Glendale, AZ - Economic Development
 

Quarter 1/2014 - July 2013 – Issue 1
Glendale Economic Development Division

Glendale’s 101 is Back in Business – and Better than Ever!

Glendale, AZTo say that things have been busy in Glendale’s Sports and Entertainment District along the Loop 101 would be an enormous understatement. New sports activities, new jobs, new stores & restaurants and new buildings have dominated both the headlines and the entire Loop 101 Corridor this year:

  • Arizona Cardinals Training Camp Coming to Glendale: On June 12, 2013, the Arizona Cardinals announced that they will hold training camp in the Greater Phoenix region for the first time since moving to Arizona. The University of Phoenix stadium in Glendale will host the training season from July 26th -August 22nd.

  • The Phoenix Coyotes Keep Hockey In the Desert: On July 9, 2013, the Glendale City Council approved a 15-year, $225 million arena lease deal with Renaissance Sports & Entertainment (RSE) during a special session. RSE still has to complete its purchase of the Phoenix Coyotes and get approval from the NHL's Board of Governors, but those are expected to be formalities.

  • Terminix Selects Glendale’s Westgate for 300 Jobs: On June 19, 2013, the largest office lease in Westgate Entertainment District’s history was announced with the new 300-worker regional customer service center for Terminix International Co. The Memphis, Tennessee-based pest control company has leased 32,800 square feet at Westgate for offices and customer service operations. Glendale was ultimately selected after the company considered several locations in the Phoenix area as well as sites in Denver and Salt Lake City.

  • Thriving Retail and Restaurants at Westgate, Tanger Outlets: Upon the opening of the $76 million, 365,000 square foot Tanger Outlets Westgate development, which opened 85 stores in November 2012, several more restaurants emerged around the Glendale Loop 101 Sports and Entertainment District. Just in time to serve many of the Arizona Cardinals fans attending summer training camp, several new eateries will be completing their tenant improvements and opening their doors. Carl’s Junior (next to Tanger Outlets), Buffalo Wild Wings (Westgate), Taverna (Westgate), Razzberriez Frozen Yogurt (Westgate), and Whiskey Rose Saloon (Westgate) will be a welcome addition to the variety of cuisines and menu offerings within the District. These join popular Westgate area restaurants such as Shane’s Rib Shack, WhichWich, Chipotle, Mama Gina’s Pizzeria, Yard House, Margaritaville, Saddleback Ranch, Kabuki, My Big Fat Greek Restaurant, McFadden’s, Johnny Rockets, and many others.

  • St. Joseph’s Westgate Medical Center Construction Kicks Off in Glendale: In January 2013, St. Joseph’s Westgate Medical Center broke ground on its 35-acre Glendale medical campus on the west-side of the Loop 101 and Glendale Avenue. It is Glendale’s third major hospital and represents a $44 million initial investment that will start with a 24-bed in patient hospital, two emergency rooms and space for diagnostic services and employ upwards of 200 full-time employees. The hospital is scheduled to open March 2014. 

Glendale’s Arrowhead Region Making Leaps this Year:

  • Glendale, AZArrowhead Cadillac Cruises into Glendale with $16 Million Investment: A new luxury Cadillac car dealership broke ground in February 2013 and will be built in north Glendale by America’s largest privately held automotive company, the Van Tuyl Group. The $16 million dealership will be located on nearly eight acres at 83rd Avenue and Bell Road.  Glendale’s Arrowhead Cadillac is expected to open in the fall of 2013 and have a broad spectrum of approximately 150 wage-earning employees.

  • Midwestern University Announces New Veterinary School: Midwestern University in Glendale holds the claim that they are Arizona’s largest medical school – and they’re about to become larger. Midwestern University’s 143-acre campus will compete construction on Arizona’s first school of veterinary medicine in 2014. The campus now has more than 2,700 students in five major programs, including osteopathic medicine, pharmacy, health sciences, optometry, and dental medicine.

  • Sprouts Now at Deer Valley and 67th Avenue: Sprouts Wholesale Market is renovating more than 25,000 square feet of retail space in north Glendale in anticipation of a fall 2013 opening.

More Cool and Interesting Happenings in Glendale:

  • Glendale, AZAbengoa Announces Waste-to-Energy Project in Glendale: Abengoa was selected in May 2013 by VIESTE Energy LLC, a Chicago, Illinois-based base load renewable energy development entity, to build a plant of electricity production from the gasification of municipal solid waste in the City of Glendale. The $110 million project includes both the construction of the plant and its operation and maintenance for 30 years. The project includes the receipt, sorting and recycling of up to 180,000 tons of municipal solid waste (MSW) per year. A gasification process will be utilized to produce up to 350 tons of gas per day, generating 15 MW of electricity.

