With General Motors’ recent announcement that it plans to close the Arizona IT Innovation Center, and other prominent moveouts in the area, some market watchers are expressing concerns about the state of Chandler’s Price Road Corridor.
Sam Kapur of Arizona Elite Commercial presented his worries to the Chandler Chamber of Commerce Economic Update session on Aug. 24, noting GM has joined PayPal and Liberty Mutual as recognizable occupants that have left the area. He estimated nearly 1MSF of vacancy in the Corridor. He added many buildings have been vacant for years, with tenants in place but without being occupied, in part because employees are still working from home post-pandemic.
Kapur said that while the published vacancy rate for the area may be 16%, the reality is probably much higher, adding that GM’s departure will probably propel vacancy numbers to between 25% and 28%. He added that while landlords are still collecting rent from tenants who do not actually have employees on site, area retailers such as restaurants and service providers are going to suffer.
Chandler Economic Development Director Micah Miranda disagreed with Kapur’s assessment. He conceded that while there is “softness” in the Chandler market, which usually sees vacancy rates at around 12% and is currently reported at 17.9%, he sees no cause for concern.
Miranda said Price Road remains a sought-after area with a high brand value that is seeing both employees of existing tenants returning and other prominent firms either recently taking space there or looking to do so in the near future. Recent high-profile arrivals in the Price Road Corridor include Bechel, Titan Solar and Yield Engineering. (Source)