Max at Kierland: The Next Generation of Office

MAX at Kierland is a prime property set up on a six-storey building and occupying 258,732 square feet of floor area consisting of class A office. The building was constructed in the year 2008 and it is located in Scottsdale, Arizona and part of the Greater Phoenix Area in the Eastern side of the United States. The property is presented with many opportunities as it is in close proximity to shops and premier restaurants. Moreover, the building has a direct access to the LOOP 101 Freeway. It has 1,043 parking stalls for a ratio of 4 stalls per 1,000 square feet of leasable area ("Max At Kierland – The Next Generation Of Office”, np.) Below is the map to the area where the property is located.

Market Analysis

            Due to its suitable location, MAX at Kierland is a ‘‘hot’’ place for renting suitable for multinational corporations. One of the tenants is the Universal Technical Institute. Most properties in the Greater Phoenix Area are likely to rent more easily. When it comes to selling, properties in the area stay for approximately 102 days. For instance, in the past 3 months, 3 houses have been sold Kierland. Currently, there are 21 condos for sale in Kierland at a median listing price of $650K. Below are demographic data of the Greater Phoenix Area ("Max At Kierland – The Next Generation Of Office",np.)

Population

Total Population

64,541

Male Population

(48.3 %) 31,162

Female Population

(51.7 %) 33,379

Median Age

44.00

Income Levels

Average Household Income

$110,674

Median Household Income

$81,636

Median Income Under 25

$48,901

Median Income 25-44

$85,390

Median Income 45-64

$99,202

Median Income Over 65

$52,908

2.         Comprehensive Plan

            In West Cactus where Max at Kierland is located, there are four LEED certified office buildings. In the same year Max Kierland was constructed, 66 more commercial properties including (industrial, office and retail spaces) with over 50,000 square feet were built in Scottsdale. This shows that at this side of the city, commercial buildings are encouraged. Moreover, since the market segment for the area is of corporate nature, the kind of property developments in the area really fits into the idea of the community ("Max At Kierland – The Next Generation Of Office",np.).

3.         Valuation

            Based on the market analysis and comprehensive plan analysis done above, it would be suitable to use the income method to value the property of MAX at Kierland.Since the average household income for the city is $112,617, the suitable leasing rate for an office suite should be between $31.00 and $35.5o per Square feet per Year.

Below is a suitable schedule for lease office space.

Suite Name

Space Type

Rental Rate

Space Available

Suite 260

Office

$35.5/Sqft/Year

3,005 Sqft

Suite 208

Office

$35.5/Sqft/Year

1,850 Sqft

Suite 275

Office

$35.5/Sqft/Year

2,260 Sqft

Partial 3rd Floor

Office

$35.5/Sqft/Year

45,934 Sqft

Suite 425

Office

$35.5/Sqft/Year

5,674 Sqft

Suite 210

Office

$35.5/Sqft/Year

5,223 Sqft

Works Cited

"Max At Kierland – The Next Generation Of Office". Maxatkierland.Com, 2018, https://maxatkierland.com/. Accessed 14 Oct 2018.