Making it nice and legal

Five Phoenix law firms have moved into the office high-rise in downtown Phoenix's Cityscape project or have plans to move there.

The Squire, Sanders and Dempsey firm and the firm of Ballard, Spahr, Andrews and Ingersoll as well as Jennings Strouss & Salmon have moved in already. Gust Rosenfeld and Polsinelli Shughart will relocate this fall.
Leaders of the firms say that they were enticed to move to the downtown complex's tower because they got competitive leases, new space and a foothold in an up-and-coming neighborhood.

Jennings Strouss is metro Phoenix's seventh-largest law firm in terms of the number of lawyers, according to Who's Who in Business, Republic Media's 2010 ranking of local firms, and Gust Rosenfeld is tied for No. 10. Law firms will fill up about half of the office space in the 600,000-square-foot office building.

"Having so many firms occupy the office tower is important to us because it affirms the prominence and stature of the building and the project," said Jeff Moloznik of RED Development LLC.

While Ballard Spahr and Polsinelli Shughart are moving from midtown to downtown, the other firms came to CityScape from other downtown buildings, Jennings Strouss and Gust Rosenfeld both had leases at Collier Center, 201 E. Washington St. Squire, Sanders moved from Renaissance Square at 40 N. Central Ave.

The law firms are the latest additions to the $900 million hub of offices, shops and restaurants. CityScape's 27-story office building at First and Washington streets has been open since April, but the rest of the project will open gradually over several months. Some parts, including a boutique hotel, are projected to open late next year.

The sprawling three-block development is bordered by First Avenue and Second, Washington and Jefferson streets. A grand opening is planned for the fall.

"Cityscape will be - is - a really nice project," said Marty Harper, managing partner of Polsinelli Shughart's Phoenix office. The firm will move about 115 employees into 69,000 square feet of office space. The firm is now in midtown Phoenix at 3636 N. Central Ave.

"The amenities down there, the extra restaurants, the sporting facilities, some of our people are interested in using light rail to get to and from there they live," Harper said. "It's been the whole package that's been most attractive."

Law firms interviewed for this story would not disclose lease terms, but many central Phoenix office tenants have benefited from a renter's market.

At the same time that downsized businesses freed up office space, new office buildings were looking for tenants. That stiff competition for renters forced many landlords, such as CityScape, to sweeten their lease offers with relatively low rates, tenant-improvement deals and other goodies.

Ballard Spahr moved its 40 workers to CityScape from 3300 N. Central Ave. Road.

"They were aggressive in their total package that they offer to tenants," said Stephen Savage, Ballard Spahr's Phoenix managing partner.

The CityScape lease for 35,000 square feet was less expensive than the proposal from another building the firm considered in the tony 24th Street and Camelback Road neighborhood.

Like most real-estate deals, location was key, the firm's representatives said.

CityScape is on the light-rail line as well as near the Suns arena and the D-Backs stadium.

CityScape also plans to include several eateries affiliated with Valley restaurateurs. That includes Bob Lynn, owner of the La Grande Orange restaurant group, who plans to open LGO Public House.

The project also is within blocks of county and federal courthouses. Plus, Arizona State University may move its Tempe-based law school to downtown Phoenix.

"The ASU campus down there adds a tremendous amount," said Harper of Polsinelli Shughart, adding that many of the firm's lawyers hail from ASU or University of Arizona. "We hire quite heavily from both of the law schools, so having it close would be really good. We have the relationship there."

There was also a sprinkle of politics in the negotiations. Some firms, including Polsinelli Shughart, had meetings with Mayor Phil Gordon, who wanted to sway firms either to relocate downtown or to stay in the city.

by Jahna Berry The Arizona Republic Aug. 14, 2010 12:00 AM



Making it nice and legal