Beverly Eernisse, vice president of Furst Properties, tells GlobeSt.com that she expects the $10-million building shell will be about 50% occupied by the time it is completed in October. "When Phase III is open in the fall of 2004, we'll be prepared," Eernisse says, noting the developer already is talking with several prospective tenants in hopes of filling the building. "There's been a lot of interest," she says. "It's a premier project, that's for sure."

The first two phases of the project have experienced strong leasing activity as the North Scottsdale market continues to outpace the rest of the Valley in class A office space absorption rates, according to Eernisse. "The project is in Kierland and Kierland is one of the hottest areas in Phoenix and Scottsdale," she says.

The Pinnacle in Kierland's first building reached close to full occupancy within the first year of its 1999 opening, drawing tenants that included Procter & Gamble, KnowledgeNet, Randstad North America and Guaranty Title. Phase II, completed in 2001, was started nine months ahead of schedule due to the demand for office space in the northern submarket. It is close to capacity with leases to Bank of America, General Mills, Robert W. Baird, Capital Title Group, Westland Title and Newport Development. When completed, the Pinnacle in Kierland will encompass more than 450,000 sf of office space.

Designed by DFD Architecture and built under the supervision of Wespac Construction, the third building is being leased for Furst Properties by Craig Coppola and Jim Watkins, both with Lee & Associates Arizona.