Phoenix Development News (3)

[ASU Diablo]

For your reading pleasure...

http://azbex.com/report-phx-office-m...fies-recovery/

Colliers International in Greater Phoenix released its mid-year 2016 Office Market Report for Greater Phoenix. Report highlights are outlined below.

• Greater Phoenix posted strong net absorption during the second quarter of 2016, topping 1.4MSF. Net absorption totals posted since mid-year 2015 have surpassed 4.7MSF, making it the greatest 12-month period since 2007.

• Vacancy throughout all classes of space has decreased to the mid-16% range. City-wide the vacancy rate at mid-year was 16.6 percent compared to 18.1% at mid-year 2015.

• Job growth slowed slightly in 2016 compared to 2015, but the continued hiring has driven tenant demand for more space.

• Rental rates have stabilized and are gaining momentum in all classes of product, rising 5.5 percent during the past year. The greatest increases are being experienced in Class A properties.

• Developers delivered approximately 1.1MSF of new space to the market during second quarter, bringing the 2016 year-to-date total to 1.4MSF. More than 1.6MSF are currently under construction, with approximately 1MSF of those slated for completion during 2016.

• Investors continue purchasing in Phoenix with sales velocity this year out pacing the first half of 2015. Prices and cap rates are close to 2015 levels, but activity at the high-end of the price spectrum has slowed.

According to Colliers International of Greater Phoenix, demand for office space is expected to remain healthy as employers continue job growth. Net absorption is predicted to reach approximately 3.4MSF for 2016, approximating the net absorption for the previous year.

Vacancy will reach its lowest point since mid-2008, forecasted to drop to 16 percent by year-end. This will complete six consecutive years of vacancy decline in the office market. Rental rates will continue increasing and are projected to reach approximately $25.00 per square foot by the end of 2017.

While construction activity lessened this year over last, the strengthening market will bring more momentum to the development sector in the next 12-18 months. Investment activity will remain healthy for the remainder of 2016 with interest rates remaining low and Phoenix continuing to attract attention from investors throughout the country.

[dtnphx]

Hampton Inn proposed for Polk & 1st Streets.

There's a preliminary proposal for a Hampton Inn on SWC of Polk & 1st. Good news is that it will be on the parking lot just north of the Westin/Freeport McMoran Tower, the bad news is that it may be oriented to Polk & 1st with it's back to Central Ave. and the Civic Center Park which would be a shame. No specifics on height, size, etc.

[Obadno]

Originally Posted by dtnphx

Hampton Inn proposed for Polk & 1st Streets.

There's a preliminary proposal for a Hampton Inn on SWC of Polk & 1st. Good news is that it will be on the parking lot just north of the Westin/Freeport McMoran Tower, the bad news is that it may be oriented to Polk & 1st with it's back to Central Ave. and the Civic Center Park which would be a shame. No specifics on height, size, etc.

Hampton Inn doesn't seem like the right branding for that location. I searched Google for "downtown Hampton Inn" and there isn't a single one over 8 or 9 stories.

That would be disappointing

[plinko]

Hampton Inn? On that block? Uggghhhh. Deliver me from an over scaled Porte cochere, EIFS facade and foam cornice. Maybe there will be a mansard! Says a great deal about the downtown hotel market that this isn't an Aloft or a Kimpton or other moderate sized upscale boutique business hotel. Rack rates must suck. Where is Crowne Plaza getting the money to renovate?

[Jjs5056]

DT PHX was largely made up of higher-value brands for a time: Marriott Renaissance, Hyatt Regency, Sheraton Grand, Westin; we're just now seeing the mid-scale additions of Residence/Courtyard Inn and Hilton Garden Inn. I agree that the boutique/lifestyle segment has been a bit of a miss - only the Palomar and FOUND:RE in that category.

Central/Adams still seems perfect for an Aloft, Marriott AC, or Moxy, and Roosevelt Row is low on hotel space; the Canopy by Hilton would be a cool concept in that area. And, of course, a W as part of any new arena proposal would be great.

A Hampton Inn makes sense given the area - ASU parents, traveling lawyers, etc., but an Aloft or Element would have fit with the overall design aesthetic of OCPE. If it is oriented toward Polk/1st, I can only hope there might still be plans for an additional residential component fronting Central. Polk/1st is a total dead zone and just wouldn't make sense to build a standalone hotel facing that way... remember that this was supposed to be a 6-story single-use garage for some time; I think an 8-10 story hotel is a fine addition on top of a parking lot I never thought would be developed.

