First McKinley | Offering Memorandum

1.68 THEiii | Offers DFueO: FRridayS, MAayL1E2th

FIRST

McKINLEY

premier development
opportunity in
Downtown Phoenix

acres available for
purchase in historic
Roosevelt Row

800 NORTH 1 S T AVENUE
801 NORTH 2ND AVENUE
814 NORTH 1 S T AVENUE

PHOENIX, ARIZONA

LARRY ORTEGA Conceptual project
Executive Vice President renderings compliments of:
+1 602 222 5019
[email protected]

JOHN BARNES
Vice President
+1 602 222 5042
[email protected]

CHAZ SMITH
Senior Vice President
+1 602 222 5150
[email protected]

JOHN FINNEGAN
Senior Vice President
+1 602 222 5152
[email protected]

RAMEY PERU
Associate Vice President
+1 602 222 5154
[email protected]

COLLIERS INTERNATIONAL
2390 E. Camelback Rd. Ste. 100
Phoenix, AZ 85016
+1 602 222 5000
www.colliers.com/greaterphoenix

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All rights reserved.

1|

TABLE OF CONTENTS

SECTION 1: THE OPPORTUNITY 6

EXECUTIVE SUMMARY 12
14
SECTION 2: THE LOCATION 16
17
DOWNTOWN PHOENIX 18
NEW DEVELOPMENT 20
ROOSEVELT ROW 21
ARTS & ENTERTAINMENT 22
TRANSPORTATION
EDUCATION & RESEARCH 26
RECREATION & EVENTS
EMPLOYMENT & GOVERNMENT

SECTION 3: THE MARKET

MARKET OVERVIEW

“A great downtown isn’t skyscrapers alone. It must be a
neighborhood chock-full of life. We are well on our way.”

GREG STANTON, MAYOR OF PHOENIX

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MCKINLEY

PHOENIX RISING

Downtown was once a hub of activity for the city of Phoenix. The tall office buildings that made up
the city skyline housed a variety of company headquarters. The streets bustled with people. Park
Central Mall was a shopping destination for the surrounding area. But, as time marched on, people
turned their eyes to the outskirts of town and growth shifted outward instead of upward. During the
1990s, there was little draw to the downtown area after work hours were over. A lack of housing
and nightlife left few reasons for people to gravitate to the epicenter of this great city, and Downtown
became virtually deserted after office employees clocked out.

The dawn of the new millenium brought forth a renewed interest in revitalizing Downtown Phoenix.
The METRO Light Rail was introduced as a new mode of intracity transportation, connecting the
suburbs to the city’s center. Enterprising business owners looked to vintage buildings and warehouses
for creative alternative uses. Live music and dining venues found new homes along the Central
Avenue corridor. Bike paths and green spaces were incorporated into the city’s master plan for the
downtown area. Life was returning to Downtown Phoenix.

And then came the cranes.

Defunct buildings all over the downtown area were razed to make room for sleek, new buildings that
offered apartments, condominiums, creative workspaces, and retail opportunities. Although initial
growth was slow and steady, Downtown Phoenix has proven itself as the hot market sought after by
many. People began trickling back into the downtown area, seeking a “live-work-play” environment
of convenience, and now demand in the submarket has outpaced development. The draw to the
downtown area has returned triumphantly as Phoenix once again rises.

THE OPPORTUNITY

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Conceptual project
renderings compliments of:

“Investment from the city of Phoenix and Arizona LOCATION HIGHLIGHTS
State University invigorated life into downtown
>>Situated on the METRO Light Rail, which links the East Valley
Phoenix...This new vibrancy made it attractive for and West Valley of the Phoenix metro area by way of the
the University of Arizona to follow suit, as well as downtown epicenter.
the relocation of the ASU Law School. With the
student presence, the growing dining scene, and >>Part of the district known as Roosevelt Row, one of the top
the Diamondbacks and Suns facilities, downtown destination locations in Phoenix for art, food, and retail.

