PHOENIX—As previously reported, Avison Young acquired Phoenix-based GPE Management Services LLC and GPE Commercial Advisors LLC, doing business as The GPE Companies, and opened a new office in Phoenix. With the change in ownership, David M. Genovese, formerly with GPE, is now principal and managing director of Arizona Avison Young. He spoke recently with GlobeSt.com exclusively about the change in ownership and the commercial real estate landscape.
GlobeSt.com: Can you provide a little background on GPE's history in the Phoenix market and your strategy behind joining Avison Young?
David Genovese: GPE was a one of the oldest, privately held, third-party firms in Arizona. Founded in 1973, it was a full-service brokerage servicing the office, industrial, retail and land sectors with a special emphasis on healthcare-related real estate. While we enjoyed being recognized as a market leader for many years (regularly being voted as the number one small brokerage by Ranking Arizona), over the past couple of years we recognized the need to offer our clients and staff increased regional, national and global exposure. Thanks to technology and other factors, real estate and even business, in general, are becoming more globally focused, and being able to compete as a local firm became more and more challenging, especially on the institutional level. Avison Young's client-focused, principal-led, no-silos structure, combined with national and global resources, had tremendous appeal to us. We were very selective in who we wanted to partner with and, after a few meetings, we recognized very quickly in Avison Young that our cultures aligned. The transition has virtually been seamless and well received by all.
GlobeSt.com: With this move, how do you see Avison Young's global platform helping your presence in your region?
Genovese: Expanded reach, more in-depth research, and increased exposure for our clients and staff. We also add a national and global infrastructure to assist our local clients with out-of-state needs while still remaining the point-of-contact locally. The move will also allow us to enhance collaboration and provide the innovative, client-centric solutions that Avison Young has built its reputation upon.
GlobeSt.com: Can you provide your thoughts on the greater Phoenix market? What property sectors are currently of particular interest and why?
Genovese: Industrial has seen strong absorption in past years with spec development back underway. Class-A office continues to see robust demand with larger, institutional tenants while B and C office struggles are anticipated to continue in the near future, primarily due to low economic growth nationwide, with many buildings eventually being repurposed. Healthcare is seeing steady demand in general as the Affordable Care Act continues to impact how and where healthcare is delivered to patients. However, most development-related activity is in senior housing/assisted living sectors, as the population continues to age. Multifamily remains strong and new home construction is on the rise.
GlobeSt.com: What are the biggest trends you see happening in Phoenix during the next 12 months?
Genovese: Arizona saw 100,000 new residents enter the market in 2015 and that trend is expected to continue. This growth was primarily in Maricopa County, in which Phoenix is located. Maricopa County saw the second-largest population increase in the nation, according to the US Census Bureau. Phoenix is a young city with an average age of under 35 and a growing high-tech sector. The current estimate indicates 130,000 high-tech jobs and that number is expected to increase. Our two large universities continue to grow and invest heavily in our downtown, and public transportation will continue to expand and bring our submarkets closer together. Overall, 2015 was a strong year for Phoenix with positive absorption and rising rental rates, and 2016 seems primed for similar growth.
PHOENIX—As previously reported, Avison Young acquired Phoenix-based GPE Management Services LLC and GPE Commercial Advisors LLC, doing business as The GPE Companies, and opened a new office in Phoenix. With the change in ownership, David M. Genovese, formerly with GPE, is now principal and managing director of Arizona Avison Young. He spoke recently with GlobeSt.com exclusively about the change in ownership and the commercial real estate landscape.
GlobeSt.com: Can you provide a little background on GPE's history in the Phoenix market and your strategy behind joining Avison Young?
David Genovese: GPE was a one of the oldest, privately held, third-party firms in Arizona. Founded in 1973, it was a full-service brokerage servicing the office, industrial, retail and land sectors with a special emphasis on healthcare-related real estate. While we enjoyed being recognized as a market leader for many years (regularly being voted as the number one small brokerage by Ranking Arizona), over the past couple of years we recognized the need to offer our clients and staff increased regional, national and global exposure. Thanks to technology and other factors, real estate and even business, in general, are becoming more globally focused, and being able to compete as a local firm became more and more challenging, especially on the institutional level. Avison Young's client-focused, principal-led, no-silos structure, combined with national and global resources, had tremendous appeal to us. We were very selective in who we wanted to partner with and, after a few meetings, we recognized very quickly in Avison Young that our cultures aligned. The transition has virtually been seamless and well received by all.
GlobeSt.com: With this move, how do you see Avison Young's global platform helping your presence in your region?
Genovese: Expanded reach, more in-depth research, and increased exposure for our clients and staff. We also add a national and global infrastructure to assist our local clients with out-of-state needs while still remaining the point-of-contact locally. The move will also allow us to enhance collaboration and provide the innovative, client-centric solutions that Avison Young has built its reputation upon.
GlobeSt.com: Can you provide your thoughts on the greater Phoenix market? What property sectors are currently of particular interest and why?
Genovese: Industrial has seen strong absorption in past years with spec development back underway. Class-A office continues to see robust demand with larger, institutional tenants while B and C office struggles are anticipated to continue in the near future, primarily due to low economic growth nationwide, with many buildings eventually being repurposed. Healthcare is seeing steady demand in general as the Affordable Care Act continues to impact how and where healthcare is delivered to patients. However, most development-related activity is in senior housing/assisted living sectors, as the population continues to age. Multifamily remains strong and new home construction is on the rise.
GlobeSt.com: What are the biggest trends you see happening in Phoenix during the next 12 months?
Genovese: Arizona saw 100,000 new residents enter the market in 2015 and that trend is expected to continue. This growth was primarily in Maricopa County, in which Phoenix is located. Maricopa County saw the second-largest population increase in the nation, according to the US Census Bureau. Phoenix is a young city with an average age of under 35 and a growing high-tech sector. The current estimate indicates 130,000 high-tech jobs and that number is expected to increase. Our two large universities continue to grow and invest heavily in our downtown, and public transportation will continue to expand and bring our submarkets closer together. Overall, 2015 was a strong year for Phoenix with positive absorption and rising rental rates, and 2016 seems primed for similar growth.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.