Scottsdale, AZ - Office Market Overview
While the City of Scottsdale is home to about 240,000 residents, Scottsdale is also part of the Phoenix Metropolitan Area, which is home to a population of over 4.5 million. Office space submarkets in Scottsdale, AZ include Grayhawk, Pinnacle Peak, and Horizons. Scottsdale has been described by a local newspaper as 'the desert's version of South Beach', emphasizing the role that tourism plays in creating demand for white-collar office employment in Scottsdale.
As of mid-2017, the Scottsdale office market encompasses over 20 million square feet of existing office space in properties larger than 50,000 square feet. The demand for Scottsdale commercial real estate is created in large part by the tourism and high-technology business sectors in the metro area.
Scottsdale, AZ - Office Inventory Description
Bordered by Phoenix, Paradise Valley, and Tempe, Scottsdale is one of the wealthiest cities in the Phoenix metropolitan area. The city does more than its part in contributing to the region's gross metropolitan product of nearly $209 billion annually. Over 67% of the office inventory in Scottsdale is Class A or A+, with Class B office space bringing another 32% of product to the office market in Scottsdale.
The Arcadia office submarket in Scottsdale sees some of the strongest demand for Class A office property in the area. Located just west of Scottsdale Road, this neighborhood is bisected by Camelback Road and is home to Class A office buildings such as the Portales Corporate Center I, Camelback Square, and the mixed-use area of Scottsdale Fashion Square at 7150 East Camelback Road.
Scottsdale, AZ Commercial Inventory Breakdown
Total: 600,000 SF
By square footage range:
- 500k to 1M SF: 600,000 SF / 100% of total office
Scottsdale, AZ - Green Office Space
As part of the Phoenix metropolitan area, Scottsdale makes its contribution to energy-efficient green office buildings in the marketplace.
One of the finest examples of a LEED-certified office building in Scottsdale is SkySong 1 in the Indian Bend neighborhood. Located at 1475 North Scottsdale Road, SkySong 1 was built in 2008 and contributes 150,000 square feet of Class A energy-efficient space to the Scottsdale office market. The building was awarded a LEED Silver-certification.
Within the top 30 major office markets in the U.S., the percentage of green energy efficient, EPA Energy Star-rated, and LEED-certified office buildings has increased from less than 5% back in 2005 to 38% by mid-2017. The Phoenix area placed 21st amongst the top 30 metro areas in the country for green office buildings.
Scottsdale, AZ's Top Office-Using Sectors
The robust demand for commercial real estate in Scottsdale is maintained by a diverse mixture of businesses. Some of the top office-using sectors in Scottsdale include the tourism, healthcare, and retail sectors, and corporate offices in the city.
- Tourism – Responsible for about 39% of the employment in Scottsdale, the tourism industry and the ancillary businesses the sector attracts are some of the top office users in Scottsdale, with world-class resorts such as The Phoenician, Four Seasons Resort, and the Fairmont Princess Resort and Spa all calling the city home.
- Healthcare – Medical and healthcare facilities such as Honor Health, Mayo Clinic, CVS Caremark, and the Scottsdale Insurance Company create significant white-collar office employment.
- Retail – Much of the Class A retail space in Scottsdale also contains Class A office space as part of a mixed-use project, including high-end retail centers such as Scottsdale Fashion Square and Kierland Commons in North Scottsdale.
- Corporate Offices – Large users of Class A office space include APL, Discount Tire, Go Daddy, JDA Software, Rural Metro, and United Blood Services, all headquartered in Scottsdale.
- Total Population239,283
- Male Population(49.1 %) 117,542
- Female Population(50.9 %) 121,741
- Median Age46.90
- Average Household Income$123,158
- Median Household Income$80,306
- Median Income Under 25$45,784
- Median Income 25-44$83,364
- Median Income 45-64$105,989
- Median Income Over 65$59,203
- Arcadia Demographics
- Boulders Demographics
- DC Ranch Demographics
- Downtown Scottsdale Demographics
- East Shea Demographics
- Grayhawk Demographics
- Horizons Demographics
- Indian Bend Demographics
- McCormick Ranch Demographics
- McDowell Mountain Ranch Demographics
- Monterey Demographics
- Pinnacle Peak Demographics
- Troon Demographics
- Via Linda Corridor Demographics
- West Cactus Demographics
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