Phoenix is buzzing with activity.” >>Rated by WalkScore.com as a “92” for “Good Walkability” with
amenities and other conveniences close by.
CHRIS CAMACHO,
PRESIDENT & CEO, GREATER PHOENIX ECONOMIC COUNCIL >>Exceptional development projects are slated and under
construction in the area including Block 23, a mixed-use venture
EXECUTIVE SUMMARY to be comprised of a 16-story residential tower with 300 units,
approximately 250,000 SF of office space, and a highly anticipated
The Property Today 55,000 SF Fry’s Marketplace with an estimated 1,300 permanent
jobs to be created over the next 50 years.
OFFERING TERMS Fee Simple
$6,200,000+ ($85 per square foot) >>Sporting venues, galleries, museums, cultural events, the
Type Convention Center, restaurants, and live music venues bring an
Offering Price estimated 22 million visitors annually to the downtown area.

PROPERTY OVERVIEW 800 North 1 s t Avenue | Phoenix, AZ 85003 >>Tourism plays an important element in Arizona’s economy
and Downtown Phoenix captures the largest percentage of
Address 801 North 2nd Avenue | Phoenix, AZ 85003 visitor dollars.

Cross Streets 814 North 1 s t Avenue | Phoenix, AZ 85003 >>Margaret T. Hance Park is a 32-acre park located on the “deck”
County over the Interstate-10 freeway tunnel, between 5th Avenue and
Land Area NWC 1st Avenue & McKinley Street 3rd Street within walking distance of the property.
Current Zoning
Number of Parcels Maricopa >>Arizona State University opened their Downtown Campus which
is the home to the College of Nursing and Healthcare Innovation,
Parcel Numbers ±72,981 SF (±1.68 acres) the University College, the College of Public Programs, School
of Criminology and the Walter Cronkite School of Journalism. In
2016 Property Tax DTC-Downtown Gateway, DTC-Roosevelt East 2016, the Sandra Day O’Connor School of Law moved into a newly
Water & Sewer Services constructed building at the new ASU Center for Law and Society.
Current Improvements 6
>>Major employers in the Downtown Phoenix area include Banner
6 | FIRST 111-40-073 111-40-074A Health, S. Joseph’s Hospital, Bank of America, U-Haul, Wells
MCKINLEY Fargo, JP Morgan Chase, UnitedHealth Group, CenturyLink
111-40-075 111-40-076A Communications, Dignity Health, and Xerox.

111-40-077 111-40-078A

$56,505.86

City of Phoenix

3 office buildings totaling 15,207 SF

7 | FIRST 12ST5A0VE’ NUE
MCKINLEY

2ND AVENUE 275’

McKIN3LE0Y 0ST’REET

Conceptual project
renderings compliments of:

The Development Opportunity

ALLOWED DEVELOPMENT PARAMETERS

Parcels West of Alley Parcels East of Alley

Zoning DTC-E-ROO DTC-GTWY

Net Size 38,500 SF 34,481 SF

Height 250’ 250’
(25% increase allowed)

Density 218 per acre 218 per acre
(100% increase allowed) (50% increase allowed)

75% 100%

Lot Coverage (100% increase allowed)

Set Backs 20’ front, none at sides or rear None

Allowed increases can be achieved by zoning bonuses. Development scheme does not assume increases.

The proposed development concept is conceived as a mixed use development with
retail, office, hotel, and residential. The public realm is activated with retail, grocery,
and food/beverage amenities along with open lobby spaces for the hotel, office, and
residential components. Along the east side of the development, there is pedestrian
access via a grand stair case to a second level activated garden plaza with internal
retail, hotel, and office amenity areas. The hotel is conceived as a boutique development
with direct access to the street and the light rail system connecting the Downtown
Gateway District to other areas of Phoenix. The west tower steps down in height to
respect the residential Roosevelt neighborhood while also providing townhouse units
with street level entry. The east tower takes advantage of the 250’ height allowed
along the city side of the site – while also spanning the grand staircase access to the
raised plaza.

AREA AT FULL BUILD-OUT 221,900 SF above grade
344,800 SF above grade
Parcels West of Alley 566,700 SF above grade
Parcels East of Alley
Total 20,000 SF
81,700 SF
AREA BY USE 82,000 SF
383,000 SF
Retail 566,700 SF
Hotel
Office
Residential
Total

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99 | FMFMII CCRR SSKK TTII NN LL EE YY PROPOSED DEVELOPMENT CONCEPT

405

Multifamily
Units

82,000

Square Feet
Office Space

20,000

Square Feet
Retail Space

128
Room
Keys

864

Parking
Spaces

“Millennials and Boomers are
behind the shift in metro Phoenix’s

development. They want to live
where they can walk or ride bikes to
where they work or play — or both.”

