Since the grand opening of the Arizona Biltmore Resort in February 1929, the area known as the “Camelback Corridor” hasn’t missed a development beat. Stretching along Camelback Road between 7th and 64th streets, the submarket long ago reached the “built out” stage, with virtually every infill site along the route developed into premier residential or commercial space.
That makes the resurgence happening at Camelback Road and 28th Street notable.
Anchored by the development of the Camelback Collective — a new mixed-use project on Camelback Road between 28th and 29th streets — this area is teeming with a kind of new construction buzz that’s rare for the corridor, a high-barrier-to-entry submarket that boasts Class A office rents ranging from the mid-$30s to low $40s per square foot and vacancy rates that have dropped dramatically.
Camelback Collective will replace two 1970s-era buildings with a new 120,000-square-foot Class A office building and a 160-room AC by Marriott hotel. Already under construction by LaPour Partners and Graycor Construction, the project represents the first new office building to be built on the Camelback Corridor in eight years.
The Class A 2777 Camelback office building sits directly west of the Camelback Collective site, and is also riding the momentum of new development activity. Following a March purchase by Lincoln Property Company, the 104,618-square-foot building is being repositioned with lobby and common area renovations, new lobby furniture, an indoor tenant lounge and conference facility, a new collaborative outdoor lounge area, new corridors and bathroom finishes, improved signage and upgraded landscape and hardscape. This will modernize the building for existing tenants and help to market a rare find on the corridor — approximately 37,000 square feet of available space, including a full second floor with a 28,000-square-foot floorplate.
The last piece of the resurgence puzzle is a new five-story, 253-unit Santa Barbara-style luxury apartment community being developed directly west of 2777 Camelback by StreetLights Residential. The project sits on land previously hindered by receivership, but that is now under new ownership and represents a dynamic element of this booming Camelback Road intersection.
Since 2012, the Camelback Corridor has recorded positive office space absorption of more than 214,000 square feet annually. The intersection of 28th Street and Camelback Road features walkability to more than a dozen restaurants and Biltmore Fashion Square, and is minutes from executive housing, State Route 51 and Sky Harbor International Airport.
David Krumwiede is executive vice president for Lincoln Property Company, an international full-service real estate firm offering real estate investment, development, design/construction management, leasing and property management/receivership/asset management services.