Continued New Leasing Activity Bucks Office Trends in Metro Phoenix

SkySong, The ASU Scottsdale Innovation Center is seeing the benefits of its innovative approach with a flurry of new leasing activity. 

SkySong remains one of the Valley’s most dynamic and vibrant business hubs by consistently evolving to meet the needs of today’s businesses, startups, and professionals.

The headliner in the latest flurry of activity is a new lease by Yelp for a space in SkySong 4. SkySong has been pursuing Yelp as a tenant for several years and the project team is very pleased to finally have them as a partner. It’s also a sign that larger employers are returning to in-office work environments. 

Additionally, three other companies have renewed or expanded their presence in the project:

• Medicare Benefits Direct (dba Get Me Healthcare) is expanding from 3,714 square feet in SkySong 3 to 8,648 square feet in the building.
• Integrity Express Logistics (3,118 square feet) and Solugenix (2,093 square feet) are tenants in SkySong 1 and 3, respectively. 

With its unique combination of cutting-edge workspaces, walkable dining and entertainment options, premier hospitality, and residential opportunities, SkySong continues to thrive as a top-tier leasing option for companies and entrepreneurs seeking an innovative, flexible environment.

“SkySong provides an environment where innovation and lifestyle meet,” said Sharon Harper, Chairman and CEO of Plaza Companies, the master developer of SkySong. “The project continues to evolve and adapt, making it a one-stop destination for businesses looking to grow and succeed while also offering their teams an exceptional work-life balance.”

SkySong’s success lies in its mixed-use work-live-play model, offering tenants more than just office space. Businesses leasing at SkySong benefit from access to a range of on-site amenities that include walkable restaurants, retail spaces, hospitality services, and housing options – all designed to foster collaboration, creativity, and convenience. 

Tenants can enjoy a balance of professional workspaces and vibrant leisure spaces, with access to both indoor and outdoor gathering areas for meetings, networking, and social events.

The SkySong complex is also well-known for its close partnership with Arizona State University (ASU), giving tenants access to world-class academic resources, research initiatives, and collaboration opportunities with one of the nation’s leading public research universities. It was first imagined by ASU President Michael Crow and the City of Scottsdale in 2004.

This unique connection strengthens the innovative ecosystem that defines SkySong, fostering opportunities for businesses to partner with ASU researchers, hire talented graduates, and engage in collaborative projects that push the boundaries of innovation.

Currently, SkySong boasts an occupancy rate of 88 percent, a testament to its ability to continually attract new businesses while retaining long-standing tenants. The addition of residential units and hospitality options has bolstered SkySong’s appeal as a fully integrated community that caters to businesses, residents, and visitors alike.

As leasing demand continues to rise, SkySong remains committed to adapting its offerings to meet the needs of an evolving business landscape. From flexible lease terms to innovative office layouts, SkySong is designed to support the future of work, providing tenants with the space and resources they need to thrive in a fast-changing world.

Plaza Companies is the master developer of SkySong, in partnership with University Realty, the City of Scottsdale and Holualoa Companies. Plaza Companies provides development, financing, construction oversight, leasing renewals and expansions and property management at SkySong. The Coppola Cheney Group of Lee & Associates is SkySong’s leasing broker.

SkySong is a 42-acre mixed use development designed to:

• Create an ecology of collaboration and innovation among high-profile technology enterprises and related researchers.
• Advance global business objectives of on-site enterprises.
• Raise Arizona’s profile as a global center of innovation through the co-location of Arizona State University’s strategic global partners. 
• Create a unique regional economic and social asset.

Companies located at SkySong have the opportunity to partner with ASU, which has more than 145,000 students studying across four metropolitan Phoenix campuses, in Lake Havasu City, Los Angeles and Washington D.C. and online. ASU is one of the largest public universities in the nation, with the majority of its students attending its campus in Tempe, Arizona, less than three miles from SkySong. 

In addition to locating its own innovative research units at the center, through ASU’s on-site operations, tenant companies have a single point of contact for introductions to researchers, faculty and programs to address their specific needs.

For more information on SkySong, visit SkySong.com or follow developments on Facebook.  

Numerous Firms Expand Space Within SkySongâ€s Four Buildings; Innovation & Flexibility Within Project Key to Supporting Growth

Read the entire article at this link.

