New 250,700 SF Creative Office Building Coming to Downtown Scottsdale
Technology-‐focused Companies Excited about Scottsdale, Spur Office Development in the Desert
Stockdale Capital Partners has announced plans to break ground in the third quarter on Marquee at the District, a new 250,700-square-foot class A creative office development in Downtown Scottsdale. Located just southeast of the intersection of Scottsdale and Camelback Roads, adjacent to the Galleria Corporate Centre and within steps of Downtown Scottsdale’s entertainment district, Marquee at the District will be a signature project within Scottsdale’s rapidly emerging downtown tech cluster.
More than a dozen Silicon Valley and Silicon Alley companies have opened operations in Scottsdale in the past 12 months and more have signaled their intent. Stockdale expects the demand from tech tenants wanting office space will only accelerate as users look for value alternatives to the high-cost of hiring and growing in markets such as San Francisco and New York. The lack of modern office supply with creative office amenities in the submarket creates a need that Marquee at the District seeks to meet.
Dan Michaels, managing director at Stockdale, tells GlobeSt.com the company fielded many calls looking for tech space in Old Town: “We got calls from San Francisco and Los Angeles with a lot of interest, but they were just not finding the space that met their requirements. We have the location and design to garner that pull of tech-oriented tenants. They are all looking for that live, work, play environment. There are 5,000 new multifamily units coming online, Scottsdale has the play environment covered and now, with Marquee at the District, we’ll have the work requirement in place. In Scottsdale right now there is literally not enough space to fill the demand. Tech tenants want large footprints and that type of space doesn’t exist. We are already in discussion with tenants. Marquee is great for the city, it’s great for tenants and it’s great for employees. The evolution of Scottsdale is real; it’s happening.”
“Growing technology companies want cheaper options that offer the same space and walkable amenities found in Downtown Scottsdale which are conducive to attracting the most talented work force,” says Stockdale’s Sean Blitz. “We have received strong indications that a new, creatively-focused development is badly needed downtown and, in fact, are already in discussions with several lead tenants.”
“Tenants attempting to hire a young, talented workforce are putting an emphasis on the employee experience. Technology-based companies like Yelp, SAP, CA, Weebly and Zenefits have already recognized the value of locating in such an amenity-rich submarket,” says CBRE’s Bryan Taute, who has been awarded the marketing and leasing on the new project. “It’s evident that the younger workforce increasingly views their office space as a consumer experience and employers are reacting to that mentality.”
Marquee at the District is a key component in the continued development and positioning of downtown Scottsdale as a prime urban market for major employers and employees alike. The City of Scottsdale’s local leadership, also invested in this endeavor, cites robust commercial real estate investment in Scottsdale which can be seen in the 130,000 square-foot expansion to Scottsdale Fashion Square mall, as well as numerous new high-end multifamily developments representing over 5,000 units.
“Downtown Scottsdale is a unique and vibrant location for corporations that embrace a strong live-work-thrive lifestyle,” said Scottsdale Mayor W.J. “Jim” Lane. “We believe that companies such as Yodle, Zenefits, Weebly and others are choosing Scottsdale due to our community’s commitment to providing its citizens with a higher quality of life, strong workforce and investment in a high-tech infrastructure.”
“The further development of high-end retail, entertainment and multifamily assets in Scottsdale’s core will continue to entice a well-educated, young demographic to the area. Conversely, companies in knowlodge-based industries that choose to locate in the area will reap the benefits of a stable, happy and talented workforce,” said Blitz. “Given the continued success in bringing great tech companies to Scottsdale, we look forward to delivering Downtown Scottsdale’s next preeminent office product and offering a phenomenal relative value, in terms of overall cost for companies to grow outside of high cost CBDs.”