Leases Landing On Class A Spec's Doorstep

SCOTTSDALE, AZ-Working its way to completion, an 86,000-sf spec office building has landed its first deal: 6,000 sf for a Canadian company planning its first US office. Based on the pipeline, another 20,000 sf to 25,000 sf will be filled by the time the four-story FNBA Center II is completed in June.

Industrial Alliance Pacific Life Insurance Co. of Canada has signed a five-year lease for the Perimeter Center project at 17550 N. Perimeter Dr. Next to sign will be companies from financial services, accounting, insurance and title industries, all planning to come on board within one month. The quoted rent is $35 per sf full-service, including a tenant-improvement allowance.

Grubb & Ellis BRE Commercial LLC’s senior associate Blake Hastings says the FNBA Center II got underway last fall as pure spec. First National Bank of Arizona began the Perimeter Center development two years ago, acquiring 20 acres and immediately building FNBA Center I, which it currently occupies. Hastings says the demand for class A office space in Scottsdale was the motivating factor behind the financial institution’s decision to add a second building.

“They’re looking at this as a long-term investment,” Hastings says, “and thought it was time to capitalize on their investment in the land.” He and Grubb & Ellis senior vice president Jeff Wentworth are leasing the project.

Hastings tells GlobeSt.com that there’s enough room for a third building, but there are no plans to go forward right now. He says other issues need to be addressed, such as underground parking for the existing structures before a third one can be considered. “There’s plenty of land to do another twin building to this,” he adds.