Office Rental Market
- $27.92 2019 Avg. Asking Rent
- 13.41 % 2019 Avg. Vacancy Rate
- 1,038,205 2019 Office Completions (Sqft)
- 962,225 2020 Estimated Pipeline (Sqft)
Average Office Asking Rents by Class
2019 Average Office Rent per Square Foot
- Tempe Class A Office Buildings$37.84
- Tempe Class B Office Buildings$22.08
- Tempe Class C Office Buildings$18.05
- AZ Class A Office Buildings$31.21
- AZ Class B Office Buildings$22.48
- AZ Class C Office Buildings$17.99
Tempe, AZ Office Asking Rents by Class
Office asking rents vary across the Tempe office market depending on several factors, one of which is property class. While rents for Class A office buildings in Tempe averaged $37.84 per square foot in 2019, Class B office properties garnered average rental rates of $22.08 per square foot. Rental rates for Class C office property in Tempe averaged $18.05 per square foot. On a statewide level, Class B office space rents averaged $22.48 per square foot, while rents for Class A office space across Arizona averaged $31.21 per square foot. On average, Class C office properties in Arizona commanded rents of $17.99 per square foot.
2020 OFFICE VACANCY RATES
| Submarket | Asking Rents | Vacancy Rates |
|---|---|---|
| Tempe - Mill | $40.78 | 7.20 % |
| Phoenix - Papago | $37.53 | 13.64 % |
| Tempe | $23.08 | 14.16 % |
- The lowest office vacancy rate in 2020 in Tempe was 7.20 % in the Tempe - Mill submarket, where asking rents averaged $40.78.
- The highest office vacancy rate in 2020 in Tempe was 14.16 % in the Tempe submarket, where asking rents averaged $23.08.
OFFICE CONSTRUCTION IN Tempe, AZ
- Tempe, AZ Total Sqft completed in 2019 1,038,205
- Tempe, AZ Total Sqft under construction in 2020 962,225
| Building name | Address | Total Sqft | Year built |
|---|---|---|---|
| Marina Heights - Building B | 400 East Rio Salado Pkwy, 85281 | 584,507 | 2016 |
| Marina Heights - Building E | 600 East Rio Salado Pkwy, 85281 | 443,000 | 2017 |
| 1305 West 23rd Street & 1300 West Alameda Drive | 1305 West 23rd Street, 85282 | 381,332 | 1976 |
| Diablo Technology Park | 2900 South Diablo Way, 85282 | 379,839 | 1981 |
| Marina Heights - Building D | 500 East Rio Salado Pkwy, 85281 | 375,000 | 2015 |
| Marina Heights - Building A | 300 East Rio Salado Pkwy, 85281 | 370,000 | 2016 |
| The Grand at Papago Park Center - Grand 2 | 1033 West Roosevelt Way, 85281 | 352,481 | 2019 |
| Discovery Business Campus - 2108 East Elliot Road | 2108 East Elliot Road, 85284 | 300,000 | 2014 |
| Hayden Ferry Lakeside II | 60 E Rio Salado Parkway, 85281 | 294,911 | 2007 |
| The Watermark - Phase I | 430 North Scottsdale Road, 85281 | 283,800 | 2019 |
| Office building | Address | Sqft | Completed |
|---|---|---|---|
| I.D.E.A - Building 1 | 800 Rio Salado Pkwy, 85281 | 185,833 | 2020 |
| Rio2100 - 2128 East Rio Salado Pkwy | 2128 East Rio Salado Pkwy, 85281 | 170,680 | 2020 |
| 777 Tower at Novus - Building 1 | 777 South Novus Place, 85281 | 169,223 | 2020 |
| 2010 West Rio Salado Pkwy | 2010 West Rio Salado Pkwy, 85281 | 70,944 | 2020 |
| The Hub | 2626 South Hardy Drive, 85282 | 50,320 | 2020 |
| The Grand at Papago Park Center - Grand 2 | 1033 West Roosevelt Way, 85281 | 352,481 | 2019 |
| The Watermark - Phase I | 430 North Scottsdale Road, 85281 | 283,800 | 2019 |
| Rio2100 - 2108 East Rio Salado Pkwy | 2108 East Rio Salado Pkwy, 85281 | 158,830 | 2019 |
| Discovery Business Campus - Northern Trust II | 2190 East Elliot Road, 85283 | 154,193 | 2019 |
| Rio2100 - 56 South Rockford Drive | 56 South Rockford Drive, 85281 | 63,400 | 2019 |
Office Spaces for Rent in Arizona
TEMPE OFFICE SALES TRENDS
- $282.662019 Avg. Price per Sqft
- 82.43 %Y-o-Y Avg. PpSF Change
- $376.7M2019 Office Sales Volume
- 102019 Number of Transactions
In 2019, office sales in Tempe averaged $282.66 per square foot. This marked a 82.43 % increase in office price per square foot, compared to the previous year. A total of 10 office sales closed on the Tempe office market in 2019, amounting to a total sales volume of $376.7M.
Average Office Sale Price per Sqft
Tempe, AZ Sales Trends
- Tempe Price per Sqft$282.66
- Arizona Price per Sqft$186.81
Office Sales - Trend and Volume
- Tempe, AZ Total Office Sales Volume in 2019 $376.7M
- Tempe, AZ Total Number of Office Sales Closed in 2019 10
Largest Tempe Office Sales in 2019
| Property name | Address | Date | Price |
|---|---|---|---|
| Grand at Papago Park Center - Grand 1, The | 1101 West Washington Street | 12/23/2019 | $90,000,000 |
| Alameda, The | 1665 West Alameda Drive | 2/20/2019 | $71,500,000 |
| Papago Park Center | 1150 West Washington Street | 6/18/2019 | $52,400,000 |
| Circuit, The | 615 South River Drive | 6/21/2019 | $46,000,000 |
| Rio West Business Park - Building E | 1821 West Rio Salado Pkwy | 1/18/2019 | $21,282,110 |
See trends for nearby markets
The Tempe office market contains an inventory of 21,474,650 square feet of office space, in 308 buildings that are equal to or larger than 25,000 square feet.
This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive knowledge on all Tempe commercial properties sized 25,000 square feet or larger.
While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.