CATHERINE REGOR, ARIZONA REPUBLIC

THE LOCATION

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MCKINLEY

Superior
Court of
Arizona

Phoenix
City Hall

Skyline Lofts Light Rail (north) Civic Space Park 2ND AVENUE
METRO Light Rail (south)
AVENUE METRO McKINLEY First Studio
300’
CENTRAL Restoration Place STREET

1ST AVENUE 250’

275’

ROOSEVELT ROW Union @ Roosevelt

DOWNTOWN ROOSEVELT STREET
PHOENIX

DOWNTOWN PHOENIX

Multifamily Rents Retail Rents Office Rents

$1,300 $28.00 $30.00

$1,250Average Monthly Rent $26.00 $28.00
Average Retail Rent (per SF)
$1,200 Average Office Rent (per SF)$24.00$26.00

$1,150 $22.00 $24.00

$1,100 $20.00 $22.00

$1,050 $18.00 $20.00

$1,000 $16.00 2012 2013 2014 2015 2016
2012 2013 2014 2015 2016
$950 *Source: CoStar
2012 2013 2014 2015 2016 *Source: CoStar

*Source: Apartment Insights

STUDENTS R E S TAU R A N T 1
S E AT S
12,800 DAY T I M E
19,600 P O P U L AT I O N
*Source: Colliers Research
*Source: Colliers Research 63,895

*Source: Magnify Maps

FOUND:RE The Oscar Broadstone
Roosevelt Row
11,800sf Expansion & Portland on the Park Developer: Stark James Roosevelt Roosevelt
Renovation of Existing 8 11 units 4 Story Apartment Bldg on 5th Living Townhouse
Story - 75,760 SF Hotel 170 Unit Condo Development 316 Units Alliance Residential
2nd & 4 Units on 2.3 Acres
Moreland 3 Story Mixed Use
Condos
The Stewart Union at Roosevelt Illuminate Apts
49 Units
19 Story Apartment Bldg Mixed Use Retail & 80 Unit 5 Story Mixed Use Bldg
321 Units Multi-Family Development w/2 Level Garage &
111 Units

6th Ave Cottages McKinley Row Derby Roosevelt Row Proxy 333 Linear Apts.

10 Unit Townhome Project 18 Unit Townhome Project Multi-Family/Commercial 211 Units 230 Units 5 Story Apt. Bldg
104 Units
Alta Fillmore Phoenix
Biomedical
230 Units
Campus
The Fillmore
750,000 SF Hospital/
Developer: Clinical/Out-Patient
Trammell Crow 350,000 SF M.O.B.
679 Units, Mixed Use

Arizona Center Capital Place
for Law & Society
5 Story Mixed Use
6 Story 260K SF 140 Units
Education & Training Facility
Monroe Hilton
Garden Inn Hampton Inn

Convert Historic Bldg to 11 Story 124K SF
Hotel with 1st Floor Retail Hotel

Luhr’s City Center The Presidential

Construction of New Hotel & 4 Story New Construction
Underground Parking 90 Units

Barrister Place

114 Units

Block 23 Phoenix Ballpark

16 Story Residential Tower +/- 300 Units Developer:
Office +/- 250,000 Granite Capital Investments

Fry’s Food & Drugs +/- 55,000 275 Units

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NEW DEVELOPMENT

MULTIFAMILY PROJECTS OFFICE BUILDINGS

5,129 176,371

UNITS SQUARE FEET

HOSPITAL & MEDICAL HOTEL& HOSPITALITY

1,100,000 464

SQUARE FEET ROOM KEYS

RE TAIL SHOPPING OTHER COMMERCIAL

5 3 , 2 1 5 313,200
SQUARE FEET SQUARE FEET

DOWNTOWN PROJECTS

Planned b Light Rail Station

Pre-Development Light Rail Line
Under Construction Interstate
Recently Opened

ROOSEVELT ROW

The Hub of Art & Culture in Phoenix

First McKinley is located in the heart of the Roosevelt Row Artist’s District known both residents and businesses alike. First McKinley will help continue this trend by
as “RoRo”. This walkable, creative district connects downtown Phoenix to many adding both hip residential units and first class commercial space in one development.

