Tempe, AZ - Office Market Overview
While the City of Tempe is home to just under 200,000 people, Tempe is also part of the much larger Phoenix Metropolitan Area with over 4.5 million residents. Office space submarkets in Tempe include Camelot Village, Peterson Park, and Shalimar. Located between Phoenix and Scottsdale, Tempe is home to the main campus of Arizona State University, and is also the site of the Hayden Ferry Lakeside office development, positioned just north of Downtown Tempe.
As of mid-2017, the Tempe office market encompasses nearly 18 million square feet of existing office space in properties larger than 50,000 square feet. The robust demand for commercial real estate in Tempe, AZ, is created by a variety of businesses, along with representatives of the education and financial sectors.
Tempe, AZ - Office Inventory Description
Once considered a college town and a bedroom community of Phoenix, Tempe has blossomed into a center of education and business for the East Valley of the Phoenix metro area. Tempe makes a significant contribution to the metropolitan area's gross annual product of nearly $209 billion. Just over 45% of the office inventory in Tempe is Class A or A+, with Class B office space accounting for 50% more of the inventory.
Some of the strongest demand for Class A office space in Tempe comes from the Rio office submarket. Located near scenic Papago Buttes and the Desert Botanical Gardens, just north of the Loop 202 and the Salt River, the area is home to investment-quality office buildings such as Papago Arroyo at 1295 West Washington Street, The Grand at Papago Park Center - Phase 1 - Building 1, and Papago Buttes Corporate Plaza II on West Washington Street.
Top 10 Largest Office Buildings
in Tempe
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| Marina Heights - Building B | , 85281 | 584,507 | 2016 |
| Marina Heights - Building E | , 85281 | 443,000 | 2017 |
| 1305 West 23rd Street & 1300 West Alameda Drive | , 85282 | 381,332 | 1976 |
| Diablo Technology Park | , 85282 | 379,839 | 1981 |
| Marina Heights - Building D | , 85281 | 375,000 | 2015 |
| Marina Heights - Building A | , 85281 | 370,000 | 2016 |
| The Grand at Papago Park Center - Phase II - Building 11 | , 85281 | 352,481 | 2019 |
| The Watermark - Phase II | , 85281 | 340,000 | n/a |
| The Grand at Papago Park Center - Phase II - Building 9 | , 85281 | 320,000 | n/a |
| 777 Tower at Novus - Buildings 2 & 3 | , 85281 | 308,000 | n/a |
Most Recently-Built Office Buildings
in Tempe
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| Liberty Center at Rio Salado IV | , 85251 | 236,131 | 2018 |
| Rio2100 - 2108 East Rio Salado Pkwy | , 85281 | 159,150 | 2018 |
| Marina Heights - Building E | , 85281 | 443,000 | 2017 |
| The Alameda | , 85282 | 234,212 | 2017 |
| The Grand at Papago Park Center - Phase I - Building 1 | , 85281 | 213,055 | 2017 |
| Rio2100 - 2120 East Rio Salado Pkwy | , 85281 | 102,816 | 2017 |
| Mountain Park Health Center - Tempe Clinic | , 85282 | 32,000 | 2017 |
| Marina Heights - Building B | , 85281 | 584,507 | 2016 |
| Marina Heights - Building A | , 85281 | 370,000 | 2016 |
| Marina Heights - Building C | , 85281 | 271,000 | 2016 |
Tempe, AZ - Green Office Space
Both tenants and investors of Class A office property in Tempe are demanding green office space. Tempe is part of the Phoenix metro area, which ranks 21st among the top 30 U.S. markets for percentage of energy-efficient green office buildings. The 2017 National Green Building Adoption Index looked at buildings larger than 50,000 square feet in the top office markets in the country. Since 2005, the percentage of LEED-certified, EPA Energy Star-rated, and green office buildings has increased to 38%.
One example of a LEED-certified Tempe office building is the Fountainhead Corporate Park - Park Plaza on South Plaza Drive. Located in the Peterson Park commercial real estate area of Tempe, this 98,000-square-foot office building was completed in 1999 and was awarded a LEED Gold certification.
Tempe, AZ's Top Office-Using Sectors
The Tempe office market is driven by a variety of top office-using business sectors, including education, banking & finance, and high technology & energy.
- Education – Arizona State University is the largest employer and one of the largest users of office space in Tempe, along with the Tempe Elementary School District.
- Banking & Finance – White-collar office space demand in Tempe comes from companies such as Wells Fargo, State Farm, and JPMorgan Chase.
- High Tech & Energy – Salt River Project, Limelight Networks, LifeLock, and Honeywell are all users of Class A office space in Tempe.
- Fortune 500 – The headquarter locations of Fortune 500 companies in Tempe create significant demand for white-collar office employment, from businesses such as Insight Enterprises and the Circle K Corporation.
Tempe Demographics
Population
- Total Population178,339
- Male Population(52.7 %) 94,065
- Female Population(47.3 %) 84,274
- Median Age28.80
Income/Financial
- Average Household Income$69,463
- Median Household Income$51,829
- Median Income Under 25$21,074
- Median Income 25-44$57,641
- Median Income 45-64$69,905
- Median Income Over 65$49,184
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