Root Insurance, the nation’s first car insurance company to incorporate individual driving behavior in every rate, announced plans to expand its operations in Chandler, creating 480 new jobs. Hiring for claims and customer service positions are underway.
“We evaluated multiple markets on the West Coast before making the decision to meet our growing West Coast customer demand,” said Clara Kridler, Root Vice President of People. “The Phoenix Region, and Chandler in particular offers the high-quality talent pool and collaborative business environment we need to help our company thrive. The Arizona Commerce Authority, Greater Phoenix Economic Council and City of Chandler have been invaluable partners for us as we’ve continued to grow.”
“Arizona is the No. 1 inbound state in the U.S., and it’s because of companies like Root Insurance choosing our state to expand their business,” said Governor Ducey. “Their new facility in Chandler will create hundreds of new jobs in the financial services sector. We congratulate them on their growth and thank them for investing in Arizona.”
Root currently has more than 600 employees at its headquarters and customer service center in Columbus, Ohio, and more than 850 employees throughout the U.S. Root plans to expand its operations with a West Coast claims and customer service center to meet its growing customer base through the development of a claims and customer service center in Chandler, Arizona that over five years will create 480 new jobs.
“The City of Chandler is thrilled to welcome this innovative financial services company to our thriving business community,” stated Chandler Mayor Kevin Hartke. “We continue to see that Chandler’s business friendly operating environment, high performing schools and quality office developments are in high demand by growing and discerning companies like Root Insurance.”
Root is the nation’s first licensed insurance carrier powered entirely by mobile and founded on the principle that car insurance rates should be based on how you drive, not who you are. Through smartphone technology and data science, Root measures driving behavior, and uses it as the primary factor in determining rates.
“Arizona continues to be the location of choice for financial service industry leaders seeking top talent, a pro-business environment and excellent quality of life,” said Sandra Watson, Arizona Commerce Authority President & CEO. “We’re very proud Root Insurance has selected Chandler for its western U.S. operation, which will create nearly 500 new high-quality jobs for Arizonans.”
Root chose the Arizona location following a comprehensive, multi-state corporate site location process that considered other regions and states in the Western United States. The Arizona marketplace was on the radar for Root due to the state’s insurance industry strength and growing workforce and population base.
“Root Insurance joins an ecosystem of inclusive and innovative companies in Chandler,” says Chris Camacho, president and CEO, Greater Phoenix Economic Council. “The Greater Phoenix region is the fastest growing market in the United States and has intentionally created an environment that attracts diverse businesses that are invested in advancing the economy and providing quality jobs for our residents.”
Newmark Knight Frank represents Root in 38K SF lease
Newmark Knight Frank announces that Root Insurance, a billion-dollar start-up auto-insurance company, is the first tenant to sign a lease in the recently delivered 2625 at Chandler Freeway Crossing, located at 2625 West Geronimo Place in Chandler. Root Insurance’s new Chandler location will be its first office expansion outside of the company’s headquarters in Columbus. The insurance company plans on growing its Chandler operation to over 400 customer service and sales employees over the next five years.
Powered by an app that measures driving habits, Root Insurance is one of the largest and fastest-growing of the tech-enabled insurance carriers. In September 2019, Root Insurance raised $350 million in funding, bringing the company’s valuation to $3.65 billion.
“As we sought a location to expand our services in support of growing customer demand from the West Coast, the Phoenix region stood out. The area’s economic fundamentals, business-friendly environment and deep talent pool drove our decision and we are excited to be a part of the Chandler community,” said Clara Kridler, Root Insurance’s Vice President of People.
Newmark Knight Frank (NKF) Executive Managing Director Tom Adelson and Associate Director Erin McClure negotiated the 38,000-square-foot lease on behalf of Root Insurance. NKF Director Cory Kooperman, CCIM cooperated in the transaction. Dave Seeger with JLL represented the landlord, Mark IV Capital.
“This lease is a big win for both the tenant and building. NKF provided a thorough, all-market tour of the Valley and, ultimately, 2625 at Chandler Freeway Crossing was chosen because of the growth potential, amenities and proximity to an educated workforce that it offered,” said NKF’s Adelson. “This location is perfect for Root Insurance to continue to attract best-in-class talent and expand its Chandler presence.”
Chandler’s available office space and strong workforce continue to make the city a desirable location for companies. Chandler is rapidly flourishing as companies reduce operation costs by seizing affordable, large block office space and employees enjoy a high standard of living at a discounted price point.
Built on the regional legacy of Motorola, Boeing and Intel, Chandler’s largest employers include several multi-national semiconductor manufacturers, a major defense contractor and a wealth of operations and tech-related roles with financial and insurance companies. This highly-skilled, technical workforce is reflected in an average household income of $105,867, or 21.1 percent higher than the metropolitan average.
“We are delighted to partner with Root Insurance as a tenant at Chandler Freeway Crossing,” said Kelly Kharbanda, Mark IV Capital’s Senior Vice President of Arizona. “With over 270,000 square feet of space remaining in future phases at Chandler Freeway Crossing, it is our hope that we can support Root’s growth in Arizona.”