The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from July 18 thru 22, 2016.

OFFICE – 6015 E. 22^nd ST., TUCSON
Remilaku Stewart Nash, dba Remilaku Natural Beauty Salon, leased approximately 1,204-square-feet of office/retail space located at 6015 E. 22nd Street, Tucson, Arizona, from Harvest Season, LLC. Doug Richardson of Tucson Realty & Trust Co. represented both the Landlord and the Tenant in the transaction. [mepr-show rules=”58038″]Tenant Phone: 520.808.2465[/mepr-show]

OFFICE – 2601 N. CAMPBELL AVE., TUCSON
Data Works, LLC and Uday Delvi, leased approximately 1,030-square-feet of space at 2601 North Campbell Avenue, Suite 109. The tenant plans to use the space for an information technology office. The landlord, Blue Lion Campbell, LLC, was represented by Stephen Grimm of Grimm Commercial in Tucson. Jeramy Price of Volk Company represented the tenant. [mepr-show rules=”58038″]Tenant Phone: 855.333.3282[/mepr-show]

OFFICE – 5920 E. PIMA ST., TUCSON
Restoration Rx, LLC leased 430-square-feet of office space at 5920 E. Pima St., Suite 150 in Tucson from 5930 E. Pima, Inc.  Jeff Zellet and Pat Welchert, with Cushman & Wakefield | PICOR, handled this transaction.[mepr-show rules=”58038″] Tenant Phone: 520.343.4300[/mepr-show]

OFFICE – 800 N. SWAN RD., TUCSON
Grant Lamond Stratton and Carrie Rachel Stratton leased 430-square-feet at 800 N. Swan Rd., Suite 111 in Tucson from 800 N. Swan, Inc. Jeff Zellet and Pat Welchert, with Cushman & Wakefield | PICOR, handled this transaction.

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The following commercial leases were reported to the Real Estate Daily News for the Phoenix Lease Report from July 18 thru 22, 2016

RETAIL – SE CORNER of 35 AVE & GREENWAY, PHOENIX
A retail lease renewal for 7,020-square-feet within Greenway Village Square in Phoenix, AZ to Premier Children’s Center was recently consummated. The owner of the center is Southwestern Holdings, LLC. Jared Lively of Rein & Grossoehme represented both the Tenant and the Landlord on this transaction.

RETAIL – NW CORNER of QUEEN CREEK RD. AND HIGLEY RD., GILBERT
Cellular Sales of Arizona, LLC, leased 3,600-square-feet within Higley Pavilion at the northwest corner of Queen Creek Road and Higley Road in Gilbert, Arizona. The tenant’s space will be located in a pad building to be constructed in front of the shopping center. The tenant is an authorized dealer for Verizon Wireless. Jason Fessinger of Strategic Retail Group represented the landlord, Higley Pavilion, LLC. Brenna Lacey of Volk Company represented the tenant.

Phoenix’s Midtown office market remains a prime location for corporate tenants to grow and thrive at affordable rents, according to the Phoenix office of JLL and a recent 19,380-square-foot lease renewal and expansion completed at Central Arts Plaza on behalf of tax accountant and CPA firm Eide Bailly, LLP. Eide Bailly has occupied a full floor at the BMO Tower at Central Arts Plaza for more than a decade. With this renewal, they recommit to their Midtown presence, with plans to renovate their office space to accommodate growth and better serve clients across the region. The Phoenix office is one of 29 Eide Bailly locations serving more than 54,000 clients across the U.S. JLL Managing Director John Pierson and Associate Trevor Pratt represented Eide Bailly in the lease transaction. The building owner, McCarthy Cook & Co., represented itself in the negotiations.

“Eide Bailly originally chose this building for its proximity to downtown Phoenix, its adjacency to the metro freeway system, its rental economics and its professional image. After 10 years, the project still delivers these same advantages, along with a growing list of cultural and corporate amenities in Midtown,” said Pierson. “It is a great place for Eide Bailly to stay, and continue to grow, as it serves its clients.”

According to JLL’s 2016 Skyline report, Midtown Phoenix offers an attractive central location option for corporate tenants, and will remain so as rents in downtown Phoenix continue to rise – now sitting at an average $23.75 per-square-foot for Skyline space and an average $28.29 per-square-foot for trophy Skyline space.

Formerly known as Viad Corporate Center, BMO Tower at Central Arts Plaza is located at 1850 N. Central Ave. in Phoenix. It totals approximately 500,000 square feet of Class A space in 24 stories, making it Phoenix’s fifth tallest office building. Amenities at the project include an on-site café, outdoor lounge, fitness center, conference center, performing arts theatre and two-acre park amenity. Notable tenants in the tower include BMO Bank, Cavanaugh Law, Cramer-Krasselt, PWC and Stinson Leonard Street Law Firm.

RETAIL – 3308 N. McCLINTOK DR., PHOENIX
A retail lease renewal for 1,250-square-feet within 3308 N. McClintock Dr in Tempe, AZ to Affordable Framing was recently consummated. The owner of the center is McClintock, LLC. Jared Lively of Rein & Grossoehme represented both the Tenant and the Landlord on this transaction.

Tenant Demand is Keeping Pace with Construction of Nearly Six Million Square Feet of Space

Phoenix, AZ – Colliers International in Greater Phoenix released its mid-year 2016 Industrial Market Report for Greater Phoenix.  Report highlights are outlined below.  For more details, refer to the attached report or click here to view online.

• Industrial space users picked up the pace with leasing during the second quarter of 2016, bringing twice as many leases exceeding 50,000 sq. ft. than were signed in the first quarter. These completed, large leases will result in an uptick of approximately 1.5 million square feet in net absorption for the remainder of the year.
• The Valley-wide vacancy rate for industrial space completed the quarter at 10.8%, 100 basis points lower than a year ago. Vacancy has remained rather flat so far in 2016 as a result of an increase in inventory levels from construction deliveries.
• The combination of strong tenant demand and healthy rental rate growth is supporting new development. Nearly six million square feet of new space will be added to the Phoenix inventory during 2016.
• Rental rates continue to rise and have advanced 7.8% in the past year.
• Investment sales of industrial buildings have increased, rising by more than 35% in the second quarter. Year-to-date, building sales are up nearly 20% from the same period in 2015.  A broad base of product types is being acquired, which is a testament to the overall appeal of the Phoenix market.

According to Colliers International of Greater Phoenix, the industrial market will remain in an expansion phase at least through the end of this year.  The industrial vacancy rate will drop to 10.6 percent by year-end, which marks a slight decline from the end of 2015.  Approximately 6.7 million square feet of net absorption is forecasted for 2016, but the vacancy rate will level off at this point because of new properties being added to the inventory. The balance of supply and demand at this point is near equilibrium.  Asking rental rates will rise approximately 7.7% during this calendar year and have already increased 4% in the first half.  This follows a similar 7% increase experienced in 2015.  Sales of industrial buildings are on pace to reach their highest point in nearly a decade.  Competitive yields, low interest rates and improving property fundamentals will continue supporting investor demand.