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W.P. Carey School of Business - McCord Hall
Official groundbreaking was Oct. 29 at the Homecoming festivities
As one of the largest and highest-ranked business schools in the country, the W. P. Carey School of Business at
Arizona State University is home to 10,000-plus students – more than some entire universities. In order to keep
up with its growing student population and to play an even bigger role in educating business leaders of tomorrow,
the school is about to break ground on a new 129,000-square-foot, state-of-the-art building that will compliment
its two existing structures.
McCord Hall will be named for philanthropist Sharon Dupont McCord and her late husband Bob McCord. More than
$17 million in gifts and pledges from individuals and corporations will help to fund the new facility. Student leaders
have shown tremendous support for the new building, which will help attract the best and brightest in a highly
competitive business school environment.
The new building will provide more classrooms for graduate programs and undergraduate honors students,
technologically advanced team study rooms, a new career center and outdoor assembly areas. World-class
conference facilities will be used for executive education and small research and business conferences.
“The W. P. Carey School of Business is one of the only Top 30 business schools in the nation that hasn’t built a new
building in the past 20 years,” said Robert Mittelstaedt, the school’s dean. “McCord Hall and renovation of existing
facilities will enhance our ability to accommodate all of our students, faculty and community constituents, and will
put us in line with our peers. We need to meet the expectations of a top-ranked business school providing facilities
and technologies that support team-based, collaborative learning.”
The new building project is expected to create 480 local construction and engineering/design jobs. It’s projected
to create a total of about 1,150 jobs through direct and indirect economic activity stemming from the project, with
impacts measured at annual rates and accruing over the life of the project.
The new building also will be environmentally friendly, designed to use 30 percent less water and 35 percent less
energy than similar buildings. The roof will have a solar array that returns power to the campus grid.
For more information about the new building project, visit http://building.wpcarey.asu.edu. To make a donation,
visit www.asufoundation.org/wpcbuilding or call (480) 965-6568.
Debbie Freeman, Debbie.Freeman@asu.edu
(480) 965-9271
Communications Manager, W. P. Carey School of Business
Credits
Eric R. Wolfe, Editor
COSTAR GROUP, INC.
Ray Pine
RAY PINE DESIGN, LLC
Carmen Cordova
JONES LANG LASALLE
AMERICAS, INC.
Danny Plapp
LEVROSE REAL ESTATE
Chris Grogan
CB RICHARD ELLIS
Candace Rosauro
WILLMENG CONSTRUCTION, INC.
Page - 2
2011 Calendar
November 3rd
Rookies and Rockstars
5:30 p.m. – 8:00 p.m.
Sanctuary Camelback Mountain
5700 E. McDonald Drive, Scottsdale
November 8th
Mentor Event
Guest Speaker: Sean Currie, Executive Director of
Celebrity Fight Night
The Ritz Carlton
2401 E. Camelback Road, Phoenix
(mentor program participants only)
November 17th
NAIOP Golf Tournament
Pre Reception & Registration - 8:00 a.m.
Shotgun Start – 9:00 a.m.
Talking Stick Golf Club
9998 E. Indian Bend Road, Scottsdale
December 1st
Developing Leaders - Holiday Party
Time and Location to be determined
NAIOP Developing Leaders Lending a Hand
Thank you to all of the NAIOP Developing Leaders
who volunteered at the CASS Philanthropy Event on
Friday, September 30th, 2011!
Eric R. Wolfe, 2011 Editor
Page - 3
Industry Leader Profile - Mark Stapp
Mark Stapp has been involved in planning, investing in, developing and consulting
on real estate for 32 years. He is focused on the investing in and creating
environmentally sensitive and socially responsible real estate development.
While in undergraduate school at William Paterson University he studied
environmental studies and urban design. He attended graduate school at Arizona
State University where he studied population processes and urban economics and
then at the Executive Education Program at Stanford University Graduate School
of Business he focused on creating and managing sustainable organizations and
managing the innovative process. In July 2007 Mr. Stapp was awarded a Doctorate
of Humane Letters from A. T. Still University for the valuable contribution of his
work to society and humanity, in general.
He is a Founding Principal and Managing Member of Pyramid Community Developers.
