After lagging in office leasing, Phoenix’s core may be primed for a resurgence
By Corina Vanek | Phoenix Business Journal
When Jorge Escobar’s Miami-based real estate investment firm Black Salmon bought the 101 North tower, the second-tallest building in Phoenix in August, the firm saw the high-rise as an opportunity to create value in a central business district that has matured more slowly than other Valley submarkets.
“We are firm believers that downtowns are re-emerging,” Escobar said. “Young employees want to work closer to their homes, near good bars and sports. Everything in downtown Phoenix matched our investment philosophy in the company.”
Downtown Phoenix has not benefited in the way that hot office markets in other areas of the Valley, like Tempe, have enjoyed in recent years. Yet some brokers and owners who have listings and specialize in downtown are increasingly optimistic. Though the submarket has lagged others in leasing, the area might be a sleeping giant as Arizona State University’s downtown presence continues to grow, the area’s bar scene becomes increasingly popular and multifamily development brings more residents into the city core between Seventh Street and Seventh Avenue.