Highlights
- The average rent for office space in Tempe is $29.83 per square foot, 6.29% higher compared to the previous year.
- The market’s vacancy rate stands at 18.89%, higher than the state average of Arizona, which is 15.66%.
- Renting Class A/A+ office space here costs $32.25 per square foot, while Class B averages $23.90 and Class C stands at $19.00.
2025 Office Space Rent & Sales
- $29.83 2025 Avg. Asking Rent
- 6.29% Y-o-Y Avg. Asking Rent Change
- 18.89% 2025 Office Vacancy Rate
- $139.8M2025 Total Office Sales
- $140.09Avg. Sale Price/SF
What is the average asking rent price for office space in Tempe?
Average asking rents for office space here stand at $29.83 per square foot. The local office market recorded an average vacancy rate of 18.89% in 2025, unchanged from 18.89% in 2024.
Office transactions in the local market in 2025 totaled a sales volume of $139.8M across 13 sales. These transactions commanded an average sale price per square foot of $140.09.
Tempe, AZ Office Asking Rents by Class
What is the average office rent per square foot by property class in Tempe?
- Avg. Asking Rent Class A & A+$32.25
- Avg. Asking Rent Class B$23.90
- Avg. Asking Rent Class C$19.00
The average asking rent for Class A and A+ office space stood at $32.25 per square foot, indicating the best — and most expensive — that the market has to offer.
Class B space in Tempe averaged $23.90 per square foot, while the average for Class C space was $19.00 per square foot.
What is the average office rent per square foot by property class in AZ?
- Avg. Asking Rent Class A & A+$33.55
- Avg. Asking Rent Class B$24.49
- Avg. Asking Rent Class C$19.85
For comparison, the average rent for Class A and A+ office space in Arizona was $33.55 per square foot. The state-wide average for Class B space was $24.49 per square foot, and Class C office spaces averaged $19.85 per square foot.
Tempe, AZ Office Indicators by Submarket
| Submarket | Asking Rents | Vacancy Rates |
|---|---|---|
| Tempe - Mill | $36.61 | 12.56% |
| Phoenix - Papago | $35.04 | 27.60% |
| Chandler | $29.36 | 13.73% |
| Tempe | $27.53 | 19.34% |
2025 Office Sales Volume
- $140.092025 Avg. Price per SF
- -44.63%Y-o-Y Avg. PpSF Change
- $139.8M2025 Office Sales Volume
- 132025 Number of Transactions
What is the average sale price per square foot for office space in Tempe?
Average sale prices for office space in this market recorded a -44.63% change in 2025 compared to the previous year.
Office transactions recorded in the market in 2025 averaged $140.09 per square foot. For comparison, the statewide Arizona average during the same time period stood at $166.50 per square foot, while the national average was $182.48 per square foot.
Tempe, AZ Sale Price per SF Trend
- Tempe Avg. Sale Price per SF in 2025$140.09
- Arizona Avg. Sale Price per SF in 2025$166.50
What was the total office sales volume in Tempe in 2025?
The local office market recorded 13 deals in 2025, adding up to a yearly sales volume of $139.8M.
- Tempe, AZ Total Office Sales Volume in 2025 $139.8M
- Tempe, AZ Total Number of Office Sales Closed in 2025 13
What were the largest office building sales in Tempe in 2025?
The market’s largest transaction last year was the sale of 1415 West 3rd Street for $16,800,000 on 2/24/2025. The next-highest sale was the transaction involving Warner Crossing - 8312 South Hardy Drive, which traded for $14,400,000. The third-largest transaction was the sale of Hudson Place Medical for $11,499,000.
| Property name | Address | Date | Price |
|---|---|---|---|
| 1415 West 3rd Street | 1415 West 3rd Street | 2/24/2025 | $16,800,000 |
| Warner Crossing - 8312 South Hardy Drive | 8312 South Hardy Drive | 2/28/2025 | $14,400,000 |
| Hudson Place Medical | 2501 East Southern Avenue | 2/13/2025 | $11,499,000 |
| Riverside Office Plaza - Building B | 1155 West Rio Salado Pkwy | 9/4/2025 | $8,330,000 |
| 1310 West Drivers Way | 1310 West Drivers Way | 11/6/2025 | $7,900,000 |
Office Construction in Tempe, AZ
What are the largest recent office completions in Tempe?
The largest recent office completion here is The Watermark at 265,000 square feet, completed in 2020. The next largest completions are Liberty Center at Rio Salado and Grand 1.
| Office building | Address | SF | Completed |
|---|---|---|---|
| 8240 South River Parkway | 8240 South River Parkway, 85284 | 135,000 | 2024 |
| 8240 South River Parkway | 8240 South River Parkway, 85284 | 135,000 | 2024 |
| The Beam on Farmer | 433 South Farmer Avenue, 85281 | 184,163 | 2022 |
| 999 Playa Del Norte | 999 East Playa del Norte Drive, 85288 | 94,311 | 2021 |
| The Watermark | 410 N Scottsdale Road, 85281 | 265,000 | 2020 |
| 777 Tower at Novus | 777 South Novus Place, 85281 | 161,000 | 2020 |
| Liberty Center at Rio Salado | 1870 W Rio Salado Parkway, 85281 | 236,130 | 2018 |
| Grand 1 | 1101 W. Washington Street, 85281 | 213,026 | 2017 |
| The Circuit | 615 S River Drive, 85281 | 185,000 | 2015 |
| Liberty Center at Rio Salado | 1910 W Rio Salado Parkway, 85281 | 156,027 | 2015 |
See reports for other markets
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Disclaimer
All information on this page is based on city-level data that includes properties equal to or larger than 25,000 square feet.
Averages were calculated based on values dated between January 1st and December 31st 2025. Construction pipeline data represented herein is valid as of January 2026.
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 Yardi Research Data can guarantee that the information provided is complete.