The Offices on High Street encompass seven buildings totalling 330,000 square feet of office space. They sit within the High Street mixed-use project, which also includes 99 high-end multifamily units and 175,000 square feet of sophisticated ground-floor retail, dining and entertainment.

Sprouts joins existing High Street office tenants Gigya Inc., Alliance Financial Resources, Nobis Technology Group and Yeager North.

Bonnell tells GlobeSt.com that High Street, formerly City North, was hard hit during the recession. “Nordstrom and Macy's were named tenants but things came to a halt during the recession. As other tenants were lost, it really put a hold on bringing in new tenants. There was not enough momentum to move forward at that time. The retailers were hit hard and there were really no office tenants to speak of.”

But last April new ownership changed that. “Improvements were made, along with a change in the name” says Bonnell. “Restaurants were added and other service-related businesses. Then that brought in the office tenants. This change really helped the potential tenants see the new vision for High Street.”

Bonnell explains that mixed-use is attractive to office tenants for a variety of reasons. Seeking a more collaborative work environment, many businesses are looking for amenity-rich spaces where they can meet after work, team build on site and offer their employees as many perks as possible. As employees are facing longer work days, they are seeking amenities convenient to their work location.

“High Street is now the perfect environment for that,” says Bonnell. “There is something for everyone and now there is a hip, new grocery store.”

Bonnell also explained that rates are really beginning to move up on mixed-use properties because it's what tenants are seeking.

“It all lines up with the recovery. The employer is now looking at quality of life for the employee, not just the rates. It's about 'What can I offer my employees?' This kind of mixed-use offers them a leg up when competing for that great workforce,” says Bonnell. “In the end, the employer wants a place they can be proud of. We are all busier people and access to these amenities makes sense and makes life easier. It's a quality of life issue and that speaks to the recovery. Tenants are simply not just focused solely on rates anymore.

“The upswing in the cycle is showing a lot of activity in the 2,000 to 10,000-square-foot range. Those are the entrepreneurs, the mom and pops, the bread and butter of the Phoenix market. They can no longer make do with where they are at because of their growth. They are fueling the office recovery and rents are moving up. I don't have a submarket where rents aren't moving up.”

High Street is located at the intersection of the Loop 101 and 56^th Street, just east of State Route 51 in North Phoenix. It sits within the 5,700-acre Desert Ridge, Arizona's largest master-planned community, which also includes a 268-bed Mayo Clinic Hospital, American Express Regional Campus, JW Marriott Resort and Spa, Wildlife Golf Club and Musical Instrument Museum (MIM). The project is just a short drive from Sky Harbor International Airport and the entire Phoenix and Scottsdale metropolitan areas.

High Street is owned by Portland-based real estate private equity firm ScanlanKemperBard Companies and Wayzata Investment Partners LLC.