WillScot Holdings has put its 72,000-square-foot headquarters in east Phoenix up for sublease ahead of its planned move to Scottsdale next year.
The modular office and portable storage provider has listed its offices in the four-story building at East Gateway Centre I at 4646 East Van Buren Street, the Phoenix Business Journal reported. The move is expected late next year.
The firm is based on two floors and a partial floor at the two-building East Gateway Centre campus northeast of Phoenix Sky Harbor International Airport, just off State Route 143. Its lease ends in October 2025.
Brokers Jerry Roberts and Pat Boyle of Cushman & Wakefield hold the listing. Financial terms of the sublease were not disclosed.
The next tenant would claim the building’s top sign now sporting the moniker of WillScot Holdings, known until last month as WillScot Mobile Mini.
The 115,500-square-foot property, built in 2002 within the 44th Street Corridor submarket, has been revamped to update signs, lobbies, restrooms and common areas, while expanding its spec suites.
“44th Street is definitely a little bit more of a value-play, because you still can be close to Camelback and Biltmore and Mill Avenue,” Boyle told the Business Journal. “But since you’re not right on Camelback Road or [near] Tempe Town Lake, the rents are not as high.
“You’re kind of sandwiched right in between two of the premier submarkets, so we do see spillover.”
Nearby employers include firms in engineering, healthcare and insurance, he said, which would make sense in backfilling WillScot’s office headquarters.
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In May, WillScot signed a 10-year lease at Scottsdale Entrada, where it will relocate its headquarters and take up 89,700 square feet, according to the Business Journal. The publicly traded company reported $2.3 billion in revenue last year.
Offices in Phoenix’s 44th Street Corridor are 15.5 percent vacant, up from nearly 10 percent in late 2019, when the office market had hit its stride, according to Costar Group. Nearly 80 percent of the offices were built before 2000, compared to 55 percent across the city.
— Dana Bartholomew