Schwab Eyes Premiere Corner for New Offices

PHOENIX-Charles Schwab & Co. may be close to leasing nearly all of a soon-to-be-completed 231,000-sf office building near an intersection in Phoenix, which is now the financial and real estate center of metropolitan Phoenix.

The nation’s largest discount broker is in lease discussions to take as much as 173,000 sf in an eight-story office building nearing completion, which is located south of the southwest corner of 24th Street and Camelback Road. The $40-million building, under development by Phoenix-based Artemis Realty Group, is at 4740 N. 24th St.

Although Artemis and Schwab representatives are being quiet about the deal, real estate sources say that the two have been in negotiations for some time, and a lease could be signed within the next week or two.

In the past decade, the intersection of 24th Street and Camelback has become the epicenter of the Valley’s high-end office development. Opus West is under development on a fifth office tower at the southeast corner and Hines Development has nearly leased up its recently opened office building on the southwest corner. More than 230,000 sf of office space is under development along the Camelback Corridor and another 230,000 sf is planned.

The entire Camelback Corridor, which runs from 16th to 44th Street, commands the highest lease rates for office space in metropolitan Phoenix.

At the start of the fourth quarter, the vacancy rate along the Camelback Corridor was down to 7.2%, and the asking lease price was more than $30 pers sf, according to a study by CB Richard Ellis.

Charles Schwab & Co. has been steadily growing in the Valley. It now has more than 2,000 employees in call centers, data centers and trading offices.