Improving office market triggers 14-story office plan along I-10 - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Improving office market triggers 14-story office plan along I-10

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Friday, June 15, 2012 7:45 pm

The dwindling amount of vacant office space across the Valley has prompted a Tempe developer to begin marketing a 14-story building along Interstate 10 that’s aimed at attracting a major corporate tenant.

If built, the 384,000 building would join only one or two other speculative office projects to get going in the Valley in the past two years.

Metro Commercial Properties has had city approval to move forward on the project since 2010, when vacancy rates were hovering around 30 percent. While vacancy rates are still high, Metro Chief Financial Officer Tony Hepner said the Valley has begun to run out of high-quality spaces of 100,000 square feet or larger.

“We’re trying to position ourselves for the large corporate user that really can’t find the space they need in the Valley right now,” Hepner said.

Metro is searching for a lead tenant who would occupy at least 100,000 square feet before beginning construction. The developer could scale down the building to just four floors if possible. Hepner said it’s likely the project will wind up being in the mid-range of possible configurations.

The development’s cost could approach $100 million at maximum size.

Called Fountainhead Park Summit, the tower would stand at a high-profile location along I-10’s Broadway Curve. That’s in the Fountainhead Corporate Park, where Metro in 2011 completed a 10-story and a 6-story building leased to the University of Phoenix.

That project and the new building are financed by USAA Real Estate Company. Hepner said USAA doesn’t have to worry about securing financing once enough of the building is pre-leased.

“Our client is well capitalized and they have the money,” he said. “It’s different from other projects that are a pretty picture trying to attract tenants.”

Hepner said Tempe’s office market has recovered faster than expected. The Fountainhead location is especially desirable because freeway access puts it within a quick drive of much of the Valley, Hepner said.

The only other speculative office project in the past two years is a 92,000-square-foot building under construction in Chandler’s Price Corridor. Since the project was announced early this year by the Douglas Allred Company, the building has been leased to Gilbert-based Infusionsoft, Inc.

Also, Sunbelt Holdings and Ryan Companies announced plans this year for a 10-story building at Hayden Ferry Lakeside. The companies anticipate breaking ground by the end of the year if enough pre-leases are signed.

• Contact writer: (480) 898-6548 or ggroff@evtrib.com

More about

  • Discuss

Kurdistan's Forbidden Fruit: Homemade Wine

Print With Lamborghinis and Rooftop Sushi, Why Is Kurdistan Broke? Nabaz* carefully poured the red wine into one glass, then another, set the …

Published: July 30, 2016 - 6:47 am @ http://www.voanews.com/content/iraq-kurdistan-wine…

Literary Bad Boys

In preparation for Emily Bronte’s birthday, we’re thinking of Wuthering Heights’ quintessential romantic anti-hero: Heathcliff. In his honor, …

Published: July 30, 2016 - 6:23 am @ https://www.nypl.org/blog/2016/07/28/literary-bad-boys

Islamic State training 'next generation' fighters: Report

STEPS FOR DISABLING AD BLOCKERDriving in Canada Canada - a home away from home Canada, it's time to change! Living with a disability in Indo-C…

Published: July 30, 2016 - 5:53 am @ http://timesofindia.indiatimes.com/world/uk/Islami…

4 Zika Cases in Florida Were Likely Spread by Local Mosquitoes, C.D.C. Says

There are now more than 1,600 confirmed Zika cases in the continental United States. Until the announcement on Friday, all of them had been a …

Published: July 30, 2016 - 3:51 am @ http://www.nytimes.com/2016/07/30/health/zika-viru…

Republican VP nominee Mike Pence to hold events in Arizona next week

PHOENIX — Republican vice presidential nominee Mike Pence will hold two events in Arizona next week. Pence plans to hold town-hall style event…

Published: July 30, 2016 - 2:21 am @ http://ktar.com/story/1201470/republican-vp-nomine…

Are the 'Harry Potter' films better than the books? A passionate and magical debate

LONDON — In a desperate attempt to make the final hours before the release of the eighth Harry Potter story go a little bit quicker, we've dec…

Published: July 30, 2016 - 2:14 am @ http://mashable.com/2016/07/30/harry-potter-films-…

An Inside Look: The Herb Box

With locations throughout the valley and cohesive menus for brunch, lunch, dinner, drinks and dessert, The Herb Box is a gem. This hip rustic …

Published: July 30, 2016 - 1:20 am @ http://www.smartfem.com/entertainment/herb-box/

Activists protest no charges for cop in Arizona shooting of Native American woman

A small group of protestors in Phoenix, Arizona, met employees of the Maricopa County Prosecutor as they arrived for work on Monday, protestin…

Published: July 30, 2016 - 12:42 am @ http://www.dailykos.com/story/2016/7/28/1553073/-A…

Movies in a Minute: 'Jason Bourne'

Do you realize it’s been nine years since the last “Jason Bourne” movie? As a fan of the franchise, I have to say I’m disappointed in this one…

Published: July 29, 2016 - 11:43 pm @ http://ktar.com/story/1201697/movies-in-a-minute-j…

Phoenix Planning for a New Approach to its Urban Forest

A city famous for tall palm trees wants to find some shade.William Yardley reports on an ongoing planning effort in Phoenix to cultivate a tre…

Published: July 29, 2016 - 11:12 pm @ http://www.planetizen.com/node/87654/phoenix-plann…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…