The Scottsdale Airpark is the second largest employment center in Arizona and is near some of the highest income demographics in the state. The airport is the busiest single runway general aviation airport and the largest corporate jet facility in the US. According to the City of Scottsdale, aviation activity creates over $500 million in economic benefits annually; and on an average day, air visitors bring $120,000 into the area economy. (To see the Airpark Master Plan, visit http://scottsdale.airportstudy.com/.)
In addition to air travel, the City of Scottsdale is also working on $39 million in improvements to streets and intersections to relieve congestion on Airpark roadways. Plans are to build the improvements in four phases starting in 2016.
Office leasing activity continues to absorb vacant space, reducing the vacancy rate from 16.5% to 15.2% over the past year. Office sales over the past year were $261 million, one hundred million over the past five years average, and the average price per square foot over the past twelve months was $189, double what prices were at the bottom of the market in 2010. And the first Class A office project in recent years was announced the summer. Bahia 101 will offer 40,000 square feet in three floors of office space for sale or lease along the east side of the 101. Delivery is expected in the second quarter of 2016.
Industrial market vacancy has continued lower in 2015, pushing below 14% for the first time since 2007. Lease rates continue to rise and are up 10% over asking rates from a year ago. A lack of product and new industrial development has slowed sales over the past year.