He founded Pyramid in 2000 specifically to pursue planning and development of
sustainable communities beginning with The Village at Copper Basin, a new kind
of community located southeast of Phoenix. Mr. Stapp also remains as President
of the US operations of a Swiss real estate management company with American
holdings in various States and has been investing in, designing and developing
real estate for 30 years. He was formerly Senior Vice President of Real Estate for
the Ellman Companies and vice president of one of Arizona’s largest architecture/
engineering firms. From 1992 to 2000, he was on the Board of Directors of Taliesin
Architects, successor to the firm founded in 1893 by noted architect Frank Lloyd
Wright, and served as Chairman from 1993 to his resignation in 2000.
Mark Stapp
Executive Director
Masters of Real Estate Development at Arizona
State University
Mark.Stapp@asu.edu
Mr. Stapp currently serves on the Board of Directors of Valley Forward Association and is the Vice-Chairman for 2009 and is
serving is the Executive Director for Arizona State University’s Master of Real Estate Development.
Please explain the MRED program, its history, changes, students, and future aspirations of the program.
Please elaborate on its role in developing talent locally and nationally, as well as on campus.
MRED is a graduate level, trans-disciplinary, full emersion degree program teaching students about investment in and development of real
estate, its role in community growth and development and how to be ethical, community minded members of the profession. The MRED
program was started in 2005. It is a collaborative program that was conceived with the help of the local industry leaders who, along with ASU
faculty and administration, created the initial curriculum and program structure. The program was, and remains, a unique program in that it is
a partnership of the Ira A. Fulton Schools of Engineering; Sandra Day O’Connor College of Law; Herberger Institute for Design and the Arts and
the W. P. Carey School of Business. These four programs contribute faculty and expertise to the MRED program. Initially the MRED program
was administratively housed in the College of Design (before it was combined with Fine Arts to form the Herberger Institute). In 2009 the
decision amongst the four partner programs was made to move MRED to W. P. Carey which is where it is now administratively housed. MRED
students come from all industries of the real estate business and increasingly from across the globe. The average age of an MRED student is
about 30 (varies slightly each year) but has ranged from 23 to 65 years of age. Students have on average 5 years of professional experience
although we do have students directly from undergraduate programs. Many have 10 to 20 years of experience. This year 70% of our students
are from out of state and each year we have more foreign students then the previous.
The objective of this program is to graduate students of the business who have the mentality and skills to become industry leaders. Not only
does the program prepare students for on a technical level, but it positions them to critical and strategic thinkers. This program is working to
be the local “Farm Team” of the business. To do so requires a very close connection to industry professional groups like NAIOP.
Page - 4
Industry Leader Profile - Mark Stapp (continued...)
Explain your role and involvement in both MRED and NAIOP. Your
experiences and how you grew into your current role at ASU.
Initially I was on the outside Advisory Board of MRED as an industry supporter when the
program was created (I have owned my own investment and development company since 1993
and spent 33 years in the business). Steve Betts was the first Chair. The second and third
years Greg Vogel and I were co-Chairs. I also taught in the program as an adjunct faculty
member of the College of Design. When the decision was made in 2009 to move the program
to the Business School there was a simultaneous decision made by the partner programs to
hire a new Executive Director. As co-Chair of the advisory board I helped the Business School
evaluate the program and define characteristics for a new Exec Director. During that process
I was asked and encouraged to apply for the position of Executive Director and I did. It was a
national search and I was fortunate to be selected. I am the Executive Director and a Professor
of Real estate Practice as well as an adjunct faculty in the Design School. To date I have had
little involvement with NAIOP but have been associated and done business with many of its
members. My investment and development focus has not been office or industrial product.
However, I recognize the significant role NAIOP plays in the business and its importance, so
have made the decision for the MRED program to be better involved and offer our students to
benefits of NAIOP.
Mark Stapp
Executive Director
Masters of Real Estate Development at Arizona
State University
Mark.Stapp@asu.edu
Please explain today’s market and what you foresee happening locally
with industrial and office product/development. Explain how your
students plan on entering today’s marketplace and how they plan on
pursuing their careers (please lead into students joining NAIOP).
