Office leasing activity in Scottsdale continues to gain pace as more companies see the ability to recruit and retain talent as one of the prime benefits of a location in the ‘Livable City’.
The latest growth company to expand its footprint and reinforce its commitment to the area is online hiring platform, Indeed, Inc. The Austin, Texas-based company just signed a seven-year lease for 53,000 square feet at Scottsdale Galleria, doubling its footprint in the recently renovated 540,579 square foot Class A creative office building.
Indeed first dipped its toe into Scottsdale’s Downtown Entertainment District earlier this year by subleasing a little over 20,000 square feet at the Galleria and hiring more than 50 employees to fill sales and client service positions. Reputed to be the world’s largest job site with more than 200 million unique visitors each month using the site to search for employment, Indeed, Inc. now has the capacity under the new lease to house up to 300 employees in its new Scottsdale location. The company also has offices in Mountain View, Calif., New York, Stamford, Conn., Dublin, Ireland, and London, England.
“Established global companies like Indeed are very quickly realizing that Scottsdale’s Downtown Entertainment District offers the perfect environment in which to attract, recruit and retain talent,” said Steven Yari, Managing Principal, Stockdale Capital Partners. He indicated that other lease deals now in the works may be executed before year end.
Late last year, Sisense, a New York-based business intelligence software-as-a-service company, signed a lease at Scottsdale Galleria for 6,300 square feet and began hiring up to 50 employees. Content marketing and sales conversion services firm Clearlink also opened a 350-person call center in the Galleria.
Stockdale’s founding principals – Steven Yari and Shawn Yari – began investing in Old Town Scottsdale in the late 1990s, redeveloping a dilapidated shopping center and corner gas station at the NE corner of Scottsdale Road and Camelback and creating a thriving mixed-use office/retail complex with national brand tenants such as Chipotle, Comerica Bank, Yogurtland and Jared’s Jewelers. They also control the nearby W Hotel, which they developed and steered through the depths of the global recession and which today is enjoying among the highest occupancy rates of any hotel in the area. Earlier this year, Stockdale Capital completed a $7 million renovation and recapitalized the property, bringing in discretionary investment manager Jasper Ridge Partners, L.P. as a joint venture partner.
“We see a critical mass developing within Scottsdale’s Downtown Entertainment District today and all the elements are here to continue to attract major businesses and as well as start-ups and early stage ventures, ” said Shawn Yari. “Unlike some urban markets, Scottsdale ticks more of the boxes sought by growth companies scouting locations today: affordability; accessibility; abundant amenities; an attractive business environment; a large, highly intelligent workforce; wide variety of housing options and a great climate,” he added.
The Galleria itself is a highly amenitized business environment. The building has a large lobby and common areas with collaborative meeting spaces as well as a state-of-the-art conference center. Southern California eatery Comoncy has a café in the building, offering tenants a unique hand-made menu just steps from their offices.
By the end of this year, the Galleria will be able to accommodate up to 200,000 square feet of new tenancy. Stockdale’s adjacent development – Marquee at The District –will offer an additional 210,000 s.f of space. Next year, Stockdale expects to break ground on its fully entitled Waterview development on an 8-acre site between Camelback and the Arizona Canal, adding 240 residential units and a 269 room hotel to the nearby amenities.