Largest Office Building Nears Completion at Skysong in Scottsdale, Arizona

Article originally posted on CoStar on March 22, 2019

SkySong 5 will be the largest office building in the SkySong development. Illustration: Plaza Cos.

A building under construction in one of Phoenix’s most thriving mixed-use developments has reached its full six-story height to become the largest of five office structures at the 42-acre SkySong campus in Scottsdale, Arizona.

Structural steel at the 151,318-square-foot building named SkySong 5 along SkySong Boulevard topped out at 90 feet this month and the building is now scheduled to finish construction this summer, according to Plaza Cos., University Realty and Holualoa Cos., the trio of companies building the SkySong project in partnership with Arizona State University.

Plaza Cos., a Phoenix-based real estate company, is also master developer of the larger SkySong and the ASU Scottsdale Innovation Center, a public-private partnership with Arizona State’s property arm University Realty, the Holualoa Cos. and the city of Scottsdale.

SkySong and the ASU Scottsdale Innovation Center are planned to include more than 1.2 million square feet of commercial space when finished. The first four SkySong office buildings, each 145,000 square feet, are all near full occupancy. The project also includes the SkySong Apartments, opened in 2013.

The new $43 million office at 1301-1475 N. Scottsdale Road already has significant lease commitments from Arizona State, private-equity firm Berkadia and digital networking company Limelight Networks, and leases for several other prominent tenants are under negotiation by Lee and Associates, SkySong’s commercial real estate broker, according to a Plaza Cos. statement.

DPR Construction and Butler Design Group designed the building to include outdoor work and meeting spaces as well as public art pieces. It also includes a large outdoor patio and event space on the second floor.

Construction started seven months ago and continued smoothly during the wet winter and spring months, the companies said.

Stan Shafer, chief operating officer of Holualoa Cos., said in a statement the developers “have seen a significant amount of interest in leasing space throughout the property.”

With the opening of the SkySong 5 and the Element Hotel at SkySong, the commercial space will exceed 750,000 square feet.

“There is a sense of momentum right now for SkySong in general,” Shafer added.