The Greater Scottsdale Airpark area continues to be a focal point for growth and business relocation, according to a report released by Colliers in Arizona. Nationally recognized companies are moving operations there and sizable new developments are being built in this prestigious area of metropolitan Phoenix.
“We have been tracking the Scottsdale Airpark submarket since 1980 when the area had just 268 companies and approximately 1.5 million square feet of space,” says Jim Keeley, SIOR, CCIM and founding partner of the Scottsdale office of Colliers. “As we wrapped up our report for 2023, the area boasts approximately 3,339 companies and nearly 48 million square feet of buildings. This trajectory promises to continue as the metropolitan area grows and people remain attracted to this live-work-play submarket.” Keeley and his partner, Tommy Keeley, co-wrote the Colliers Greater Scottsdale Airpark report.
A sizable portion of the new developments being constructed are situated at the gateway to Scottsdale Airpark along the Loop 101 freeway. Nationwide Realty Investors continues building at the Cavasson campus just west of Hayden Road and north of the Loop 101. Axon began construction of its cutting edge headquarters on the south side of the Loop 101 diagonal from Cavasson. In that same quadrant of the freeway, two healthcare giants made sizable land purchases during 2023. HonorHealth acquired 50 acres and Banner Health purchased 48 acres with plans for sizable future facilities in the area.
Closer to Scottsdale Road along the Loop 101, Optima McDowell Mountain Village is creating 1,330 new residential units. In the same area to the north, Ilume is undergoing a multi-million-dollar renovation of the former Henkel building, which will be an impressive cutting-edge biomedical campus.
Within the retail hub on Scottsdale Road south of Frank Lloyd Wright, The Promenade’s new owner George Kurtz is implementing environmental and visual upgrades to this landmark shopping project. Kurtz also received approval for a new two-million-square-foot, mixed-use project called The Parque. The development, situated on the former CrackerJax Amusement Center site, will feature office, retail, condos, multi-family residences and a hotel.
Fortunately, all of these new projects are being supported by some much-needed transportation improvements in the area. The City of Scottsdale concluded roundabouts that were planned in 2016 at the intersection of Scottsdale and Thunderbird roads. This really helps this major corridor connect the Airpark to Raintree Drive and the Loop 101.
All of these new developments are helping infuse capital to the Scottsdale Airpark area. Another important development to mention is Thunderbird Commerce Center, situated just south of the newly constructed Raintree roundabout on 74th Street. Creation and LGE are constructing this facility that includes 243,360 square feet of space.
Additional projects are being built by and for well recognized companies. JSX, semi-private jet service, is moving its Greater Phoenix operations from Sky Harbor to the Scottsdale Airport. ASM International, a leading Dutch corporation, acquired a site west of the Banner Health purchased site for a groundbreaking tech project. The company plans to create 500 new jobs in the area. DraftKings opened a new 13,000-square-foot facility in 2023 located adjacent to the Tournament Players Club. Finally, during 2023, Puttshack and Putting World debuted. The tech-focused mini-golf course and indoor 18-hole putting course offer a great entertainment option for residents and tourists in the area.
Looking forward, Colliers experts predict that the Scottsdale Airpark will become a hub of technological innovation and advanced tehnologies. Aviation and technology will remain key sectors, as well as health and wellness. These focal areas will be mixed with an expansion of retail and professional services businesses.
“During the next five to 10 years, we anticipate an addition $1 billion in additional developments like The Parque and One Scottsdale,” says Keeley. “In addition to new projects on vacant land, we forecast that approximately 10 percent of the existing buildings built before 1990 will be torn down and replaced with commercial facilities at twice the density of current projects.”
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