Colliers International Releases Annual Scottsdale Airpark 2030 Report

Phoenix, Arizona – Jim Keeley, SIOR, CCIM, founding partner of Colliers International’s Scottsdale office, released his annual Greater Scottsdale Airpark 2030 Report for the year ending December 2016.  Known as the 2030 Report, references the vision of what the Greater Scottsdale Airpark would like in the year 2030. The 2030 Report was first published in 1989 as the 2010 Report and provides a current and historical perspective on economic activity, growth and trends for the Greater Scottsdale Airpark (“Airpark”).

“This past year brought an overall fresh attitude to the Airpark that embraces innovation, live/work/play and the transition to a millennial workforce,” said Keeley.  “The newly built ‘Sneaky Big Studios’ and the influx of technology companies are creating a dynamic, new energy to the area.”

One of the biggest changes in the Airpark was the city’s agreement to tear down the current airport terminal and renovate with two new hangars and an updated terminal.  “This modernization of facilities will insure that the Scottsdale Airpark will remain a destination of choice for private and corporate aviation,” said Keeley.

The recession cycle allowed the City of Scottsdale time to implement other new transportation decisions, including roundabouts on Hayden Road and Raintree Road.  These improvements will also solidify the future of the Airpark as a thriving business hub.

“This real estate cycle is quite different from those of the past 50 years,” said Keeley.  “We have far less vacant space because of job growth, which has driven up the price of buildings.  For the first time in Arizona’s economic history, this growth in employment was not driven by residential construction.” According to the Colliers International report, residential construction is expected to improve over the next several years, which will increase commercial and industrial property values even more.

“We have experienced very little construction in the past seven years and our inventory has been absorbed by schools, insurance companies, financial institutions, churches and other users.  Significant absorption and low vacancy has driven up rental rates, which we anticipate continuing.”

The Airpark posted a year-end 2016 vacancy rate of just 10.3%, the lowest since 2006.  Approximately 3,075 companies operate in the area, employing more than 56,000 people.

Approximately 38% of the commercial space in the Airpark is office buildings and another 27% is industrial/flex facilities.

“The Airpark continues to attract leading companies, either with their headquarters or subsidiaries,” said Keeley.  “It has been reported that eight billionaires operate in the Greater Scottsdale Airpark.”

A number of sizable transactions took place in or near the Airpark during 2016.  Optima Kierland, a 12-story, 220-unit residential project is actively under development.  The 202-unit Sunset Commons apartment community is underway and residents will take occupancy in 2017.  Additionally, Bahia Drive will be the future home of an exciting three-story live/work condo community called Soho.  On the retail side, Potato Barn opened its new furniture showroom on the Loop 101 freeway.  The office market received some very noteworthy deals in 2016.  Scottsdale Quarter opened its new six-story office building and is expected to lease up quickly with the highest rents in the Airpark.  YAM Holdings moved into a new 60,000-square-foot modern headquarters building.  Van Trust Real Estate relocated its corporate headquarters from Phoenix to the Greater Airpark Perimeter Center.

According to the Colliers report, the Airpark can look forward to an exciting 2017.  The Live/Work/Play evolution will come alive with more than 800 new apartment and condo owners taking up residence in the area.  A group of Airpark stakeholders are looking to “brand” the Airpark employment base and the area is expected to attract more aerospace, defense and technology focused companies.

For more details, access the full Greater Scottsdale Airpark 2030 Report by clicking HERE.

Planning and Zoning all over our state are preparing for growth in their respective areas. The City of Tucson that was conspicuously missing from the original list so has been added here.  For full original story see AZRE.

from The City of Scottsdale…
The Arizona Department of Transportation (ADOT) has proposed the widening of the Loop 101 Freeway from the Loop 202 to Shea Boulevard in Scottsdale. ADOT has hosted public meetings inviting interested parties to learn the details of this project. Construction for the freeway widening is expected to begin in late summer of 2014.

