Tempe Development Thread

[CBar]

The news of a new terminal at the Sky Harbor airport was kind of out of the blue. It seems the proposed new terminal will be in the old Terminal 2 location; so it won't impact Tempe directly. More details are expected on May 7th.

The news https://www.abc15.com/news/region-ph...harbor-airport pointed me to the 2019 pdf https://www.skyharbor.com/media/k4eh...2019-09-13.pdf (see page 32) that talks about the proposed West Terminal under the heading "Preferred Terminal Concept".

While a new terminal on the west side may not have a direct impact on Tempe skyline, but more flights, especially more international flights, would have an indirect impact on Tempe.

[Forrester1998]

FWIW, that website for Hilo has been up for awhile now (a couple of years I think). There are two high rise projects in that immediate vicinity that have seen much more recent activity. The future high rise at 16 E. University (currently the Wells Fargo building) got zoning approval just last year, while the project on the NW corner of University and Myrtle (currently the Salvation Army worship center) recently began filing building permit applications for demolition of the current structures. I'm guessing this is being used as staging for one of those two projects.

[azsunsurfer]

News over at Marina Heights.....

The first chunk of one of Carvana Co.'s former Tempe offices has been claimed.

San Diego-based LPL Financial (Nasdaq: LPLA) will sublease a full floor, or about 43,000 square feet, at Building D at Marina Heights — a five-building office campus that overlooks Tempe Town Lake. Used car dealer Carvana (NYSE: CVNA) put about 292,000 square feet of the 372,741-square-foot building at 500 E. Rio Salado Parkway on the sublease market last year.

LPL is expected to take occupancy of its third-floor office in September. It will have about 400 workstations in its space. The company expects to bring hundreds of employees to the Tempe office.

"LPL’s new home office in Tempe is a significant milestone in the growth and momentum of our firm. Our expanded footprint allows us to better serve advisors and institutions throughout the Southwest and beyond. We are excited to tap into the strong local talent pool in the region for growth opportunities across several LPL teams, including client success, business strategy and growth, business and wealth solutions, and finance, operations and risk. We anticipate welcoming up to 250 employees in 2024, with room for expansion in 2025," the company wrote in a statement to the Business Journal.

The company has corporate offices in San Diego, Boston and Fort Mill, South Carolina. Locally, the firm has financial advisors with offices across the Phoenix metro.

“LPL had distinct market requirements and explored multiple locations before selecting Tempe. The decision was largely influenced by Tempe's vibrant talent pool and comprehensive amenities,” said Tom Adelson, executive managing director of Newmark Group and listing broker for the sublease, in a statement. “Carvana’s plug-and-play space provided an ideal solution, enabling LPL Financial to fast-track its operational readiness without any upfront capital expenses.”

Adelson is marketing the entire sublease with Newmark Director Erin McClure. CBRE Group Inc.'s Michael Conner, John Christenbury and Patrick Cavanagh represented LPL in its move to Tempe, according to a news release.

For the rest of the sublease space, Adelson and McClure are looking for tenants to scoop up a full floor or the entire remaining available space.

The 2.1 million-square-foot, five-building Marina Heights office complex on the Salt River was developed by Ryan Cos. and Sunbelt Holdings for State Farm. Experts point to the development as a driving force that gave the area around Tempe Town Lake legitimacy for top office users.

Carvana remains a tenant at Marina Heights
Despite putting a big block of space on the sublease market, Carvana remains a tenant at Marina Heights along with other major employers like State Farm and Honor Health. Carvana subleased about 350,000 square feet from State Farm in 2019 at Building A, where Mountainside Fitness also operates a gym on the ground floor.

Earlier this year, the Business Journal reported that Carvana would not take occupancy of a new office campus that was being built for them by Verde Investments. Instead, those buildings are now being marketed to new tenants. Adelson and McClure are also the listing brokers for the campus, which is now known as Tempe Vale.

Tempe's office submarket commanded the highest direct asking rental rate of any submarket throughout the Valley in the first quarter, at $38.46 per square foot, according to a report from brokerage firm Avison Young.

The Valley was hit hard by negative net absorption during the first quarter, with JLL data showing that the region registered negative 801,175 square feet since the start of the year. The amount of sublease additions, however, began to subside from a peak in the first half of 2023. The vacancy rate across the Valley stands at 25.9% as of Q1, according to JLL.

Earlier this month, the Business Journal reported that GoDaddy moved into a full floor at the nearby 100 Mill for a new company headquarters. That space was previously marketed as a sublease by Moov Technologies, but GoDaddy secured a direct lease as it moved through the process.

[muertecaza]

South Pier up to floor 8 and a lot more active work than The Pier...at what point does South Pier finishing first stop being a joke?