“When the last recession hit in 2008, this submarket was dramatically overbuilt. Since 2018, the Scottsdale Airpark market has been in a state of equilibrium with supply and demand in balance,” Keeley added.
“Current conditions indicate remarkable economic health in the area with demand outpacing the supply of space in most every product type.”
The Scottsdale Airpark 2030 Report is created each year by Colliers in Arizona to educate the market about conditions in the submarket.
At the end of 2022, the Airpark boasted approximately 3,326 resident companies with 64,130 employees. The submarket contains an inventory of approximately 47.3 million square feet of buildings.
Property technology companies are a growing category of tenants. These firms are helping individual companies research, buy, sell and manage real estate as occupancy changed post-COVID-19.
These firms are designing space to embody more of a “community hub” that encourages employee collaboration with various engaging areas within the suite.
The Scottsdale Airpark area has experienced an increase in housing units, as developers look to provide residences to the growing workforce in the area.
Kierland’s Ladlow’s Fine Furniture Store location is planned to become high-end apartments. The 330-unit ALTA Raintree Apartments opened in 2022 and the 192-unit TC Raintree project is under construction.
Other key changes in the Scottsdale Airpark submarket include the sale of CrackerJax (now named The Parque). Tech billionaire George Kurtz purchased the property in April 2022 and plans to build a legacy project on the site.
Additionally, DraftKings Sportsbook broke ground in 2022 at the southeast corner of Greenway Hayden Loop and Bell Road, across from the clubhouse of TPC Scottsdale. This 12,000-square-foot facility will offer premier gaming.
The area experienced the completion of historic factors in the Scottsdale Airpark during 2022. The Herberger family, who began purchasing land in the area in the late 1950s, sold CrackerJax in 2022, which ended their era of land development in the submarket.
Judd Herberger’s death in 2021, following the city’s loss of his other family members involved in the market, signaled an end of the Herbergers’ contributions to commercial real estate growth.
They will forever be remembered as dedicated, philanthropic heroes of our community, Keeley said.
Last year also completed Doug Ducey’s time as Arizona’s governor.
Under his leadership, the Arizona State Land Department (ASLD) began selling “fee simple” land in and around Scottsdale Airpark.
This brought development opportunities that were difficult to obtain. This new policy led to such developments as Cavasson and the Nationwide project.
In November 2022, the northeast corner of Hayden and Loop 101 was auctioned, with HonorHeath prevailing. The southeast corner of that intersection was purchased by Axon more than a year ago and will be the site of its new corporate headquarters.
The southwest corner was purchased in April 2022 by VanTuyl/DeRito Group for future development. Additionally, Mack Companies bought 124 acres at the northeast corner of Loop 101 and Bell Road for $125 million in March 2022.
The Scottsdale Airpark will continue experiencing dynamic changes as it moves forward. Projects planned include $29 million in renovations to the Kierland Office Park; and the $1 billion Optima McDowell Mountain Village at Loop 101 and Scottsdale Road. Its six buildings will include luxury residences, retail and commercial space.