Seeking a dynamic work, live, play experience in greater Phoenix? Look no further than Scottsdale Quarter, a 28-acre, open-air, mixed-use development that will reach more than 1 million square feet when fully completed. Attendees of NAIOP’s Commercial Real Estate Conference 2016 enjoyed a guided tour of the development, which was specifically designed to incorporate a balanced mix of office, retail, hotel and 275 luxury apartments with parking strategically built around tenants.
Scottsdale Quarter is a destination spot for more than 80 retailers, including high-end retail such as Apple, Warby Parker, lululemon, West Elm, Nike, Sephora, Free People and Pottery Barn, along with more than a dozen dining options. For $25 a ticket, the iPic Theater offers a deluxe movie-watching experience complete with plush, reserved seating that reclines, complimentary popcorn and restaurant service delivered to your seat. The Quad public-space area plays host to a concert series and other special events to draw foot traffic – and spending dollars – to Scottsdale Quarter.
The owner of Scottsdale Quarter, the Washington Prime Group, is a premier retail real estate investment trust headquartered in Columbus, Ohio, that partners with CBRE to lease office and retail space in the development. The team takes care to consider the parking needs of incoming tenants to ensure enough availability for all users of Scottsdale Quarter.
Built as 100 percent office spec development, 18 tenants currently lease 85-90 percent of the office space at $37 per rentable square foot, including Starwood Hotels & Resorts and JDA Software, which specializes in supply chain management software. The JDA Software office space spans 55,000 square feet over two floors with a modern design, layout and amenities to maximize employee engagement and productivity. The space is arranged in clusters of workspaces with collaborative lounge areas as well as private rooms for meetings or phone calls. A fitness center, pool table and table tennis allow employees to take a break while keeping their brain and bodies active.
Scottsdale Quarter highlights a shift in Phoenix CRE, which previously focused heavily on residential real estate but has moved to a more diverse array in recent years. CBRE research forecasts a positive outlook for Phoenix retail for the remainder of the year, thanks to an improving local economy and strong job growth. “Still, structural changes in the retail industry driven by new economic realities, demographic changes and technological disruption will continue to play out in property markets with mixed effect as the industry evolves,” the Q2 2016 research report notes.
Numbers for 2016 Phoenix office CRE have outpaced those of 2015, with insurance, financial service and healthcare companies taking top spots as active occupiers of office space. CBRE reports that “an improving labor market underpins this outlook and barring any major external shock, job growth will remain healthy.”