Beverly Eernisse, vice president of Furst Properties, tellsGlobeSt.com that she expects the $10-million building shell will beabout 50% occupied by the time it is completed in October. "WhenPhase III is open in the fall of 2004, we'll be prepared," Eernissesays, noting the developer already is talking with severalprospective tenants in hopes of filling the building. "There's beena lot of interest," she says. "It's a premier project, that's forsure."

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

The Pinnacle in Kierland's first building reached close to fulloccupancy within the first year of its 1999 opening, drawingtenants that included Procter & Gamble, KnowledgeNet, RandstadNorth America and Guaranty Title. Phase II, completed in 2001, wasstarted nine months ahead of schedule due to the demand for officespace in the northern submarket. It is close to capacity withleases to Bank of America, General Mills, Robert W. Baird, CapitalTitle Group, Westland Title and Newport Development. Whencompleted, the Pinnacle in Kierland will encompass more than450,000 sf of office space.