Phoenix Development News (3)

[Classical in Phoenix]

https://downtowndevil.com/2018/04/26/90575/downtown-is-growing-and-so-is-the-cost-to-live-here/

An article reporting positive news for downtown Apts.

[biggus diggus]

The silver lining of all of that for me is my one downtown condo is getting almost $2,000/mo for two bedrooms. That would not have been possible five years ago. All of my Garfield stuff has seen a rise thanks to the luxury apartments driving pricing up.

What's not being talked about is what will happen after the first cycle of tenants start shopping for either a renewed lease or a new place to live.

[ljbuild]

As of April 16 the deal for the PALMCOURT TOWER has closed.

CONSTRUCTION TO BEGIN THIS SUMMER and to be finished by 2020.

Now the question is: How soon will we see the crane

[phxarchstudent]

Sorry if this has been shared on here before - I don't remember seeing it. Is this the most recent design for Palmcourt?

[muertecaza]

Originally Posted by ljbuild

As of April 16 the deal for the PALMCOURT TOWER has closed.

CONSTRUCTION TO BEGIN THIS SUMMER and to be finished by 2020.

Now the question is: How soon will we see the crane

Nice. This will have been a looooooong time coming.

Originally Posted by phxarchstudent

Sorry if this has been shared on here before - I don't remember seeing it. Is this the most recent design for Palmcourt?

Yes, someone posted this, but no harm in re-posting. I think the consensus generally was that this was most likely to be the current design, as opposed to the green rendering from the architect's site.

[CrestedSaguaro]

Can't wait to see this tower get moving. This (along with the Link) is going to make a huge change in the skyline coming in from Westbound I-10.

...and on the small news front, they are putting a Bosa Donuts in the old burger place at Central and Clarendon.

[Obadno]

Originally Posted by RonnieFoos

Can't wait to see this tower get moving. This (along with the Link) is going to make a huge change in the skyline coming in from Westbound I-10.

...and on the small news front, they are putting a Bosa Donuts in the old burger place at Central and Clarendon.

And the AC Marriot which will be about 2/3 the height of the APS building

[Obadno]

Two articles that hopefully mean we will see real office development downtown: https://azbigmedia.com/is-phoenix-becoming-wall-street-west/

Is Phoenix becoming Wall Street West?

More financial services and financial technology workers were hired in the Valley than anywhere else in the U.S. in 2017. The U.S. Bureau of Labor Statistics says more than 127,000 Phoenix metro workers were hired by financial and insurance services. That’s more than Dallas, the leading metro for employment in the sector, and more than Wall Street.

Combined with: https://azbigmedia.com/declining-vacancy-spurs-new-office-developments-in-phoenix/

Declining vacancy spurs new office developments in Phoenix

Office tenants moved into a net of approximately 679,000 square feet during the first three months of the year. This net absorption level was a retreat from fourth quarter 2017, but stronger than first quarters of previous years.

Office vacancy fell 30 basis points during the first quarter, dipping to 15.5 percent across the metro area. This level is now 90 basis points lower than a year ago and is the lowest rate in nearly a decade. First quarter vacancy performance marked a full year of quarterly declines in Greater Phoenix. Strongest improvements in vacancy occurred in the Southeast Valley, including Tempe, Chandler and the Superstition Springs submarkets. These areas of the metro area have experienced strong employment growth in recent years. Class A properties had reached a below-15 percent vacancy by year end 2017. The city is now seeing more improvement in Class B properties in which vacancy has dropped 100 basis points in the past 12 months to 16.7 percent.

Now its just up to the city to woo financial companies who are the primary office tower renters into the downtown instead of loosing them to suburban locations. This is something I feel Stanton has done a bad job at, (while generally being a mediocre/decent mayor) His admin should have done more to get things like State Farm, USAA, Farmers etc into the downtown instead of losing it to the burbs.

That's just my opinion though.

[azsunsurfer]

Originally Posted by Obadno

Two articles that hopefully mean we will see real office development downtown: https://azbigmedia.com/is-phoenix-becoming-wall-street-west/

Is Phoenix becoming Wall Street West?



Combined with: https://azbigmedia.com/declining-vacancy-spurs-new-office-developments-in-phoenix/

Declining vacancy spurs new office developments in Phoenix



Now its just up to the city to woo financial companies who are the primary office tower renters into the downtown instead of loosing them to suburban locations. This is something I feel Stanton has done a bad job at, (while generally being a mediocre/decent mayor) His admin should have done more to get things like State Farm, USAA, Farmers etc into the downtown instead of losing it to the burbs.

That's just my opinion though.

I also think you are going to see some more competition from the Salt River Tribe. They have also focused on targeting office tenants recently (most notably McKesson) and I think they hold some advantages over property tax benefits. They also have a lot of land banked off the 101 close to some of the prime areas of North Phoenix and Scottsdale.

[Ballister]

Originally Posted by RonnieFoos

Can't wait to see this tower get moving. This (along with the Link) is going to make a huge change in the skyline coming in from Westbound I-10.

...and on the small news front, they are putting a Bosa Donuts in the old burger place at Central and Clarendon.

I saw that! The only reason why I don't need insulin is that the closest Bosa was not so close. I'm screwed...but happy!

