Demand for Scottsdale Airpark commercial space far exceeds supply

Demand for Scottsdale Airpark commercial space far exceeds supply

Article Originally Posted by AZBigMedia on February 16, 2023
Colliers in Arizona has released the annual Greater Scottsdale Airpark 2030 Report, indicating healthy conditions within the growing submarket and an employee base expected to grow to 70,000 by 2030. According to the report, demand for commercial space in the Scottsdale Airpark area is exceeding supply and development of new space is being handled at a healthy pace. 

“Many are speculating a future recession, but we are not overly concerned about that for the Scottsdale Airpark,” says Jim Keeley, SIOR, CCIM and founding partner of the Colliers Scottsdale office. “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. 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.

PropTech (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. 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 currently under construction.