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February 18, 2014
Shutterfly Makes Big Landing in Tempe
Smile, Tempe. You've just been put in a Shutterfly selfie for its new build-to-suit facility. Sources tell us Wentworth Property Group is developing the building at Discovery Business Campus.
The online photo printer revealed in a recent SEC filing that it inked a 217k SF deal for a production facility in Tempe through 2025. (At which point we will have stopped taking photos digitally and will have them simply implanted in our brains.) “This facility will consolidate all of the company's locations in the greater Phoenix area, including the recently acquired R&R Images facility as well as offer flexibility for future expansion,” the company stated in documents. Right now, little else is public about the project. The Discovery Business Campus is a 136-acre mixed-use campus that already has 800k SF of office space and a mix of industrial, retail, and hotels, according to reports. Wentworth snagged the campus from Freescale Semiconductor in 2010.
Two More Ways Phoenix Can Brag
It's been a good week for Phoenix, with two shots in the economic development arm. First, we've jumped five spots to No. 3 in Forbes' annual list of fastest-growing cities, coming just behind Austin, Texas and Raleigh, NC. Forbes cited an estimate population growth of 1.67% for last year and projected growth of 2.46% in 2014; now the city's poised to be the fourth fastest-growing metro area by population this year. (Don't mind us as we frolic in these accolades and 85-degree sunshine.) It reports our median pay is $64,200, while unemployment clocks in at 6.4%.
Greater Phoenix Economic Council president and CEO Barry Broome jokes that the harsh winter across the US is the reason Phoenix's population is growing so quickly. (The Ohio native is no stranger to snow, though.) Kidding aside, he expects more announcements this year along the lines of State Farm's expansion, as well as more regional HQ deals. The Valley is seeing strong growth from solar and alternative energy, software development, cybersecurity, telecom—"basically, all things Internet," he says—financial services, and general manufacturing industries.
No wonder Leclerc Foods USA wants to expand here. Late last week, the Quebec-based cookie, snack bar, and cracker manufacturer announced it's jumped into Phoenix with the acquisition of a 167k SFbuilding at the Freeport Business Center, boosting its food manufacturing ops. (What can we say, it's a delicious deal.) It's a strategic play for the company, according to prez Denis Leclerc, because it will help it better serve markets like the West Coast, Mexico, and South America. (Not to mention it'll add up to 100 new jobs.)
Goodwill Hunting
NAI Horizon's Chris Gerow may be one ofof Phoenix's top restaurant brokers, but his latest deal doesn't come with a waiter. Chris and colleagues Shelby Tworek and Gabe Ortega brokered a deal at Fortuna Commons with Goodwill Industries of Central Arizona, which grabbed a 20k SF storefront at the Yuma shopping center. (Velocity Retail Group's Andy Kroot repped Goodwill.)
Chris tells us retail demand in Phoenix has been at an all-time high since the recession, especially for infill sites in the metro area. Restaurants are on a large clip, he says, including chains like Denny's, Culver's, Kneaders Bakery (such as this new one in Gilbert), and Corner Bakery. This could lead to some new retail development, especially grocery-anchored centers, he says. (For those people who actually still cook.)
YOU TELL US: Should Fido Be Welcome?
Dogs seem as ubiquitous as interns in some office buildings (though we haven't been as successful in training the latter to fetch our coffee). We've also seen cats sprawled across lobby desks and Fluffy faithfully trailing his owner in the supermarket's canned food aisle. It's a common sight in tech and creative strongholds, but is it a trend we shouldembrace? Or should owners leave their furry friends at home? Tell us how pets impact you by clicking our survey.
