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Tempe Office Market Trends

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)
In 2019, the average asking rent for office space in Tempe was $27.92 per square foot, and the office vacancy rate across the market averaged 13.41 %. During 2019, developers added 1,038,205 square feet of new office space to the Tempe market inventory. Office developments estimated for delivery during 2020 total 962,225 square feet.

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$40.787.20 %
Phoenix - Papago$37.5313.64 %
Tempe$23.0814.16 %
Data provided by Commercial Edge
  • 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
10 Largest Office Buildings in Tempe
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
Largest Office Properties Recently Completed in Tempe
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
Data provided by Commercial Edge

Office Spaces for Rent in Arizona

  • Peterson Park Office Space
  • Hughes Acres Office Space
  • Sandahl Office Space
  • Rio Office Space
  • Pepperwood Office Space
  • Shalimar Office Space
  • Warner Ranch Office Space
  • Tempe Gardens Office Space
  • Camelot Village Office Space
  • Optimist Park Office Space
  • Wood Park Office Space

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
Data provided by Commercial Edge

See trends for nearby markets

  • Phoenix Market Trends
  • Scottsdale Market Trends
  • Mesa Market Trends
  • Chandler Market Trends
  • Gilbert Market Trends
  • Glendale Market Trends
  • Peoria Market Trends

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.

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