2030 REPORT 2021 Brought Infrastructure and Apartment Projects to Submarket
SCOTTSDALE, ARIZONA – Despite pandemic conditions, 2021 brought new development projects and relocating companies to the growing Scottsdale Airpark submarket. This, according to a report released by Colliers in Arizona, included infrastructure projects by the City of Scottsdale and new apartment buildings.
Towards the end of 2021, the City of Scottsdale began new roundabouts at 76th Street and Raintree Drive and 76th Street and Redfield Road. This is the start of infrastructure plans being installed throughout the Scottsdale Airpark area.
Additional construction in the area included construction of new apartment projects in the submarket. Many owners of properties in the area took advantage of the COVID-19 slowdown to renovate or update existing buildings in preparation for the return to normalcy.
During 2021, some new companies moved into the Scottdale Airpark. Vincit USA acquired Vuria, a software development company. This is just one example of technology companies seeking space in the submarket.
Ravenscroft, a new 30,000-square-foot music venu and multi-use space was created during 2021. The company purchased a building in Perimeter Center and performed a significant remodeling and re-purposing of the property.
On the land front, the State of Arizona continues auctioning property in the area. During December 2021 the Mayo Clinic successfully bid on 228 acres at the southwest corner of Loop 101 and 64th Street for creation of a patient care expansion and development of a biotech center. During the first quarter of 2022 two sites are scheduled for sale; a 51-acre site at the southeast corner of Loop 101 and 64th Street, as well as a 124-acre site at the northeast corner of Bell Road and Loop 101.
Commercial space is increasingly being used for auto related purposes in the Scottsdale Airpark. Recognized for its collectible car auctions, Scottsdale has become a year-round hub for collectors. It is now estimated that 45 privately owned collection are housed in the Scottsdale Airpark. These car owners are occupying space in hangers or warehouses, both rented facilities and owner-occupied. Building remdeled for this use tend to feature 80 percent showroom and 20 percent office configurations. It is estimated that more than $85 million of clasic and exotic cars are now located in the Scottsdale Airpark.
The Scottsdale Airpark submarket is expected to remain active during 2022. Ilume, the former Henkel headquarters property at Loop 101 and Scottsdale Road, is expected to attract new biotechnology tenants to the area, which will enhance this employment base. Additionally, Axis Raintree will complete its new 175,110-square-foot office building at Raintree Drive west of the Loop 101. This completion will coincide with construction of two apartment projects located near the Axis building.
The submarket is expected to expand its already robust collection of companies and employees during the upcoming year. Currently, the Scottsdale Airpark contains more than 46 million square feet of commercial space housing 3,339 companies. These firms employ in excess of 63,500 people within the submarket. Colliers in Arizona estimates that by 2030 these figures will grow to 53 milllion square feet of space and upwards of 4,200 companies employing 82,000 people.
Read the 2030 Report here.