale and the upscale Scottsdale Fashion Square. The 93,000-square-foot center is presently 75% leased. Western Retail Advisors is currently working with several national tenants to take 16,000 square feet adjacent to Whole Foods, with those lease announcements expected soon.

“The demographics of Old Town Scottsdale and its surrounding submarkets are exceptional, and they continue to improve,” said Jakosky Properties President, Jack Jakosky. “Tenants have recognized this and, as a result, are actively competing for opportunities to locate here. We are thrilled to welcome Whole Foods and expect to have more announcements like this over the next few months.”

Whole Foods will replace an existing Fry’s Food Store, which has leased 50,000 square feet at the center for the past 48 years. This creates space for a second national tenant at Downtown East, further activating and modernizing the shopping center. An exterior renovation of this free-standing building will commence during the second half of 2024.

Western Retail Advisors Founding Partner Eric Termansen and Partner Neil Board represented Whole Foods in the lease negotiations. Ryan Desmond and Rachel Bliss of Western Retail Advisors are the center’s new listing brokers and will actively pursue shop tenants and creative office users for the remaining 8,900 square feet of vacant space.

“This trade area has experienced a rapid increase in high-end residential density,” said Termansen. “As each new luxury vertical residential project comes online, demand rises for top-notch prepared foods, restaurants and specialty retailers. The Whole Foods at Downtown East will serve this growing demographic and give shoppers from Scottsdale, Paradise Valley, Arcadia and other nearby communities a more convenient way to access the Whole Foods brand.”

Austin-based Whole Foods operates more than 530 stores across the U.S., Canada and the U.K. This includes ten stores in Arizona – four of which are located in metro Phoenix (Tempe, Chandler, the Camelback Corridor and Paradise Valley).

The Downtown East Whole Foods will become the fifth metro Phoenix Whole Foods location, offering full-service seafood and meat counters, a specialty cheese department, premier prepared foods and bakery, Whole Body wellness department, and a curated grocery department including a range of certified organic and locally sourced options. It will also feature an extensive selection of beer and wine, and an in-store beer and wine bar.

A grand opening date for the new Downtown East Whole Foods store is forthcoming.

For more information on Downtown East leasing, contact Desmond and Bliss at (602) 778-3747.

Western Retail Advisors Sells Avenue at Olive Park in Glendale, AZ for $5.5M

Western Retail Advisors Sells High-End 83 Marketplace in Peoria, AZ for $11.1M

Newly built neighborhood center is home to premier restaurant, retail with an available Phase 2

PEORIA, ARIZONA, April 8, 2024 – Phoenix-based retail brokerage specialist Western Retail Advisors has completed the $11.1 million sale of 83 Marketplace. The newly built, Class A retail center was developed by Scottsdale-based Cavan Companies. It spans three buildings at the prominent corner of 83rd Avenue and Happy Valley Road in Peoria, Arizona.

The property buyer is a franchisee of Hawaii-based Seven Brothers Burgers, who will locate a Seven Brothers restaurant concept on the hard corner of the center. Seven Brothers joins a cadre of existing high-end tenants at 83 Marketplace including Bourbon & Bones, The Stetson Social, F45 Training, Herbal Nail Bar, Salon Blissful and Heartland Dental.

Western Retail Advisors brokers Brian Gausden and Jake McClaughry represented the Cavan Companies in the sale. Scott Johnson of Omni Commercial represented the property buyer.

“This sale perfectly reflects today’s metro Phoenix retail market trends,” said McClaughry. “It is home to a roster of premiere national tenants who are vying for space in the Valley, and a location with superior demographics that continue to improve, thanks to our steady influx of new residents. The combination has proven highly successful for 83 Marketplace.”

Totaling 19,800 square feet, 83 Marketplace offers pedestrian-oriented retail and restaurant spaces with a contemporary design, abundant canopies and patio dining with views of the adjacent Sunrise Mountain Preserve.

The property benefits from more than 6,000 rooftops within a five-mile radius, with a projected area growth rate of up to 5.5% annually. It is seen by approximately 31,000 cars per day traveling along Happy Valley Road.

Western Retail Advisors is also marketing a Phase 2 parcel for the project. The 4.27-acre site sits immediately east of the three completed Phase 1 buildings. It has a listing price of $4.75 million and is shovel-ready with infrastructure, utilities and drive aisle complete. Building plans for a 11,519-square-foot Building 4 and a 10,195-square-foot Building 5 are approved through the City of Peoria.

For more information, contact Gausden or McClaughry at (602) 778-3747.

Connect CRE 2024 Top Broker Awards

Commercial real estate leasing and sales brokers scored significant deal successes during 2023, a year of macroeconomic challenges. Connect CRE’s annual Top Broker Awards spotlights the year’s leading dealmakers – 110  brokers or teams from across the U.S.

Ten winners were selected from the Phoenix/Southwest region, including Western Real Estate Advisors Partner Neil Board. Congratulations Neil!

