Phoenix Development News (3)

[muertecaza]

Originally Posted by Obadno

This is centrally located enough:

VA outpatient facility being built behind Celebrity Theater.

http://azbex.com/275ksf-va-outpatient-facility-planned-for-phx/





Along with the county medical center remodel/expansion this will be some nice money/activity being injected into a very blighted neighborhood.

RIP "Celebrity City," haha.

https://www.loopnet.com/Listing/15735400/440-N-32nd-St-Phoenix-AZ/

[CrestedSaguaro]

Originally Posted by muertecaza

RIP "Celebrity City, haha.

https://www.loopnet.com/Listing/15735400/440-N-32nd-St-Phoenix-AZ/

WTH? Was that ever a real proposal??

[biggus diggus]

Yes, don't you know everyone wishes there were excuses to hang out at 32nd Street and Roosevelt?

[xymox]

Originally Posted by biggus diggus

Yes, don't you know everyone wishes there were excuses to hang out at 32nd Street and Roosevelt?

Well, Christies is there...

Guess they'd get fancy upgraded digs.

[LocoPhoenician]

Originally Posted by xymox

Well, Christies is there...

Guess they'd get fancy upgraded digs.

I ride by there daily on the light rail and that place looks closed and abandoned.

[Obadno]

Originally Posted by RonnieFoos

WTH? Was that ever a real proposal??

2007 was a strange time

[Obadno]

New Rendering for the old 3rd ave jail.

This should be about halfway done right?

[HX_Guy]

Phoenix's future "Century City"? The developers think so...

https://www.azcentral.com/story/money/re...tart-crown-realty-bruce-gray/2711534002/

[haux]

More progress at The Stewart.



Glass on the ground floor.



I like the glass walls on the left side. I hope they'll have good curtains.

[ASUSunDevil]

Great pics, Haux! Love the balcony railings and the glass that you mentioned.

[CrestedSaguaro]

^^^ The renderings of the Stewart show the lower gray levels as dark brown. I'm wondering if they will still be painting sections of the Stewart of if there was a color change?

[CrestedSaguaro]

Speaking of paint, when I was walking around Downtown, I noticed they are starting to paint sections of the round part of Hyatt under the revolving restaurant. I guess this means they will be painting the entire round portion white as well. Strange there has not been anything released on this...not even news about the paint job. AZ Central is slacking!

[mdpx]

Originally Posted by Obadno

New Rendering for the old 3rd ave jail.

This should be about halfway done right?

Man, I'd hate working in this building. I can just hear the office conversations. "Hey Mona, you're standing on the very spot someone was shanked."

[TJPHXskyscraperfan]

Originally Posted by RonnieFoos

More good news for Midtown. Randstad will be consolidating all their local offices to Midtown. No word on the number of employees this will be, but Midtown office growth is getting stronger.



Source: https://realestatedaily-news.com/randstad-signs-10k-sf-lease-at-3838-n-central-avenue/

Well, the sports club closed last July,lol.

[TJPHXskyscraperfan]

Originally Posted by HX_Guy

Phoenix's future "Century City"? The developers think so...

https://www.azcentral.com/story/money/re...tart-crown-realty-bruce-gray/2711534002/

Well, Century City has a lot taller buildings than 10 stories

[azsunsurfer]

Originally Posted by TJPHXskyscraperfan

Well, Century City has a lot taller buildings than 10 stories

Very true! I think however though with the amount of land that is left for development it has the opportunity to be denser than Century City. If they built out High Street it would feel semi-european with blocks between 4-10 stories around public squares. The greater context has buildings already in the 4-6 story range.

[CrestedSaguaro]

Article on PBJ about lack of office space in hot submarkets....specifically in Downtown Phoenix. Behind a paywall. Does someone have access?

Edit: Was able to get it.

By Corina Vanek – Reporter, Phoenix Business Journal
Jan 30, 2019, 1:43pm MST

Office vacancy continued to dip in 2018 as users continued to migrate to or start businesses in the Phoenix market.

However, a concentration of new construction in only a few submarkets may have left users without options in their desired areas.

“Tenants are looking for quality, available product, and there’s not enough product available,” said Tiffany Winne, executive vice president of the Savills Studley Phoenix office, adding that more than 80 percent of new office construction is in Tempe and Chandler. “They are hungry for new, state-of-the-art development in other areas as well.”

She has clients actively seeking space in north Phoenix and Scottsdale that have not been able to find suitable locations in those submarkets.

Most tenants considering a move to the Valley also are looking at other markets, and a lack of available inventory might sway them to another city, as most do not have the ability to wait for a new development to come online.

“I firmly believe that if Block 23 (in downtown Phoenix) and the Watermark (in Tempe) were ready to go, they would be fully leased,” Winne said.

According to Colliers International research, Phoenix ended 2018 with a 13.9 percent vacancy rate. Some large, speculative projects are expected to come online in 2019, which is expected to increase the vacancy rate. Tom Brophy, research director for Colliers International, forecasts 2019 will end with a 14.5 percent vacancy rate.

Winne said she expects to see continued bullish demand for space at least through the first half of 2019.

“I think we will see development kick off in Scottsdale,” Winne said, referencing projects scheduled to break ground during the first quarter.

Some trends that have picked up during 2018 still hold questions for brokers, Winne said, like the role and impact of coworking on office leasing, how the state’s fintech sandbox will influence companies considering the Valley and how landlords will deal with the role of autonomous vehicles.

Source: https://www.bizjournals.com/phoenix/news...rs-need-options-outside-the-valleys.html

[Mr.RE]

The great thing about that article is it shows there is more runway left for Phoenix office market and other strong submarkets such as tempe, Scottsdale, chandler.

