Douglas Allred Co. expands speculative office project in Chandler
Phoenix Business Journal
San Diego-based Douglas Allred Co. recently broke ground on a speculative office building in the same Chandler development where construction of the new Infusionsoft facility is slated to wrap up by year-end, according to a statement this week by CBRE Inc. in Phoenix.
The roughly 69,000-square-foot facility broke ground in August and is the latest addition to the Allred Park Place project in the Price Road Corridor, which has become a hub for technology firms such as Intel Corp. and eBay.
The new two-story facility is only the second spec building that launched construction this year in metro Phoenix. The first one was a 92,100-square-foot facility, also in Allred Park Place, that began construction in January and was later preleased in May to Gilbert-based software development company Infusionsoft. The Infusionsoft building is also being developed by Douglas Allred.
Local real estate professionals consider construction of those two Chandler facilities a milestone for the Valley, which, until now, hasn’t seen new spec development since the third quarter of 2009. That’s largely because the still-shaky commercial real estate market has caused developers and builders to hesitate to invest in new projects without preleasing at least some of the space.
But Douglas Allred officials say they feel confident enough in the market’s recent improvements to be the ones to take that first step.
“With strong demand and the immediate lease up of our earlier construction, another building at Allred Park Place is warranted,” David Allred, the developer’s executive vice president, said in the statement.
The general contractor for both buildings is Mesa-based Willmeng Construction and architectural services are being provided by Balmer Architectural Group in Phoenix.
Construction on the newest spec building is slated to wrap up by May of next year. No word yet on any possible tenants, but CBRE will handle the leasing.
Allred Park Place already has four other existing Class-A office buildings, which total nearly 354,000 square feet and are about 90 percent occupied. The developer’s goal for the multiphase development is to eventually boost the leasable space to more than 1 million square feet with the addition of several other office buildings.
“The Southeast Valley leads the market in terms of absorption, with nearly 350,000 square feet through mid-year,” Mark Krison, senior vice president of CBRE’s Phoenix office who will also continue handling Allred Park’s leasing along with Vice President Scott German, said in the statement. “While demand and supply are high, there are very few new, Class-A office projects available in the area. Allred Park Place will fill the void, offering exactly what the market demands.”