According to JLL’s Q2 Phoenix Office Insight Report, five new office projects totaling 638,090 square feet broke ground in the second quarter of 2017. One of the five projects is the Camelback Collective, the ±3.62 acre mixed-use project in the prominent Camelback Corridor which will consist of office space and a hotel. This project is the first new construction project in this submarket since 2010.
Also expected to experience new construction since 2010 (not counting re-development in the Warehouse District) is the Downtown Phoenix submarket with Block 23, another mixed-use project, expected to break ground in August 2017.
Why is mixed-use so hot?
According to JLL’s Managing Director John Bonnell, developers are building these projects to meet tenant demand.
“Tenants today are looking for more than quality office space,” said Bonnell. “They want walkable amenities in live, work, play environments that enable them to attract and retain caliber talent.”
Block 23 and Camelback Collective are two examples of this.
“The Camelback Corridor has always been a hotspot for traditional tenants looking to upgrade their image or improve their location, and Camelback Collective will help fill that demand,” said Bonnell. “The resurgence of Downtown, with an abundance of new retail and multifamily development, is attracting a variety of companies, including technology ones that had previously been focused on finding creative/collaborative space in only Downtown Tempe or South Scottsdale. The 24/7 environments of those submarkets have been hard to duplicate, but Downtown is quickly evolving into that environment. Companies moving from larger cities like San Francisco and Chicago like the feel of a downtown environment and prefer it over suburban locations.”
Learn more about the Phoenix office market by downloading our Q2 Phoenix Office Insight Report.
About the author
Keeley Byer is a market research analyst for the JLL Phoenix office. With four years of market research experience and eight years of commercial real estate technology experience, he continually tracks and analyzing trends affecting the Phoenix Metro commercial real estate market.