Newmark announces that Root Insurance, a billion-dollar start-up auto-insurance company, is the first tenant to sign a lease in the recently delivered 2625 at Chandler Freeway Crossing, located at 2625 West Geronimo Place in Chandler, Arizona. Root Insurance’s new Chandler location will be its first office expansion outside of the company’s headquarters in Columbus. The insurance company plans on growing its Chandler operation to over 400 customer service and sales employees over the next five years.
Powered by an app that measures driving habits, Root Insurance is one of the largest and fastest growing of the tech-enabled insurance carriers. In September 2019, Root Insurance raised $350 million in funding, bringing the company’s valuation to $3.65 billion.
“As we sought a location to expand our services in support of growing customer demand from the West Coast, the Phoenix region stood out. The area’s economic fundamentals, business-friendly environment and deep talent pool drove our decision and we are excited to be a part of the Chandler community,” said Clara Kridler, Root Insurance’s Vice President of People.
Newmark Executive Managing Director Tom Adelson and Associate Director Erin McClure negotiated the 38,000-square-foot lease on behalf of Root Insurance. Newmark Director Cory Kooperman, CCIM cooperated in the transaction. Dave Seeger with JLL represented the landlord, Mark IV Capital.
“This lease is a big win for both the tenant and building. Newmark provided a thorough, all-market tour of the Valley and, ultimately, 2625 at Chandler Freeway Crossing was chosen because of the growth potential, amenities and proximity to an educated workforce that it offered,” said Newmark’s Adelson. “This location is perfect for Root Insurance to continue to attract best-in-class talent and expand its Chandler presence.”
Chandler’s available office space and strong workforce continue to make the city a desirable location for companies. Chandler is rapidly flourishing as companies reduce operation costs by seizing affordable, large block office space and employees enjoy a high standard of living at a discounted price point.
Built on the regional legacy of Motorola, Boeing and Intel, Chandler’s largest employers include several multi-national semiconductor manufacturers, a major defense contractor and a wealth of operations and tech-related roles with financial and insurance companies. This highly skilled, technical workforce is reflected in an average household income of $105,867, or 21.1 percent higher than the metropolitan average.
“We are delighted to partner with Root Insurance as a tenant at Chandler Freeway Crossing,” said Kelly Kharbanda, Mark IV Capital’s Senior Vice President of Arizona. “With over 270,000 square feet of space remaining in future phases at Chandler Freeway Crossing, it is our hope that we can support Root’s growth in Arizona.”
About Mark IV Capital, Inc.
Mark IV Capital, Inc. is a privately held real estate firm founded in 1974. The company acquires, invests in, develops and manages commercial projects utilizing a long-term approach to deploy capital in markets where existing drivers will propel future value. Headquartered in Newport Beach, California, with offices in Arizona, Colorado, Nevada, Texas and Northern California, Mark IV Capital’s vision is to be a world-class provider of working environments for businesses. Mark IV Capital owns office, retail, medical office, and industrial properties in Arizona, Nevada, Texas, California and Colorado. Mark IV is currently developing properties in Arizona, Nevada and Texas. For additional information, please visit www.markiv.com.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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