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Resurgence of Commercial, Multifamily Development at Airpark

By February 24, 2020November 14th, 2022No Comments

By Corina Vanek | Phoenix Business Journal

After more than a decade, the Scottsdale Airpark submarket is seeing a resurgence of construction, from commercial to multifamily projects.

“We haven’t had much new office construction in the last 12 to 15 years,” said Jim Keeley, founding partner of Colliers International’s Scottsdale office. “It’s good to see so much construction going up.”

Some of the most notable area office projects are Nationwide Realty Investors’ Cavasson development, which will be home to the insurance company’s regional headquarters, as well as other commercial space. At full buildout, the development will total 1.8 million square feet of office space, which will accommodate between 8,000 and 9,000 employees.

In addition, Trammell Crow Co. is developing Axis Raintree, a 175,000-square-foot speculative office building at the southwest corner of Raintree Drive and 87th Street. That office is the only spec building under construction in the submarket, Keeley said.

Artist rendering of Axis Raintree, a speculative office development in the Scottsdale Airpark submarket.

The submarket includes most of north Scottsdale, generally north of Thunderbird Road and east of 64th Street. Here’s a quick look at the deal volume and prices in the 2019 submarket:

  • There were 20 office sales in the submarket with an average price per square foot of $233, according to Colliers International data
  • There were 12 industrial sales with an average price per square foot of $174
  • Average office rent in the Scottsdale Airpark was $28.21 per square foot at the end of 2019, above the Valley’s average of $24.62 per square foot.

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