Skip to main content Skip to footer

Annual 2030 Greater Scottsdale Airpark Report released by Colliers

Airpark saw fewer employee cars in 2020 and increase in larger jets

Phoenix, February 10, 2021 – The Greater Scottsdale Airpark experienced many of the same pandemic effects faced by other Valley commercial real estate submarkets, reports Jim Keeley with Colliers in his annual 2030 Greater Scottsdale Airpark Report.

During 2020, retailers, restaurants and hotels struggled with diminished customers. Yet, the submarket grew its jet traffic, becoming home base to five or six more Falcon 7Xs, Falcon 900s and Bombardier Challenger business jets. Landlords in the Airpark took advantage of company employees working from home and utilized the time to renovate and modernize building public areas.

“This past year brought paradigm shifts to every realm of life,” says Jim Keeley, SIOR, CCIM, founding partner of the Scottsdale office of Colliers in Arizona. “The Greater Scottsdale Airpark has been one of the most resilient submarkets in the Valley and continues to hold that position.  While the pandemic created vacancies and sublease space, the impact has been relatively minimal and not impacted rental rates.”

Some office landlords in the Airpark have offered temporary rent relief, deferring payments to 2021 to 2023. However, we have not witnessed any significant, hard-hitting downturns in the submarket.

FANG companies (Facebook, Amazon, Netflix and Google) have been dominating the commercial real estate market in Greater Phoenix. While the Scottsdale Airpark has not been the site for any of these specific companies, they have nonetheless put a stimulus into the tech industry overall. The Airpark saw many positive ripple effects of this tech expansion.

The 460,000-square-foot first phase of the Nationwide Insurance’s project was delivered at the northwest corner of Hayden Road and Loop 101. A 50,000-square-foot office building for a tech campus is also under construction. In October 2020, the Arizona State Land Department (ASLD) auctioned 57.6 net acres to Axon, which will be used for construction of the company’s new headquarters in 2021. The ASLD is currently working to auction off 50- to 100-acre parcels along the Loop 101.

Vacant taxiway access lots are in short supply, so a couple of buildings on the east side of the runway are being redeveloped to accommodate larger aviation hangers. The building at 15570 N. 83rd Way is under major reconstruction. A 23,000-square-foot building sold in 2020, is also being repurposed into a larger hanger with offices. These renovations of older, functionally obsolete buildings will enhance value to all of the surrounding properties.

The pandemic has also enhanced companies’ and building owners’ focus on environmental, social and governance issues. These concerns have been in the forefront for the past five years and have been more of a focus during COVID. As investors look at their portfolios, they have had more time to evaluate these factors.

In addition to these commercial real estate activities, 2020 brought more apartments to the Greater Scottsdale Airpark. The Manor Scottsdale broke ground on 286 units at 13220 N. Scottsdale Road; Wood Partners broke ground on 330 units at Alta Raintree; and 140 Optima Kierland added 213 more units.

The future of pricing for commercial real estate remains elusive as we await resolution of the COVID-19 crisis. The employee base is growing in the submarket and companies continue moving here, so we anticipate a robust, healthy recovery as pandemic conditions diminish.

About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 68 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers and LinkedIn.

Colliers International in Arizona has served clients locally and globally for more than 40 years.

Related Experts

Jim Keeley

Founding Partner

Scottsdale

As the founding partner of the Colliers Scottsdale office and senior executive vice president for Colliers in Arizona, Jim Keeley leads the Scottsdale office and serves as its designated broker.

Considered one of the leading commercial real estate experts in the Deer Valley and Loop 101 Employment Base and the Scottsdale Airpark, Jim specializes in the sale and leasing of office, industrial and flex buildings, land, and aviation properties.

He serves as a broker and advisor to developers and users in the purchase, sale, and lot layout of business, office and industrial land subdivisions. He also consults with and negotiates on behalf of owners, users and developers on build-to-suits.

With more than 35 years of industry experience as a sales leader, developer and real estate consultant, Jim has developed and owned office and industrial buildings, aviation hangars, convenience markets, and lot subdivisions.

He embraces the full-service “Cradle to Grave” approach to commercial real estate:

Step 1 – Identifying the site and negotiating the purchase on behalf of the client
Step 2 – Using a team approach to lease up the property on behalf of the investor, developer and user
Step 3 – Selling the asset at the highest value in the shortest amount of time on behalf of the owner

Jim began working in the Scottsdale Airpark in 1981, and founded Classic Real Estate Corporation in 1983. To expand its presence in the Loop 101 Employment Base (Scottsdale Airpark, Desert Ridge, Deer Valley Airpark), he sold 50 percent interest in Classic to Colliers in 1998 and another 20 percent interest in 2008.

A native Arizonan, Jim is married with four children and am actively involved in supporting his community.

View expert