How Renovation Gets Office Space Back In The Game
Demand for office space might be healthy in Phoenix, but the demand isn't just for any space. Older office properties are at a disadvantage, unless they are brought up to contemporary standards.
Colliers International executive vice president Charles Miscio said the fundamentals of leasing office space are consistent with years past, in that location, rate, parking and floor plate configuration all remain key. "But there are a number of new 'hooks' that many users now consider the norm as cool and creative: exposed ceilings, bean bags, pingpong tables, vending machines, the quiet room and limited walls, just to name a few."
Miscio is a certified Level 4 USA Hockey Coach and is an assistant coach with the Darien Youth Hockey Association Junior Sun Devils and the D1 Varsity Notre Dame Preparatory High School Saints.
Miscio and vice president Ryan Timpani have been tasked to lease Sky Harbor Towers, with the first phase of the property's $20M redevelopment nearly complete. The two-building office campus at I-10 and Arizona 143 will deliver 215k SF of office space to the Sky Harbor submarket. The revamping included renovated lobbies, increased parking and a new pedestrian-friendly courtyard with shaded outdoor meeting areas around a central fountain.
The Muller Co., in a JV with investment firm Harbert Management Corp., undertook the redevelopment in 2015. That year, a portion of the original three-building Sky Harbor Towers was acquired by the Arizona Department of Transportation for a freeway widening project. Muller then demolished the smallest of the property’s office buildings and expanded parking capacity to a 6:1,000 SF ratio.
“Our goal with the remaining four- and seven-story buildings was to create a campus environment that caters to tenants in the new economy,” said Muller Co. principal Stephen Muller, adding that Sky Harbor will offer "logically sized" work areas, plentiful natural light and an active courtyard with outdoor work areas. The second phase will modernize the fitness center and the on-site café for casual inside/outside dining.
Find out more about what's next in the competitive Phoenix office market at our Phoenix Office of the Future event March 28. Sign up here.