historical residential neighborhoods and is nationally known RoRo has been an First Friday started 22 years ago and every month, thousands
for its arts and cultural events, award-winning restaurants, of people gather in the downtown Roosevelt District for

galleries, boutiques and live music. It made USA Today’s excellent example of the First Friday art walk. Like so many urban areas, artist
10 BEST list as “an art lover’s paradise” and a must see how good planning pioneered areas too distressed and troubling for others to
in Phoenix. The area has fostered an urban renewal in venture but affordable to the artist community. Galleries

downtown Phoenix with many rehabilitated bungalows and can create a high followed, along with unique independent restaurants, funky
new infill projects. According to the Roosevelt Row website boutiques and evolving with outdoor vendors and indie

(www.rooseveltrow.org), RoRo “has been a vital mixed use demand urban area bands lining the street. On any given First Friday you will
area from the earliest days of the establishment of Phoenix. for both residents see college students, families, tourists, arts affectionados,
Many of the concrete sidewalks in the neighborhood were freaks and the retired.

poured in 1909, three years before Arizona officially became First Friday attracted an estimated 15,000 visitors in October.
Artlink Inc., the support organization for First Friday, lists
and businesses alike.the 48th State.” The area has been named one of the nation’s

best neighborhoods and art districts making RoRo a valued more than 80 participating art spaces, galleries and studios in the downtown arts

cultural resource for Metropolitan Phoenix and the State of Arizona. RoRo has been district. Art Detour is a once a year, three day event in March with First Friday galleries
an excellent example of how good planning can create a high demand urban area for and studio spaces open all over the downtown area.

ROOSEVELT ROW

b Roosevelt St
McKinley St
Grand Ave SITE Fillmore St
Polk St
16 |F I R S T 7th Ave Van Buren St
MCKINLEY 5th Ave
3rd Ave
1st Ave
Central Ave
3rd St
4th St
7th St

b

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MCKINLEY

ARTS & ENTERTAINMENT renowned live music jazz venue located in the Roosevelt Row
section of downtown, and Porter Barnwood is hosting live
ARTS & ENTERTAINMENT bluegrass festivals in their downtown area location.

Downtown Phoenix continues to evolve as an epicenter for arts, Scheduled to open in mid-2017, The Van Buren will have
entertainment and tourism in the Valley of the Sun. Sporting a 1,800-capacity theater in its newly refurbished, 20,000
venues, galleries, museums, cultural events, the Convention square-foot downtown location. The Van Buren will be
Center, restaurants, and live music venues bring an estimated situated in a 1940’s historic building that once housed an
22 million visitors annually to the downtown area. Downtown automobile dealership.
Phoenix hosts national conventions, Cactus League visitors, the
NCAA Tournament, NASCAR events, and other regional and GALLERIES
local events, as well as having hosted two Super Bowl events.
Tourism plays an important element in Arizona’s economy The once deserted downtown area known as Roosevelt Row has
and Downtown Phoenix captures the largest percentage of become a mecca for artists, musicians, and other “artreprenuers”.
visitor dollars. Their efforts brought established artists and galleries, as well
as emerging artists and numerous pop-up galleries. Downtown
MUSEUMS Phoenix is host to over 60 gallery spaces open on First Friday
and Third Friday, and the popular First Friday Art Walk and
Downtown Phoenix has numerous museums, including: the Art Festival is considered one of the best in the country. A
Phoenix Art Museum, the Heard Museum, Arizona Science trolley system now transports gallery visitors throughout the
Center, Wells Fargo History Museum and the Children’s Museum. arts districts.
Museums provide the cultural glue to any community, and the
Downtown Phoenix museums are leaders in cultivating new RESTAURANTS AND BARS
relationships and impacting a broad audience. Downtown
Phoenix also benefits strongly from locally-based visitors outside The restaurant scene has exploded in Downtown Phoenix with
the Downtown Phoenix boundaries as well as tourists. 207 restaurants/bars and 19,600 restaurant seats. Downtown
Phoenix continues its transformation from breakfast and lunch
THEATER & MUSIC VENUES restaurants to chic nighttime venues catering to sophisticated
and fashionable tastes. From street food and fine dining
Numerous theater venues in the downtown area are host to a establishments to unique breweries and distilleries, all are
wide range of intimate and large scale music and performance helping Downtown Phoenix become a nighttime destination in
events, including: Comerica Theatre, Herberger Theater, Phoenix the Valley of the Sun.
Symphony, Orpheum and Valley Youth Theatre. Notably, the
Crescent Ballroom spearheaded development of live music in
the downtown area in a small venue format. The Nash is a

