The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from May 2 thru 6, 2016.

RETAIL – SWC CORTARO ROAD & PAVILIONS DR, MARANA
Dollar Tree Stores, Inc. leased approximately 9,835-square-feet of space at the southwest corner of Cortaro Road and Arizona Pavilions Drive. The space is part of the planned expansion of Arizona Pavilions power center. Kurt Kalocin of SRS Real Estate Partners represented the tenant. Dave Hammack and Brenna Lacey of Volk Company represented the landlord AZPAV, LLC. [mepr-show rules=”58038″]Tenant Phone: 757.321.5000 (corporate offices)[/mepr-show]

OFFICE – 3865 N BUSINESS CENTER DR., TUCSON
SimplexGrinnell, LP renewed their lease for 7,193-square-feet at 3865 N. Business Center Dr., Suites 109-115 in Tucson from NTBC Trust Partners, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord.  Tim Healy and Bob DeLaney with CBRE, Inc. represented the tenant in this transaction.

OFFICE – 721 N. 4^th AVE., TUCSON
Amity Foundation leased 5,663-square-feet of office space at 721 N. 4^th Ave., Tucson. Buzz Isaacson at CBRE Tucson represented the landlord. Bob Benedon, ALC,CCIM, of Centra Realty in Tucson represented the tenant. [mepr-show rules=”58038″]Tenant Phone: 520.989.3007[/mepr-show]

INDUSTRIAL – 2555 N JACKRABBIT AVE, TUCSON
Revolution Elite Cheer & Tumbling, LLC leased 4,400-square-feet at 2555 N. Jackrabbit Ave. in Tucson from Split Commercial Investment, LLC.  Paul Hooker, Stephen D. Cohen and Russell W. Hall, SIOR, GSCS, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

OFFICE – 3567 E SUNRISE DR., TUCSON
Viner Finance, Inc., dba Oppenheimer & Co., Inc., leased 2,984-square-feet at 3567 E. Sunrise Dr. in Tucson from La Paloma Corporate Center, LLC.  Tom Nieman, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant and Jeff Casper with CBRE, Inc., represented the landlord in this transaction.

OFFICE – 3131 N COUNTRY CLUB RD., TUCSON
Casas de los Niños leased 2,730-square-feet at 3131 N. Country Club Rd., Suite 100 in Tucson from TDD Properties, Inc. Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord and the tenant in this transaction.

RETAIL – 2980 S. 6^th AVE., TUCSON
Wingstop has leased 2,200-square-feet in Fiesta Mercado located at 2980 S. 6^th Ave, Suite 150 in the Food City anchored shopping center at the northwest corner of South 6^th Avenue and 40^th Street in the City of South Tucson. The new store is expected to open late summer of 2016 and will be Wingstop’s 7^th restaurant in Tucson. Charles Loflin, of San Antonio, Texas is the owner of the Wingstop restaurants in Arizona. Mr. Loflin is the longest running franchisee with the most restaurants in the Wingstop chain. Wingstop has more than 650 restaurants nationally and is based in Dallas, Texas. Craig Finfrock of Commercial Retail Advisors, LLC represented the Landlord, Sixth Avenue Mercado, LLC, and Pat Sheahan of Berry & Doyle, LLC, represented the Tenant, Tucson Wings VI, LLC, in this lease transaction. [mepr-show rules=”58038″]Tenant Phone: 972.686.6500 (corporate offices)[/mepr-show]

OFFICE – 5620 N KOLB ROAD, TUCSON
Joganic USA, LLC has leased 1,063-square-feet at 5620 N. Kolb Road, Suite 225 at  Ventana Canyon Executive Center, from Tequila Properties, LLC.  Andrew Sternberg of Oxford Realty Advisors handled the transaction. [mepr-show rules=”58038″]Asking lease rate: $20.00 SF/YR Full Service[/mepr-show]

OFFICE – 5620 N KOLB ROAD, TUCSON
Value Stream Partners, LLC has leased 770-square-feet at 5620 N. Kolb Road, Suite 205 at Ventana Canyon Executive Center, from Tequila Properties, LLC.  Kristy Kelley of Long Realty Commercial represented the Tenant and Andrew Sternberg of Oxford Realty Advisors represented the Landlord in the transaction. [mepr-show rules=”58038″]Asking lease rate: $20.00 SF/YR Full Service[/mepr-show]

Renovated golf course office development is attracting a range of new companies

PHOENIX, AZ– Golf course-facing views and significant property renovations at Stonecreek Pointe have attracted three new tenants to the Paradise Valley office project. On behalf of building owner HighBrook Investment Management/Cypress Office Properties, the Phoenix office of JLL has completed almost 30,000-square-feet in new leases to Premier Business Centers, Vertical Measures and People’s Mortgage. The leases bring the building (formerly Anasazi Plaza II) to 75 percent occupied.

