Allred Starts 2nd Spec Project of 2013 at Chandler Office Park

Construction is in full swing on the latest addition to the Allred Park Place office park in Chandler--a 69,000-square-foot speculative office building. The development, which broke ground in August, is the second spec building launched at the office park by Douglas Allred Co. this year, according to the Phoenix Business Journal.

Construction is in full swing on the latest addition to the Allred Park Place office park in Chandler–a 69,000-square-foot speculative office building.

The development, which broke ground in August, is the second spec building launched at the office park by Douglas Allred Co. this year, according to the Phoenix Business Journal. Allred previously broke ground on a 92,109-square-foot office building, which has since been leased to Infusionsoft and is scheduled for completion by the end of the year, the Business Journal reported.

Leasing for the latest project will be handled by Mark Krison and Scott German of CBRE Group Inc., Arizona Commercial Real Estate reported.  Mesa-based Willmeng Construction is serving as general contractor for both new buildings, which were designed by Phoenix-based Balmer Architectural Group.

Allred Park Place currrently consists of four Class A office buildings, totaling nearly 354,000 square feet, with an occupancy rate of 90 percent. Allred’s plan could eventually expand the business park’s footprint to upwards of 1 million square feet.

A recent report from Marcus & Millichap Real Estate Investment Services Inc. shows that a shortage of large, contiguous blocks of Class A space in Greater Phoenix has prompted developers to break ground on high-end projects totaling 540,000 square feet, including the two projects under way at Allred Park Place.

As illustrated by the chart at left, Marcus & Millichap projects that by the end of the year, metro Phoenix’s office market will gain 200,000 square feet of new product, which will boost inventory by 0.3 percent.

Photo courtesy of CBRE Group Inc.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.