In a series of transactions that reflects the continuing recovery of the Phoenix office market, Transwestern brokered four long-term leases throughout the region, highlighted by a more than 52,000-square-foot renewal and expansion for Health Choice Arizona Inc. in Three Gateway, located at 410 North 44th St. in Phoenix.
Health Choice Arizona, one of the state’s leading managed health care plans, has been a tenant at the Class A building, which is part of the Phoenix Gateway Center, for five years.
“This lease is just one of several recent transactions indicating we’re in a rebounding office market,” said Transwestern Senior Vice President Bill Zurek, lead broker in the transaction. “Our market research shows that the Phoenix office vacancy rate is now below 20 percent. That’s still behind the national vacancy rate of slightly less than 12 percent, but it’s a very positive sign for Phoenix, especially since rental rates and net absorption also increased over the previous quarter.”
Centrally located and just five minutes from the Sky Harbor International Airport, the Gateway complex sits on a lushly landscaped 12.5 acres. It is owned by a joint venture partnership consisting of Pearlmark Real Estate Partners LLC and a subsidiary of a real estate fund managed by Oaktree Capital Management L.P. Transwestern is the property management firm for Gateway.
Transwestern Senior Vice President Jim Achen Jr. worked with Zurek in representing the landlord. First Vice President Mike Ragland of CBRE represented Health Choice Arizona.
Additionally, Transwestern negotiated a long-term lease of nearly 34,000 square feet for Ameriprise Financial Inc. at Canyon Corporate Plaza II, located at 2512 Dunlap Avenue in Phoenix. Owned by Washington, D.C.-based Canyon Corporate Plaza Properties, LLC, Canyon Corporate Plaza II was built in 2000 and is within walking distance of the Koll Business Center and Phoenix’s Metro Marketplace. Zurek and Achen were Transwestern’s lead brokers on behalf of the building owner. Dave Barrett of CBRE represented Ameriprise Financial.
CareerBuilder LLC, a job-search firm, signed a long-term lease for nearly 5,000 square feet in the Scottsdale Financial III property, located at 7272 East Indian School Road in Scottsdale, Ariz. CareerBuilder was represented by Transwestern Executive President Vineet Sahgal, with assistance from Zurek and Achen. Brian Raczynski of Colliers International represented the private owners of Financial III.
Lastly, Strategic Media Advertising signed a lease for nearly 7,000 square feet of space at Camelback Plaza West at 1990 West Camelback Road in Phoenix. Owned by Southwest Commercial Property LLC, Camelback Plaza is near the 19th Avenue Light Rail Station and is surrounded by residential areas. Transwestern’s Zurek and Achen represented Southwest Commercial in the lease negotiations. Strategic Media negotiated the lease without outside representation.
“When we look at these commitments by several diverse types of businesses, the collective confidence stands out,” said Achen. “It’s a solid indication that Phoenix’s economy is getting back on track.”