This report demonstrates the extremely high occupancy and scarcity of available space within business parks throughout North Scottsdale.
The northeast Scottsdale area includes McCormick Ranch, Gainey Ranch and Scottsdale Ranch to the south, the Shea Boulevard Corridor from 68th Street on the west to the CAP Canal (apx 120th Street) to the east, and the area north and south of Loop 101 to the north, including Scottsdale Airpark, Northsight, McDowell Mountain Ranch, Perimeter Center, and Chauncey Ranch.
Employment properties in this area primarily consists of offices, with some flex and industrial buildings mixed in. The first office condominiums in Arizona were developed in the Scottsdale Airpark along Loop 101 at Raintree Drive in 1999. Except for one Condo business park delivered in 2016, condominium business parks were developments between 1999 and 2007.The total inventory of offices and a break out of condominiums for this area is as shown below.
The following further summarizes the strength of Office and Flex Condominiums in this area (all amounts are approximate):
CONCLUSIONS:
- At 98.2% occupancy, condominium business parks in Northeast Scottsdale are in extremely high demand
- With only 17 units available out of 913, there is a scarcity of units available for lease
- No new inventory has been building in the past 16 years (except for a small project built in 2016)
- Professional offices, financial services, medical providers, and entrepreneurs who live nearby comprise the occupants of these business parks
- These businesses are not able to “remote work” as they interface with clients, patients, and colleagues
- The map on page 4 shows that these projects are in prestigious locations that are highly accessible and visible
- This data clearly demonstrates the security of investing in office condominiums, particularly when on long-term leases with below market rental rates