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PHOENIX-Two leases totaling just under 32,000 square feet have been signed for space at 3131 E. Camelback Rd., bringing occupancy of the 196,740-square-foot, class A office building to 99%. Johnson bank signed a five-year renewal for 21,169 square feet, while new tenant Homesmart Holdings took on 10,796 square feet in a medium-term lease.

And, according to Grubb & Ellis/BRE Commercial LLC brokers Trevor Klinkhamer and Ray Harris, more news about more leases is pending. “We have a lot of activity on that building. It’s basically one of the nicest buildings on the Camelback corridor,” explains Klinkhamer, who partnered with Harris and BRE colleague Alissa Leon on behalf of building owner KBS Realty Advisors of Newport Beach, CA. Kit Tiedemann and Chuck Nixon with CB Richard Ellis represented Johnson Bank.

One factor in the building’s popularity in a market in which leasing velocity has ground to almost a dead halt is the location. When it comes to office space, Camelback Corridor tends to be a highly sought after location.

The brokers tell GlobeSt.com another appealing factor is the quoted lease rate, which is $26 per square foot, gross. Harris explains the ask is down about $10 from the year before, and is also extremely competitive for the submarket.

“This particular rate is only a little higher than class B rates,” Harris explains. “The potential tenants we’re seeing are taking advantage of the flight to quality in which they can lease premier class A space for B asking rates.” Klinkhamer adds that one deal the team is working now involves a potential tenant coming out of a class B building. “They’ll pay a little more money than where they are at the moment, but they want to move to quality,” he remarks.

Finally, there is the ownership. “KBS has maintained this beautifully and has been very aggressive in going after tenants,” Klinkhamer notes. “They’re beating everyone else out in the market.”

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