Matt Root

Scottsdale is becoming a top submarket in the Phoenix metro for large corporate users. The market has access to talent and quality office space, making it a good fit for corporate tenants, and asset values are increasing. Parallel Capital Partners sold Kierland Corporate Center, one of the top addresses in the market, for $25 million, one of the highest per-square-foot prices in the market. The property is nearly 82,000 square feet and 93% occupied by companies including STMicroelectronics Inc., Eide Bailly, Stifel, Nicolaus & Company and Sherman & Howard, and it is a great example of the office activity in Scottsdale.

“Scottsdale is becoming very popular for corporate users because of the large employment center in Scottsdale, the upscale amenities, the prestigious corporate offices and the proximity to executive housing,” Matt Root, CEO of Parallel Capital Partners, tells GlobeSt.com.

The market has changed dramatically this cycle, from a largely residential market, to a more dynamic metro. “Scottsdale used to be too dependent on residential, with a significant cohort of demand coming from builders, title and escrow companies, etc.  When residential softened, the entire Scottsdale market suffered,” explains Root. “Today, the employment base is much more diversified, built on medical research, high-tech innovation, tourism, insurance, and finance-related companies. This evolution has strengthened the basic tenets of the submarket and the right urban mix bolsters occupancy, that density raises values and that vibrancy attracts investment capital.  That is what you are seeing in Scottsdale today.”