Cushman & Wakefield | PICOR recently held its annual awards ceremony, honoring the top three producing brokers as part of the “Winner’s Circle.” In 2023, the Winner’s Circle was made up of Allan Mendelsberg, top producer, Steve Cohen, second top producer, and Robert Glaser, third top producer. These professionals’ success goes far beyond the hard numbers and transactions. Last week Mendelsberg attributed his success to his team’s collaborative approach, while Cohen and Glaser believe being client-focused, adaptive, and creative are key to mutual success with and for their clients.
Steve Cohen – Conversion & Client Longevity
Steve Cohen, Principal and Industrial Specialist with C&W | PICOR since 1995, earned Winner’s Circle honors for the eighth time, marked by conversions and client relationships.
His most challenging, yet rewarding property, was 3760 N Commerce Drive. Originally a warehouse space converted into a call center office environment by Concentrix, the previous tenant, the 90,000 square foot (SF) space sat vacant after the company closed the office in 2022. Post pandemic, little demand existed for this large office footprint, and Cohen knew it would be leased much more quickly if it was converted back to high-demand warehouse space. Even though remodel costs for the building owner were high, it proved to be well worth the investment to secure a new tenant. As the owner was in the process of converting, a warehouse tenant, Marsden Services, leased the entire 65,000+ SF warehouse portion of the building.
Cohen’s largest transaction of the year was a confidential lease renewal for a key employer in Tucson for a back-office building near the airport. He also sold a 95-acre site to Buzz Oates, one of the largest privately-held commercial real estate investment management companies, for a new development in Rita Ranch. Additionally, Cohen completed a 37,000 SF lease for research and development space at 3400 E Global Loop for Pegasus Properties to Applied Systems Engineering Inc (ASEI).
When asked what advice he would give other brokers, he said, “Longevity is valuable for a broker if the long-term is always kept in mind when dealing with clients and transactions. Many times, giving valuable advice not to do a deal earns you more value and trust from clients in the long run. Be honest and keep your integrity to your clients, and they will stick with you in the long term.”
Looking ahead, Cohen predicts the Tucson industrial market in 2024 will largely mirror that of 2023. Industrial inventory in Tucson is in short supply in almost every size of building, and new construction is expensive, which may not change this year. Demand will remain strong, along with rising rents and long-term value.
Robert Glaser – Client Centric Approach
Robert Glaser, also a Principal and Industrial Specialist, has been an active broker since 1978 and joined C&W | PICOR in our inaugural year (1985). Glaser earned an impressive 31st year in the Winner’s Circle. For Glaser, the most valuable lesson he learned last year was how important it is to be “client centric” year after year. “Every decision about the approach to the business needs to be around what is right for clients. I also learned and am excited by how competent and passionate our younger brokers are in the company and how they assist me in executing our business.”
Glaser’s most challenging but rewarding property in 2023 was the sale of a 115,000 SF building at 8500 S Rita Road. He and Jesse Blum, worked with Mithril Real Property out of Germany, who had been a valued, long-term client. The challenge was the property itself; it was a highly specialized building with a tenant in default. It was in great need of being repurposed to a new use, much like Cohen’s converted property. Glaser and Blum worked with Sun Corridor and another broker to identify a new manufacturing company that valued and appreciated the infrastructure the property offered, and the ultimate sales price was $13 million.
Glaser predicts the industrial market will continue to adjust to a higher interest rate environment in 2024. Demand for industrial space has softened to a small degree but is still in high demand. The supply of space, both for sale and lease, will continue to be a constraint and continue to put pressure on lease rates and sale prices. Land activity will remain soft due to high construction prices.
