What's New in Phoenix?

EMPLOYMENT
Employment market information is made available as changes occur. Sources of information include the State Department of Economic Security, The United States Department of Labor, and publicly announced information regarding employment reduction or employment additions made available from secondary sources.
Employment Reduction
Employer Reduction (Jobs) Reporting Date
Marvell Technology Group Ltd. 240
12/2007
Arizona Public Service Co. 300 01/2008
1st National Bank of Arizona 35
01/2008
Honeywell Aerospace 420
02/2008
Freescale
 100
 05/2008
STA Travel Inc.
 200
 06/2008
Catalyst Paper Corp
100
06/2008
DBL Distributing LLC
145
07/2008
Arizona Title Agency
50
08/2008
Mervyns LLC
400
08/2008
Arizona State University
250
08/2008
Employment Addition
Employer Addition (Jobs) Reporting Date
Reliance Cos. 1,500
12/2007
West Business Services 200
01/2008
General Dynamics
 900
 04/2008
US Airways
800
 05/2008
Hawker Beechcraft
 110
 05/2008
Advanced Healthcare Co. 130
06/2008
RSI Enterprises80
06/2008
VESystems
16
06/2008
Amazon.com Inc.
 1,300 07/2008
Reliance Companies
1,50007/2008
Taylor Morrison Inc.
100
08/2008
Infusionsoft
20
08/2008
Non-Agricultural Employment Status
  Total Employment (1,891.9)
Period ConstructionOther Total
June 2008 Total 146.0 1,745.9 1,891.9

** Phoenix-Mesa-Scottsdale, Source: U.S. Department of Labor

Labor Force Data, Phoenix-Mesa
Civilian Labor Force Unemployment Rate Reporting Date
2,080.4 3.8%
12/2007
2,086.84.0%01/2008
2,078.8 3.5%02/2008
2,080.8 3.5% 03/2008
2,070.0 3.2% 04/2008
2,068.73.5%
05/2008
2,085.6
4.3%
06/2008

 

Source: U.S. Bureau of Labor Statistics

 
POPULATION
Population data references the United States Bureau of the Census, or the State Department of Economic Security. Population data illustrated compares the most recent census with the 1990 census, and is updated when population data changes are announced.
Most Recent Reporting Year

Total Maricopa County Population Change:
July 1, 2005 to July 1, 2006 (In Thousands)
Year Net Migration Net Natural Increase Change Total Population
2006 90.7 38.9 129.6 3,768,123

Source: U.S. Census Bureau

Prior Census Periods
_________Change_________
Year Population (000) Number (000) Percentage
2006 3,768 696 22.6
2000 3,072 936 43.3
1990 2,161 614 39.7
1980 1,547 576 59.3
1970 971 307 46.2
1960 664 Base Year
 
FREEWAY DEVELOPMENT
Freeway development announcements are monitored through the state agencies responsible for freeway development, and updated as that information is made available.
Loop 101 HOV Lanes

The Loop 101 (Pima Freeway) HOV Lanes, from Princess Drive to Loop 202 (Red Mountain Freeway), is programmed for study and construction. Final design for this project has been completed and construction is estimated to begin in fall 2007 with anticipated completion of the project in 325 working days.

Loop 101 (Price Freeway) forms the southernmost leg of Loop 101, connecting with the Red Mountain and Superstition Freeways before terminating at the Santan Freeway in Chandler. Improvements will add HOV lanes in the median of Loop 101 from the Red Mountain Freeway to the Santan Freeway. This will be accomplished in two segments. First, ADOT will complete the segment one design of the Loop 101 HOV lanes from the Red Mountain Freeway to Baseline Road in 2007; construction is scheduled to begin in early 2008. The estimated duration of construction is 10 months. The second project segment will add HOV lanes on Loop 101 between Baseline Road and the Santan Freeway. This project was originally programmed to begin construction in 2010 but has been accelerated due to the allocation of Statewide Transportation Acceleration Needs funds by the State Legislature. This segment is under design starting in June 2007 with construction estimated to begin in spring/summer 2008. The project is estimated to be completed in early 2009.

Source: The Arizona Department of Transportation
State Route 51

To address the future demands on this route, the Regional Transportation Plan calls for the addition of both general-purpose lanes and HOV lanes. ADOT will be constructing one new High Occupancy Vehicle lane in each direction on State Route 51 (Piestewa Freeway) between Shea Blvd. up and on to the Loop 101 to Tatum Blvd. Additionally, as a part of this construction project, ADOT will add new HOV ramp connections to the SR 51 and Loop 101 Interchange. Construction began in summer 2007, with completion anticipated in late summer 2008.

