PHOENIX—The Old Town Scottsdale submarket is hot and isn't showing any signs of slowing down, according to Chris Latvaaho of Cushman & Wakefield of Arizona, Inc. The company just negotiated leases totaling 24,486 square feet for a commercial real estate advisory firm and a medical care company at 4141 N. Scottsdale Rd.
Fresenius Medical Care of Waltham, Mass., signed a 12-year lease for 15,317 square feet. Fresenius provides dialysis treatment through a network of more than 1,800 facilities nationwide. Keyser signed a 6-year lease for 9,169 square feet. It is relocating from 1048 N. 48th St. in Phoenix.
The submarket is technically South Scottsdale, but encompasses Old Town Scottsdale.
“Old Town has done a great job of branding to the younger millennials. The city has created that live-work-play atmosphere that is so desirable to that younger demographic and workforce, so it's really evolved into a strong commercial market,” Latvaaho tells GlobeSt.com. “That's why so many companies are wanting to plant their flag there.”
The submarket is primarily a smaller tenant market and posted a 12.7 vacancy rate in the first quarter of 2014.
“It's one of the stronger performing submarkets,” continues Latvaaho, “though there is a lack of big block space. Owners are starting to push rents. It's a hot submarket and I don't see that changing any time soon.”
The anchor tenant is Aetna Life Insurance. With the two leases, occupancy will be 89 percent.
Latvaaho and Tim Whittemore of Cushman & Wakefield represented the landlord, an entity owned by certain affiliates of Westport Capital Partners LLC. Keyser was represented by company owner Jonathan Keyser. Fresenius was represented by Pete Wentis and Jim Greene of CBRE.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