Neil Board

Company: Western Retail Advisors

Leasing Total: 2,381,316 square feet

  • Closed on 71 transactions spanning 2.4 million square feet, valued at more than $332.6 million
  • Spearheaded lease-up of the under-construction, 700,000-square-foot Village at Prasada

As a Partner of the Western Retail Advisors team since 2010, Neil Board serves as Principal, focusing on retailer and landlord representation. In 2023, he completed 71 leases across 2.4 million square feet at a total value of more than $332.6 million.

A highlight of 2023 was the 100% lease up at Village at Prasada in Surprise, AZ, a 700,000-square-foot shopping center under construction by Simon CRE. The $500-million project is one of the largest power centers built in the western U.S. in a decade.

These are some of the reasons we selected Neil Board as one of the Phoenix & Southwest winners in Connect CRE’s 2024 Top Broker Awards. These awards recognize industry professionals who have demonstrated the highest standards and transaction volumes in investment sales and leasing.

Retail Outlook Through Cutting Edge GIS

– Patrick Sullivan

 

The Phoenix retail market is sizzling hot, with vacancy rates hovering at around 5% and new construction booming. But how do landlords and retailers know exactly where to place their bets in this competitive landscape? Enter the Geographic Information Systems (GIS) analyst—trained to gather and analyze real estate trends and demographic data and then relay that information through maps and reports. Infused with insightful data integration, these materials paint a vivid picture of the hottest retail spots in Arizona and help guide decision-making for brokers, landlords, and tenants alike.

As the Director of GIS and Graphics for Western Retail Advisors, I work at the intersection of technology, strategy, and design. By leveraging data and software, I equip our team of retail-specific brokers with up-to-the-minute intelligence that they couple with their expert insight to navigate intricate site selection, leasing, and expansion opportunities. From my vantage point, GIS is revolutionizing commercial real estate.

Being a full-service commercial real estate brokerage, our primary responsibilities at WRA are to help clients analyze and predict market trends, identify favorable locations, and complete successful transactions. For our tenant clients, this means opening profitable new stores or restaurants faster and easier than they could have without us. For our landlord clients, it means filling their vacant spaces efficiently, at higher rents, and with a more compelling tenant mix.

In Arizona, where rapid population growth is reshaping communities at breakneck speed, the kind of knowledge that GIS contributes to this process is indispensable.

The Power of the Map

As the saying goes, “retail follows rooftops,” and Arizona’s rooftop counts are skyrocketing. At its most fundamental, GIS can help our industry stay ahead of the competitive curve by mapping out where rooftops are being built and, in turn, where demand for new retail will rise. Visuals produced by GIS technology can, among other things, pinpoint competitor locations, analyze population shifts, and plot where new construction is happening. This helps to identify transactions that minimize competition and maximize success.

GIS can, for example, show us that Central Phoenix and Tempe are currently experiencing the highest level of housing unit growth. It can also highlight that Buckeye has the most retail space in development while central Tempe has the most hamburger restaurants.

This gives local and regional clients information that exceeds the common knowledge they might be able to uncover independently. It is also critical when dealing with national retailers that often have internal GIS experts of their own. These large retailers expect to be able to compare their data with that of their broker —both as a validation point and to uncover new market insight.

Know Your Customer

Another advantage: GIS can transform data about consumer dynamics into actionable insights. By harnessing technologies like mobile location data, GIS can decipher shopper foot traffic, define a center’s trade area, and create a general profile of its customers, from age to income. That holistic understanding leads to tailored strategies that resonate with retailers and landlords.

It can also offer game-changing clues about what everyone in our industry wants to know…the success potential of a future store. While GIS can’t forecast the future, its data can help us form educated guesses that mitigate risk as we craft strategies.

Quality In, Quality Out

For all its benefits, GIS’s efficacy hinges on the quality of the data input into its system. If your data is less than ideal, your insights will be less than ideal and will likely degrade with each iteration. On the flip side, if your data is strong, your results will be strong.

Thoughtful GIS specialists know that good data is the foundation for our most valuable commercial real estate insights.

They also know that when used correctly, it can provide an edge in the competitive Arizona retail market where every advantage counts.

The Phoenix retail landscape is dynamic, and success hinges on innovation. By leveraging GIS, we can empower our industry to confidently navigate the ever-evolving Arizona retail market. As our state continues to experience rapid growth, GIS can keep us on the cutting edge of intelligence so that we can fully capitalize on the many opportunities that lie ahead.

AZ Big 100: 50 commercial real estate leaders to watch in 2024

Erin Thornburn
AZRE Magazine

While we don’t have a crystal ball to look ahead when it comes to Arizona’s commercial real estate outlook for 2024, several factors historically influence the state’s market — and those companies on the list of the AZ Big 100 for 2024 will be shaping those factors.

Arizona’s growing population, a key driver for commercial real estate, is often attracted by its business-friendly environment and quality of life. Cities like Phoenix, with a thriving tech industry, are likely to see increased demand for office spaces.

 

Katie Weeks
Transaction manager // Western Retail Advisors
Weeks joined the team at Western Retail Advisors in January 2018. With her extensive experience as a commercial property manager overseeing office, industrial and retail projects across Arizona, Weeks is an integral part of the Western Retail Advisors’ landlord representation team. Prior to joining WRA, Weeks spent the last 20 years of her career at Opus, Northmarq, Cushman & Wakefield and Zell Commercial.