from The City of Surprise…
Voters have overwhelmingly approved Surprise’s plan to update the city’s guiding principles and goals for future development, backing the General Plan 2035 by 10,725 votes to 4,208 votes, or a whopping margin of nearly 72% to 28% according to unofficial results posted by the Maricopa County Recorder’s Office Tuesday evening. “Good things happen when a community comes together,” stated Surprise Mayor Sharon Wolcott in a prepared release. “Thousands of people participated in drafting the plan the community endorsed tonight. General Plan 2035 truly represents the authentic voice of Surprise,” the mayor added. The plan will give the city a comprehensive guide for future residential and business development, transportation needs and parks & recreational improvements. A City Council appointed citizens committee began a redo of the proposed plan in May 2012 with public meetings, surveys and field visits to local gathering spots to seek resident input. The new general plan also advocates creating a master plan to encourage the development of public art and cultural events, facilities and districts within the city and emphasizes the need for sustainable development.

from The City of Goodyear…
The City of Goodyear has been working on its general plan update. Drafts of portions of the plan were sent out to a citizen committee and to other interested parties for review earlier this year. Additional chapters of the plan have been posted on goodyearconnects.com for review by the general public. In addition, various public meetings have been scheduled throughout the year. The complete draft is to be presented to the city’s Planning and Zoning Commission and the City Council for discussion at a joint work session in October. The public is also invited to send comments on the plan.

from Pinal County…
In an effort to attract businesses, new development and jobs to Pinal County, the Development Services Department is proposing ways for easing the development review process. To accomplish this goal, the county has initiated a program to reduce the time it takes for permit approvals. This program includes changes in the concept review process and the addition of a Pre-Application Meeting, which will allow staff to review the essence of a development proposal before the formal application. The county claims these changes will save the applicant time and costs. In addition to these changes, the county also proposes changes to the rezoning and to the PAD process that will reduce the time needed for that process from the existing 15 weeks to a proposed 11 to 13 weeks. Processing changes include the dividing of PAD/rezone applications into required documents and background documents. The required documents would be specifically listed with approvals based solely on the information required on the list. Background documents would be intended as informational only and would not be a part of approvals. These changes are intended to shorten review times. A board of supervisors meeting has been scheduled to review and approve these changes.

from The City of Flagstaff….
In July, the City of Flagstaff City Council agreed, in principal, to give applicants seeking a zoning change the option to submit a so-called “concept-zoning plan” in an effort to expedite rezoning requests and to make it less of a financial burden for the applicant. The city currently requires, as do most cities, a detailed site plan and a number of engineering studies, such as a traffic study, a drainage study and water and sewer studies, before considering a change to an existing zoning district designation. The concept-zoning plan would permit approval of the requested change in zoning without a detailed site plan or the studies. The site plan and the studies would still be required, but only after the request was approved. However, in recent meetings, some commissioners and citizens expressed non-support of this proposed amendment. The opposition to the amendment suggests that it could lead to “speculative” zoning changes, which in turn could lead to higher land costs and, eventually, to higher housing cost.

from The City of Avondale…
Avondale has initiated comprehensive text amendments to its zoning ordinance. Drafted amendments to the existing ordinance include a new suburban residential zoning district; temporary sign amendments; a new historic Avondale infill overlay district; and landscaping requirement changes. These staff-initiated text amendments take place periodically to ensure the city stays progressive and responds to the development community’s needs and industry standards and changes. Scheduled public meetings have been held to give residents, business owners and other interested parties the opportunity to participate and provide feedback on the proposed text amendments.

from The City of Tucson…  

The results of the November 5, 2013 General Election indicate that Plan Tucson, the City’s new General and Sustainability Plan (Proposition 402) has been ratified by the voters. The ten-year Plan provides guidance on community building, but the public process itself contributed to building community by bringing together both a broad range of people representing governmental agencies and non-governmental organizations, including neighborhoods, business groups, developers, educational institutions, social agencies, environmental organizations, and others.  So many contributed so many hours of their valuable time, sharing perspectives on a host of topics, sometimes agreeing and sometimes strenuously disagreeing. There were “ah-ha” moments and “uh-uh” moments. The final document, however, reflects the commitment to our community, stoical perseverance, and willingness to seek common ground of all those involved.