Source: The Arizona Department of Transportation
San Tan Loop 202 - A 20-Year Project Nears Opening

The final leg of the Santan Freeway in the Southeast Valley opened up on Monday June 12, 2006 for public use.

A closer look at the project completion by the numbers:

12 Miles - An eight-mile freeway runs through Gilbert

25 Miles - A freeway connection between Superstition Freeway in Mesa and I-10 in Chandler

Year 2008 - Loop 202 will be completed from Power Road to University Drive in north Mesa.

Year 2015 - Carpool lanes will be added between Dobson Road and Val Vista Drive

Year 2025 - Carpool lanes will be added to east of Val Vista Drive

Source: The Arizona Department of Transportation

Carpool Lane to be added to I-17 (Between Loop 101 & Carefree Highway)

Plans call for a third lane and a carpool lane to be added to I-17 between Loop 101 and Carefree Highway. Freeway design activities are underway, and ADOT expects construction to begin in 2007.

Source: Arizona Department of Transportation

Loop 303
Nearly 25 continuous miles of SR Loop 303 are now open to traffic from Interstate 10 to Lake Pleasant Road. The new segment includes a four-lane, divided roadway and a 10-span, four-lane 1,250-foot bridged crossing at the Agua Fria River. The project also included the construction of a two-lane roadway extending 107th Avenue from Williams Road north to the newly- completed SR Loop 303. Construction activities for the initial section of Loop 303 between I-17 and Happy Valley Road are scheduled to begin in 2008.

Source: Arizona Department of Transportation

Red Mountain Loop 202
Pulice Construction has been awarded a $195 million contract to build the final section of the Loop 202 Red Mountain Freeway between Power Road and University Drive in Mesa. Construction on the five-mile project is expected to begin in February 2006 and be completed in mid-2008. The project will add full Loop 202 interchanges, and include construction of eight new concrete bridges.

Source: Arizona Department of Transportation

METRO light rail system

Initial construction on Line Segment Four of light rail began Monday, March 7th, along East Washington Street. Line Segment Four will take approximately one year to build and extends down Washington Street, from Mill Avenue in Tempe to 26th Street in Phoenix. Construction east of Rural Road in Tempe and Mesa will be scheduled to coincide with the receipt of a Full Funding Grant Agreement for the federal share of the project cost.

The METRO system is scheduled to open by the end of 2008.

