CBRE has negotiated a 62,771-square-foot office lease at Black Canyon Commerce Park located at 2133 W. Peoria Avenue in Phoenix. The building is now 100 percent leased to Progrexion, a technology enabled consumer service business that provides a suite of credit repair services.
Currently, Progrexion occupies approximately 60,000 square feet in the I-17 corridor submarket. The additional 62,000-plus square feet will be used to house the 450 new employees Progrexion plans to hire in the near future.
Ashley Brooks, Jim Bayless and Jenny Aust Turner of CBRE’s Phoenix office represented the landlord, Newport Beach, Calif.-based Granite Black Canyon Holdings, in negotiating the long-term lease agreement. Darius Green of Keyser and Sam Pruitt of Site Selection Group represented Progrexion.
“This transaction is a great barometer for the overall health of the market,” said CBRE’s Brooks. “Companies are starting to focus on growth again. We’ve already seen a substantial increase in office activity through the first quarter of 2015 and we expect that to continue over the next several months as users either expand existing operations or enter metro Phoenix from other markets.”
According to CBRE Research, Q1 2015 saw 477,901 square feet of positive net absorption of office product across the Valley. For comparison, Q1 2014 recorded 319,820 square feet of positive net absorption and Q1 2013 saw 268,500 square feet of positive net absorption. These year-over-year increases are even more substantial when compared to Q1 2012 when the Valley only recorded 959 square feet of positive net absorption.
With the office market on the upswing, Valley business and municipal leaders are excited about economic growth in the post-recession market. Progrexion’s expansion demonstrates a clear commitment to metropolitan Phoenix and local leadership points to a growing, talented work force as a driver for economic growth.
“We’re excited to welcome an additional 450 Progrexion employees to Phoenix,” said Phoenix Mayor Greg Stanton. “This expansion shows that our growing, talented workforce is encouraging businesses to make long-term investments in our community.”
“Progexion opened its Phoenix office in 2013 with projections to grow,” said Phoenix Councilman Bill Gates of District Three. “I am pleased that within less than 3 years, they have announced an expansion and the addition of 450 quality new jobs and employees that will be a boost to the area economy and will continue to strengthen the commercial corridor within the North Mountain Business Alliance and along the east side of the Black Canyon Freeway Corridor.”