AZ CC Vice-Chair Myers Confirms TEP Customers Protected from Data Center Cost-Shift

tep

TUCSON, Ariz. (December 10, 2025) — At the Arizona Corporation Commission’s December 3, 2025, regular open meeting, Vice Chairman Nick Myers joined the Commission in a 4-1 vote to approve Tucson Electric Power Company’s (TEP) special agreement for electric service with the planned data center (Project Blue) developed by Beal Infrastructure Group and its affiliate Humphrey’s Peak Power, LLC (E-01933A-25-0187).

“Data centers are vital engines of our nation’s technological and economic growth,” stated Vice Chair Myers. “However, as these large new loads come online, it’s essential that growth pays for growth so existing customers aren’t burdened with the cost of additional generation and infrastructure.”

In TEP’s response to a letter from Vice Chair Myers, the company stated that it does not plan to add generation to serve the customer beyond the resources already planned for development in its 2023 Integrated Resource Plan (IRP). TEP further stated that if the data center needs additional power beyond the initial 286 MW, it would fully pay for the new generation resource.

The data center will take service under a Commission-approved tariff. It will meet contractual commitments to ensure TEP’s customers are neither subsidizing the power nor assuming any risk if the project does not require its current anticipated load.

“I was pleased to hear TEP confirm that the data center will fully cover the construction costs for the necessary line extensions and new switchyard, ensuring that no expenses are shifted onto other customers,” stated Vice Chair Nick Myers. “I believe the Energy Supply Agreement includes strong customer protections—such as termination fees, minimum billing payments, and safeguards if the data center does not operate as planned. In fact, adding the data center will reduce transmission costs for all other customers. This arrangement demonstrates that we can support economic development while protecting, and even benefiting, existing customers.”

For more information, please contact Vice Chair Myers at [email protected].



Catalina View Apartments Sells for $2.8 Million in Tucson’s Northeast Submarket

Catalina View

TUCSON, AZ (December 9, 2025) — Catalina View Apartments, a 31-unit multifamily community located at 5160 E. Bellevue Street, has sold for $2,800,000. The buyer, Catalina View Apts LLC, an entity connected to Reynolds Invest LLC of Corona, California, acquired the property from Bellevue Properties LLC of Tucson.

Built in 1969, the 30,904-square-foot garden-style complex sits on just over one acre in the Avondale subdivision. The gated property includes three two-story buildings totaling roughly 30,900 square feet, featuring a mix of 1BR/1BA (700 SF), 2BR/2BA (1,000 SF), and 3BR/2BA (1,500 SF) units. Community amenities include a swimming pool, an interior courtyard, and on-site laundry facilities.

The sale reflects a price of $90,322 per unit and $90.60 per square foot, positioning the transaction as a value-add opportunity in the increasingly competitive Northeast Tucson submarket. The site is zoned R-3, allowing up to 36 units per acre, and remains surrounded by strong rental demand corridors between Speedway and Swan.

Cushman & Wakefield | PICOR’s multifamily team of Allan Mendelsberg and Joey Martinez represented both the seller and the buyer in the transaction.

For more information, Mendelsberg is at 520.546.2721, and Martinez can be reached at 520.546.2730.

Source: RED Comp #12196



Kidder Mathews Celebrates 10 Years in Phoenix, Reflects on a Decade of Growth and Market Transformation

Kidder Mathews

Phoenix, Ariz. (December 9, 2025) – Kidder Mathews, the largest fully independent commercial real estate firm in the Western U.S., is celebrating its 10-year anniversary in Phoenix. To mark the milestone, the firm hosted its Phoenix 10 Conference—bringing together nearly 150 clients, colleagues, and industry leaders to discuss construction, lending, and development trends shaping the region. Panel discussions included clients from Panattoni, Wespac Construction, KeyBank, ViaWest Group, and Globe Corporation.

In 2015, the office opened with just one staff member and eight brokers: Eric Bell, SIOR; Mike Ciosek, SIOR; Darren Tappen; Dylan Scott; Mike Kasulatis; Matthew Ault; Aric Adams; and Jenette Bennett, CCIM. Today, it has grown to 70 professionals spanning brokerage, asset services, and valuation advisory. All eight founding brokers have continued their success at the firm, a testament to its ability to attract and retain top talent.

“Like many who are now with Kidder Mathews, I started my career nearly 25 years ago at one of the nation’s largest brokerage firms,” said Mike Ciosek, SIOR, Executive Vice President. “While I enjoyed my time there, I felt called to be part of something I could collaboratively help build—an environment and culture that were more unified, more innovative, and more ‘us’ than what a typical brokerage model offered.”

“We saw the potential for Phoenix to become one of the most dynamic markets in the country—and that momentum hasn’t slowed,” said Darren Tappen, who was promoted to Regional President of Brokerage for Greater Los Angeles, Southern California, and Arizona earlier this year. “Our success here reflects not only the region’s tremendous growth but the commitment of our people to deliver local expertise and long-term client partnerships.”

Over the past decade, Kidder Mathews Phoenix has completed $5.37 billion in transaction volume and been recognized by the Phoenix Business Journal as one of the Top 10 Commercial Real Estate Brokerage Firms for five straight years. The valuation advisory team has grown revenue 60% since 2020, and the asset services division has added more than 400,000 square feet to its managed portfolio in 2025 alone.

A Decade of Economic and Real Estate Momentum

Kidder Mathews Research compared key Phoenix market metrics from 2015 to 2025, illustrating steady population growth, business expansion, and strong fundamentals across the industrial and office sectors.

Key insights from the Phoenix 10 Conference included:

  • Construction costs are stabilizing, though power access remains a key constraint.
  • Investor confidence continues to strengthen, driven by infrastructure and economic diversity.
  • Development faces increasing NIMBY pressures that require proactive engagement.

Economic Growth (Phoenix MSA)

  • The population increased from 4.6 million to 5.2 million
  • Employment rose from 2.0 million to 2.6 million
  • Fortune 1000 companies headquartered in Arizona grew from 16 to 23

Industrial Market

  • Inventory expanded from 294 million to 461 million square feet
  • Average asking rent more than doubled, from $0.53 to $1.13 per square foot
  • Average sale price climbed from $80 to $173 per square feet

Office Market

  • Inventory increased from 87.8 million to 101.2 million square feet
  • Average asking rent rose from $22.86 to $30.95 per square foot

“Phoenix’s growth story is one of resilience, diversification, and long-term confidence. The collaboration we’re seeing between developers, lenders, and brokers is setting the stage for the next decade of opportunity,” said Michael Dupuy, Executive Vice President.

With 19 offices and more than 900 professionals across five states, Kidder Mathews continues to expand its Western U.S. presence through its fully independent, employee-owned structure and entrepreneurial culture.