Scottsdale’s Commercial Office Market – Spring Training 2015 –
Spring training is almost over in Scottsdale. Although the offseason gives local baseball fans a chance to snack on a hot dog and bathe in the sun, spring is also the time of year for teams to reflect on their 2014 performances.
With three National League West ball clubs, including the 2014 World Champion San Francisco Giants, training right here in Scottsdale, what better way to warm up with the first annual Scottsdale Stat of Spring. This year’s teams are Scottsdale’s class A and C office spaces.
Just like last year’s Giant’s, Scottsdale Class A office spaces are coming off a great season. In 2014, availability decreased 264 basis points. The steady decline in last year’s vacancy gives class A office space a chance to give young rookies lots of playing time this spring. 169,189 square feet of new construction is already underway in Scottsdale and getting ready for the 2015 season.
Like divisional last place Arizona Diamondbacks, class C Scottsdale office space had a rough 2014. Availability increased 189 basis points, and ended the year just below class A’s vacancy.
Both classes of office space’s vacancy started the year 472 basis points apart, but with class A’s playoff run and class C’s down year, they were brought within only 19 basis points of each other. This is the closest these two classes of office space have been since before 2008.
Class A’s new fans have seen a rise in stadium prices. Class A average asking rent in Scottsdale office space rose $0.96 per square foot in 2014. Class C office spaces are trying to keep their fans coming back and as a result 2014 saw a $0.60 decrease in average asking rents.
Both teams need to examine their window to compete for a playoff spot this year, but we can already see Scottsdale’s Class A office space is thinking pennant.
Data from 42Floors Scottsdale Office Space Index