As we all know there is great uncertainty in the market. Office and industrial property is at the heart of what is needed for recovery of our overall
economy – jobs! This country needs job creation and those jobs will come from new business formation and/or business expansion. When that
happens, those businesses will need space and it is the members of NAIOP who will provide that space. There is no better place to be poised
right now but it will require very careful and critical thinking to properly respond and take advantage of opportunities in this market. Although
capital is abundant it is not easily attracted. It will pay close attention to real estate that supports business that have and/or is creating real
jobs. Speculative development will be tougher and those who have the ability to buy or develop necessary facilities, in the proper location, in
advance, will find their decisions to be good long term investments.
Why did ASU MRED decide to join NAIOP? As an organization/whole, what are your goals of this move and what
do expect to get from NAIOP throughout this integration?
MRED needs strong connection to the real estate industry. This is not a purely academic education but neither is it a vocational education.
NAIOP serves a segment of the business that is significant and critical. Our students will benefit from their membership and relationships that
brings by exposure to this segment and access to the resources NAIOP offers. I consider this a partnership with NAIOP. Also, because NAIOP
is a national organization, out of state students can benefit from their membership even if the move back to where they came from before the
program. This is a new relationship and we still need to find the best way to work. This first year will not be perfect but is the foundation for
determining how MRED can be a service to NAIOP and its members as well as how NAIOP can enrich the MRED program.
What do the students expect? Are they excited to be able to network with “real world” firms and people prior
to graduating the program?
Students are very pleased the connection to the industry. Relationships with NAIOP and others make this a very good value proposition for our
students. Very few competitive programs buy their students membership to professional organizations but we think it is a very important part
of the education. There is a limit to what we can expose students to or offer so having strong, credible program partners like NAIOP is crucial
to our success in graduating students to business of real estate needs and wants and that is good for students and the industry.
Page - 5
Sunday Conversation
With Nate Goldfarb, CBRE | Asset Services - By: Chris Grogan
CG: Good afternoon Nate, thank you for taking the time to sit down with us today.
NG: Not a problem at all Chris, it is my pleasure.
CG: To start things off, it seems in today’s world, the hot topic is jobs;
job creation, job retention and at times, finding a new/right job.
So tell us, what was your first job?
NG: My first job was as a hotel clerk during the summer of my sophomore year of
college.
CG: Oh the days of summer employment, character building! What got you
interested in the Real Estate industry?
NG: My college roommate recommended I consider Real Estate as a career. His
family was involved in Shopping Center Development in Los Angeles. During my
senior year, I got an internship at CBRE in Tucson and worked there for 6 months.
CG: Hotel clerk sophomore year to CBRE your senior year, looks like you were
making moves in college. I understand you currently work for CBRE, was it love
at first start?
NG: Actually my first Real Estate job was with DeRito Partners as a Retail Sales/
Leasing Agent.
Nate Goldfarb | Associate
CBRE | Asset Services
T 602 735 1791 | C 602 614 4404
nate.goldfarb@cbre.com
www.cbre.com
CG: Interesting, when did your career (second go around) with CBRE begin?
NG: I left DeRito and joined CBRE in 2008.
CG: 2008 Nate Goldfarb goes to the big shop, congratulations on being with CBRE
for four years. I have to imagine you were not always dreaming of being a real
estate broker. When growing up, what did you dream of being?
NG: When I was young my focus was on sports and I wanted to be a Major League
Baseball player. I played in high school and tried to walk on at the University of
Arizona but had a terrible tryout and didn’t make the team. I actually hit Jerry Stitt
in the foot with a wild pitch from the bullpen mound. I would say the dream died
there.
CG: America’s past time; that is more like it! But then you, as we all have to do in
life, began to grow up and started your career in commercial real estate. Have you
had any mentors that you can attribute some of your growth and
success thus far too?
NG: Marty DeRito was a great mentor to me. Aside from our everyday interaction
and business, I would ask Marty to breakfast quarterly to discuss deals, real estate,
and general life issues. I still meet with him at times for advice.
CG: It is great to hear that, I personally believe it is very important for any company
to have senior level co-workers and bosses take younger employers under their
wings! Can you give us a little advice you have for others looking to get into CRE?
