Huge Demand of New Commercial Project Garners Highest Price-Per-Square-Foot Office Rents in Arizona History

RED Development announced today that the Class AA office building at The Grove, the highly anticipated mixed-use destination in Phoenix, is now 100% fully leased prior to the completion of construction, which is a first in Arizona commercial real estate history. JLL, a global brokerage firm, represented RED in leasing the office building and is the first tenant to move in this week with close to 130 employees from its Phoenix division.

Aon, the global professional services firm, also leased the remaining 3,600-square-foot office space this week, bringing The Grove’s 180,000-square-foot office building to full capacity. Additionally, RED garnered record-breaking price-per-square-foot rates, setting a new standard for Class AA office rents in the state with all leases executed during the global pandemic. JLL and Aon will join other best-in-class tenants, including Sendoso, Clayco, Clear Sky Capital and Common Bond Development Group.

RED hired notable architect George Melara of Nelsen Partners, the architects behind Kierland Commons and Scottsdale Quarter, and interior designer Judi Testani of Testani Design Troupe, whose project portfolio includes Ocean 44, Sanctuary Camelback Mountain and The Global Ambassador. Testani curated the building’s interiors, which are stylish, sophisticated and rich with amenities. The undertaking marks the first office project for the design firm. Testani and Nelsen collaborated to create a top-tier space complete with lavish amenities. On the fifth-floor rooftop amenity deck, tenants have full access to an indoor/outdoor pavilion with a well-equipped gourmet kitchen for catered events, a pickleball court and a lush, quiet seating areas amongst a garden setting with stunning views of Camelback Mountain.

“As we unveil the first phase of The Grove with the completion of the office component, we’re tremendously proud to be fully leased and welcoming JLL as our first tenant,” said Mike Ebert, managing partner at RED Development. “We’re grateful to our construction and architectural partners at Okland Construction and Nelsen Partners in helping us achieve this grand opening at this level of quality of design and construction. This latest accomplishment brings RED’s overall office portfolio to 98% leased, which is a testament to how we continue to set the standard with our dedication to creating mixed-use spaces in sought-after locations along with unmatched amenities.”

Additionally, two restaurants will soon open at The Grove beginning in January 2023. The first will be Pyro, a Japanese izakaya bistro by Flagship Restaurant Group. Pyro will feature an open-flame concept for its menu with sustainably-sourced seafood and proteins. Open for lunch and dinner, the restaurant will use fire to achieve different layers and textures across its vast selections, ensuring each dish has a distinctive flavor. The second restaurant will be announced in the coming weeks.

The Grove, a $400 million, 750,000 square-foot mixed-use destination on the northwest corner of 44th Street and Camelback Road, is located at one of the most high-profile intersections in the Valley with construction by Okland Construction, Wood Patel and financing by Alliance Bank of Arizona. The campus combines Class AA office space; The Global Ambassador, a first-ever boutique hotel by famous restaurateur Sam Fox and Common Bond Development Group opening in late 2023; unique upscale retail and dining venues and The Bergen, luxury residences by StreetLights Residential. The Grove is also home to the state-of-the-art Phoenix Suns and Phoenix Mercury training facility.

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