With Scottsdale being one of the highest employment growth submarkets, there should be a plentiful supply of office coming online in the next 2-4 years such as Skysong, Museum Square in Oldtown, proposed offices next to fashion square, the Scottsdale airpark, Cavasson in north Scottsdale, and along the 101 on Indian reservation there's about 9 office projects in the works.

Tempe being one of the lowest vacancy markets for available Class A office space has a few projects underway and planned. Rio 2100, The Grand, Biomed campus, 100 Mill, Novus Tower 777, The Watermark, and south tempe has a few corporate campus being built out. Millions of Sq. ft to be filled in a few short years.

I don't follow development as much in chandler, but there seems to be a ton of activity along the southern 202 loop at Chandler Viridian with Hines new deal, San Tan village offices popping up everywhere and I know Whiting Turner recently finished the Isagenix building. With Intel campus out that way and other large employers making Chandler their headquarters, we should see an abundance of office news until at least 2021. Exciting times!

[Obadno]

Originally Posted by Mr.RE

The great thing about that article is it shows there is more runway left for Phoenix office market and other strong submarkets such as tempe, Scottsdale, chandler.

With Scottsdale being one of the highest employment growth submarkets, there should be a plentiful supply of office coming online in the next 2-4 years such as Skysong, Museum Square in Oldtown, proposed offices next to fashion square, the Scottsdale airpark, Cavasson in north Scottsdale, and along the 101 on Indian reservation there's about 9 office projects in the works.

Tempe being one of the lowest vacancy markets for available Class A office space has a few projects underway and planned. Rio 2100, The Grand, Biomed campus, 100 Mill, Novus Tower 777, The Watermark, and south tempe has a few corporate campus being built out. Millions of Sq. ft to be filled in a few short years.

I don't follow development as much in chandler, but there seems to be a ton of activity along the southern 202 loop at Chandler Viridian with Hines new deal, San Tan village offices popping up everywhere and I know Whiting Turner recently finished the Isagenix building. With Intel campus out that way and other large employers making Chandler their headquarters, we should see an abundance of office news until at least 2021. Exciting times!

Chandler/Gilbert has gotten tons of office construction and more in the pipe but its your more traditional suburban office set up

[Obadno]

More good Office news. As downtown becomes a popular place to live, it will eventually become a desirable place for businesses to locate. The City and Developers had it backwards before, companies will never pay out the nose to locate downtown unless its seen as worth it.

https://azbigmedia.com/phoenix-posts-banner-year-in-office-market/

Greater Phoenix had a banner 2018 in the office market sector, according to a report released by Colliers International in Arizona. A strong economy brought nearly 80,000 new jobs, which spurred demand for office space that outpaced new construction.

The estimated 79,700 net new jobs mark a 3.9 percent increase over 2017, making 2018 the strongest job growth for the metro in more than a decade. More than 24,000 of these jobs were white-collar positions that fuel demand for office space. The growth has positioned Greater Phoenix in fourth position of the top 36 major employment markets in the country, up from fifth in 2017.

Net absorption of office space increased 106 percent in 2018, totaling an impressive 3.53 million square feet. Fourth quarter brought a decline in net absorption that appears to have stemmed from limited supply of large spaces in desirable submarkets. Completion of new projects during 2019 should alleviate this problem.

Despite the fourth quarter dip in net absorption, move-ins far outpaced new construction. This brought vacancy of office space down to 13.9 percent, 200 basis points below year-end 2017. Declines in vacancy were experienced in all classes of office space. Tempe ended the year with the lowest vacancy rate at six percent, followed by Deer Valley Airport with 10.7 percent. The top five strongest submarkets in terms of vacancy include 44th Street Corridor, Scottsdale Central and Scottsdale South. Vacancy is expected to edge higher in 2019 as speculative development projects come online, adding new inventory to the market. Colliers International forecasts the office market will finish 2019 with approximately 14.5 percent vacancy.

The largest leases signed during 2018 were for buildings in the Airport Area, Tempe, Chandler and Northwest Phoenix. One of the most notable was WeWork’s lease for 54,000 square feet at Camelback Esplanade, 2425 E. Camelback Rd.

The decline in vacancy has pressured rental rates upward, though at a more modest pace than in previous years. Asking rents at the end of 2018 averaged $24.81 per square foot, which is a 2.6 percent increase from year-end 2017. Rate increases have moderated in the Class A sector, while Class B and C rent escalations have been stronger. Asking rental rates are expected to continue rising in 2019, though at very moderate levels.

Deliveries of new buildings were modest during fourth quarter with approximately 355,000 square feet coming online. During 2018 the market added slightly more than 1.2 million square feet of new office space. Recent deliveries have been minimal, but the pipeline of new projects is filling. Currently, an estimated 3.4 million square feet are under construction, compared to a year ago when we had just 1.7 million square feet underway.

Investment sales volume declined a minimal five percent year-over-year during 2018. A total of $2.47 billion of office space traded hands last year. While the total value of assets sold dropped, the number of transactions completed was higher during 2018. Transaction numbers rose 25 percent to 184 during 2018. The median price per square foot rose 17 percent to $176 per square foot with cap rates averaging 6.9 percent. Interest rate increases have not significantly impacted cap rates.

The Greater Phoenix office market is expected to remain strong throughout 2019. During last year, approximately a dozen companies announced plans to add workers in the marketplace. IT consulting company Infosys plans to more than double its Arizona workforce, adding 1,000 white-collar jobs during the next five years. Other companies with big announcements included Nationwide Insurance’s North Scottsdale regional campus and Deloitte’s new Gilbert operations center, all of which will bring thousands of new jobs over the next few years.