[Jjs5056]

Originally Posted by PHX31

That would be so sweet if that immense eyesore of an empty lot got developed. Would be awesome for the Public Market and N Central as a whole. Maybe they'll even incorporate the abandoned underground bowling alley (highly unlikely). I'd think 11 stories might be about the height of the Westward Ho.

It's great that one of the major lots is being developed in between downtown and RRow, and I'm happy to see it is both tall and mixed-use. They have already asked to abandon the alley, so the project will take the entire lot, so I hope there is some variation like with Portland on the Park. 11 stories over retail along Central, 9 stories over retail along Fillmore, 5-stories with restaurants and live/work on Pierce and 1st Streets...

But, the Westward Ho and ASU are a huge gap between everything going on along Adams and Monroe, and the area between McKinley and Hance. I'm expecting limited retail along Central with a part along Fillmore at most, because this project is surrounded by a moat: deadzones across all 4 streets.

1st/Pierce could turn into a cluster of local restaurants if a few more are added to forget about the Hut... Central could have an eclectic mix of old and new from Roosevelt - Madison with the right renovations and infill; an Urgent Care or something on the ground floor of the Ho would be better than nothing, and ASU should renovate its entire ground floor of the University Center with the new bookstore in the Law building. An Apple Store, Barnes and Noble, *Sponsor Bank*, Verizon, etc. would be good retail additions.

[muertecaza]

Originally Posted by Jjs5056

DT PHX was largely made up of higher-value brands for a time: Marriott Renaissance, Hyatt Regency, Sheraton Grand, Westin; we're just now seeing the mid-scale additions of Residence/Courtyard Inn and Hilton Garden Inn. I agree that the boutique/lifestyle segment has been a bit of a miss - only the Palomar and FOUND:RE in that category.

Central/Adams still seems perfect for an Aloft, Marriott AC, or Moxy, and Roosevelt Row is low on hotel space; the Canopy by Hilton would be a cool concept in that area. And, of course, a W as part of any new arena proposal would be great.

A Hampton Inn makes sense given the area - ASU parents, traveling lawyers, etc., but an Aloft or Element would have fit with the overall design aesthetic of OCPE. If it is oriented toward Polk/1st, I can only hope there might still be plans for an additional residential component fronting Central. Polk/1st is a total dead zone and just wouldn't make sense to build a standalone hotel facing that way... remember that this was supposed to be a 6-story single-use garage for some time; I think an 8-10 story hotel is a fine addition on top of a parking lot I never thought would be developed.

Poking around City of Phoenix permits and plan reviews, and found some information. Hotel will be 11 stories, 210 rooms.

http://docdro.id/zl6DbKM

The address being given is 77 E. Polk St. I assume that means it's likely oriented toward Polk?

http://docdro.id/cao7er4

Here is a downtown Hampton Inn in Cleveland. It's a little taller than 11 stories, but it's similarly situated and seems like a reasonable example of what to expect.

Here's one in Manhattan.

Here's one in Charlotte, also around 11 stories.

[dtnphx]

Good research and thank you for posting the street views of the other hotels. Really provides perspective. 11-stories is slightly disappointing but will be a good fit for that area. My only wish is that they reorient it to Central or create something worthy of our main boulevard.

[Obadno]

Originally Posted by dtnphx

Good research and thank you for posting the street views of the other hotels. Really provides perspective. 11-stories is slightly disappointing but will be a good fit for that area. My only wish is that they reorient it to Central or create something worthy of our main boulevard.

Didn't somebody post that they revived the second phase of Central Park East? which was like a 30-40 story office tower on the SE corner of Polk and Central facing central. (rendering posted a few pages back)

Or was that rumbling this hotel? But if it was 11 stories on 1/4 block on top of parking I wouldn't mind.

[PHX31]

Yeah, what portion of that lot will it be taking up? If only the NE portion and only being 1/4 of the block, I'm OK with it. If they leave the rest of the lot for the future taller building that could have a nicer interaction with Central (that was potentially mentioned) that would be fine.

[dtnphx]

Originally Posted by PHX31

Yeah, what portion of that lot will it be taking up? If only the NE portion and only being 1/4 of the block, I'm OK with it. If they leave the rest of the lot for the future taller building that could have a nicer interaction with Central (that was potentially mentioned) that would be fine.