NG: Be persistent. Someone once told me that if you can get up off the mat every
time you get knocked down, you will be successful in this business.
CG: Persistence certainly can get you
down the road. With that in mind, have
you put much thought into your long
term career goals / ambitions?
NG: I would like to continue to build
long-lasting, strong relationships
with my clients and colleagues, and
to continue to grow my network. I
also would like to continue to build my
business in Class A & B multi-tenant
office buildings in the greater Phoenix
area.
CG: If I understand correctly, one way
you grow that network is through
NAIOP. How long have you been a
member of NAIOP?
NG: I have been a member since 2008.
CG: Since that time, do you feel NAIOP
has played much of a role in your
career?
Page - 6
Sunday Conversation
With Nate Goldfarb, CBRE | Asset Services - By: Chris Grogan (continued...)
NG: Yes, NAIOP has been great for networking with colleagues and clients. It is also
a great way to discuss what everyone is working on and what’s going in the market.
It is an organization I believe in and love getting more involved with.
CG: It sounds like NAIOP is not only a great business tool and a great way to further
personal and professional growth. How have you gotten involved?
NG: I’m on the Developing Leaders Steering Committee and I am the Co-Chair
for the NAIOP Mentor Program, which we just kicked-off in September. The
goal is to pair highly motivated Developing Leaders (under 35) with experienced
Professionals in the same or similar industry. The Mentors are able to provide
guidance and direction to their Protégés who are experiencing the same obstacles
they encountered over the years. We paired 20 Protégés with 10 Mentors and
the program lasts for 10 months. Other than the 4 quarterly Events, Mentors
and Protégés meet at their discretion once a month. Our first event at Paradise
Valley Country Club was a great success and we are excited about the future of the
Program.
CG: Wow, sounds like you are pretty busy. How do you keep the balance with your
career?
NG: Family has always been my top priority. Because I am the only one in my family
that lives in Arizona, I make time to travel to see friends and family regularly. They
also visit often, but mostly in the winter.
CG: I can’t say I blame them; the summers can be pretty brutal here in Arizona!
Getting back to your, can you tell us a little more about your current role with CBRE?
NG: I am an Office Broker at CBRE and focus mainly on landlord representation. I
work on multi-tenant office buildings mostly in the Phoenix, Scottsdale, and Mesa
markets.
CG: I hear brokerage can be quite the ride. Tell us a little about deal you have worked
on, whether it be the most significant, most interesting, or most troublesome!
NG: When I was working at DeRito Partners, I represented the landlord in a 10
year- 28,000 SF lease deal with Goodwill in Ahwatukee. As I met casually with
the tenant’s broker for coffee one morning and we started discussing business. It
turned out Goodwill had been trying to get into that market for months. Next thing
you know, we had a 28,000 SF deal in negotiations. We closed the deal in about 3
weeks.
CG: Wow, I bet you wish they were all that easy to come by! I have to imagine that is
not always the case. What is the most difficult situation you have faced as a broker?
NG: The most difficult situation I have faced as a broker has been the tough market
for the last several years. I had established myself as a retail broker and then
changed for the office market. Soon after my move to CBRE in 2008 the real estate
market crashed. No one was doing deals. Re-building my business in this climate
has been a challenge, but we are starting to see the light at the end of the tunnel.
CG: What were some of your largest obstacles to winning the business?
NG: Experience and notoriety. It is difficult to win business sometimes when nobody
has ever heard of you and you don’t have a track record to back you up. Sometimes
you need to start small and work your way up until landlords will take your call.
CG: Starting over like that, how did you
work though it?
NG: I went back to the basics of real
estate; cold-call, cold-call, & cold-call.
I didn’t have any relationships or really
any clients when I came to CBRE, so
I had to start from scratch. I worked
long hours and made countless cold
calls to re-establish myself as an office
broker. I kept in mind the end objective
and pushed through it.
CG: Sounds tiring, you must have a
deep will and drive! What motivates
you every morning?
NG: I like to be challenged. I also like
what I do. I think if you have those two
things going for you, you will be very
motivated to be successful. I also
enjoy the people that I work and the
relationships I have with my clients,
which makes it fun to come to work
every day.
