Fender Stays in Tune with Greater Phoenix

Fender broke ground Oct. 1 at PV — the new name of this redevelopment site near Cactus Road and Tatum Boulevard on the north end of Phoenix. The new Fender facility will be an 86,000-sq.-ft., three-story building designed by SmithGroup. It is set to open in fall 2025, and Fender plans to hire 100 new employees over the next five years.

Rendering of new HQ facility for Fender at PV in Phoenix.
Rendering courtesy of Fender Musical Instrument Corp./RED Development/SmithGroup

According to a Fender statement, the new space will be used for collaboration, modeling and design work, as well as various administrative functions. The facility will also comprise a shop for guitar and amplifier designers, a sound room, cafeteria and meeting space. The firm’s primary headquarters will remain in Los Angeles.

The groundbreaking comes just seven months after Fender announced that it was moving its HQ2 from Scottsdale to Phoenix. Company officials said they were attracted to PV by the work being done by RED Development, the Phoenix-based company overseeing the transformation of the old mall property.

“Breaking ground on our office expansion signifies an investment in a community who have contributed much to Fender’s success over the years,” FMIC CEO Andy Mooney said. “Our goal was to create an environment that will continue to foster Fender’s culture of innovation, collaboration and growth and act as a magnet for future generations of talent.”

FMIC CFO Matt Janopaul added that “Fender’s decision to partner with RED reinforces our long-term commitment to Arizona and a local community we have called home since the early 1990s. Our building will foster a dynamic environment that attracts top engineering, finance, IT, product development, sales and supply chain talent. Most importantly, we believe that PV’s mixed-use offerings will enhance Fender’s culture of creativity and innovation and provide our team members with an exceptional workplace experience.”

From Dead Mall to Live Music
PV covers more than 100 acres and is part of a $2 billion redevelopment project being orchestrated by RED. “The scale of the project will redefine what live-work-play means,” FMIC noted in a statement. Phase one of PV includes a 400-unit apartment community, a Whole Foods Market, a Harkins dine-in theater and three specialty restaurants.

RED paid $126.5 million in 2021 to acquire the Paradise Valley Mall from Macerich and various anchor store owners. Shortly after the deal, RED closed down the mall.

Planned residential development at PV in Phoenix
Rendering courtesy of RED Development

“Fender selected PV for its retail-led, mixed-use design and walkable environment. Seamlessly integrating office spaces with vibrant dining and shopping options is key to attracting and retaining top talent,” said Mike Ebert, managing partner at RED. “Our dynamic atmosphere aligns perfectly with the Fender brand; and we are proud to welcome them to their new home at PV.”

Chris Camacho, president and CEO of the Greater Phoenix Economic Council, says that Fender originally came to Scottsdale in 1991 because its plant in Corona in Orange County, California, got too costly. “They were working in Scottsdale, but they had outgrown their space,” he says. “They needed to find an alternative solution. We worked with RED Development to help Fender find their new location at PV.”

By relocating to PV, Fender enters a neighborhood that has one of the highest average household incomes in Maricopa County. “All of these new jobs at Fender are six-figure roles,” says Camacho. “We engaged with a consultant and went through the labor and logistics analysis. We also worked with our local economic development partners at the City of Phoenix on this deal.”

RED Development spearheaded the project. Representatives from both JLL and Cresa also worked on the deal.

Grand entrance to PV in Phoenix.
Rendering courtesy of RED Development

Labor Plus Incentives Seal Deal
Camacho confirms that a number of U.S. markets were under consideration for the project, “but Fender quickly narrowed their search to Phoenix because they wanted to keep their employees. All options were on the table; they decided to continue to invest in this market.”

Camacho adds that Fender will qualify for state tax credit programs. “All state incentives are for the growth component,” he notes. “The real estate factor was the X factor. RED is known for building iconic locations.”

“Fender quickly narrowed their search to Phoenix because they wanted to keep their employees.” — Chris Camacho, President & CEO, Greater Phoenix Economic Council

Labor was the driver, however. “This is not too far from their current HQ,” says Camacho. “This is just moving a few miles west. They can still draw from the entire region by being located in north central Phoenix. The labor draw is important to the company. From east to west across the northern suburbs of Phoenix, they can draw talent from across the region. Their ability to retain and recruit employees will be enhanced by this move.”

Local incentives also played a role. The Phoenix City Council entered into an agreement with Fender in 2023 to incentivize the move. According to Commercial Search, the guitar manufacturer will receive performance-based job creation reimbursement through the city’s strategic economic development fund. This is based on a city report showing that Fender is expected to generate an economic output of $457 million over 10 years.

Fender Musical Instrument Corp. was founded be Leo Fender in 1946 in Fullerton, California. His signature guitars and amps would go on to fuel the worldwide rise of rock music, propelling such artists as George Harrison of The Beatles and Eddie Van Halen.

Today, the firm is headquartered in Los Angeles and maintains a 177,000-sq.-ft. factory in Corona, California, and another plant in Ensenada in Baja California, Mexico. The company has been in LA since moving into its new headquarters there in 2016. The 24,500-sq.-ft. space was designed by Rapt Studio as an ode to vintage Hollywood sound studios.