Top 10 Office Projects Under Construction in Phoenix
- May 20, 2020
The Phoenix metro is drawing both investors and larger companies due to its affordability, pro-business environment and untapped development potential. Office construction started off at a slow pace this year, with development activity disrupted by the coronavirus pandemic. Deliveries in the first quarter included two office buildings totaling 233,000 square feet in Chandler and Mesa, according to Yardi Matrix data.
The metro’s office pipeline encompasses more than 2.5 million square feet of space expected to come online in 2020, with nearly 1 million square feet slated for completion in May and June. The bulk of the upcoming projects are part of highly amenitized mixed-use campuses and medical office buildings. The table below highlights the largest properties underway, using Yardi Matrix data.
10. 777 Tower at Novus – Building 1
In May 2019, a joint venture between Ryan Cos. and University Realty broke ground on 777 Tower at Novus – Building 1, a 169,223 -square-foot office development in Tempe. Wells Fargo Bank provided a $38.2 million construction loan.
Scheduled for completion in the second part of 2020, the six-story building will feature open floorplans with penthouse office space and a central plaza. The upcoming property is located at 777 S. Novus Place and is part of the planned 330-acre Novus Innovation Corridor.
9. Axis Raintree
Trammell Crow broke ground on the 175,000-square-foot project in December 2019. Situated at SWC East Raintree Drive and North 87th Street, the three-story building represents the first premier office project to be erected in the northern part of Scottsdale since 2015. The asset is expected to be completed in October 2020. RSP Architects designed the project, while Western Alliance Bank financed the construction with a $40.3 million loan.
8. Creighton University Health Sciences Campus – Phase I
Creighton University is currently developing Creighton University Health Sciences Campus – Phase I, a 183,000-square-foot office building in Phoenix’ Central Corridor. The seven-story, $100-million property is expected to come online in September 2021, with Butler Design Group serving as architect and RDG Planning & Design leading conceptual and tenant design. At full build-out, the project will be home to a medical school and will house 900 students as well as future physicians and nurses. A second, adjacent building is in the planning and permitting stage.
7. Park Central – Phase II
Another office building taking shape in Phoenix is Holualoa Cos. and Plaza Cos.’ Park Central – Phase II. Construction of the 193,000-square-foot, two-story tower started in October 2019, with completion anticipated in May 2020. The asset is located at 3141 N. Third Ave. on a 21-acre site, which will also include a new nine-story residential complex right next to Creighton University’s upcoming health sciences building.
6. Wexford Innovation Center
Also in Phoenix, a public-private partnership comprising the City of Phoenix, Arizona State University, Wexford and Ventas is currently building Wexford Innovation Center. The 227,113-square-foot, HKS Architects-designed biomedical building is located at 850 N. Fifth St. in the city’s commercial business district.
Construction on the seven-story property started in March 2019, with completion scheduled for the end of 2021. The building is part of Phoenix Biomedical Campus, a 30-acre community that includes more than 6 million square feet of research, academic and clinical facilities across seven buildings.
5. The Union at Riverview – Building A
Lincoln Property Co. and Harvard Investments’ The Union at Riverview – Building A is the only development on this list being constructed in Mesa. The joint venture broke ground on the four-story project in October 2019, with completion scheduled for the last quarter of 2020. U.S. Bank financed the project with a $41.4 million loan. As the anchor tenant, WageWorks will lease 150,000 square feet.
Building A represents the first phase of The Union at Riverview, which encompasses four buildings totaling 1.4 million square feet of office space. Located at the junction of NWC Riverview Auto Drive with Cubs Way, it will neighbor the Chicago Cubs spring training ballpark.
4. The Edge – Office
Slated for delivery by March 2021, the second Scottsdale property on the list is The Edge – Office, located in the city’s Shea Corridor area. Dominion Management Co. and Palmer Development Group’s 250,000-square-foot project will spread across four stories and is part of a 15-acre mixed-use development comprising additional hospitality, retail and entertainment space. Construction on the property commenced in January 2020.
3. Phoenix VA Outpatient Clinic
U.S. Federal Properties’ Phoenix VA Outpatient Clinic is one of the upcoming medical office buildings on the list. Expected to come online in December 2021 in Phoenix’s City Center neighborhood, the asset will add 275,157 square feet of premier space to the market’s total inventory. Fifth Third Bank funded the construction through a $110.7 million loan. The developer began work on the project in June 2019. The five-story property is rising at SEC East Fillmore Street and North 30th Place and will include 1,269 parking spaces.
2. One Hundred Mill
The second building on our list, slated for delivery in March 2022, is Cousins Properties and Hines’ One Hundred Mill in downtown Tempe. The joint venture broke ground on the $153 million project in February 2020. Upon completion, the 287,000-square-foot development will include first-floor retail and five levels of parking. The 18-story property is rising at 100 S. Mill Ave., directly across from Tempe Beach Park and next to the historic Hayden House.
1. Cavasson – Phase I
The largest office property underway in the Greater Phoenix area is Nationwide Realty Investors and Grayhawk Development’s Cavasson – Phase I in Scottsdale. Construction on the 460,000-square-foot building started in October 2019. Upon completion, scheduled for November 2020, the project will serve as Nationwide Insurance’s regional headquarters building. The project represents the first phase of a 134-acre, $950 million project set to include approximately 1.8 million square feet of premier office space, hotels, 1,600 residences and a diverse mix of retail space, restaurants and amenities