General Phoenix Metro Discussion Thread

[combusean]

Originally Posted by YourBuddy

They specifically mention the site is well situated for two tower high rise development. Would be nice to see some previous developments from them.

I don't see this company having a track record of existing developments to put up a two tower project or even saying a project of that size is within their scope.

I'm hoping it's better than Sencorp who stuck their toe in the water with a forgettable condo project and got frostbite.

[combusean]

Originally Posted by biggus diggus

I sure hope so. He's told me so many stories over the years that didn't come to fruition. First it was going to be condos because they know that market better. Then it was apartments but only if they could find a partnership because they have never built apartments. Then it was a mixed commercial product with restaurants and boutiques.

None of those things were ever more than just a discussion over zoom meetings, is my guess. Now they're just sitting on a lot where I used to be able to get my cars washed. They were the only "regular" car wash I could trust with some stuff. Of all the developers in this town that I'm mad at, he's probably top of my list.

Not for nothing, I've known for years they wouldn't build the second eNhance product. They couldn't sell what they'd already delivered and some buyers were even trying to get out within weeks of closing because the neighborhood was such a turnoff. Yeah, homebuyers need to take responsibility here but also it's a sign of just one problem after another for them.

The funny thing is, they could have just built something like the luxury midrise condos on West Portland and probably not had any trouble selling them. One could even argue that they contributed to the difficult selling situation by failing to develop the vacant lot they had for so long--they were half the problem in the neighborhood.

[biggus diggus]

He doesn't know what he's doing, that's the problem.

He's busy buying houses in Coronado to turn into Airbnb rentals. He started that just before they bought Los Olivos and never really quit doing it, I think Sencorp maybe wasn't bringing any motivation.

[Phxguy]

Did anyone else watch the train wreck of a video about Scottsdale’s fight against New Urbanism?

https://youtu.be/oaTAWVlrGCE

[YourBuddy]

I see this channel a lot. It was formerly “Save Scottsdale.” They don’t just fight new urbanism, they have a “no growth” agenda. Same group behind the fight against Southbridge 2. Videos fear mongering about density and “150’ tall skyscrapers” turning Scottsdale into “LA.” Same group that advocates for a ridiculous amounts of parking and against light rail.

In summary… they suck

[Camelback]

Stupid video and she sounds dumb, but she is actually correct if Scottsdale wants to create a zone of low density homes that will send home values to the moon which will then pay for everything the city needs.

Go to every city and there are large areas of low density, big homes on large lots (all relatively speaking) that are the most prestigious areas of the entire metro.

South Scottsdale should urbanize, build some height and become ultra dense, the rest should remain low density with large lots.

[YourBuddy]

But is there anyone trying to build high density residential outside of Kierland and South Scottsdale? Pretty much everywhere else is single family homes or 2-3 story condos/townhomes. None of these people have decreased property value in the past 10 years. Didn’t they fight Optima Kierland as well which definitely hasn’t decreased property values.

[soled]

Originally Posted by Camelback

Stupid video and she sounds dumb, but she is actually correct if Scottsdale wants to create a zone of low density homes that will send home values to the moon which will then pay for everything the city needs.

Go to every city and there are large areas of low density, big homes on large lots (all relatively speaking) that are the most prestigious areas of the entire metro.

South Scottsdale should urbanize, build some height and become ultra dense, the rest should remain low density with large lots.

I couldn't help myself. I posted a comment mocking their over-the-top shtick

[Classical in Phoenix]

https://wccftech.com/tsmc-receives-1...nsion-in-play/

Okay, I know nothing about wccftech, but came across this article regarding the new Fab in the north valley.

[Classical in Phoenix]

Phoenix is buying the Wells Fargo Tower for $46.5M.

https://amp.azcentral.com/amp/783432...mpression=true

[ASU Diablo]

Originally Posted by Classical in Phoenix

Phoenix is buying the Wells Fargo Tower for $46.5M.

https://amp.azcentral.com/amp/783432...mpression=true

Interesting. Like the move since it will consolidate existing city-owned buildings into the old WF Tower. For example, that ugly building on 302 N 1st Ave. Sounds like city will sell it and hopefully developer can buy and tear down and build new tower in its place. However, bummer that the sale also included the 2nd Ave and Van Buren parking garage. Pretty much a given that garage will not be going anywhere for the foreseeable future and will look extremely out of place next to our newest state tallest.