  • Spring Training Season Scores Record-Breaking Numbers in Glendale’s Hotel Occupancy: Spring training fans and convention travelers came to the City of Glendale in record numbers this year, according to a February 2013 report from the Glendale Convention & Visitors Bureau (CVB). Hotel occupancy increased by 18.5 percent over last year, and hoteliers reported that the occupancy for the month of February was at 75.4 percent with an average daily rate increase of 1.4 percent from the previous year.  Attendance milestones contributed to attracting thousands to Glendale, which is home to the Chicago White Sox and the Los Angeles Dodgers. Another factor contributing to the increase was increased marketing efforts to target markets, including California and the Mid-West.

  • Glendale Passport to Science Events Draw 10,000 people: The City of Glendale Economic Development Division worked with dozens of citywide partners this year to kick-off the February-March 2013 Glendale Passport to Science as a part of the statewide Arizona SciTech Festival, attracting more than 10,000 participants to the science education activities. The City of Glendale showcased a number of key industries in its community, including chocolate, aerospace, healthcare and hockey, in order to highlight a number of science education and career paths for the public. To get involved in next year’s Glendale Passport to Science, please contact Jeanine Jerkovic at (623) 930-2985 or email jjerkovic@glendaleaz.com.

  • Canadian-based ZyTech Building Systems Puts First-US Location in Glendale: One of Canada’s largest lumber distributors and roof truss manufacturers, ZyTech Building Systems, announced in March 2013 that it was expanding its U.S. presence into the City of Glendale. The Balzac, Alberta-based company eventually will create 300 jobs in Glendale as it establishes itself as a resource to home builders and commercial developers regionally. The new operation is based at 8205 N. 67th Avenue, the former headquarters of Schuck & Sons Construction Company.

Glendale’s Building Occupancy Rates

Building occupancy rates are one statistic used to track the health of the business community within Glendale.  Occupancy rates are tracked in three categories: office, industrial, and retail.

Glendale’s July 2013 Building Occupancy Rates*

Rate

Retail

Industrial

Office

Square feet Vacant

1,144,598

874,591

1,324,409

Square feet Occupied

12,105,839

10,038,563

3,499,874

Percent Vacant

9%

8%

27%

Retail and Industrial remain very healthy markets for the City of Glendale with very few large, contiguous available spaces still available.  Comparatively, the City of Glendale Retail vacancy is at 9% and the Industrial vacancy is at 8%, while the regional Greater Phoenix vacancy rates hold steady at 11% (Retail) and 11.8% (Industrial).

Glendale has an immediate need for an increase in industrial development. As of last month’s lease and purchase of the two largest buildings in the City, the largest vacant industrial building in the City of Glendale is now approximately 55,000 square feet in size. This could potentially pose a challenge for Glendale, despite its immense success in attracting industrial projects.  According to the Greater Phoenix Economic Council, the majority of industrial building requirements they are receiving are in need of more than 200,000 square feet or more; in fact, more than half of these users require more than 100,000 square feet.  With the development of the western corridors in Glendale, including the Loop 303, the Glen Harbor Airpark regional area, and land west of the Loop 101, there are several attractive build-to-suit development opportunities for large-scale end users.

Glendale’s office market is not always what it appears. The numbers show that Glendale’s office vacancy rate is among the highest in Greater Phoenix at 27%. The numbers, however, may not be exactly what they seem. When you consider that only three office spaces in Glendale account for 34% of that vacancy rate, the numbers tell a different story.  If not for these three spaces, each of which total more than 100,000 square feet, the vacancy rate in the City of Glendale office market would be 17%, which would be below the regional rate of 19.4%.  While the City of Glendale received a number of high quality prospective leads and client visits to our large office inventory last quarter, the majority of office users considering the Greater Phoenix market were looking for small-scale office buildings less than 25,000 square feet. Alternately, many were looking for space above 200,000 square feet. Glendale’s colleagues at the Greater Phoenix Economic Council reported that the third 2013 fiscal quarter had the second-highest level of prospective client activity in the organization’s history; half of this activity was office users.  Glendale’s office market is poised to move this next fiscal year, given the volume of prospects and competitive costs of real estate in the West Valley.

*Information provided by CoStar

Meet the Glendale Economic Development Divsion:

  • Brian Friedman, Director, Community and Economic Development Department
  • David McAlindin, Official
  • Jeanine Jerkovic, Administrator
  • Mark Paratore, Specialist
  • Jessi Pederson, Specialist
  • Suzie Ricard, Administrative Assistant
  • Visit us online now! Click here.