Chris Anderson
Managing director // Hines
Anderson serves as a senior managing director and city leader responsible for new commercial and residential business opportunities that include new development, acquisition, management and disposition within the Southwest Region of the U.S.

Adam Baugh
Partner // Withey Morris Baugh
Known as the “MacGyver of land use,” Baugh’s fingerprints are on some of the most successful restaurants, shopping centers, mixed use projects and master planned communities in Arizona. He works to create unique solutions and navigates the political landscape to bring new development to fruition.

Devin Beasley
Executive director // Cushman & Wakefield
As Executive Director of Cushman & Wakefield’s Self-Storage Advisory Group, Beasley specializes in RV & Boat Storage/Self-Storage. His client-first approach of partnering with private and institutional clients in both an advisory and transactional capacity has enabled growth of long-lasting relationships.

Rachelle Strole
Owner and co-founder // Capital Asset Management
Capital Asset Management, co-founded by Rachelle Strole and Aaron Strole, focuses on property management, leasing and development. With a lifelong passion for real estate and business, Rachelle Strole began her professional career at an early age, immersing herself in the real estate and banking industries. She earned a Bachelor’s Degree in Foreign Languages from Arizona State University where she graduated Cum Laude and became fluent in Spanish.

“The best decision we made for CAM in 2023 was focusing on organic growth,” Strole says. “We have made marketing a priority, increasing our SEO and online presence, which has had a significant impact on the expansion of Capital Asset Management.”

Strole and her team have also made a concerted effort to bolster company reviews from their tenants and clients. “This has given us credible insights as to what people like about us, so we can concentrate on that in the future,” she says. “We also worked harder than ever to put our name on the map by informal networking and maintaining existing professional relationships. This has helped us to bring on fresh talent with all different backgrounds and experience levels.”

As for trends in the new year, Strole anticipates that companies will continue to make their way west for a better climate, more space and more affordable real estate. “Phoenix continues to be a melting pot for business of all shapes and sizes,” she says. “We’re seeing international companies making their mark in our city because of its modern infrastructure and recent advancement in technology, which inevitably influences real estate trends. Convenient co-working spaces are essential to satisfy the needs of companies these days and we anticipate that trend continuing throughout 2024.”

Ed Beeh
Executive vice president and managing principal // SRS Real Estate Partners-West
With more than two decades of experience, Beeh specializes in tenant and landlord representation, as well as disposition services. His user representation experience includes a variety of tenants such as grocery stores, drug stores, restaurants and financial institutions.

Jenna Borcherding
Director of development // VanTrust Real Estate
In just four years, Borcherding — one of AZRE’s 2023 Most Influential Women in Commercial Real Estate — amassed a portfolio of development projects in Arizona and Nevada that has surpassed 3.8 million square feet. She also frequently speaks on panels and provides mentoring to commercial real estate professional hopefuls.

Katie Haydon
President and CEO // Haydon Companies
An anomaly in a male-dominated industry, Katie Haydon is president and CEO of Haydon Companies, one of the Southwest’s largest general contractors, which was previously run by her father Gary Haydon for more than 30 years.

Through the years, Haydon has held many positions in the organization, continually learning the business. Her laser-like focus is on positioning the company’s next generation for sustainability and growth. She accomplishes it all as a devoted mother and community servant, baseball coach, board member and mentor for Xavier, supporter of West Valley Mavericks, Tempe Diablos, Scottsdale Charros, Thunderbirds, Boys & Girls Club and as All Saints Episcopal Day School’s volunteer construction consultant.

“I believe the heartbeat of our organization is our culture,” Haydon says. “That’s why, after visiting 27 countries and learning about culture, I spearheaded the Haydon 2.0 culture overhaul to bring us back to our roots — from our extensive and inclusive hiring process to the touchpoints throughout one’s career at Haydon.”

Maintaining excellence in Haydon Companies’ culture, according to Haydon, involves an ongoing commitment to embracing improvement, celebrating successes and leading people to be the best they can be.

Tyson Breinholt
Partner and associate designated broker // Commercial Properties, Inc.
Breinholt and his team completed more than 200 transactions for their clients, totaling 847,366 square feet in 2022. “I believe that if you want to be successful, you need to surround yourself with highly motivated and performing team members,” he says.

Tim Brislin
President // Harvard Investments
Harvard Investments promoted Brislin to president in November 2023. He has been instrumental in several key company initiatives for Harvard Investments, including the development of thousands of residential lots in Harvard’s master-planned communities and the launch of Harvard’s new FirstStreet division, a platform creating build-to-rent communities.

Chris Burson
Senior relationship manager, commercial real estate // Flagstar Bank
Burson has more than 16 years of commercial real estate banking experience and serves as a board member of the Phoenix Community Alliance, a nonprofit focused on building a stronger Downtown Phoenix that identifies economic and growth opportunities among businesses, education, arts and culture, and governments.

Susan Byram
Vice president of design and construction // Plaza Companies
Byram joined the Plaza Companies team in 2011 and has more than a decade of project management and construction experience. She leads a team of project management professionals including general contractors, architects, engineers and various consultants.

Michelle Walker
Vice president of operations // SSC Underground
With more than 25 years’ experience at SSC — a trenchless technology company that delivers underground construction and consulting across the country — Walker brings specialized knowledge from both a business and technical perspective to safety, project management, workforce and logistical issues. Outside of her role at SSC, she has been a strong advocate for the construction industry through her leadership in various construction associations and as the founding chairman of the Construction Industry Alliance for Suicide Prevention. She also serves as a director of the Greater Phoenix Chamber.

“Always prioritizing the workforce, my passion for people is a driving force in every decision and action that I am a part of,” Walker says. “I am fortunate to belong to a leadership team at SSC that shares this common mission to make not just our company but our entire industry a place where men and women can have fulfilling careers, earn an excellent living, receive meaningful benefits and develop personally and professionally.”

Walker adds, “At SSC we do this in many ways — it starts with our ‘I AM SSC’ company values and extends into offering industry leading wages and benefits.”

Some of the recent ways SSC has implemented these measures is incorporating six additional paid holidays to allow for employees to have the four day weekend at Thanksgiving and the week between Christmas and New Years off with pay.

“It drives our investment decisions, reinvesting profits into equipment that automates processes to limit physical demand on our crews and capital improvements to expand training and development facilities,” Walker says. “This passion for our industry workforce led to me being a part of creating and leading for nearly eight years, the Construction Industry Alliance for Suicide Prevention, a nonprofit organization to combat the epidemic of suicide in the construction workforce.”

Chris Burbach
CEO // Fundamental Income
Burbach founded the net lease real estate company in 2018. Rapidly, he’s led the company to successfully acquire more than $1.4 billion in real estate assets across more than 40 industries. He is a member of the board and jointly leads the firm’s Investment Committee.

Rory Carder
Co‑managing director, financial services leader, principal // Gensler
As co-managing director of Gensler’s Phoenix office, Carder plays an integral role in the strategic growth and positioning of the Phoenix office. She brings over 25 years of workplace design experience spanning technology, financial services, professional services, office development and government.

Chuck Carefoot
President of the Southwest Region // Ryan Companies
A key player in the Southwest Region’s growth during the past 15 years, Carefoot now serves as the region’s leader. He oversees team members from all of Ryan’s services and works closely with the regional leadership team to grow the region in concert with the company’s strategic direction.

Tammy Carr
Director of business development // Brinkmann Constructors
Carr joined Brinkmann Constructors as a director of business development to support the company’s growing presence throughout the Greater Phoenix region. With more than two decades in the commercial real estate industry, her success is a testament to her strategic approach to building and maintaining long-lasting client relationships. This approach is centered around collaboration, thoughtful planning and a commitment to aligning Brinkmann’s vast capabilities with each client’s vision and goals.

As the Valley’s landscape continues to evolve, Carr looks forward to creating new partnerships in the industrial, multifamily, senior living, hospitality and medical sectors. As an avid builder of both community and connection, she is actively involved in industry associations including the Urban Land Institute (ULI), the Greater Phoenix Economic Council (GPEC) and the Arizona Association of Economic Development (AAED).

By staying at the forefront of industry trends, Carr helps strengthen Brinkmann’s position as a leading general contractor both regionally and nationally.

Robert Cortazzo
Southwest president // Adolfson & Peterson Construction
Cortazzo has helped Adolfson & Peterson become a major player in Arizona Healthcare construction. “The big difference in hospital development and construction today is we’re bringing healthcare to the people,” Cortazzo says. Adolfson & Peterson is currently working on multiple healthcare projects in Metro Phoenix, including state-of-the-art inpatient rehabilitation hospitals.

Shannon Francoeur
Executive vice president // TerraWest Communities
Francoeur has more than 20 years of experience in land acquisition and development for both home builders and private developers. She previously worked for Pulte Homes and DMB. At DMB, Francoeur was involved in the revenue management and development of masterplans such as Marley Park, Verrado, DC Ranch and Eastmark.

Jamie Godwin
President and CEO // Stevens Leinweber Construction
In his 10 years with SLC, Godwin has launched a ground-up construction division and continued to evolve the firm’s tenant improvement capabilities, growing revenue by a stunning amount while ensuring SLC remains one of the Valley’s most trusted general contractors. He equally prioritizes giving back through numerous philanthropic commitments.

Mike Greenawalt
CEO // Rosendin
Rosendin is the nation’s largest employee-owned electrical contracting company that is building the foundation for regional growth in Arizona’s mission-critical, industrial and commercial market sectors. Since 2020, Rosendin’s Arizona office tripled in size, providing jobs for over 1,300 highly skilled employees building state-of-the-art data centers and semiconductor facilities.

Nicolette Hawthorne
Founder // P.R.O.S. Sports Housing
Hawthorne started P.R.O.S., which provides a home-away-from-home for professional sports teams, 10 years ago and went from operating from her kitchen table to developing it into a multimillion-dollar company. P.R.O.S. has made the Inc. 5000 list three times.

