The Galleria’s reputation as one of the most amenity-rich business addresses in the Phoenix Metro area and “a destination for growth” takes another major step forward.
Creative workspace pioneer Spaces has signed a lease for 32,000 square feet with plans to open its innovative co-working concept at the building in 2018. This will be the second Phoenix area location for Spaces, which has plans to open its first area facility in Downtown Phoenix next month. It also represents the first co-working presence in the Galleria, which is owned and managed by Stockdale Capital Partners.
Spaces will offer entrepreneurs and businesses seeking smaller workspaces or more flexible lease terms the opportunity to be a part of the Galleria’s growing business community. Spaces is part of IWG plc, a global holding company that includes several brands such as Regus, the world’s largest provider of flexible workspace.
Spaces will occupy the first floor of the Galleria, taking advantage of the building’s newly renovated $5 million lobby, completed earlier this summer. It will also access Scottsdale’s thriving Downtown Entertainment District, a compact and bustling area of bars, cafes, restaurants and nightclubs around the W Hotel Scottsdale on Camelback and Scottsdale Roads.
“We’re excited to bring our creative workspace concept to Scottsdale,” said Michael Berretta, vice president of Network Development, Americas at Spaces. “The Galleria’s busy and energetic atmosphere is the perfect location for our second location in Arizona. With a burgeoning business community and plenty of nearby dining, nightlife and shopping, it will be an ideal hub for entrepreneurs and business leaders to network and grow their companies.”
Bryan Taute and Charlie von Arentschildt of the Phoenix office of CBRE represented the landlord in lease negotiations. Kevin Calihan, also of CBRE, represented Spaces.
“We’ve long believed the Galleria, especially the first floor, offers the kind of collaborative, creative, light-filled space coveted by users of co-working and flexible workspace options,” said Steven Yari, managing partner of Stockdale Capital Partners.
The Spaces lease caps a productive last 18 months for the building, which has executed over 100,000 square feet in leases on behalf of new tenants in the market. Last year, Indeed, Inc., reputed to be the world’s largest job site, leased 50,000 square feet of space in the building for a flagship office with up to 400 employees. Sisense, a New York-based business intelligence software-as-a-service company new to Arizona, also signed a lease and began hiring up to 50 employees. Content marketing and sales conversion services firm Clearlink also opened a 350-person sales center.
“Companies continue to flock to downtown Scottsdale because the lifestyle appeals to key demographics, especially Millennial workers,” said Daniel Michaels, managing director of Stockdale Capital Partners. “It is extremely walkable, there are plenty of options for shopping, eating lunch or meeting up after work, there’s a vibrant nightlife and plenty of quality housing units – with more to come. The Galleria is right in the middle of everything,” he added.