“The
area has the demographics to support this type of project,”
said Ricky Lyons, owner of Scottsdale‑based developer
Champion. Lyons’ company is building two office buildings
near the southwest corner of 27th Street on Carefree
Highway.
Lyons
described the area as “an upwardly mobile, stable community”
that is growing and needs these types of services.
“It’s
a real no‑brainer for second and third practices
for medical and office professionals,” said Bret Isbell,
commercial broker for Cavan Commercial, a development
company. Cavan Commercial, also based in Scottsdale,
is the leasing agent for Champion’s new projects.
Champion
is constructing two office buildings on the southwest
corner–a 20,000‑square‑foot conventional
office building, the Sonoran Desert Office Building,
and the Sonoran Desert Commons, a 95,600‑square
foot complex of buildings to include eight office condos.
Construction is scheduled for completion in 2007.
About
85 percent of the Sonoran Desert Commons has been sold
or leased, Isbell said.
Office
condos are economical and give business owners an opportunity
to take pride in ownership, hence the strong performance
in the area. “The office condo market is thriving. It
just works,” Lyons said.
Another
office condo development under construction, situated
across the street from Champion’s projects, is The Village
at Sonoran Canyon. The 98,387‑square foot, 14‑building
complex is the vision of Scottsdale‑based developer
and broker Shea Commercial. Phase 1 is scheduled for
completion by November 2006 and Phase 2 is slated to
be finished by February 2007.
About
80 percent of the condos at this development have sold,
said Dave Illsley, sales manager for Shea Commercial.
Illsley
said the office condo market is strong. Compared to
the current residential market experiencing declining
prices, office condo pricing is stable after appreciating
over the past five years.
“The
area has a lot of development and a lot of absorption,”
he said, adding Shea decided to develop
the corner for its high traffic counts and income demographics
in the surrounding housing developments.
These
are the types of income levels that use professional
services and own professional businesses, Illsley said.
The
average (annual) household income within a one mile
radius of the corner is $70,310; within a three‑mile
radius it is $87,632; and within a five‑mile radius
it is $88,924, according to a Claritas study cited in
the Sonoran Desert Commons brochure.
Geographical
advantages listed in the brochure include the area’s
proximity to Interstate 17 and Loop 101, the Deer Valley
Airport, and Anthem (in the Black Mountain Corridor).
Real
estate appreciation, tax advantages, and paying less
than renting are among other ownership benefits cited
in the Sonoran Desert Commons brochure.
As
stated in the brochure, “Future developments include
an upcoming Westcor mall located on the southeast corner
of I‑17 and Carefree Highway.”
But
Westcor’s proposed development, an auto mall, is not
a done deal and has been met with strong opposition.
Phoenix
Councilwoman Peggy Neely in August said, “I have consistently
stated that I would not support any auto sales adjacent
to Carefree Highway. Carefree Highway is a designated
scenic corridor and I have requested the city planning
department to prohibit auto sales adjacent to all scenic
corridors.”
Connie
Randall, a Phoenix planner, said no such plan has been
approved.
Westcor
is working on plans for an auto mall and retail center
along I‑17 between Carefree Highway and Dove Valley
Road. Westcor does not own the land and has not yet
submitted a site plan to the city.
Reach
the reporter at kathleen@thedesertadvocate.com.