TRANSPORTATION

Centrally located and just a few minutes from Phoenix Sky WALK SCORE not require a car and the Valley Metro Light Rail station at Central
Harbor International Airport, Downtown Phoenix is the core of Ave & Roosevelt St is only a 4 minute walk away. Virtually all of
the Valley’s freeway and public transportation network. In fact, 92 Downtown Phoenix is within a 20 minute walk of First McKinley.
Central Station – Phoenix’s public transportation hub – is located
in the heart of Downtown Phoenix. Valley Metro Light Rail, buses Walker’s Paradise BIKE-ABILITY / GRID BIKE SHARE
and the DASH (Downtown Area Shuttle) make it easy to get
where you need to be. Plus, parking is a snap with more than TRANSIT SCORE Grid bike share is a transit system consisting of a network of
25,000 spaces located throughout downtown. stations where bikes are publicly available for short-term rental
62 though several different fare options. First McKinley boasts a
Discovering Downtown Phoenix by foot, bike or rail is easier Bike Score of 89 on walkscore.com for its surrounding flat terrain
than ever before. Whether you choose to walk, drive, ride or take Good Transit and excellent bike lanes.
some combination of the three — numerous options are readily
available. Grid Bike Share, light rail and bike-powered pedicabs BIKE SCORE VALLEY METRO LIGHT RAIL
provide added alternatives and fast access to the best parts of
the city. 89 Valley Metro Light Rail is a 26.3-mile light rail line serving the cities
of Phoenix, Tempe, and Mesa. The Light Rail line connects the
WALKABILITY Very Bikeable major activity centers of Downtown Phoenix, ASU’s Downtown
campus, Sky Harbor International Airport, ASU’s Tempe Campus
According to walkscore.com, First McKinley is a Walker’s Paradise, *Source: Walkscore.com and Downtown Mesa. First McKinley is roughly 185 yards south
registering a 92 out of 100 possible points. Most daily errands do of the Light Rail station located at Central Ave & Roosevelt St.

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DASH

The Downtown Area Shuttle (DASH) is a neighborhood circulator
bus that loops through Downtown Phoenix to connect passengers
to schools, businesses and other transit services.

FREEWAYS

Downtown Phoenix is bordered on the north by Interstate 10, but
can also be accessed via Interstate 17 on the south. The sections
of these freeways running through the central city are among the
busiest freeway stretched in the Valley.

PHOENIX SKY HARBOR INTERNATIONAL AIRPORT

Phoenix Sky Harbor International Airport is 3 miles southeast of
Downtown Phoenix and the 11th
busiest airport in the US, serving
over 120,000 passengers per day
on average. With the addition of
the PHX Sky Train, passengers can
now be transported directly from
the terminal to the light rail system
without ever having to hassle with
street-level traffic.

“We’re building this incredibly
vibrant urban center, and a
significant contributor to that is the
transit system. And you can see
that every day when you look at
the scale of the development and
people that are on the street.”

DAVID KRIETOR,
CEO OF DOWNTOWN PHOENIX INC.

EDUCATION & RESEARCH

Arizona State University opened their Downtown Campus which is the home to the Translational Genomics research Institute (IGC/TGEN). Medical research facilities

College of Nursing and Healthcare Innovation, the University College, the College of continue to expand in Downtown Phoenix with the recent completion of the Arizona

Public Programs, School of Criminology and the Walter The ASU Downtown Cancer Center a facility that sees 60,000 + patients a
Cronkite School of Journalism. In 2016, the Sandra Day year. A new biosciences partnership building expected

O’Connor School of Law moved into a newly constructed Campus currently has to be compete in early 2017 will house the University of

building at the new ASU Center for Law and Society. The Arizona College of Medicine – Phoenix Center for Applied
ASU Downtown Campus currently has 12,000 students 12,000 students attending Nanoscience and Biomedicine. In all, the biomedical

attending classes, and that number is expected to grow campus is estimated to have had a $1.3 billion economic
impact while the University of Arizona’s medical school
classes and that numberto 15,000 students by the year 2020.