Shannon Hersker
Senior vice president // Northmarq
Northmarq’s status as a leading build-to-rent platform was further solidified with the addition of Hersker to the company’s Phoenix debt/equity team. With a specialty in financing build-to-rent (BTR) projects, Hersker will assist clients with sourcing equity, construction lending, bridge debt and permanent financing. She will collaborate with the Northmarq investment sales team on BTR acquisitions and dispositions.

Vanessa Williams
Senior director of business development and marketing, U.S. West Region // Colliers in Arizona
Williams is a business partner and advisor to regional and local executive leadership teams and brokers, developing and implementing marketing and research strategies that position Colliers as an industry leader. She leads a talented group of marketing and research professionals, elevating teams as strategic counterparts to Colliers’ brokerage professionals.

Tasked with developing a highly effective salesforce to achieve organic growth and continuously increase market share, Williams’ strategies have resulted in significant business development wins across Colliers’ ever-growing Western Region.

“Strategically integrating Colliers’ marketing, research and brokerage stands as my most innovative decision,” Williams says. “This alignment was transformative, unifying our approach, positioning Colliers as an industry leader and driving record revenue growth. We fostered collaboration by merging these crucial functions, enabling tailored strategies that propelled market presence.”

The move, according to Williams, transformed their teams into strategic partners, delivering comprehensive solutions that deeply resonate with their clients. “By leveraging innovative and measurable tactics and collaborating closely with brokers and staff,” she explains. “Our creative process led to highly effective marketing concepts that set Colliers apart and helped us achieve landmark wins across the West.”

In 2024, Williams predicts that the real estate landscape will pivot to tech integration and sustainability. “Colliers is poised to lead this transformation,” she says. “Technology will reshape transactions, data analysis, and client interactions, while sustainability will drive decision-making and industry trends. Working closely with regional and local leadership teams and brokers, we focus on seamless tech integration and championing sustainability initiatives.”

Williams notes that Colliers leveraging innovative and measurable tactics has resulted in significant successes of all types and sizes. It’s this approach she says, “will future-proof our business and exceed client expectations while delivering resilient and dynamic service aligned with the ever-evolving industry landscape.”

Katie Hurst
Executive director // Arizona Association for Economic Development (AAED)
Hurst, a longtime Arizona professional and catalyst for entrepreneurship and coworking in the state, was named executive director of AAED in September 2023. She oversees AAED’s day-to-day operations and manages staff development. She will also help implement the organization’s three-year strategic plan and supports its board of directors, committees and events.

Justin Kelton
President, Southwest Region // McCarthy Building Companies
Kelton and McCarthy’s Southwest Regional leadership team have been implementing company initiatives focused on culture, innovation and workforce development that are rooted in the firm’s strengths: builders; delivering great experiences; and taking a healthy approach in professional/personal growth/development. Thanks to these initiatives, there are innovations being brought to projects across Arizona that benefit the community, industry and workforce.

Rusty Kennedy
Managing director // Stream Realty
Kennedy is responsible for leading the strategic direction of Stream’s industrial business in the Phoenix market, including overseeing operations, business development, recruiting and the execution of industrial transactions, including project leasing, tenant representation, acquisitions, dispositions and development services. Kennedy served as the chairman of NAIOP’s Arizona Chapter in 2022 and was a member of the Super Bowl LVII Host Committee in 2023.

Doug Klocke
Vice President // LPC Desert West
Klocke oversees all phases of real estate development. He serves as the primary customer contact and manager of all real estate improvement projects from conception to completion, including shell development and tenant improvements. Klocke directs the project design team, manages city and local government approvals, and oversees construction, costs, schedule and quality. He graduated from ASU with a B.S. in civil engineering.

Patrick MacQueen
Founder // Medalist Legal
MacQueen’s legal career has been highlighted by work primarily in the areas of real estate transactional law and real estate litigation. He recently prevailed in several Arizona Court of Appeals matters and one with the Arizona Supreme Court and served as local counsel in the $129 million acquisition of the City North development adjacent to Desert Ridge Marketplace in North Phoenix.

Terry Martin-Denning
CEO and designated broker // NAI Horizon
In her role as CEO and designated broker, Martin-Denning is responsible for the overall strategy of NAI Horizon. She provides leadership and direction and promotes the vision, culture, and professionalism of NAI Horizon both internally and externally. As designated broker, Martin-Denning manages the agents and oversees the daily transactional activity, including the review of all real estate contracts and documentation.

Heath Melton
President, Phoenix region // Howard Hughes Holdings
Melton oversees the development of Teravalis, a 37,000-acre master planned community located in West Valley Phoenix. Melton is a senior leader who has been with the company since 2015. In his previous role as executive vice president of master-planned communities in the Houston region, Melton was responsible for residential planning and development of highly acclaimed master-planned communities in Texas: The Woodlands, Bridgeland and The Woodlands Hills. Now, he is overseeing one of the biggest projects in Arizona history.

“Arizona needs housing,” Melton says. “Whether they’re moving from another part of our state or country, buyers in all life stages need homes, built to the highest possible environmental and design standards — in places where the economy will grow.”

