Clear Channel Communications plans to relocate all eight of its Valley radio stations, including four that are now based in Tempe, into a new office building on Van Buren Street about one mile from the Tempe-Phoenix border.
The communications giant has signed a $15 million lease to occupy 71,000 square feet of the second, third and fourth floors of the second phase of East Gateway Centre, a four-story, 115,000-square-foot office building that will be developed east of 44th Street and Van Buren in Phoenix.
McShane Corp. and Globe Corp. are the owners and developers of the multiphase office development with completion of the second phase slated for December 2005.
Clear Channel's stations include KNIX (FM 102.5), KESZ (FM 99.9), KMXP (FM 96.9), KISS (FM 104.7), KYOT (FM-95.5), KFYI (AM 550), KOY (AM 1230) and KGME (AM 910). Of those, KNIX, KESZ, KYOT and KOY are located inside a single building on Gilbert Drive, off the Loop 202 and Scottsdale Road in Tempe.
The rest of the stations are at a single location at Seventh Street and Missouri Avenue in Phoenix. In all, Clear Channel has more than 300 employees in the Valley.
“When we acquired all of these radio stations, we got to eight radio stations back in 2000 and we had five locations for eight stations,” said Susan Karis, Clear Channel's regional vice president for Arizona. “We've whittled it down to two over the years, so a lot of those shifts and changes have already been made. We're just happy to get everyone in one location.”
The consolidation should be completed in spring 2006, she said. Clear Channel is in the process of finalizing some of the plans for the move, she said.
“It's always been a goal of ours when we acquired all of the radio stations to office out of one building, and the benefit we've seen in other markets is there's just more natural synergies,” Karis said. “We have employees who live all over the Valley, and we obviously plotted the ZIP codes where our employees live and tried to get as central as we could. It's an area that works for most of our employees.”
The consolidation won't change Clear Channel's operation and work force in the Valley, she said. The company also has radio stations in Tucson and Yuma.
The first phase of East Gateway Centre houses KNXV-TV (Channel 15).
“The thing that people like about East Gateway Centre is the network of freeways that come through there and you've got real convenient access to all parts of the city,” said Lee & Associates' Jim Watkins, a marketing agent for the property. “You already have a little bit of precedent of the radio/TV business with ABC 15 being there. It was a targeted area for Clear Channel.”