The Galleria, a downtown Scottsdale office center, has announced that it can now accommodate users with requirements greater than 50,000 square feet.
This new availability at the office project marks the first time in more than eight years that downtown Scottsdale has had an available contiguous block of space larger than 50,000 square feet, according to a press release.
Formerly home to Le Cordon Bleu culinary school, the 52,000 square foot area has been re-imagined as high-end office space.
Additionally, with one of its largest tenants, McKesson, announcing plans for a new suburban build-to-suit project to accommodate the company’s major growth plans, by November 2017 Galleria will be able to offer another large block of space – nearly 100,000 square feet – to office users looking to break into downtown Scottsdale.
“McKesson and Le Cordon Bleu were two of the first tenants to locate to the project in the early 2000’s well before the transformation of the surrounding area,” said Dan Michaels, managing director at Stockdale Capital Partners, which owns the Galleria, in the press release.
“Downtown Scottsdale has become a hot bed for companies looking to attract the most talented millennial workforce and Galleria is right in the center of it all.”
Mr. Michaels points to drivers like the thousands of urban multi-family units and dozens of restaurants and bars that have been added in the last few years, as well as downtown’s proximity to Arizona State University, a leader in producing the area’s highly sought after workforce.
“We’ve been anticipating this day for quite awhile, and we’re excited about the opportunity this new availability brings,” Mr. Michaels said in the release.
“We have seen a lot of users over the last couple of years want to locate in the project and we have been unable to accommodate them until now. We continue to drive our modernization initiatives and remain focused on targeting those growing organizations who enjoy high employee retention rates given all the amenities Galleria’s location offers.”
The Galleria is currently fully leased, but by the end of 2017 the project will be able to accommodate users up to 200,000 square feet. The adjacent 210,000 square foot planned Marquee at The District also provides tenants with additional expansion opportunities.
According to CBRE Research, south Scottsdale remains the tightest office market in metropolitan Phoenix. Overall, the sub-market’s vacancy rate stands at 8.3 percent, with class A and B space at 8.5 and 5.9 percent, respectively.
According to Danielle Casey with Scottsdale’s economic development office, inquiries from office tenants are at an all-time high.
“We’ve seen a tremendous amount of activity and desire from office users who want to be in downtown Scottsdale, but haven’t had any options for the larger users. This new opportunity at the Galleria is an exciting chance to grow our employer base,” Ms. Casey said in the release.
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