CG: Well put. But it can’t be work,
work, work all day for Nate. What are
you involved with outside of the real
estate industry?
NG: I’m on the planning Committee
for the CASS Feed the Homeless and
the Helping House, which helps kids
affected by Cancer. I’m an avid golfer.
I had the privilege of playing Pebble
Beach, Spanish Bay, and Cypress Point
this year.
I’ve also completed two
marathons.
CG: I would be lucky to complete a
quarter of one marathon! That is quite
the accomplishment, I commend you.
Nate, again, we really appreciate your
time today, so let’s wrap this up with
one last question. When Nate Goldfarb
is not brokering the next big splash in
Phoenix, feeding the homeless, hitting
the links, or running marathons…
where might one find him?
NG: The Me’ Hotel in Cabo San Lucas is
my favorite vacation spot!
Page - 7
NAIOP DL Mentor Program
Third Quarter Update
OVERVIEW:
The inaugural year of DL Mentor Program is officially under way! The Selection Committee carefully selected 20
DL members for the program and matched them up with the 10 Mentors. The Program kicked off on September
7th with a cocktail reception hosted by Mike Haenel at the Paradise Valley Country Club. All Proteges were in
attendance as well as Mentors and several of the NAIOP board members. There was an air of anticipation at the
event as the Proteges waited for the announcement of the Protege/Mentor pairings. A good time was had by all as
Proteges mixed and mingled with mentors and fellow DL members.
Several of the Proteges have already met with their Mentors. Rusty Kennedy says of his first meeting, “We’re off
to a good start. We sat down for lunch and put together a plan moving forward. We are both excited for the future
of the Mentor relationship.”
Over the 10 month program, the Proteges will meet with their Mentors once per month and also attend three
additional mandatory events. The next event will be held on November 8th at the Ritz Carlton. The event will
feature Sean Currie the Executive Director for Celebrity Fight Night Foundation who will speak to the group about
their charity and how to give back to the community . Future events include a to be determined event in March/
April 2012 and the graduation ceremony in June 2012.
The DL Mentor Program was created to provide the Arizona NAIOP DL members an opportunity to share time with
seasoned real estate professionals and gain valuable insights on different aspects of the commercial real estate
industry. The Mentor would also provide career and professional advice in an effort to develop the Proteges ability
to succeed in the real estate industry.
Please contact:
Nate Goldfarb
CB Richard Ellis
nate.goldfarb@cbre.com
(602) 735-1791
or
Lisa Alberti
CDC Small Business Finance
lalberti@cdcloans.com
(602) 635-8413
for more information.
Page - 8
West Phoenix
Totals
383
4,422
5,867,990
92,405,296
1,288,213
19,581,744
1,298,780
20,031,044
22.1%
45,018
47,056
21.7%
(127,340)
243,313
0
388,327
$22.63
$19.83
Source: CoStar Property®
Class C Market Statistics
Third Quarter 2011
Existing Inventory
Market
Airport Area
Central Corridor
East Phoenix
East Valley
North Phoenix
Northwest Phoenix
Scottsdale
West Phoenix
# Blds
Vacancy
Total RBA
90
364
527
712
217
714
489
222
1,181,140
2,850,085
3,704,175
4,379,850
1,531,113
4,729,601
2,865,512
1,748,054
Direct SF
Q3 2011 Market Report
OFFICE
Totals
3,335
22,989,530
Total SF
134,442
401,797
564,943
568,143
130,593
768,709
367,162
167,858
134,442
401,797
574,159