At buildout, Teravalis will be home to 100,000 homes and offer a unique place that supports the health and well-being of its residents, expanded dining and retail options and a place to live, work, play and discover.

“Teravalis is a thoughtfully planned community that bridges the gap between nature and development with diverse housing options, amenities, retail and commercial spaces seamlessly integrated into the landscape,” Melton says. “At least 20% of land will be devoted to open spaces, including walking and biking trails, community parks and natural areas. Built for the future, in harmony with nature, Teravalis strikes a balance between the built and unbuilt environment.”

Melton says Teravalis will help address the housing and affordability crisis in Metro Phoenix.
“The U.S. experienced the fastest-ever deterioration in housing affordability over the past three years as housing prices soared, followed by a historic mortgage rate shock,” Melton says. “One answer has stood out to solve the affordability crisis — build more housing at all price points and that’s exactly what Teravalis will provide.”

Of note: Teravalis has developed detailed plans to leverage innovation to target a 35% reduction in water consumption compared with the Arizona Department of Water Resources baseline of 146 gallons per person per day, allowing Teravalis to thrive.

Ken Miller
Principal // Butler Design Group
Miller pursued architecture with passion since the age of 10, when his parents gifted him a drafting table and he immediately fell in love with drawing. He grew up in Buffalo, N.Y., studied formally at The Cooper Union in New York City, then headed for the desert in 2004. Miller has designed and directed projects across a wide array of building types, with a proclivity for stewardship of the complex ones.

Jeff Moloznik
Senior vice president, development // RED Development
Moloznik leads public and private financing, entitlements, tenant relations, construction coordination, community outreach and government relations. His commitment to the community includes multiple board leadership positions and neighborhood groups. He managed the development of CityScape Phoenix, RED Development’s $500 million, 2.5 million-square-foot, mixed-use, high-rise destination in Downtown Phoenix. He is currently overseeing the development of the third phase of CityScape.

Don Nottke
Vice president of business development // Derek Builders
Originally from Chicago, Nottke spent the early part of his construction career in Southern California centered mostly on educational K-12 projects. In 2005, he moved his family of four to the red-hot Arizona market where, as a superintendent, he successfully completed retail, entertainment, office, medical and distribution projects.

While working in distribution, Nottke discovered his true passion — cold storage. He accepted a CM position with a top cold storage industry leader and completed multiple projects ranging from $5-$110 million for clients such as USF, WinCo, UNFI and PFG to name a few. Nottke’s 35-plus year construction background has equipped him with valuable knowledge and experience which have proven key in his current role as vice president of business development at Derek Builders.

Nottke’s undying passion for building has been instrumental in the exponential growth of Derek Builders. Since its launch in Arizona in 2018, the company has experienced a 150% increase in revenue year over year. Nottke sits on the executive board of the City of Surprise Regional Chamber of Commerce and is a member of NAIOP and CEBA/GCCA.

JV Nyman
President // Concord General Contracting
Nyman is highly involved in the local Tucson community and engaged in the trends of the market. This enables perspective and certain business philosophies to be brought back to the Concord team in order to succeed. His main focus is on company culture, client service and development at all times. As president of Concord General Contracting, Nyman makes it his priority to foster relationships across Concord’s Tucson and Mesa offices.

CJ Osbrink
Executive managing director // Newmark
As a member of Newmark’s rapidly expanding West Coast Capital Markets team, led by Kevin Shannon, Osbrink has more than 17 years of experience in office, industrial and retail investment sales throughout Arizona, Southern California, Nevada and Hawaii. Osbrink joined Newmark in 2017 after working for more than six years at HFF, where he closed transactions totaling more than $2 billion.

Camille Patterson
Property manager // Whitestone REIT
Patterson is an accomplished and results-driven commercial real estate executive with a collaborative and entrepreneurial approach, and substantial success in providing operations management, acquisition, disposition and leasing of investment grade, income-generating properties. She is experienced in asset and property management, sales and leasing/brokerage, capital markets, development and construction and investment analysis.

Carrie Perrone
Principal, Higher Education Studio leader // SmithGroup
Studying abroad while in high school not only inspired a career, it gave Perrone a rather worldly perspective for a teen. “It allowed me to appreciate how architecture and the built environment around us tells a story of time, place and culture,” she says. Now when Perrone takes on a higher education project, she envisions the impact far down the road.

Larry Pobuda
Executive vice president and general manager // The Opus Group
Pobuda, the executive vice president and general manager for The Opus Group, leads development activity in the Western U.S. and brings 35 years of diversified commercial real estate experience to the company, including work in office, industrial, multifamily and medical office segments.

Chelsea Porter
Vice president of brand and development strategy // Renaissance Construction
Porter grew up in the commercial real estate industry as her parents founded Renaissance Construction when she was about 1 year old. She naturally fell in love with commercial real estate, pursued her degree in interior design at The Savannah College of Art and Design, and returned to Arizona, where she started at Renaissance as a project engineer. Porter has held many roles at Renaissance over her 12-year tenure and currently assists in leading the company in its business approach as vice president of brand and development strategy, which is well-suited to her innovative nature.

