Chandler’s Price Corridor a mecca for new offices
The Republic | azcentral.com
There’s an adage in real estate that the three most important factors are location, location and location.
When it comes to new office space in the Valley, it seems Chandler’s Price Road Corridor is the hot location.
In August, San Diego-based developer Douglas Allred Company broke ground on a 68,867-square-foot, two-story office building, the fifth on the campus on the northeastern corner of Price and Willis roads. It is only the second speculative office building, built before a tenant has been secured, in the Valley this year.
The other is a 92,000-square-foot Allred building next door that is also part of Allred Park Place.
They are the first built in the Valley in four years.
Mark Krison, senior vice president at CBRE, the Phoenix firm handling leasing for the space, said the Southeast Valley in general and the Price Road Corridor in particular are desirable.
“Historically, demand has been to be in the center of Phoenix,” Krison said. “And then as land has become less available, development pushed south and east or north and west, whichever the case might be. This is where (things) are going, as far as new development goes. This is the place to be.”
Chandler Economic Development Director Christine Mackay said the Price Road Corridor goes well beyond a main street for business.
“We call it the center of Main and Main in Chandler,” Mackay said. “It’s really where the best of everything converges, that’s workforce and transportation and projects and amenities. It’s such a tremendous asset for us.”
Allred Park Place is a collection of five office buildings, three of them completed and housing tenants.
The fourth has been leased to Infusionsoft, a business-software firm moving from Gilbert. That building is expected to be completed by the end of this year.
“We are extremely pleased with the market’s reception to our new product,” said David Allred, executive vice president of Douglas Allred. “With strong demand and the immediate lease up of our earlier construction, another building at Allred Park Place is warranted.”
Balmer Architectural Group of Phoenix is the architect for the fifth building. Willmeng Construction of Mesa is the contractor. The building is expected to be completed by May.
There is not a tenant signed to a lease yet, but Krison said there are several interested.
The Price Road Corridor’s proximity to two freeways and Chandler Fashion Center are at the heart of its appeal. The biggest factor, though, is nearby Intel, which has an already huge facility and is expanding, just to the south of the new Price Road developments.
“The companies that look in Chandler are high tech in nature or they’re large telecommunication companies,” Krison said. “They like locating along the Price Road Corridor because a lot of these people have businesses that interconnect with Intel. Intel is a big driver.”
Allred Park Place and other developments along Price Road are what Krison described as “corporate campuses.” The buildings typically range from 70,000 to 100,000 square feet and are two stories with plenty of parking. They’re designed for large tenants.
“We build buildings where people take the whole building, not necessarily 10,000 or 15,000 square feet of the building,” Krison said. “It is divisible, but our plan is to rent it all to one customer.”
Krison said the recession, which slowed business and construction nationwide, did not have as big an impact on those kinds of tenants.
“Even with the recession, there are lists of companies or industries that are very active,” Krison said. “Those companies need homes, they need places to go. We have a shortage of product and there is still continued demand for certain segments in the marketplace.”
Douglas Allred’s plans for the area are not expected to stop with the two buildings under construction in PhaseII of Allred Park Place.
There is a third building planned for PhaseII, and the company recently purchased 68 acres just south of Willis Road for a future phase.
Chandler Mayor Jay Tibshraeny said the expansion of Allred Park Place is a testament to the strong business climate in the city, where the vacancy rate for office space is about 5percent.
“This new construction shows how strong the office market is in Chandler today, and how it has recovered quickly,” Tibshraeny said. “The first speculative office building to start construction after the recession was in Chandler, and it is now 100percent leased even before it is complete. This new building will continue to allow us the opportunity to recruit quality jobs into the Price Corridor and keeps us in the running as companies are pursuing expansion and relocation opportunities.”