575,332
131,153
772,078
367,162
167,858
3,103,647
3,123,981
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Rates
11.4%
14.1%
15.5%
13.1%
8.6%
16.3%
12.8%
9.6%
23,859
54,909
(34,134)
(20,565)
(30,369)
(48,484)
60,602
2,803
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$14.81
$14.53
$15.01
$13.80
$16.11
$12.52
$16.89
$14.39
13.6%
8,621
Vac %
Quoted
0
0
$14.35
Source: CoStar Property®
Total Office Market Statistics
Existing Inventory
Market
# Blds
Airport Area
Central Corridor
East Phoenix
East Valley
North Phoenix
Northwest Phoenix
Scottsdale
West Phoenix
469
568
864
2,041
473
1,494
1,483
613
Totals
8,005
Total RBA
14,935,252
21,977,439
20,304,713
25,953,284
8,431,256
25,876,905
29,620,446
8,745,588
155,844,883
Third Quarter 2011
Vacancy
Direct SF
Total SF
2,604,675
3,953,668
4,689,047
5,178,375
1,677,485
5,204,145
6,503,937
1,799,028
2,817,746
4,282,328
4,900,804
5,216,235
1,752,352
5,342,916
6,743,826
1,809,595
31,610,360
32,865,802
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
18.9%
19.5%
24.1%
20.1%
20.8%
20.6%
22.8%
20.7%
19,285
333,863
(200,262)
292,916
(131,541)
(82,884)
448,643
34,211
439,070
0
0
187,981
0
8,276
0
47,056
0
0
71,250
106,875
0
210,202
0
0
$19.67
$20.84
$21.58
$20.09
$20.33
$18.74
$21.69
$22.64
21.1%
714,231
682,383
388,327
$20.63
Vac %
Quoted
Rates
Source: CoStar Property®
Total Office Square Footage:
10
155,844,883 SF in 8,005 buildings
Construction Activity:
Four buildings totaling 327,037 SF were
completed in Q3 2011
388,327 SF of office space under construction
at the end of the quarter
The largest projects underway:
• 21711 N 7th St – FBI Regional HQ, totaling 210,202 SF with 100%
of its space pre-leased.
• 2707 E Van Buren St – Salvation Army Phoenix Divisional HQ, totaling 71,250 SF with 100% of its space pre-leased.
Absorption, Vacancy and Rental Rates:
•Net Absorption of positive 882,680 SF
•Vacancy Decreases to 21.1% from 21.5%
•Rental Rates Decrease to $20.63 PSF/yr
from $20.95 PSF/yr
Largest Lease Signings:
599,664 SF lease signed by Apollo Group, Inc.
at 4025-4045 S Riverpoint Pky
Sales Activity:
THE COSTAR OFFICE REPORT
44 office transactions closed (min. $500,000;
incl. Condos, not including non-arms length)
totaling 2,455,451 SF
©2011 COSTAR GROUP, INC.
Total volume of $382,437,149
The average price equated to $122.09 PSF
(Up from $115.37 PSF in Q2 2011)
Deals of Note:
•Fountainhead Office Plaza
1625 W Fountainhead Pky (2 properties) totaling $137,000,000
•Petsmart Corporate Headquarters
19601 N 27th Ave (3 properties) totaling $102,500,000
•Sky Harbor Operations Center
1820 E Sky Harbor Cir totaling $53,500,000
•Four Gateway
444 N 44th St totaling $12,300,000
•Camelback Tower
6900 E Camelback Rd totaling $10,035,000
205,130 SF lease signed by PhoenixLaw
at 1 N Central Ave
133,317 SF deal signed by Lexus Financial Services
at 3200 W Ray Rd
Page - 9
Southeast Ind
441
Southwest Ind
Totals
15,480,457
37
1,096
1,348,845
34,400,315
2,935,047
3,271,456
499,424
499,424
6,610,023
6,975,329
21.1%
(20,336)
37.0%
(171,532)
20.3%
260,767
226,000
0
0
421,600
0
130,000
$11.39
$9.37
$10.88
Source: CoStar Property®
Warehouse Market Statistics
Existing Inventory
Market
Airport Ind
# Blds
Total RBA
Third Quarter 2011
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
(23,587)
0
0
$5.29
1,821
43,535,182
5,674,370
6,016,184
13.8%
606
11,571,249
1,215,131
1,339,632
11.6%
104,522
0
0
$8.68
Northwest Ind
2,249
50,129,345
5,938,528
5,989,821
11.9%
708,506
226,000
491,960
$6.19