In addition to the ASU Downtown Campus, Downtown is expected to grow to has had a $961.6 million impact.
Phoenix also has the Phoenix Biomedical Campus 15,000 students by These three sectors will continue to evolve and grow

which is home to biomedical research facilities and the the year 2020. over time adding millions of dollars to Downtown Phoenix
University Of Arizona College Of Medicine in Phoenix. and having a positive impact on other properties in the

Other research organizations on this campus include Arizona Biomedical Collaborative area. They will drive demand for further housing, retail, services, and office space in

1 (ABC1) and the nationally recognized International Genomics Consortium and Downtown Phoenix.

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21 |

RECREATION & EVENTS

Downtown Phoenix is a destination hub for all types of events from street fairs, Weather plays an important role in Phoenix as it enjoys nearly 300 days of sun. Margaret

parades, music fests, dining events, gallery hopping, national and regional conventions T. Hance Park is a 32-acre park located on the “deck” over the Interstate-10 freeway

- downtown Phoenix has it all. As Arizona’s urban center, Downtown Phoenix provides tunnel, between 5th Ave. and 3rd St. near the heart of downtown Phoenix. The park is

unique year-round experiences thanks to a rich history, diverse the home of the Japanese Friendship Garden, Irish Cultural Center,

culture, fantastic art community and booming live music scene. From DAYS OF SUNSHINE McClelland Irish Library, Phoenix Center for the Arts, and Burton

award-winning restaurants to exciting sports events and concerts, in Phoenix Barr Central Library.
this is the epicenter of fun things to do in the area.
296 Amenities at the park include drinking fountains, grills, reservable
The downtown area has a unique array of event space: from the ramadas, a playground, restrooms, walking paths and a lighted
Phoenix Convention Center, Comerica Theatre, Orpheum Theatre to Average Per Year sand volleyball court. Hance Park hosts many cultural festivals and

the professional arenas: Talking Stick Arena and Chase Field, home *Source: Arizona Republic programs: Phoenix Old World Oktoberfest, Yoga Rocks the Park

of the Phoenix Suns and Arizona Diamondbacks, and the Phoenix Series, El Dia De Los Ninos, St. Patrick’s Day Parade and Irish Faire,

Art Museum, to smaller event venues catering to business meetings, weddings, and Martin Luther King Jr. Birthday celebration, Dia De Los Muertos celebration, Blues

photo shoots. A multi-phased, $600 million expansion project has nearly tripled the Blast, Phoenix Festival of the Arts, Be A Leader - Steps to Career Success, Human

size of the Phoenix Convention Center, making it one of the top 20 convention venues in Rights Campaign - Phoenix Cooks and McDowell Mountain Music Festival.

North America.

EMPLOYMENT & MAJOR DOWNTOWN
EMPLOYERS
GOVERNMENT
1. Banner Health
The Downtown area is home to a large and diverse mix of employers and industries. The state government 2. St. Joseph’s Hospital
has a large presence, with agencies such as the Department of Child Safety, Department of Economic Security 3. Bank of America
and Department of Transportation all employing hundreds of workers on Central Avenue. There are also a few 4. U-Haul
federal government employers along the Central Corridor, including the Bureau of Indian Affairs, the Internal 5. Wells Fargo
Revenue Service and the U.S. Citizenship and Immigration Services. The Governmental Mall is combined of 6. JP Morgan Chase
both the government and Arizona state capitol districts. The mall is defined by the area between 7th and 19th 7. Pinnacle West Capital
Avenues, from Jackson Street on the south to Van Buren Street on the north. This area houses the majority 8. The Arizona Republic
of agency sectors for the state, city and county government. The State Capitol complex contains more than 40 9. UnitedHealth Group
buildings that house approximately 8,500 employees. 10. CenturyLink Communications
11. Dignity Health
12. SRP
13. Ipower Inc.
14. Xerox Corporation
15. SCFR Arizona
16. Royal Paper Converting Inc.
17. Schuff Steel Company
18. Fennemore Craig, P.C.
19. Teyma USA, Inc.
20. Hyatt Regency Phoenix
21. SRP Agricultural Improvement
22. Arizona Diamondbacks
23. Cable One Inc.
24. Phoenix Suns
25. University of Arizona

*within 2-mile radius

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The Maricopa County Courthouse is also a primary employment driver in
Downtown. Both the Maricopa County Attorney’s Office and the Maricopa
County Sheriff’s Office have their offices downtown and the U.S. Attorney’s
office also has an office in the area. In addition, Downtown is the home to
several of the largest and most prominent law firms in the Valley. More than 60
percent of the top-25 law firms in the Valley have their primary offices
located in the Downtown submarket, led by Snell & Wilmer, Quarles &
Brady and Bryan Cave. These law firms account for more than 2,000
employees in the Downtown area.