JLL Managing Director John Bonnell, Senior Vice President Brett Abramson and Vice President Chris Latvaaho represented the landlord in all three transactions:

• Premier Business Centers, a leading national operator of executive suites and office centers, leasing 15,000-square-feet.
• Vertical Measures, an award-winning, Phoenix-based SEO and content marketing firm, leasing 10,808-square-feet.
• Peoples Mortgage Company, a national real estate financing firm established in Arizona in 1998, leasing 3,679-square-feet.

In the past 12 months, JLL has completed 27,882-square-feet of additional leases at the project, for a total of 57,369-square-feet in new commitments. This activity includes digital marketing and internet advertising company Zog Digital (19,511-square-feet), law firm Begam & Marks (5,203-square-feet) and Churchill Mortgage (3,168-square-feet).

“Newly renovated space, great nearby amenities and a very direct connection to the greens of Stonecreek Golf Course give this project the same kind of draw and prestige you can find in Tempe or on the Camelback Corridor,” said Bonnell. “This has created scenarios where companies look at the entire metro market, but select Stonecreek for its work/play, Class A feel.”

Located at 11201 N. Tatum Blvd. in the Paradise Valley, Arizona submarket, Stonecreek Pointe totals 109,961-square-feet in three stories (36,653-square-foot floorplates). It is located directly on the Stonecreek Golf Course and minutes from State Route 51, the Loop 101, executive housing and an extensive amenity base of retail, award-winning restaurants and services.

The building offers golf course and mountain views, walk-out balconies and direct golf course access. Recent building enhancements include modern finishes, a new signage program, upgraded restrooms and common area renovations such as a new first floor tenant lounge, a direct walk-out patio and a digital directory system.

Colliers International in Greater Phoenix Reports a Mixed Start to 2016 for Medical Office

Phoenix, AZ – Colliers International in Greater Phoenix released its Medical Office Research and Forecast Report for first quarter 2016. Report highlights are outlined below. For more details, refer to the actual reports by clicking here to view online.

Conditions were mixed in the Greater Phoenix medical office market in the first quarter. Vacancy ticked lower, but the rate rose in on-campus buildings. Across the market, rents dipped in the first quarter, but have inched higher over the past year. This uneven performance in medical office conditions is in contrast to the overall office market.

While the healthcare business model has been undergoing changes in recent years, tenant demand for medical office buildings has been on the rise. In Greater Phoenix, net absorption has been positive in each of the past six years, averaging more than 200,000 square feet annually.

That trend continued in the first quarter, with tenants moving into a net of more than 95,000 square feet. Much of the net absorption and new development is concentrated in the West Valley, as healthcare providers position themselves in the path of future population growth.

Tenant demand for medical office space will strengthen in response to accelerating employment expansion and rising population growth. After slowing in the aftermath of the recession, local population growth accelerated to 2 percent per year in 2014 and 2015, and the pace of expansion is forecast to average 2.5 percent annually over the next few years. This influx of new residents will drive demand for healthcare and tenant demand for medical office space.

Vacancy:

• The vacancy rate in the medical office market dipped 20 basis points to 16.7 percent in the first few months of the year, and the rate is 120 basis points lower than one year ago.
• Vacancy trends in on-campus buildings edged higher to start 2016, ending the first quarter at 18.7 percent, the second straight quarter where the rate has pushed higher. Despite the recent upticks, vacancy is 90 basis points lower than one year ago.
• Vacancy in off-campus buildings ended the first quarter at 16.1 percent, 50 basis points lower than at the end of 2015. The rate has improved by 140 basis points over the past year, and is 290 basis points lower than it was 24 months ago.

Rents:

• Rent trends have been uneven, rising in the second half of 2015 but ticking 0.7 percent lower in the first quarter of 2016. The average asking rent was $22.50 per square foot in the first quarter, up 1.6 percent year over year.
• The on-campus buildings are outperforming the market as a whole. Asking rents in on-campus buildings have advanced 2.6 percent in the past year to $25.35 per square foot.
• Asking rents in off-campus medical office buildings are up 0.9 percent year over year at $21.11 per square foot. Some of the strongest gains have been in the Chandler/Gilbert submarket, where asking have risen 31 percent in the last year.

Investment Trends:

• Sales of medical office condos spiked by 40 percent from the fourth quarter of last year to the first quarter of 2016. This was the most active quarter of sales of medical condos since the second quarter of last year.
• Prices for medical office condos rose, with the first quarter median price at $174 per square foot. The median price for condos has risen nearly 60 percent since 2012.
• Sales of non-condo medical office buildings dipped 8 percent from the preceding three-month period. Transaction counts were up more than 20 percent compared to the first quarter of 2015.
• The median price in sales of traditional medical office buildings was $119 per square foot in the first quarter, approximately 5 percent lower than the median price for all of 2015. Cap rates ticked lower, averaging in the mid- to high-7 percent range, down from 8.2 percent in 2015.