Southeast Ind
2,710
72,821,584
8,651,379
8,929,022
12.3%
861,412
0
2,516,142
$6.28
Southwest Ind
1,231
78,705,353
12,495,499
12,728,873
16.2%
1,538,770
0
432,494
$3.87
Totals
8,617
33,974,907
35,003,532
13.6%
3,189,623
Northeast Ind
Q3 2011 Market Report
INDUSTRIAL
256,762,713
226,000
3,440,596
$5.45
Source: CoStar Property®
Total Industrial Market Statistics
Existing Inventory
Market
Airport Ind
# Blds
Total RBA
Third Quarter 2011
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
1,967
49,176,868
6,434,236
6,776,050
13.8%
55,805
70,000
0
$5.84
825
17,430,347
2,185,386
2,321,184
13.3%
248,244
17,600
0
$9.90
Northwest Ind
2,502
56,199,574
7,383,959
7,452,852
13.3%
938,027
334,000
621,960
$6.55
Southeast Ind
3,151
88,302,041
11,586,426
12,200,478
13.8%
841,076
226,000
2,516,142
$7.27
432,494
$4.03
Northeast Ind
Southwest Ind
1,268
Totals
9,713
80,054,198
291,163,028
12,994,923
13,228,297
16.5%
1,367,238
40,584,930
41,978,861
14.4%
3,450,390
0
647,600
3,570,596
$6.17
Source: CoStar Property®
Total Industrial Square Footage:
10
Sales Activity:
THE COSTAR INDUSTRIAL REPORT
291,163,028 SF in 9,713 buildings
Construction Activity:
©2011 COSTAR GROUP, INC.
71 industrial transactions closed
(min. $500,000; incl. Condos, not including non-arms length)
Totaling 6,170,627 SF
One building totaling 226,000 SF were completed in Q3 2011
Total volume of $285,943,678
3,570,596 SF of Industrial space under construction
at the end of the quarter
The largest projects underway:
•First Solar Factory, a 1,200,000 SF with 100% of its
space pre-leased
•4500 S Dobson Rd – FAB 42 – Intel Corp., a 1,000,000 SF
with 100% of its space pre-leased
Absorption, Vacancy and Rental Rates:
•Net Absorption of positive 1,329,467 SF
•Vacancy Decreases to 14.4% from 14.8%
•Rental Rates Increase to $6.17 PSF/yr from $6.09 PSF/yr
The average price equated to $71.06 PSF
(Up from $66.9 PSF in Q4 2010)
Deals of Note:
•Capital Park South
2919-2999 Lewis Centre Way (13 properties) totaling $118,000,000
•Ryan Airpark II
7499 E Paradise Ln totaling $21,400,000
•Multi-Property Sale – 1825 S 43rd Ave (2 properties)
totaling $17,660,000
Largest Lease Signings:
400,000 SF lease signed by Home Depot at 7200 W Buckeye Rd
1,267,110 SF lease signed by Amazon.com at 800 N 75th Ave, Bldg 2
400,000 SF lease signed by Amazon.com at 6835 W Buckeye Rd
Page - 10
New Arizona Developing Leader Members
ARIZONA STATE UNIVERSITY MASTER OF REAL ESTATE DEVELOPMENT CLASS OF 2012
FIRST NAME LAST NAME
EMAIL ADDRESS
RiadAbdoRiad.Abdo@asu.edu
ClaytonAllsopClayton.Allsop@asu.edu
Abdullah
Al-Yami
Abdullah.Al-Yami@asu.edu
Alireza
Amirimehr
Alireza.Amirimehr@asu.edu
WesleyBallewWesley.Ballew@asu.edu
Fernando
Barraza
Fernando.Barraza@asu.edu
Belal
Bawazer
Belal.Bawazer@asu.edu
MatthewBelmontMatthew.Belmont@asu.edu
JoshuaBoslerJoshua.Bosler@asu.edu
Ryan L.BraultRyan.Brault@asu.edu
Nathaniel
Bullen
Nathaniel.Bullen@asu.edu
Jimmy
Deakyne
Jimmy.Deakyne@asu.edu
RonaDhruvRona.Dhruv@asu.edu
Jaime
Granado
Jaime.Granado@asu.edu
Nathan
Gunderman
Nathan.Gunderman@asu.edu
Waseem HamadehWaseem.Hamadeh@asu.edu
Christopher Holder
Christopher.Holder@asu.edu
Seyed
Hosseini
Seyedbehnam.Hosseini@asu.edu
MichaleJenkinsMichale.Jenkins@asu.edu
Richard
Johnson
Richard.Moroni.Johnson@asu.edu
Jacob
KwartaJ
acob.Kwarta@asu.edu
KhoiLeKhoi.Le@asu.edu
AaronLeftonAaron.Lefton@asu.edu
LetheLewLethe.Lew@asu.edu
Mark
Maughan
Mark.Maughan@asu.edu
JeriNiJeri.Ni@asu.edu
Christian
PassalacquaChristian.Passalacqua@asu.edu
Charles E.
