In a further step toward its consolidation in Phoenix, online home flipper Opendoor has secured a larger office space.
This summer, the company laid off 50 staff and asked 200-300 workers in offices around the country to relocate to Phoenix, according to Bloomberg.
Now, Opendoor has secured a 100,000 square-foot, three-floor space in the Phoenix suburb of Tempe. It plans to move the team next year from its current offices in nearby Scottsdale, said senior communications manager Scott Mahoney.
By then, the Phoenix team of 230 will have grown to 500, a result of company “streamlining” rather than new hiring, Opendoor confirmed. The Phoenix staff fill a variety of roles from operations to pricing to customer service, Mahoney said.
Opendoor, headquartered in San Francisco, has 20 locations across the U.S., with Phoenix serving as a hub alongside Atlanta and Dallas. At last count, Opendoor employed about 1,300 people nationwide. The new space in Tempe is big enough for 1,000 staff, Mahoney noted.
Phoenix is ground zero for the explosion of I-buying, a brand of home-flipping accelerated by algorithms and online automation. The area’s enormous stock of relatively inexpensive, recent-vintage, homogenous residential property makes it an ideal laboratory to fine-tune the I-buying business model.
Opendoor, founded in San Francisco in 2014, pioneered the model and remains the leading player. It sold 7,200 homes last year, more than twice as many as its closest competitor Offerpad, according to estimates by real estate analyst Mike DelPrete.
But several competitors have entered the market in the last two years, including heavyweights such as listings giant Zillow and national brokerages Redfin and Keller Williams. Just this week, national brokerage eXP Realty also launched an I-buying service.