The news by the Phoenix-based real estate company comes hard on the heels of Opus West's groundbreaking for Opus Northsight Phase II, a 137,000-sf speculative office complex also in North Scottsdale. Construction there started in late August.
"The North Scottsdale market continues to represent select and very solid development opportunities," Thomas W. Roberts, president and CEO of Opus West, says in a press release. "It produces great demand for class A space and consistently claims more than one-half of the absorption in the entire metro area."
The North Scottsdale Corporate Center will be located on 34 acres at the Loop 101 and Scottsdale Road near Mayo Boulevard. The project will be Opus West's largest office development in its six-state west region. The initial phase of the project will include a 150,000-sf, four-story building.
While the growth rate in office space in the metro area has been dizzying over the past few years--Alter Group just recently began to develop a two million-sf office park on the Salt River Reservation east of the city--demand remains high. Office vacancies in the area are around 16%--about 4% lower than in the Valley overall.
Jim Fijan of CB Richard Ellis, the exclusive leasing broker for the new Opus West project, says North Scottsdale's office market has tripled in size in the last three years."We are largely responding to that growth," Fijan says, "much of which is being generated from the construction of executive housing communities. These are the high-end areas that office developers most often want to build in, but do not because of their distance from employee populations."
With easy access planned between the new center and Loop 101, Fijan says the North Scottsdale Corporate Center mitigates that concern, providing convenient access to the sought-after West and Southeast Valley employment areas as well as nearby executive housing.
At build out, the project will be comparable in size to the three high-rise Camelback Esplanade buildings, another Opus West property. Other Opus West projects in the metro area over the past 10 years include the 280,000-sf Gainey Center I and II, 250,000-sf Scottsdale Spectrum I and II, 215,000-sf Scottsdale Gateway I and II and 160,000-sf Discount Tire national headquarters.
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