Pelletier
Charles.E.Pelletier@asu.edu
Kenneth
Reid
Kenneth.Reid@asu.edu
Stephanie
Rinard
Stephanie.Rinard@asu.edu
BrianRojasBrian.Rojas@asu.edu
RichardRydzikRichard.Rydzik@asu.edu
Prashant J.
Sampat
Prashant.Sampat@asu.edu
SarahSecoySarah.Secoy@asu.edu
Todd
Severson
Todd.Severson@asu.edu
Thida
Sitthilutrakul Thida.Sitthilutrakul@asu.edu
Angela
Smearing
Angela.Smearing@asu.edu
ZhenruiTangZhenrui.Tang@asu.edu
Stephen ThompsonStephen.M.Thompson@asu.edu
JohnTrujilloJohn.L.Trujillo@asu.edu
XuqiaoWangXuqiao.Wang@asu.edu
Ahmed Kazim Yahya
Ahmed.Yahya@asu.edu
Page - 11
New Arizona Developing Leader Members
2011 3rd QTR
FIRST NAME
LAST NAME
ORGANIZATION
Fred
Bueler
Chasse Building Team
Ryan
Scherzinger
Kitchell Development Company
Riley
Gilbert
Jones Lang LaSalle
Grenee
Martacho
Concord General Contracting Inc.
Jonathan
Scott
WAM Development
MikeRobsonQuantum Capital
JamieSwirtzCBRE
Marshall
Stanclift
Partner Engineering and Science
ToddSantoniSunwest Bank
Chad
Mantei
BBVA Compass Bank
Krystal
Dill
Voit Real Estate Services
James
Fonville
Voit Real Estate Services
Jayson
Paulus
Waste Management of Arizona Inc.
Gaired
Fressadi
Arizona State University
Ben
Irwin
Frontera Building Company
MeghanMcCabePinnacle Restoration
Marco
Louis
Hermosa Landscape Management
JennaHebertFacilitec
Tony
Martinez
Waste Management of Arizona Inc.
AlexRamonHSB Architects+Engineers
J. Randall
Schneider
Schneider & Associates Inc.
Garrett
Lough
Ross Property Advisors
Recommended Read
Who moved my cheese?
by: Spencer Johnson, M.D.
“Who Moved My Cheese” is a quick read, yet an insightful book about taking on change in all
aspects of your life…whether it be career, personal, health, relationships, etc. It is a book you
can apply and take with you anywhere. The author uses “cheese” as a metaphor to what it is
we want in life, and a “maze” to describe where to search for those things we want…always
continue to search beyond our limits and comfort levels, because when you least expect it,
change can occur. Two mice in the book are named “Sniff and Scurry”…these are the mice
that are constantly seeking new adventures and are open to change. “Hem and Haw” the
other two mice fear change and eventually “Haw” searches out for new “cheese” and finds
it…“Hem” on the other hand is afraid of venturing out and not open to it. He remains in place,
afraid of change and immobilized by the change that occurs.
In this day and age, more professionals in our field and in others are experiencing change.
This book teaches you to accept the change and learn to succeed and grow from it. One quote
specifically is, “when you change what you believe, you change what you do.” Through these
tough economic times, learn new ways to circumvent circumstances and/or changes that
occur in life and new and life changing experiences will follow. Be flexible. Adapt to change
quickly and take action.
The question we should pose to ourselves…what mouse do you portray in real life?
Page - 12