“In the face of immense personal grief following my father’s passing, I spearheaded a transformative rebranding and restructuring of Renaissance Construction,” Porter says. “While deeply attached to my parents’ legacy, I knew the company needed bold changes to thrive. My decisions — though risky and potentially impacting long-term client relations and employee trust — were ultimately driven by the company’s future success. This gamble paid off, not only solidifying our commitment to our team, but also firmly re-establishing Renaissance as a respected legacy player in the industry.”

Ed Robson
Founder // Robson Communities
Robson is an Arizona icon in the homebuilding industry. For more than 50 years, he has been redefining retirement living by building resort-style, active adult communities with stunning homes and amenities in Arizona and Texas. Today, more than 50,000 people call a Robson Resort Community home. At the age of 93, he still goes into the office almost every day.

David Sellers
Founding partner // Creation Equity
As an award-winning developer, Sellers leads Creation’s development platform. He has been a driving force behind the development of many of the Southwest’s most exciting projects including, The Hub, AZRE RED Award winner for Best Industrial Project more than 500,000 square feet 2021; and, The Collab, Best Office Project less than 150,000 square feet 2021.

Laura Shivers
Vice President // Big D Construction Southwest
Shivers’ role includes overseeing the people and clients at Big-D Southwest. She spends a majority of her time securing new business, accelerating growth and ensuring 100% client satisfaction. Throughout her career, Shivers has successfully executed brand transformations, initiated culture-focused processes and driven strategic planning. Her expertise has been vital to growth at three different “ENR Top 400 Contractor” firms.

Nicole Solar
Business development // Olsson
Solar is a market-driven professional with a consistent track record of generating new revenue growth, profits and process improvements. She has an extensive background in business development and a proven track record of success in client development. She has spent several years strategically managing customers in the private development market for real estate and data center companies.

Michael Stafford
President // LGE Design Build
Stafford is responsible for executing LGE’s short-term and long-term goals, including its continued growth in its primary markets, growth into new markets and expansion into new product offerings. His guiding philosophy for his work and his role at LGE is to constantly put people over profit. He encourages health, wellness and professional excellence from the entire company.

Justin Steltenpohl
Chief operating officer and general counsel // P.B. Bell Companies
Steltenpohl is responsible for development, acquisition, asset management and operations for P.B. Bell, as well as all legal matters, including corporate governance, joint ventures, purchase and sale agreements, and financing transactions. Prior to joining P.B. Bell, Steltenpohl was a partner with Squire Patton Boggs, heading the financial services group in the firm’s Phoenix office.

Cathy Thuringer
Market leader, senior managing director, executive committee member // Trammell Crow Company
Thuringer has responsibility for the Development and Investment Group for TCC and High Street Residential, TCC’s residential subsidiary, in the state of Arizona. With more than 35 years in the real estate industry, her experience encompasses leading all phases of development and includes more than 10 million square feet of development projects with a market value approaching $2 billion.

Matthew Wedding
Business unit leader // CHASSE Building Team
Wedding is a former firefighter and now project director and business unit leader at the employee-owned CHASSE Building Team, heading both its Job Order Contracting and Pimmex-CHASSE divisions. CHASSE’s Job Order Contracting division completes 150-plus on-call projects a year with its education and municipal clients. Wedding is also a board member with the Chandler Education Foundation.

Serena Wedlich
Vice president // CBRE
Wedlich specializes in industrial sales and leasing in the Southeast Valley, Scottsdale and Sky Harbor Airport submarkets, representing developers, landlords, tenants, buyers and sellers. She works closely with Evan Koplan, so the two function as one unit. She is involved in all aspects of leasing and marketing the team’s properties. Prior to joining brokerage services, Wedlich served as a real estate manager for CBRE Asset Services.

Katie Weeks
Transaction manager // Western Retail Advisors
Weeks joined the team at Western Retail Advisors in January 2018. With her extensive experience as a commercial property manager overseeing office, industrial and retail projects across Arizona, Weeks is an integral part of the Western Retail Advisors’ landlord representation team. Prior to joining WRA, Weeks spent the last 20 years of her career at Opus, Northmarq, Cushman & Wakefield and Zell Commercial.

Todd Weiss
Chief operating officer // ViaWest Group
Weiss leads, and is responsible for, all operational aspects of the company, including leasing, asset management and dispositions. Additionally, he is involved with acquisitions, financing and joint venture management. Weiss is a member of the company’s investment and senior management committees. Weiss has been involved in the acquisition, financing, leasing, management and disposition of more than $15 billion of commercial real estate.

Will Phoenix’s hot retail real estate market continue into 2024?

