PARADISE VALLEY, AZ-As Sprouts Farmers Market expands it store footprint across the nation, it continues to grow within its corporate headquarters. The grocery chain signed a five-year renewal and expansion lease for 32,306 square feet at Paradise Village Office Park.
Spouts has been a tenant in the 268,598 square-foot, class A office building since 2006, according to Cooper Sutherland, vice president of real estate for Lincoln Property Company. The Dallas-based firm owns Paradise Village Office Park in partnership with Sterling American Property Inc. and handles the leasing and management for the four-story property, which is located at 11811 North Tatum Blvd.
Sutherland represented the owner in lease negotiations, while Scott Maxwell with CRESA Partners represented Sprouts. He tells GlobeSt.com that Sprouts started out in just 14,000 square feet and has expanded three times to accommodate its growth. Recently, the chain merged with Henry’s Farmers Market, a Southern California-based chain, and the companies have combined operations at Sprouts headquarters location.
Sprouts decided to remain at Paradise Village Office Park after considering other options, Sutherland says. “We were definitely excited to keep them in the building, especially since they are a growing company – something that is hard to find in today’s economy,” he notes, adding that the expansion allows the retailer to occupy contiguous space on the second floor of Paradise Village Office Park.
As part of the renewal and expansion, Sprouts received a tenant improvement allowance to refurbish and update its space. Additionally, the chain received building signage privileges, Sutherland says.
Sprouts is now the largest tenant in Paradise Village Office Park. The lease brings the building’s occupancy to 74%. The occupancy rate is slightly higher than average vacancy for the two submarkets that split Paradise Valley – Camelback Corridor (31.4% vacant) and Scottsdale North (28.6%), according to Cassidy Turley BRE Commercial’s first quarter 2011 office market report.
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