Oh, that's a different story. Fingers crossed.

[biggus diggus]

Do we know who is developing/who will own this hotel? The application only lists the attorney and architect.

[muertecaza]

Originally Posted by biggus diggus

Do we know who is developing/who will own this hotel? The application only lists the attorney and architect.

Some of the other documents say Mesirow Stein Real Estate, Inc., out of Chicago. I don't know anything about them.

[azsunsurfer]

Originally Posted by muertecaza

Some of the other documents say Mesirow Stein Real Estate, Inc., out of Chicago. I don't know anything about them.

They developed the original tower...they own the rest of the block.

[phoenixwillrise]

Originally Posted by HooverDam

What is this fucking obsession with making college cheap? College is expensive, get over it! Work your ass off and get a scholarship like I did, this manic obsession with cutting admission cost really harms the ability of our state to have quality education.

VV There's nothing 'excessive' about the prices any of the schools in Arizona are charging, theyre crazy cheap.

100% right on Hoover. Also these clowns bitching about their debt. Hey college student you didn't have to attend expensive "X" school if you couldn't afford it you could have gone to "y" school and please tell me student that you didn't major in finance.
And now we have politicians who are gong to buy their vote by promising debt reduction or elimination, total B.S.

[Obadno]

Originally Posted by phoenixwillrise

100% right on Hoover. Also these clowns bitching about their debt. Hey college student you didn't have to attend expensive "X" school if you couldn't afford it you could have gone to "y" school and please tell me student that you didn't major in finance.
And now we have politicians who are gong to buy their vote by promising debt reduction or elimination, total B.S.

And by "making college more accessible" they have created hyperinflation in tuition cost.

its all asinine. and the purchasing of the young by promising them out of debt slavery is quite shameful. Another example of feds creating a problem they promise to "solve"

[exit2lef]

Why has a discussion about tuition from 2009 (the date of Hoover's quoted post) been revived in a forum about Phoenix development? Maybe it should be moved to a more appropriate place.

[crwhiteinaz]

http://www.bizjournals.com/phoenix/n...tists-for.html

The development group looking to bring a new 19-story apartment tower to the old Circles Records building in downtown Phoenix has unveiled new plans aimed at easing opposition from preservationists worried about the future of a property first built in 1946.

Aspirant Development, which bought the empty Circles building in and has faced redevelopment opposition from preservationists — is circulating some new renderings showing existing brick exteriors of the Circles building incorporated into the planned apartment tower.

The developers are also bringing in Phoenix artists Pete Deise and Ashley Macias to add murals and sculptures to the $70 million redevelopment.

Geoffrey Jacobs, one of the owners of the Circles building, said other artists will also be brought in including for murals on parking garages.

The building was first a Studebaker dealership and then was for years home to and owned by Circles Records & Tapes. The record store closed in 2010.

The development group bought the property with hopes of joining the wave of new multifamily projects coming to downtown Phoenix. The Circles building is located at Central Avenue and McKinley Street along the Metro light rail.

But the developers were criticized in April, including by Mayor Greg Stanton when demolition crews started gutting interior portions of the Circles building.

Demolition stopped. Jacobs apologized.

And now the development group is unveiling new plans with a heavy focus on arts to try to ease concerns.

“Where controversy resides opportunity exists. That’s where artists come in. In this case I intend to interpret, infuse and inspire with a new icon for our urban core,” said Deise who will produce a large sculpture.

Part of the new effort includes working with Phoenix Art Museum Director Emeritus James Ballinger as the project moves forward.

The real estate group is also now calling the redevelopment project The Stewart.

The Studebaker dealership was called the Stewart Motor Co. Jacobs and his ownership team, which also includes Phoenix businessman Richard Felker, are working with the Stewart family on the new designs.

They hope to start construction in September.A

“We have learned a very valuable lesson,” Jacobs and Felker said. “By stopping our demolition and listening to the community I truly believe we have come up with a better, landmark plan that preserves icons and even creates many more. We look forward to continuing our work with all to ultimately build a project that’s great for all,” they said.

[mdpx]

I can dig it.

[PHXFlyer11]

Originally Posted by mdpx

I can dig it.

Let's hope they start in Sept like they say. They seem pretty serious and this i a great project!