2024 Retail Predictions: Western Retail Advisors

Nearing the end of a year fraught with myriad challenges to commercial real estate finance, investing, and development, industry experts offered their recaps of 2023 and predictions for 2024 without mincing words about the struggles and triumphs…

Overall Phoenix Retail Market
A surge of retailers is vying to plant a flag or expand their presence in Phoenix, reversing our long-held challenge of being over-retailed into one of simply finding space. A pipeline of more than 3 million square feet of new retail construction will help that supply-demand balance, but development takes time and has required those eyeing best-of-the-best locations to plan ahead— in some cases many years out. We’re working against 20-year low vacancy rates and all-time-high rental rates, but we’re finding solutions for today’s best-in-class and compelling retail users and its most innovative owners. As Phoenix grows at breakneck speed, this momentum will only accelerate. Our team works relentlessly to find the highest quality new locations while navigating high construction costs, rents, and capital scarcity. Still, with exponentially high demand, the future of retail in Phoenix is bright.

Eric Termansen
Founding Partner
Western Retail Advisors

Big Box
In 2023, well-located big box retail experienced some of the lowest vacancy rates in recent memory. Despite notable bankruptcies from Bed Bath & Beyond, David’s Bridal, and Party City, aggressive retailers looking to grow their market presence snapped up the lion’s share of those locations. In 2024, we expect to see this trend continue. With occupancy in Class A centers at all time highs, new developments that broke ground in 2023 will begin to come online in 2024. With construction costs still elevated, these new construction projects and low big box vacancies have put upward pressure on rents. To date, the retailers’ appetite for growth has been strong enough to absorb these higher rents. But if 2024 brings any pullback in consumer spending, we could see some retailers begin to slow their growth. That said, we think rapidly growing markets like Phoenix will continue to fare well compared to other U.S. metros.

Ryan Desmond
Partner
Western Retail Advisors

Capital Markets
In the investment sales market, we expect the existing surplus of retail listings to regress towards the mean as fewer new developments hit the market due to their inability to pencil. Existing listings will adjust to market pricing in order to transact. Overall deal volume will be below average based on historical standards as investors contend with high borrowing costs and the uncertainty of a presidential election. The current pace of deal volume and cap rate adjustments will continue until investors regain the ability to lever up when purchasing a property. While these headwinds are quite real, continued tenant demand and record low vacancy rates have investor sentiment as positive as it has been since before the ’08 crisis. Existing owners will be pleased with the performance of their shopping center investments and new investors will continue to be attracted to the strong fundamentals driving demand in the sector.

Andrew Lundahl
Managing Director
Western Retail Advisors

Tenant Representation
In the year ahead, the retail tenant representation market will continue to see demand for existing retail space as need outpaces supply. While this demand will come from all sides of the retail spectrum, only those at the forefront of consumer trends will likely have the capital resources needed to afford new construction. Undoubtedly, the retail users that continue to adapt to the changing demands of the customer—from a desire for experiential retail to clicks-and-bricks conveniences—will flourish. At the same time, those who don’t embrace change will struggle. But even for the excelling retailer, a prolonged elevated construction cost could limit their forecasted growth. Until construction prices stabilize or decrease, expectations from those across the retail sector must be tempered by a much higher cost of doing business.

Dave Uhles
Senior Vice President
Western Retail Advisors

Strip Centers
Metro Phoenix’s continued population growth and rapid addition of new residential communities has pushed retail strip center vacancy to an all-time low of just 4.5%. In the new year, we expect strip center vacancy to remain low and tenant demand to remain high. New construction will be challenged with high costs to build and finance and lengthy entitlement processes. Rental rates on new construction could significantly increase as a result. Well-positioned existing strip centers will also continue to see rent increases on market rate renewals and new leases. While the rising cost of build outs may increase concessions, higher rents will more than cover these considerations for owners. Landlord expectations on credit worthiness and operator experience will remain high, given such strong occupancy rates and their ability to upgrade tenancy.

Kalen Rickard
Senior Vice President
Western Retail Advisors

Restaurants
Overall, Arizona continues to be a strong market for restaurants and, in some cases, one of the better-performing markets in the country. As such, demand for restaurant space in 2024 should remain strong, especially among the groups that report to Wall Street. Independent and smaller multi-unit operators will likely be more cautious with their expansion in light of the current macroeconomic headwinds. However, those with access to capital will still look to grow. Amidst the positive performance, sourcing quality locations will remain challenging given scarce supply due to delayed timelines or an outright pause of new retail projects due to high construction costs and the current lending environment.

Charles Skaggs
Senior Vice President
Western Retail Advisors

Anchor Centers
While Phoenix retail has sometimes taken a backseat to other commercial real estate, such as office or industrial, the sector re-emerged in 2023 and will continue to shine in 2024. Anchored shopping centers, in particular, are the strongest, and their occupancy rates are the highest I’ve seen in my 25-year career. Undoubtedly, COVID forever changed how people shop, which could lead to more anchors closing in 2024. But our post-pandemic normal is also punctuated by a dramatic increase in traffic counts. This has retailers sitting on the sidelines, waiting for the opportunity to scoop up available space. This will place continued upward pressure on rents at anchor centers and keep vacancy rates at all-time lows, positioning Arizona as one of the strongest retail markets in the country. It’s a great time to own retail or be an investor in retail in this market.

Bryan Ledbetter
Senior Vice President
Western Retail Advisors

 

Originally published by Arizona TREND Report in December, 2023.

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