Sector Update:

TECH

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© Copyright 2017 by MP Media, LLC

A COMPARATIVE BARGAIN

Camelback Corridor benefits from the boom of 
technology companies here to take advantage of a highly 
educated workforce, abundant employee base, and 
robust economic growth conditions.  But largely, it’s the 
operational costs of location that stands out. 

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 “Silicon 

Valley companies pay what they consider bargain rates 
for top properties here,” Timpani says. “One client that 
is paying top-of-market rates here says it is their lowest 
per square foot rent of the markets in which they operate 
[in California].”

MARKET FORCES: JOBS OR PEOPLE?

 

An inversion of the traditional employment model 
has become a powerful dynamic that is changing how 
companies choose their workplaces in the Valley. 

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“The situation for these companies is the need for 
space from a recruitment/retention perspective,” O’Neil 
says. “Now lease decisions are all about workplace 
experience.” 

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 Buildings must provide a far more 

diverse mix of offerings for firms to land premier talent. 
Common elements, tenant lounges, dining and an urban 
park are some of the amenities becoming a must-have.

GROWTH TREND

 

Valley-wide the Colliers team sees growth in speculative 
office development, “The surge typically begins when 
vacancy hits 15 percent, and we are at 16 percent,” 
Timpani says. 

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 O’ Neil notes the absorption numbers 

continue to be positive, and points to activity as a 
good sign of market health. “Leases are smaller, which 
is indicative of a more sound and stable market.”As 
companies evolve and grow, they need a better place to 
get to that next level, and their employees want a place to 
call home. Camelback Road and 24th Street offers both 
– it is the place to be.

Over 30 tech-based companies have made 
Camelback their home, with 2,000+ employees 
and over 150,000 SF of space leased. A significant 
new entry to the corridor at Biltmore Center is 
Zenreach, an online retail marketing company. 
After all, Biltmore Center has more restaurants 
and multifamily units within three miles than 
Scottsdale, Tempe or downtown Phoenix. 

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Another firm, Insight Global, which provides 
staffing services for tech companies, wanted to 
position themselves to attract the best talent. 
Interestingly, the company had space in Scottsdale, 
but ultimately decided on the Corridor.

CAMELBACK CORRIDOR TAKES LEAD

 

IN ATTRACTING TECH

“People are not  

following jobs anymore;  

jobs follow people.”  

 

– 

PHIL BREIDENBACH, SIOR  

Executive Vice President, Colliers International

firms,  Silicon Valley transplants, 
and emerging growth companies 

evolve and establish their brand, they are now finding the vibes 
of downtown Tempe and Scottsdale may not be the best place to 
get them to the next level. Suddenly a new alternative combining 
quality of life, affordable housing, walkable amenities, workplace 
innovations and professional credibility has emerged at 24th Street 
and Camelback:

• “This is a compelling area bookended by the Uptown 

and Arcadia neighborhoods where people want to be,” 
says Ryan Timpani, Senior Vice President, Colliers 
International. 

• “The Corridor has 

executive housing, cool neighborhoods for millennials,  

and affordable urban infill,”

 says Pete O’Neil, Research Director, Colliers International.