Source: www.valleymetro.org

 
REAL ESTATE PROJECTS
Major mixed-use real estate projects, which will impact an area, are described in this section.
Phoenix-Mesa Gateway Airport
Reliance Companies broke ground on a 52-acre, 60,000 SF Warehouse space, at Phoenix-Mesa Gateway airport. The warehouse project presents the potential for 1,500 jobs. The airport is estimated to serve 5 million passengers by 2027.
El Coyote LLC buys parcel near Phoenix-Mesa Gateway airport
El Coyote LLC has purchased 17 acres at the northeast corner of Elliot and Ellsworth Roads in Mesa, an area northeast of the Phoenix-Mesa Gateway Airport.El Coyote plans to build a $6.3 million, 3,300-acre master planned community in late 2010, with groundbreaking scheduled for second quarter 2009.
Luxury Rental Condo
Alliance Residential has selected a 4.14-acre site at 16th Street and Campbell Avenue to build a $36 million 240-unit luxury rental community. Alliance is scheduled to open the site in the fall of 2009.
Amazon Fulfillment Center
Amazon.com Inc. is finalizing plans for a 1,000-employee fulfillment operations center located in Goodyear, Arizona. The Amazon fulfillment center is expected to be in the Goodyear Crossing industrial park, located at the northeast corner of Highway 85 and Cotton Lane. Amazon expects to occupy the facility by September 2008.
Franklin Pierce University
Franklin Pierce University has leased 30 acres in the City of Goodyear’s proposed City Center development. The University plans call for completing construction of the university's phase one buildings by the summer of 2012, full build out of the campus will be spread over a 15-year period.
Banner Ironwood Medical Center
Banner Ironwood Medical Center broke ground June 5,2008 in Queen Creek. The $128 million, 220,000-square-foot, 24-bed hospital will be located at 37000 N. Gantzel Road. Future expansion is projected at 500 beds to provide for the rapidly growing Queen Creek population. The project architect is SmithGroup and the general contractor is McCarthy Construction.
$120M Condo Highrise
Scottsdale, Ariz.-based WestStone Communities plans to break ground in the coming months on a $120 million, 26-story luxury condominium project on Tempe Town Lake near Tempe and Scottsdale. Situated on the north shore of a site along Playa Del Norte Drive, the area near Rural Road and Loop 202, Onyx Tower will feature 196 lakefront residences ranging in price from the $300,000s to over $1 million. WestStone anticipates breaking ground on the project in the first quarter of 2008 if permits are granted. Completion is expected in summer 2009.
Luxury Home Project in Gilbert
A luxury development is going up in Gilbert where homes will start at $700,000. Cachet Homes at Carrara Estates is located on the southwest corner of Germann and Higley Roads between the San Tan and Superstition mountains. The 65-lot community will offer nine floor plans ranging from 3,538 to 5,055 square feet and 160-foot deep home sites. Initial occupancy is targeted for early 2008.
Morrison Ranch Business Park
Birtcher Development & Investment Co. and Lunsford Group have joined forces to develop the 600-acre Morrison Ranch Business Park. The mixed-use project, which is anticipated for a summer 2008 groundbreaking, will consist of 8.2 million square feet of office, industrial, and hospitality product at an all-in cost of $2 billion. The development will be along Power Road between Elliot and Warner roads, with 400 acres in Gilbert and 200 acres in neighboring Mesa. It is anticipated that the park will be a mix of speculative developments and build-to-suit buildings, corporate campuses and a hotel or two, all anticipated to generate 24,000 jobs for the area.
Fiesta Mall Condo Project
A condominium project designed to increase pedestrian traffic and help transform Mesa’s Fiesta District into an urban center is moving forward. After months of little action, sales of Aquaterra condominiums are scheduled to start in November 2007. Prices are expected to range from $180,000 to $900,000. About 40 percent of the units must be sold before construction begins. Construction should begin in the summer of 2008, with Aquaterra opening in late 2009.
Tolleson Business Center
In its first Arizona acquisition, the Atlanta-based Seefried Properties Inc. has paid $3.33 million to buy 10.25 acres for a spec industrial development. The plan is to break ground in early January 2008 on the 156,000-square-foot Tolleson Business Center, with delivery scheduled for midyear 2008.
25 Mixed Use Acres in Mesa
Troast Properties of Phoenix has acquired 25 acres for $8.1 million in an emerging area to develop Recker 202 Commerce Center. The developer is planning to build up to 346,600 square feet of office, restaurant, and hotel space. As of September 2007, the project is still in the planning stages and there’s no time frame for when final plans will emerge for the Loop 202 and Recker Road land. A conceptual plan by Robert Kubicek Architects & Associates Inc. of Phoenix has two pads totaling 8,600 square feet, a 45,000-square-foot hotel, and 318,000 square feet in four office buildings.
Buckeye Industrial Development
