Nearly 1.8 million square feet of office space was underway in Phoenix as of May, representing 1.3 percent of stock, according to CommercialEdge data. The office pipeline exceeded the one recorded a year ago, when total space reached a little over 1.5 million square feet. The national office pipeline, amounting to more than 151 million square feet as of May, represented 2.2 percent of total stock.
However, a multitude of projects stand in line to enter the Greater Phoenix’s office pipeline; some 10.5 million square feet are in the planning stages, while prospective developments amount to roughly 32 million square feet.
One of the metro’s largest future developments is Vision 2, a 161-acre, mixed-use project in Glendale that would encompass office, retail and commercial space, as well as hospitality units and high-density housing. At the end of May, the city’s planning commission approved the application to rezone the development site from agricultural to mix of uses including Class A office, medical services, research and development, hotels and regional shopping, among others.
Redevelopments are also part of the Valley’s office construction mix. Ironline Partners unveiled plans to transform the former Phoenix Financial Center to feature a $100 million, 335-unit multifamily component and extensive resident amenities. The 18-story tower would include some 200,000 square feet of office space.