[combusean]

The Public Transit Building at 302 N 1st Ave is well within its service life, but seems to be poorly managed, hardly advertised (I thought *everything* was on loopnet), and likely needing a renovation anyways to compete with an office market that's flooded with inventory. Phoenix is obviously not the best owner, nor should it be, so any disposition would be welcome.

https://leasespaces.jll.com/?propertyId=807151-lease

I'd rather see the police building torn down, tbqh. The article didn't seem to indicate that it was on its way out, but that has literally no redeemable qualities... a 2018 article says it's 44 years old but operates like its 88 years old, and was the original source of the $250 - $350 million rebuild cost in the new article.

https://www.abc15.com/news/region-ph...et-of-vehicles

It's really unfortunate that these timelines to fill several floors are so far out. Phoenix occupies a huge amount of office sprawl in the Eastlake neighborhood. Even the DSD counter is in the comparative boondocks on 5th or 6th ave in a historic building that could be better served by a retail spot in the WF tower.

[J_PHX]

Article focusing on Phoenix and the recent rent increases.

https://www.washingtonpost.com/busin...prices-rising/

[combusean]

That data might be out of date for the west coast. I saw rents *plummet* during the plague but they seem to be right back up, which indicates that Phoenix might get some relief from the pressure.

[J_PHX]

Originally Posted by combusean

That data might be out of date for the west coast. I saw rents *plummet* during the plague but they seem to be right back up, which indicates that Phoenix might get some relief from the pressure.

It says the data is from May 2021. From what I've seen and read, it seems that the K-shaped recovery has also affected rental prices where luxury rental prices decreased nationwide but the base entry-level pricing for rentals has increased causing a decrease in affordability for lower-income households while creating more affordability and options for moderate-to-high-income households.

[biggus diggus]

I think the run up is over and we're just now seeing what will be the new normal. Time will tell but that's my feeling based on experience and what I see.

[Obadno]

Another massive high tech manufacturing facility for us!

This is the kind of industry we want to see!

https://azbigmedia.com/business/kore...ring-facility/

KORE Power picks Buckeye for million-square-foot manufacturing facility

AZ Business Magazine

KORE Power, Inc. announced today the first lithium-ion battery manufacturing facility wholly owned by a U.S. company will be built in Maricopa County.

“Arizona is thrilled to be selected as the home of the country’s first U.S.-owned lithium-ion battery manufacturing facility,” said Governor Doug Ducey. “Not only will this facility create thousands of new jobs, it will position Arizona as an anchor in the global battery manufacturing supply chain. We’re grateful to CEO Lindsay Gorrill and the entire KORE Power team for choosing our state. We look forward to partnering in your success for many years to come to further sustainability here in Arizona around the world.”

READ ALSO: Here’s why the West Valley is exploding with economic growth

The one million square foot manufacturing facility, dubbed the KOREPlex, will support up to 12 gigawatt hours (GWh) of battery cell production to ensure a reliable and independent U.S. supply chain for lithium-ion battery cells that are critical to the future of electric vehicles, power grids and more. The facility will have the capacity to produce enough power for 3.2 million homes each year. KORE plans to start construction of the facility by the end of the year with the goal of beginning production in Q2 2023.

KORE Power is the leading U.S.-based developer of battery cell technology for the energy storage and electric transportation industries. Founded in 2018, the company leveraged the experience of its contract manufacturing partner to build and deploy more than 10 million battery cells to its global customer base. The new KOREPlex facility will add to the company’s current annual production capacity of 2 GWh that is in the process of scaling up to 6 GWh to serve the rapidly growing battery market. KORE Power’s U.S. facility will create more than 3,000 new advanced manufacturing jobs in Arizona and will strengthen U.S. energy security by creating a new domestic battery supply.

“KORE Power’s expansion to Arizona will bring thousands of great-paying jobs to our state and will ensure that Arizona remains at the forefront of clean energy and battery cell development for decades to come,” said Senator Kelly. “As one of the nation’s top producers of clean energy technologies, KORE Power plays an important role in maintaining American energy independence. This investment in our electric vehicle infrastructure and climate resiliency will continue to advance Arizona’s leadership in the tech sector as well as help our nation achieve its renewable energy goals.”

KOREPlex will operate with net-zero carbon emissions through strategic partnerships and solar-plus- and storage co-generation.

“We needed a location for our factory that had a track record of supporting energy storage, a growing clean transportation sector, and a workforce that could deliver American-made battery technology that the supply chain so desperately needs,” said Lindsay Gorrill, KORE Power CEO. “Arizona hit a home run. We’re fully committed to be a cornerstone of the state’s clean economy and we’re proud to bring advanced cell manufacturing home to the U.S.”

KORE Power plans to employ more than 3,000 full-time personnel at the facility, which will generate upwards of an estimated 10,000 direct and indirect jobs. The construction of KOREPlex will employ an estimated 3,400 workers during peak construction. It is expected construction will take about 18 months.

“KORE Power’s investment in Buckeye to produce clean, renewable energy aligns with the City Council’s sustainability goals, and our goal for significant employment opportunities for our residents,” said Buckeye Mayor Eric Orsborn. “This project is not just a win for Buckeye, but for the West Valley, the State of Arizona and the clean energy industry.”

KORE Power landed on Maricopa County after a national site search and evaluation of the energy storage, manufacturing and electric transportation opportunities across the country. The Arizona site offered proximity to complimentary industries such as e-mobility, solar, semiconductor, and utilities, workforce and logistics capacity, and a pro-business tax and regulatory environment.

Additional details about the company and the manufacturing facility can be found at KORE Power’s website at www.KOREPower.com.

[biggus diggus]

We're going to be a major manufacturing hub. Bank on it.

[xymox]

Very interesting article on a new partnership between Tapei and Phoenix:

https://www.bizjournals.com/phoenix/...companies.html

The interesting bits...

“We want to fortify Arizona’s position as a top semiconductor hub in the United States,” Camacho said.

Taiwan and South Korea are already the heaviest hitters in semiconductor manufacturing globally.

A future goal for the partnership would also include aligning Taiwan and Arizona’s biomedical industries, and eventually have delegations from Taiwan and Arizona visit the other communities and work with universities, businesses and communities on biotechnology and medical technology.

“We want to build the base for future technology,” Camacho said. “There is tremendous biomedical activity in Taiwan, and it is arguably the same here, we are a burgeoning market for biotechnology and we want to make sure we have global ties.”

and...

Phoenix and Taipei have been sister cities for decades, but Camacho said TSMC’s Phoenix plant is the “800-pound gorilla in the room” that has sparked a lot of the conversations and partnership. In the next few months, Camacho said he expects announcements from between six and 12 more companies planning a presence in the Valley to work alongside TSMC. One company, Sunlit Chemical, has already closed on land where it will create a chemical manufacturing facility.

“The suppliers are extraordinarily active now,” he said.

Of the companies GPEC has in its pipeline, 42 are related to the semiconductor supply chain, which represents about 20% of GPEC’s pipeline, and the majority of those are Asian companies, he said.

Camacho said the Valley was “fortunate to have the one-two punch” of TSMC’s plant and Intel’s massive expansion, creating even more of a spotlight on the Valley for semiconductor production.

“It prompted other companies to take notice,” he said.

Wow.

That's extremely significant and will change this town quite a bit. You have to think that not only will growth continue at a very rapid pace with a fraction of this happening, but that we'll see direct flights from PHX -> Asia very, very soon. Among may other very positive things.

[YourBuddy]

More R&D facilities would be huge in biomedicine. We already knew they have plans for significant investment with microchips, and those manufacturing jobs are big, but R&D type jobs would take Phoenix over the top.