Downtown Phoenix’s CityScape to “top out,” despite shaky office space market

cityscape drawing-thumb-499x411[Source: Ray Stern, Phoenix New Times] — Phoenix Mayor Phil Gordon will help celebrate the “topping out” of a new, city-subsidized office tower downtown this Thursday. With the state of the Valley’s office space market, though, we couldn’t help but wonder if the festivity will include a large, neon “Vacancy” sign for the roof.  Our suggestion elicits an honest chuckle from Jay Thorne, spokesman for the CityScape project.  “I can’t blame you for saying that,” says Thorne in a brief phone call this afternoon.

The building is scheduled to open in March.  Three months ago, it lost planned anchor tenant Wachovia Bank.  Office space vacancy is expected to reach 24 percent in the Valley this year, according to a June Associated Press article.  However, CityScape is doing way better than average in filling its 620,000 square feet of space, Thorne says.  “It’s pushing towards 70 percent leased,” he says.  “It’s a pretty nice success story.”

Of course, part of that success comes after last year’s downsizing of the whole project.  One thousand condo units and a hotel are among the plans that blew away with the dustbowl-like housing market. [Note: Read the full article at Downtown Phoenix’s CityScape to “top out,” despite shaky office space market]

One thought on “Downtown Phoenix’s CityScape to “top out,” despite shaky office space market”

  1. I went to the top out event and thought it was well done. The tradition is an old one from Europe. Many German friends say the ceremony is held when someone builds a new home or building.

    Naturally, there was a lot of hype by the politico’s in attendance. However, what I found most sweet was the talk about the standards of excellence regarding the construction itself.

    I talked to a few of the contractors and actual workers. All had great pride in the project. A 30+ year verteran building inspector noted CityScape as having the highest level of workmanship he had ever seen on a project.

    Regarding tenants… they seem to be doing pretty well. Nine new businesses have signed contracts in the past couple of months and Wachovia is under contract and it is uncertain whether they as Wells Fargo, will use the space or sublet it to another firm.

    I have been pushing them to forego the lease with Basha’s since they are in bankruptcy protection and do all they can do to get Trader Joes into the project… much better option for an urban/college culture.

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