[combusean]

I hadn't heard of Farmers moving into town, but it's still more of the same--customer service representatives and claims adjusters.

This is semi-skilled labor that needs a lot of contiguous office space that's not found much downtown and is much easier to build in the suburbs or rent from the numerous vacant properties.

> “We have an amazing facility to attract top level talent in the Valley and from the nation and West Coast.”

I thought this quote was pretty telling anyways. You couldn't pay me enough to live in North Phoenix and trudge up the 17 to USAA's campus. But that appeals to what makes Phoenix appealing to that suburban segment of society, which is still what Phoenix is despite how much the central area is booming. Seems there's a disconnect anyways--people want to live in Central Phoenix but will be forced to commute to the suburbs. I foresee some shuttle busses coming soon so we can be just like the Bay Area...

The article is a bit rosy anyways--vacancies are only at a healthy level in Tempe. Oddly enough, the Airpark area is again doing well after being hollowed out in the Great Recession.

https://www2.colliers.com/en/research/phoenix/2018-Q1-Greater-Phoenix-Office-Market-Report

[CrestedSaguaro]

On my walk around Downtown yesterday, I decided to get some photo updates on misc. projects. Some of these are the more known projects, some haven't had much posted on them.


Willa is looking pretty good:




Portrait on the Park:




The 1st St update has been completed:



the Stewart:




The Churchill. Note the artwork cutouts they did on the corner. I will be honest. I am not entirely sure I like this project:



Not sure what's going in here. The building has been getting rehabbed for a couple of months now. A patio appears to be getting built in the back. SE corner of 2nd St and Garfield:




The Link:



Taylor St entrance to AZ Center is nearly completed:



Panoramic of Block 23 from Colliers Center:



Metrowest has 6 more townhomes planned for this lot at the NW corner of 2nd Ave and McKinley:



The apartments at 625 N. 5th St are gutted and getting redeveloped:



The former Alta Fillmore with the new Pure Fillmore signage:



More infill. 10 townhome units getting built on 6th Ave just North of Fillmore:

[Classical in Phoenix]

Thanks for the updates. It's hard to believe how much you miss if you don't pay attention.

[Phxguy]

Thanks for the photo updates! Even living downtown, I wasn’t familiar with a few of these, development is springing up so quickly it seems every week brings a new infill or renovation project.

As far as the building at 2nd and Garfield, it will be a bar called Sazerac. Will continue the nightlife theme northbound on 2nd to Roosevelt where it will meet the future Az Wilderness Brewery site on the SE corner. .

[Obadno]

Not a fan of “shipping container” projects myself but it will have a decent bar (peddalhaus) and help close the dead zone between downtown and Roosevelt

[combusean]

Man! That's a lot of good stuff in one post.

Especially that 625 N 5th St redevelopment. That complex was always ugly as sin with that strip of asphalt in front.

Portrait and Willa seemed like they came out of nowhere.

[Obadno]

So I was driving home on the 17 this evening and it was hard to tell but it looks like a tower crane is going up somewhere around Jefferson and 9th ave

Anyone know what that’s about? It’s pretty tall

[muertecaza]

Originally Posted by Obadno

So I was driving home on the 17 this evening and it was hard to tell but it looks like a tower crane is going up somewhere around Jefferson and 9th ave

Anyone know what that’s about? It’s pretty tall

That's around where the Capitol Lofts project was supposed to go.

https://www.bizjournals.com/phoenix/news...tarting-at-165k-slated-for-downtown.html

https://www.phoenix.gov/pddsite/Documents/PZ/Z-2-16n.pdf

I haven't seen anything indicating that projects was moving forward, especially moving forward to actual construction, but it'd be cool if that's what's happening.

EDIT: the project does have website that I didn't remember seeing before, and the site says they're taking reservations for 'Phase II'? So maybe they're ready to build Phase I?

[Phxguy]

Originally Posted by Obadno

So I was driving home on the 17 this evening and it was hard to tell but it looks like a tower crane is going up somewhere around Jefferson and 9th ave

Anyone know what that’s about? It’s pretty tall

Call me blind but I just swang around 9th Ave and Jefferson and didn’t see any indication of a crane.

Although I was shaken by the tent city on the south side of Jefferson between 9th and 7th Ave. Would be surprised if anything sells in that area if they don’t either seriously consider programming that gets homeless off the streets and into housing/jobs or relocating the shelter. More likely the latter will happen.

Sorry to hijack the convo but was actually sickened that scenes like this exist in Phx.

[soled]

Originally Posted by Phxguy

Call me blind but I just swang around 9th Ave and Jefferson and didn’t see any indication of a crane.

Although I was shaken by the tent city on the south side of Jefferson between 9th and 7th Ave. Would be surprised if anything sells in that area if they don’t either seriously consider programming that gets homeless off the streets and into housing/jobs or relocating the shelter. More likely the latter will happen.

Sorry to hijack the convo but was actually sickened that scenes like this exist in Phx.

I'm not going to speculate on whether that project will gets built or not, but two quick thoughts:

Until the City of Phoenix addresses the situation, the shelter very nearby that location will be an issue for anyone living there.

I would not move anywhere near there until something changes.