Axios Phoenix

July 25, 2024
Happy Thursday! We hope it's full of wonder.
🌦️ Today's weather: A high of 113 with a chance of thunderstorms.
🎂 Happy birthday to our Axios Phoenix member Sean Noble!
Today's newsletter is 906 words — a 3.4-minute read.
1 big thing: Office space conundrum

There's a tale of two office markets unfolding in the Valley: Nearly a quarter of our office space sits vacant, and yet we don't have enough high-end buildings to meet employer demand.
The big picture: The pandemic seems to have permanently changed the way many Americans work, and companies don't need as much space as they once did.
Yes, but: The businesses that have returned to in-person work often want luxury headquarter-like buildings with amenities that make leaving the house worthwhile.
- Just in the past few months, PulteGroup Inc. and WillScot Mobile Mini announced they would relocate their Phoenix offices to recently completed buildings in Scottsdale, underscoring the demand for new offices, CBRE vice president Charlie von Arentschildt told Axios.
Zoom in: Phoenix is not building enough of that type of "trophy" office space, von Arentschildt said.
- There is currently about 290,000 square feet under construction, the lowest level since 2012.
- Von Arentschildt said he predicts the Valley will see at least one quarter next year during which there is no active office construction, and that has never happened in the modern era.
Context: Von Arentschildt said developers are holding off because they're unsure they'd be able to lease the buildings at the sky-high prices they'd have to charge.
- Constructing and financing these projects in today's inflated economy would require rents 30% to 40% higher than current top-of-market rates to pencil out, he said.
The intrigue: Von Arentschildt noted he's also seeing significant investment in the "bottom third of the market" office buildings — but mostly because these older, often single-story buildings are easy to demolish or repurpose.
Between the lines: It's the middle-of-the-road inventory — buildings worth more than just the land they're built on but not nice enough to appeal to the current market demand — that's driving up the overall office vacancy rate.
2. 🗳️ CD1 voter guide
Six Democrats are vying for the chance to challenge a longtime Republican incumbent and flip what might be Arizona's most competitive congressional district from red to blue.
The big picture: Democrats view Arizona's 1st Congressional District, based in Scottsdale and northeast Phoenix, as a top pickup opportunity.
- The district is represented by Republican Rep. David Schweikert.
These are the six candidates seeking the Democratic nomination in CD1:
Andrei Cherny is a former assistant Arizona attorney general and state Democratic Party chair, and he previously served as CEO of Aspiration, a sustainability-focused financial services company. He served in the Clinton administration, becoming the youngest speechwriter in White House history at age 21.
Marlene Galán-Woods is a former broadcast journalist and an ex-Republican who switched parties after Donald Trump's 2016 election. She's also the widow of former Arizona Attorney General Grant Woods.
Andrew Horne is an orthodontist and native Arizonan who had a practice in Colorado Springs, Colorado, before moving home in 2020. He's not related to Republican Superintendent of Public Instruction Tom Horne.
Kurt Kroemer is the former CEO of the American Red Cross's Arizona-New Mexico region. He previously served as COO of the Make-A-Wish Foundation of America and Humanity United, and was a city council member in Bowie, Maryland.
Conor O'Callaghan is the managing director of the financial services firm BTIG. O'Callaghan, a first-time candidate, grew up in Scottsdale after moving to the U.S. from Ireland at age 4.
Amish Shah is a career emergency room physician and sports medicine doctor who was elected to three terms representing central Phoenix in the Arizona House of Representatives, where he was known for working across the aisle with Republicans.
3. Chart du jour: We want pools

Houses for sale with swimming pools are flooding the market nationally — and they're an especially popular amenity in the Valley's housing market.
By the numbers: The share of metro Phoenix home listings offering a pool rose from 33% in 2017 to 56% in the first half of this year, per Realtor.com data shared with Axios.
Zoom in: New pool construction was particularly popular during the pandemic, when families found themselves stuck at home.
Yes, but: Inflation has largely chilled the pool building market since then.
- New pool construction could be down as much as 20% from last year, swimming pool supplies distributor Pool Corporation reported in late June, pointing to "cautious consumer spending on big-ticket items."
4. Chips & salsa: Vance coming to Glendale
✈️ Republican vice presidential nominee JD Vance plans to make a campaign stop at the Arizona Christian University Event Center in Glendale on Wednesday. (Arizona's Family)
🏀 Former ASU guard Josh Christopher, who won a spot on the Miami Heat's Summer League roster, was named the MVP of the Summer League Championship game earlier this week. (Phoenix Business Journal)
⛔ The city of Tempe will close the Mill Avenue and University Drive intersection in all directions at midnight Aug. 3 until 4am Aug. 7 to update the pedestrian crossings and make other improvements. (AZcentral)
5. 😎 Your weekend, planned
The weekend is calling your name. Answer with some fun plans.
🎭 Nick Cartell: A Thousand Spotlights
Scottsdale-born Broadway star Nick Cartell will be at ASU Kerr tomorrow to share stories of his time performing in shows like "Les Misérables" and "Jesus Christ Superstar."
- $10 general admission
Take a twilight walk to see crocs and gators Saturday night at the Phoenix Herpetological Sanctuary.
- $35 for adults, $25 for children
Take a yoga mat to Greenwood Brewing on Sunday night for a dance-inspired workout class.
- $15, which includes a 5-ounce post-workout pour
😎 Jeremy is off this week.
🤠 Jessica made this Cowboy Ciao/The Gladly salad dupe and it was shockingly spot on.
This newsletter was edited by Gigi Sukin and copy edited by Jay Bennett.
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