Ecolab, which currently ranks 211^th on 2017â€s list of Fortune 500 companies, will take approximately 6,000 square feet of space on the third floor of SkySong 4 after leaving its previous home at Indian School and Scottsdale roads. Intersys, which is based in Austin, Texas, will move its current operations from Tempe Town Lake to a 2,300 square-foot spec suite right next door to Ecolab on the same floor of SkySong 4, leaving only one other first-floor tenant space available for lease.

With the two new contracts signed, SkySong 4, which offers more than 141,000 square feet of Class A office space, is at 87 percent capacity only one year after completing construction.. The four-story research center sets the standard in the Valley with regard for innovation as well as sustainable design and construction practices, and it holds a Silver LEED certification from the U.S. Green Building Council.

“Ecolab and Intersys should feel right at home in SkySong — they are both on the cutting-edge of their industries, and they both embody the entrepreneurial spirit that so many existing tenants here share,” said Sharon Harper, President & CEO of Plaza Companies, the master developer for SkySong. “We are pleased to have them on board, and to have SkySong 4 almost completely occupied just a year after opening.”

Read the entire press release at this link.

The Best of NAIOP event is dubbed the “Academy Awards” for the commercial real estate industry. Nominations for 2016 were reviewed and rated by a panel of NAIOP judges who select the best in a variety of categories from building to individuals.

NAIOP, the Commercial Real Estate Development Association, is an organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP advances responsible sustainable development that creates jobs and benefits the communities in which its members work and live.

SkySongâ€s economic impact is significant, and the Best of NAIOP Award for Economic Impact Project of the Year is a testament to that impact. According to an economic impact study from GPEC, SkySongâ€s economic impact will exceed $32 billion over the next 30 years. More than 2,000 people currently work at SkySong in the four existing office buildings.

SkySong 4 received the recognition for Spec Office Project of the Year against strong competition. The 145,000-square-foot building opened in November 2016 and is home to several innovative companies, including EdPlus at ASU, Booker Software, MindBody and BrightCove, with more leases pending.

Read the press release at this link.

The building, which is already 50 percent leased and expected to be LEED Silver Certified by the U.S. Green Building Council, features an open-air lobby to encourage interaction and collaboration and an outdoor workspace with a fire place and other amenities.

Two major tech companies recently leased space in SkySong 4. In November, MindBody, a leading provider of cloud-based business management software for the wellness services industry, signed a long-term lease to occupy 28,229 square feet.

And in October, Brightcove, a pioneering force in the world of online video, signed a lease to occupy 13,000 square feet of the first floor. The company, relocating from Tempe, has nearly 5,000 customers in 70 countries is a leading provider of cloud services for video. It company offers a full suite of products and services that reduce the cost and complexity associated with publishing, distributing, measuring and monetizing video across devices.

Two other highly regarded entities — ASU EdPlus and Booker Software — have also committed to space at SkySong 4 and have begun the process of moving in.

Leasing momentum continues on the SkySong campus with construction on SkySong 5 expected to begin in Spring 2017. Pre-leasing is underway, with Andrew Cheney and Craig Coppola of Lee & Associates serving as brokers for the project.

“The construction of SkySong 4 has gone very smoothly. In March, after just 4 and a half months of construction, we celebrated the ‘topping out†of SkySong 4 and now it is being occupied,” said Sharon Harper, President & CEO of Plaza Companies. “We are thankful for the work done by DPR Construction and its subcontractors – they have constructed a building that is unique in character and that will draw people in to its work environment.”

Read the entire article at this link.

MindBody, a leading provider of cloud-based business management software for the wellness services industry, signed a long-term lease to occupy 28,229 square feet of SkySong 4, which is now almost 50 percent leased with several deals under negotiation.

The company, which is expanding out of its headquarters in San Luis Obispo, California, has over 58,000 local businesses and 326,000 wellness practitioners in over 130 countries and territories. They all use MindBodyâ€s integrated software and payments platform to run, market and build their businesses. These practitioners provide a variety of wellness services to approximately 35 million active consumers who use the MindBody platform to more easily evaluate, engage and transact with them to live healthier and happier lives.

Read the entire article at this link.