Land once zoned for residential use underwent rezoning, and then was purchased for $14.3 million by a Mokena, IL company. The 160-acre buy from a Mesa private partnership represents the first in the area for the company, which will launch construction on a three-million-square-foot industrial park beginning in first quarter 2008. The as-yet unnamed industrial development at Baseline Road and Wilson Street will contain a mix of speculative and build-to-suit space. An architect and general contractor haven’t been named, nor has a construction budget been determined.
Office Building Near Sky Harbor
Phoenix-based SCF Arizona has broken ground on a new six-story Class A office building at the northwest corner of 46th and Washington streets in Phoenix. The 185,961-square-foot property is being developed by McShane Construction Corp. and is expected to deliver in September 2008. The property is located at 4600 E. Washington St. in the 44th Street Corridor, just north of the Phoenix Sky Harbor Airport in a mixed-use development alongside the Starwood Hotel, Trillium Apartments, and future retail development. The site will feature direct access to the Phoenix Metro Rail along Washington St. Space is being marketed for $29 per square foot/year.
Washington Point
Lauth Property Group will break ground by the end of 2007 on a speculative office park close to Phoenix Sky Harbor International Airport, a network of freeways, and the light rail line under construction between Phoenix and Tempe. The 650,000-square-foot Washington Point business center will be built on 16 acres at the southeast corner of State Route 143 and Washington Street. Ultimately, the project will include three buildings and three parking structures.
$60M Condo Project in Phoenix
Tucked away in an upscale residential area at the base of a mountain in the Ahwatukee Foothills, WestStone Group of Companies started construction in the fourth quarter of 2006 on luxury condo community with a $60 million price tag. Located at the northwest corner of Chandler Boulevard and 5th Avenue in Phoenix, the development--named Vantage--will have 122 condominiums scheduled for a fourth quarter 2007 targeted opening. Prices range from the low $400,000s to the $600,000s. Because the property is located on a slight slope, it backs up directly to South Mountain with hiking trails just a minute’s drive away from the site. Amenities for the condos include attached garages, fireplaces, stone wine nooks, granite countertops, and stainless steel appliances among others. The Tuscan style clubhouse offers a formal dining room, movie theater, fitness centre, two levels of pools, spa, cabanas and grills.
Algodon Center
Algodon Center is a $367 million project with a 1,000-acre business and medical office park that will bring 2,500 medical related jobs to the West valley. The average medical job will pay about $76,000 a year. The location for this project will be at Loop 101 in the West Valley, a transportation corridor fast emerging as the West Valley's sports, entertainment and employment center. The first segment of Alogdon will be a 160-acre medical office and research campus just north of Banner Estrella Medical Center. Construction will begin in January of 2007.
Mixed-Use Projects for West Phoenix
Harvard Investments Inc. of Scottsdale and The Cardon Cos. in Mesa formed a venture to develop a 8,500-unit residential community in the west Valley. This project is located on the 4,892-acre tract is within the Surprise general planning area of Maricopa County and approximately one mile northwest corner of 211 Avenue and SR 74. This is a mixed-use master-planned community with a density of single-family homes with 1-2 units to the acre, a golf course facility on 233 acres, employment and retail components on 130 acres and a resort site of 35 acres.
Surprise Spectrum Shopping Center is planned for open in 2008
Kimco Developers Inc. in Los Angeles and Barclay Group in Scottsdale formed a venture with plans to develop 1 million square feet of retail space within the 3,600-acre Asante master-planned community in Surprise. The development will be a 200,000-square foot neighborhood center and a 8000,000-square-foot power center which will be located on the northeast corner of 163rd Avenue and Pat Tillman Boulevard (formerly Pinnacle Peak Road) and the power center will be built at the northeast corner of Grand and 163rd Avenue. The Kimco-Barclay venture is welcome a variety of tenants for the power center. The Asante community is expected to have more than 14,000 homes. The neighborhood center scheduled to start mid-2007 and the power center is set to break ground in early of 2008.
Arizona State University is Scheduled for a 1.5 Million-Square-Feet Mixed-Used Project
Shea Commercial has disclosed that it will develop a 1.5 million-square-foot mixed-use project at the campus in downtown Tempe, Arizona. Shea's partner for this giant $500 million project is 3W Cos. and Triyar. This centerpiece of downtown Tempe will be named University Square that features 240,000 square feet of office space contained within a 12-story structure, a 30-story hotel building with 225 guestrooms and additional condominium residences, a 23-story residential tower with retail space and restaurant offerings. University Square's groundbreaking is scheduled for January 2007 and will deliver in early in early 2009.
Prasada
Prasada, a 4,200-acre master planned community, is to be developed in the town of Surprise, extending along both sides of the new (to be developed) Loop 303 between Waddell and Cactus Roads.