The financial services sector is a significant sector in Downtown.
Chase, Wells Fargo and Bank of America all have large office footprints
in the area, although some of the companies are expanding in suburban
areas. The Arizona Central Credit Union also owns its headquarters
building at 2020 N Central Avenue where it employs approximately
200 workers.

The hospitality sector is one of the largest industries in the
Downtown area, as the area caters to both business and
leisure travelers. Some of the largest hoteliers in the area
include the Hyatt Regency, the Renaissance Downtown, the
Sheraton and the Palomar Hotel, which opened in 2012 as
part of the CityScape mixed-use development. Combined,
these hotels feature more than 2,500 rooms and more than
1,500 workers.

Midtown Phoenix had a tremendous win in 2015, when
Banner Health announced plans to lease 260,000 square
feet of space at Thomas Rd and Central Avenue. The move
brought 800 employees to the area. The healthcare provider,
which is also the largest employer in the state, has an option
to take another 100,000 square feet of space in the next
five years.

THE MARKET

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MARKET OVERVIEW

Metro Phoenix

The Greater Phoenix metro area consists of Maricopa County and Pinal County, which together
include nearly 4.5 million residents. Greater Phoenix is the 12th largest Metropolitan Statistical
Area (MSA) in the United States. The City of Phoenix is the fifth most populous city in the country
and the largest city in the metro area. Major cities in the Phoenix MSA include Phoenix
(population 1.56 million), Mesa (population 471,000), Chandler (population 261,000), Gilbert
(population 248,000), Glendale (population 240,000), Scottsdale (population 237,000), and
Tempe (population 176,000).

The Phoenix MSA is a classic growth market, an area that experiences rapid growth during
expansions. As the national economy has transitioned into growth mode, the Phoenix economy
has been on an upward trajectory. In 2016, Arizona added more than 102,000 residents, the
state’s highest one-year total since 2010, and the fifth fastest gain in the U.S. in 2014. Maricopa
County grew at a pace of 1.6 percent in 2014, led by Gilbert, where the population expanded
at estimated 3.5 percent. Gilbert is now the fourth largest city in the Phoenix MSA, passing
both Scottsdale and Glendale during the past few years.

This population growth is supporting the Phoenix labor market outlook as well, with population-
serving sectors of the economy, including retail, healthcare and leisure and hospitality
expanding at healthy rate of growth. Employers in the Phoenix MSA have added approximately
50,000 jobs per year since 2013, with annual growth averaging 2.8-3.0 percent, nearly double
the national rate of expansion. In addition, the Phoenix area is benefiting from growth in
white-collar sectors of the economy, with professional and business services and financial
employers expanding.

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This population growth is supporting
the Phoenix labor market outlook
asw well, with population serving
sectors of the economy, including
retail, healthcare and leisure and
hospitality expanding at a healthy
rate of growth.

4.5M

RESIDENTS

12th

largest

M E T R O P O L I TA N
STATISTICAL AREA

6th most

POPULOUS CITY
IN THE COUNTRY

Added ±

50,000

JOBS/YEAR SINCE 2013

LARRY ORTEGA
Executive Vice President
+1 602 222 5019
[email protected]

JOHN BARNES
Vice President
+1 602 222 5042
[email protected]

CHAZ SMITH
Senior Vice President
+1 602 222 5150
[email protected]

JOHN FINNEGAN
Senior Vice President
+1 602 222 5152
[email protected]

RAMEY PERU
Associate Vice President
+1 602 222 5154
[email protected]

COLLIERS INTERNATIONAL
2390 E. Camelback Rd. Ste. 100
Phoenix, AZ 85016
+1 602 222 5000
www.colliers.com/greaterphoenix

Conceptual project
renderings compliments of: