Quote:
Originally Posted by azsunsurfer
Plus has he had his head stuck in the sand? I've read in the past week about 3-4 companies (one British and another Fortune 1000 company) all announce to relocate within the region or open offices. I think a lot of companies will look at what State Farm has done as a model of economies of scale and potentially follow suit.
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None of those companies chose Tempe Town Lake for their expansions. I didn't say the chances of the metro area getting relocations was low; I specifically mentioned the lakefront in response to someone's question about the validity of those boom-day renderings of highrises.
PHXFlyer11 - ASU Stadium District isn't the lake, either, but anyway- the first phase with the anchor tenant mentioned is 3 offices around 6 stories each. That is exactly in line with the majority of the TTL buildings I referenced, which are NOT in line with what is being proposed in that rendering, which is several highrise office buildings (and perhaps even condos). 3 6-story buildings going up on that lakefront property on Rural and the 202 is exactly what I am saying is most likely.
I am not questioning the possibility of more economic development in the Phoenix metro. I am saying that the chances of a move from a company that is large enough to warrant a project the size and scale of State Farm's ON THE LAKE is 0. There is a very specific reason State Farm chose the lake and not a downtown Phoenix parcel: several phased midrise buildings are much cheaper than a supertall tower. If State Farm had to choose from the parcels left along the lake right now, I think they'd pass. Nothing comes close in terms of square footage, which would require more height and make the move illogical.
Right now, Phoenix metro's biggest attraction is cost in comparison to a state like California. If the lot next to Marina Heights ends up being a single-tenant office tower, I would be absolutely floored. It just doesn't make sense financially; many of these relocations are too small to warrant such an expensive site with a dedicated tower, and if another one the size of State Farm comes, they are going to choose somewhere like the ASU Research Park or Papago Grand where they can sprawl out. That lot is slated for hospitality and I think that makes the most sense.
I really wasn't meaning to be critical of anything but the project proposed years ago in the renderings. I'm aware of all the recent business activity and while much of it is cost-based IMO, you're right that the momentum is there and eventually moves will be for the talent and/or synergies from developing markets. And, when that happens, I hope that companies choose downtown Tempe or downtown Phoenix vs. where the majority of these recent moves have chosen.
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