WAREHOUSE – 1150 S. PLUMER, TUCSON

WESCO Distribution, Inc. leased 18,424-square-feet at 1150 S. Plumer in Tucson from Antonio Gonzalez.  WESCO Distribution is a leader in industrial supply with an extensive offering of electrical, data communications, general maintenance, repair, and operating (MRO) and electrical OEM products. Paul Hooker, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Bill Honsaker with Jones Lang LaSalle of Phoenix represented the tenant. [mepr-show rules=”58038″]Wesco can be reached at 520-623-6941[/mepr-show]

OFFICE – 4356 N. ORACLE RD., TUCSON

Aspen Dental leased 3,594-square-feet at 4356 N. Oracle Road, from Inland Diversified Real Estate Services, LLC. Aspen Dental offers contemporary cosmetic and restorative dentistry. Alan Tanner of Bourn Advisory Services, LLC represented the Landlord in the transaction. [mepr-show rules=”58038″]Aspen Dental phone: 520-886-8090[/mepr-show]

WAREHOUSE – 2539 N. BALBOA, TUCSON

RBI Worldwide, Inc. leased 3,640-square-feet at 2539 N. Balboa, Suite 115 in Tucson from Long Far Investments, LLC. Paul Hooker, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Pat Welchert, SIOR, Industrial Specialist with Cushman & Wakefield | PICOR, represented the tenant.

MEDICAL OFFICE – 3395 N. CAMPBELL AVE., TUCSON

Scottsdale-based internalist and men’s health specialist, Dr. Charles B. Evans leased 2,550-square-feet at 3395 N. Campbell Ave. in Tucson, Ariz for new office space. David Montijo with CBRE’s Tucson office represented the landlord, Sante Fe, N.M.-based H.P. Enterprises LP. The tenant was represented by Alan Laulanien with Coaction Group LLC in Phoenix, Ariz.CBRE has completed a 2,550-square-foot medical office lease at 3395 N. Campbell Ave. in Tucson, Ariz.  This lease marks a second practice location for the tenant, who currently practices in Scottsdale. The tenant plans to take occupancy in early November.

The property is located in Rillito Corporate Park, which is also home to other medical related tenants like Pima Heart Phsycians. Built in 1986, Rillito Corporate Park in now 74.5 percent leased with 21,635 square-feet of vacant, available space.  “This transaction continues the trend of expanding medical users in the market,” said CBRE’s Montijo.

OFFICE – 4500 E. SPEEDWAY BLVD., TUCSON

Lonely Street Productions leased 1,600-square-feet at 4500 E. Speedway, Suite 13 in Tucson from Presson Midway, LLC. Lonely Street Productions is a full-scale national concert production company that specializes in dynamic family-friendly entertainment with broad appeal. The company has become known for bringing world-class, theatrical-style concerts to theaters, festivals, performing arts centers, and other prestigious venues all over the United States- with an emphasis on nostalgia and tribute performances. Rob Glaser, SIOR CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking rate was $0.53 NNN[/mepr-show]

RETAIL – 2071 E. IRVINGTON ROAD, TUCSON

Papa John’s Pizza leased 1,300-square-feet at The Kino Gateway Fry’s Center at 2071 E. Irvington Road, Suite 117 in Tucson from Monterey Water Company.  Greg Furrier, Principal, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord, and Jerry Doty with Regency Business Brokerage represented the tenant in this transaction.

RETAIL – 3106 E. FT. LOWELL, TUCSON

Laura Gardiner purchased the Moodz Salon at 3106 E. Ft. Lowell Rd., Tucson in the Winterhaven Square Shopping Center and leased 1,200-square-feet from Glover Associates. Moodz Salon provides exceptional Hair Services by highly trained professionals. Relaxing Spa Facials, Gel manicures and pedicures. Come in today and let us change your Mood! Winterhaven Square is located on the southeast corner of Fort Lowell and County Club.  Greg Furrier, Principal, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Moodz Salon is at 520-320-9407  Asking rate was $14.00 sq ft / yr[/mepr-show]

RETAIL – 668 N BISBEE AVE., WILLCOX

Russell Cellular, Inc., a Verizon Wireless Premium Retailer, has leased 1,200-square-feet at 668 North Bisbee Avenue in Willcox, Arizona. Brenna Lacey of Volk Company Commercial Real Estate of Tucson represented the Tenant. Pat Darcy of Tucson Realty & Trust Represented the Landlord, Richard and Beverly Riedel in the transaction.

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A SLEW OF INDUSTRIAL LEASES TAKES PLACE IN CHANDLER

A group of nine leases totaling nearly 316,000 square feet of Chandler industrial space have been reported recently. The activity, coupled with strong job growth from the first six months of 2013, has experts feeling good. For the complete story see:

https://www.globest.com/news/12_721/phoenix/industrial/Slew-of-Industrial-Leases-Takes-Place-in-Chandler-339036.html

RETAIL LEASES:

Physical Therapy at Higley Village leased 2,346 SF to Hill Group Physical Therapy at Higley Village. The center is located at the SEC of Higley Road and Queen Creek Road at 3303 E Queen Creek Rd, in Gilbert. Mary Ridberg and Rommie Mojahed of Sperry Van Ness in Phoenix represented the landlord Todd Hall of Curtis Johnson Realty represented the tenant.