Suburban Land Reserve of Salt Lake City, Phoenix mall developer Westcor, Tempe-based Fulton Homes, and Scottsdale-based RED Development have preliminary plans for 3,000 housing units composed of high-density multi-family (condominiums and townhouses) and single-family homes, and an 800-acre commercial core containing more than three million square feet of retail space.

First homes are forecasted to be available in 2006; retail development is scheduled to begin prior to the end of 2006, with some stores to be open by late 2007.

 
APARTMENT MARKET CONDITIONS
Apartment market conditions are updated as: Rental rates – three times annually; sale activity – monthly; new construction currently in process – weekly; and construction starts during the past 30 day period – twice weekly.
New Construction
Properties Under Construction   42
Units Under Construction   12,859
Construction Starts, Last Thirty Days   3
Construction Completions, Last Thirty Days   1
Rental Market
Current Metropolitan Area Rental Rates Low High Average
Studio
$275 $1,300 $   543
Three Bedroom/Two Bath $635 $2,793 $1,087
Twelve Month Sale Activity
  Period Change
  2006 2007 Number Percent
*Twelve Month Sale Activity
Sales reported are among properties 50 units and larger.
*Period = (Oct 2005 - Sept 2006) - (Oct 2006 - Sept 2007)		 251 189 -62 -24.7%
Sales Completed --
Most Recent Sixty Days (Properties - # of Units) 		- 7-1,440 - -
 
BROKER SALES
Apartment Sales for the previous 90 days, including Broker, sale date, number of units, and sales price.
Phoenix Broker sales
BrokerMarcus & Millichap
Agent/ContactAlon Shnitzer
Contactashnitzer@marcusmillichap.com (602)952-9669
Sale Date12/2007
No. of Units120
Sale Price$5.7mm
BrokerCB Richard Ellis
Agent/ContactTyler Anderson, Sean Cunningham
ContactTyler.Anderson@cbre.com, (602) 735-5557
Sale Date01/2008
No. of Units412
Sale Price$59.9mm
BrokerColdwell Banker Commercial
Agent/ContactJohn Brigham, Don Brigham, Clayton Edwards
Contactjbrigham@cbcmetro.com, (602) 850-2008
Sale Date01/2008
No. of Units20
Sale Price$2.65mm
BrokerThe Jones Group
Agent/Contact
 Jim Jones,Daniel Lee
Contact
 (480)-423-5501
Sale Date
 01/2008
No. of Units
 28
Sale Price $1.44m
BrokerThe Jones Group
Agent/Contact Jim Jone, Brandon Wilson
Contact
 (480)-423-5501
Sale Date
 01/2008
No. of Units
 11
Sale Price $.755mm
BrokerThe Jones Group
Agent/Contact Brandon Wilson
Contact
 (480)-423-5501
No. of Units
 17
Sale Price $.953mm
BrokerAxxiom Partners,LLC
Agent/Contact Danny Lee, Neil Sherman
Contact
 Danny@Axxiom.com, 480-656-8628
Sale Date
 02/2008
No. of Units
 308
Sales Price
$31.5mm
BrokerUnited Arizona Commercial
Agent/ContactGloria Tirone, Debbie Erichsen
Contactgtironeuac@qwest.net, 480-964-2522
Sale Date02/2008
No. of Units60
Sale Price$3.695mm
BrokerUnited Arizona Commercial
Agent/ContactGloria Tirone, Debbie Erichsen
Contactgtironeuac@qwest.net, 480-964-2522
Sale Date02/2008
No. of Units104
Sale Price$6.75mm
BrokerCB Richard Ellis
Agent/ContactSean Cunningham,Tyler Anderson,Jack Hannum
Contact (602)-735-5555
Sale Date02/2008
No. of Units251
Sale Price$46.435mm
BrokerCB Richard Ellis
Agent/ContactTim Montgomery,Chris Gonzales
Contact
(602)-735-5555
Sale Date02/2008
No. of Units70
Sale Price$3.412mm
BrokerTranswestern Commercial Services
Agent/ContactMatt Lockin, Bobby Bull
Contact
602-954-1249
Sales Date
02/2008
No. of Units150
Sale Price$10.012mm
BrokerCB Richard Ellis
Agent/ContactSean Cunningham,Tyler Anderson,Jack Hannum
ContactTyler.Anderson@cbre.com, (602) 735-5557
Sale Date02/2008
No. of Units136
Sale Price$17.312mm
BrokerMarcus & Millichap
Agent/ContactMark Hubi,Ryan Ash
Contact
 (602)-952-9669
Sales Date
03/2008
No. of Units264
Sale Price$15.85mm
BrokerColliers International
Agent/ContactCindy Cooke
Contact
 
Sale Date05/2008
No. of Units380
Sale Price$34.0mm
BrokerMarcus & Millichap
Agent/ContactAlon Shnitzer
Contact
ashnitzer@marcusmillichap.com,(602)-952-9669
Sales Date
06/2008
No. of Units204
Sale Price$10.3mm
BrokerMarcus & Millichap
Agent/ContactAlon Shnitzer
Contact
ashnitzer@marcusmillichap.com,(602)-952-9669
Sale Date07/2008
No. of Units192
Sale Price$17.65mm
BrokerTranswestern Commercial Services
Agent/ContactMatt Lockin, Bobby Bull
Contact
602-954-1249
Sales Date
07/2008
No. of Units92
Sale Price$5.2mm