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July 17, 2014
ZocDoc's Big Lease
We got a few sources to open up and say, "Ahhhh." They tell us that NY-based tech firm ZocDoc has inked a deal for 30k SF at Camelback Square.
CBRE's Bryce Terveen, who repped the tenant, could not confirm, but landlord Lincoln Property Co says it's an unnamed tech tenant that signed a deal at the 173k SF Downtown Scottsdale office building. (ZocDoc is an online medical care scheduling service.) The landlord was repped by Lee & Associates' Bill Blake, Craig Coppola, Andrew Cheney, Colton Trauter, and Gregg Kafka
The deal comes a year after ZocDoc (headed by Cyrus Massoumi) expanded into Scottsdale with its second US office. ZocDoc, we hear, plans to hire 60 employees. It's unclear if the deal represents an expansion of the office, but by typical office use standards, ZocDoc could double its headcount in the Camelback Square space. (Or each employee could add double at many tsotchkes.)
Give Us Liberty and Give Us Spec
Liberty Property is going spec with its second building in its mammoth master-planned project Liberty Center at Rio Salado in Tempe. The REIT's John DiVall (second from left with Liberty's Megan Creecy-Herman, Jill Long and Jim Schow) tells us that the 156k SF office building will be funded with all equity.
John says the first building is halfway leased, with the first floor inked to WageWorks. “We have prospects for the second floor, and we have prospects for building two,” he says. Some tenants even inquired about getting monikers atop the roof, given the property's proximity to the airport. (They'll get noticed, as long as they're more interesting than the in-flight movie.) Phase I of the park is slated to include 750k SF of office and 250k SF of industrial. Phase II of the 1M SF project will include more office, a hotel, and retail a few years down the road.
SW Valley Activity Heats Up
JLL's Pat Harlan calls the 94k SF deal with Benson Industries at the Durango Commerce Center evidence that things have turned for the Southwest Valley industrial market: “We've been overloaded with supply for the last 12 months, but that is starting to change,” he says. OMCO Solar, Winco Foods, and Living Spaces are just a handful of the deals lately that are warming the SW Valley, he says.
Benson's deal is the first ever Arizona location for the company, which makes curtainwall systems for skyscrapers (including One World Trade Center in NYC). The deal also helps the 670k SF flex warehouse to 91% occupancy. NAI Horizon's Isy Sonabend and Richard Foss brokered for the tenant; Pat repped the landlord, Clarion Partners (which also just recently sold 5th Street Industrial, a 110k SF warehouse at South 5th Street, to DCT for $9M).
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