Also new to Higley Village is Ooh La La Boutique who leased 1,173 SF at the center. Mary Ridberg and Rommie Mojahed of Sperry Van Ness in Phoenix represented the landlord.

LC’s World Taekwondo leased 3,954 at the Shops at Dynamite Creek 4712 E. Dynamite in Cave Creek. Peter McQuaid, Greg Vanlerberghe and Erin Schrauth of Sperry Van Ness in Phoenix, represented the Landlord, Bryan Lamond with Bryan Lamond of Scottsdale represented the tenant.

Firehouse Subs leased 2,280 SF at Santan Village, located at 2849 S. Santan Village Parkway in Gilbert. Peter McQuaid, Greg Vanlerberghe and Erin Schrauth of Sperry Van Ness in Phoenix represented the tenant. Torrey Briegel with Phoenix Commercial Advisors represented the landlord.

OFFICE LEASES:

Award Realty lease 5,361 SF at The Courtyard at Sun City West at 13847 W. Meeker Road in Sun City. Justin Horwitz, Nicole Ridberg and Michael Franks of Sperry Van Ness in Phoenix represented the landlord. Bob Saling with Award Realty in Sun City West represented the tenant.

Impac Mortgage lease 1,000 SF at the Executive Suites, 1166 W. Warner Road in Gilbert. Justin Horwitz and Nicole Ridberg of Sperry Van Ness in Phoenix represented the tenant, the executive suites are represented by Regus.

Reprinted from the article, The Evolution of Shopping Centers written by Chris Macke, Senior Strategist with CBRE in Boston who shares some parallel thoughts with the book “Who Moved My Cheese” a parable in which two mice discover the cheese they depend on has been moved from its usual location.

A Continuing Evolution

Retailers are continually evolving in an attempt to maintain and ideally increase their share of consumer expenditures. Similarly shopping centers are also continually evolving. Whether it was the creation of suburban malls, power centers, outlet malls or more recently lifestyle centers shopping centers have constantly evolved. And today we are on the cusp of the next evolution in shopping centers. It is an evolution driven by the transition of Baby Boomers into their “golden years”, the 65+ age segment.

This transition comes with two seismic shifts: A significant reduction in consumer spending and second, an accelerating of the shift away from GAFO1 store-spending to medical related spending. Shopping center owners who are aware of and capitalize on these shifts will not only survive the additional pressures of stagnant consumer wages, rising personal income taxes and online retailing but will thrive.

Over The Spending Hill

Peak consumer spending occurs between the ages of 45 and 54 reaching a peak average, annual consumer expenditure of $57,788. Once the consumer reaches the 55-64 age segment consumer spending begins to decrease. When consumers enter the 65-74 age segment it declines substantially.

The first wave of Baby Boomers celebrated their 65th birthdays in 2011. Consumers in the 65-74 age segment spend 28.3% less on average than during their peak years. It is estimated that between 2010 and 2020 there will be approximately 14.5 million more consumers aged 65 or older. Said another way, by 2020 14.5M consumers will on average be spending 28.3% less than they did during their peak years. And with the Baby Boomer generation encompassing a 16 year period this is going to last for a while.

Who Moved My Consumer?

The second seismic shift is more of an acceleration of an existing trend that occurs as a result of the Baby Boomer generation transitioning into the 65 plus demographic. It can be best understood through a parable. The book “Who Moved My Cheese” presents a parable in which two mice discover the cheese they depend on has been moved from its usual location. Not to worry. The resourceful mice thrive and survive because they stopped looking for it in the old place and instead began looking to where the cheese had been moved. Something similar is already happening to retailers and the shopping centers they occupy. The retailer’s “cheese”, consumer expenditures have been moving. They are increasingly moving from GAFO store expenditures to medical related expenditures.

This is more than a 25% increase in the portion of PCE that consumers spent on medical related goods and services. While part of this increase is due to the rate of inflation in healthcare costs that is irrelevant. The more consumers are forced to spend on medical related goods and services the less they have to spend on the traditional retail goods found in the stores that fill our shopping centers, regardless the cause. And this occurred before Baby Boomers even began hitting their “golden years” when healthcare spending accelerates substantially. That is why this trend will accelerate substantially.

While this is a problem for retailers it can be an opportunity for the more adroit shopping center owners. However, shopping center owners who continue to look for tenants only among retailers will find their “cheese” slowly diminishing each day while their investors will see a “bite” taken out of their returns. Follow the money or fall behind, presents a larger threat than online retail.

To view the complete article go to The Next Evolution in Shopping Centers by Chris Macke.