PHOENIX–As GlobeSt.com reported, Ryan Companies US Inc. recently promoted Rick Collins to president of the Southwest region. Collins was previously VP of development for the NorthCentral division. GlobeSt.com caught up with Collins to get his take on the Southwest market and what Ryan Cos. has in the works for the area.

GlobeSt.com: In your opinion what are the strengths and weaknesses of the Southwest market?

Collins: The Phoenix market benefits from population growth at about twice the rate of the national average, resulting in market economic growth in all types of real estate, especially housing, retail and medical. Office and industrial growth is driven by job growth, which in part is also dependent on population growth – so the influx of new residents is also appealing to employers who are looking for labor supply. Job growth drives commercial development, which is part of the reason that Phoenix tends to recover more quickly from economic downturns than the northern markets like Minneapolis/St. Paul.

The Phoenix market, and the State of Arizona, are generally perceived as “pro business” – which is very important both to bringing in employers, and to helping complete real estate development projects.

Comparatively, the Phoenix market has a lower concentration of Fortune 500 corporate headquarters than Minneapolis/St. Paul. It would appear that, during economic downturns, corporations are more likely to reduce space in regional facilities (i.e., Phoenix) than in the corporate headquarters location (i.e, Minneapolis/St. Paul). Partly as a result, the Phoenix market may also feel the negative effects of an economic downturn more quickly and more deeply than Minneapolis/St. Paul.

GlobeSt.com: As the new president of Ryan's Southwest region what are your expectations and goals going forward?

Collins: I have the great fortune of assuming responsibility for a very well-led, well-managed, high performing team. I am succeeding John Strittmatter, thought of so highly that our industry presented him with a Lifetime Achievement Award earlier this year. My expectations and goals are to incrementally add energy and value in the pursuit of new business opportunities, including consideration of building product types that Ryan has not previously pursued in depth in the Phoenix market.

GlobeSt.com: What do you see as the major differences between the NorthCentral market and the Southwest?

Collins: As mentioned, the Phoenix market has consistently grown faster than the Minneapolis/St. Paul market. Further, the Phoenix market appears to decline faster in bad economic times, and recover faster in good economic times, than does the Minneapolis/St. Paul market.

GlobeSt.com: What kind of projects are you targeting in the Southwest?

Collins: Ryan has built a long and strong track record in office and industrial build-to-suit projects in the Southwest. In addition to continuing to pursue those projects, we will consider pursuing additional product types in which Ryan has been active in other markets, but not as active in Phoenix – i.e., multi-family, hotels, medical office, senior living.

GlobeSt.com: What do you think will be the major trends of 2014?

Collins: Slowly improving markets, in general. More build-to-suit activity, as expanding corporations are unable to secure large blocks of space in existing building inventory. Slowly increasing land prices. Slowly increasing building rents. Increasing construction costs.

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