Tempe, AZ Office 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 development, positioned just north of Downtown Tempe.
As of mid-2017, the Tempe 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 space accounting for 50% more of the inventory.
Some of the strongest demand for Class A office space in Tempe comes from the Rio 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 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.
Tempe, AZ Commercial Inventory Breakdown
Office Spaces
Total: 24,720,524 SF
By square footage range:
- 50k to 100k SF: 5,893,887 SF / 23.84% of total office
- 100k to 500k SF: 18,242,130 SF / 73.79% of total office
- 500k to 1M SF: 584,507 SF / 2.36% of total office
By class:
- Class A: 10,606,308 SF / 42.9% of total office
- Class B: 9,404,200 SF / 38.04% of total office
- Class C: 1,126,715 SF / 4.56% of total office
Top 10 Largest Office Buildings
in Tempe
| Office building | Address | 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 |
| Pier 202 - Offices | 1122 East Vista del Lago Drive, 85281 | 400,000 | n/a |
| 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 |
| The Watermark - Phase II | SWC Red Mountain Fwy & North Scottsdale Road, 85281 | 340,000 | n/a |
| The Grand at Papago Park Center - Grand 9 | SEC North Priest Drive & West Washington Street, 85281 | 320,000 | n/a |
Most Recently-Built Office Buildings
in Tempe
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| 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 |
| 2145 East Baseline Road | 2145 East Baseline Road, 85283 | 44,359 | 2019 |
| Liberty Center at Rio Salado IV | 1870 West Rio Salado Pkwy, 85251 | 236,131 | 2018 |
| Rio2100 - 2108 East Rio Salado Pkwy | 2114 East Rio Salado Pkwy, 85281 | 159,150 | 2018 |
| Marina Heights - Building E | 600 East Rio Salado Pkwy, 85281 | 443,000 | 2017 |
| The Alameda | 1665 West Alameda Drive, 85282 | 234,212 | 2017 |
Tempe, AZ Green Office Space
Both tenants and investors 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 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 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.
FREQUENTLY ASKED QUESTIONS
How much does office space cost in Tempe, AZ?
The average office rental rate in Tempe, AZ is $22.63 per square foot. Asking prices vary based on the property’s location, overall rating, amenities, proximity to restaurants, cafes and entertainment venues, as well as public transport, airports and highways.
What is the size of available office spaces in Tempe, AZ?
The Tempe, AZ office market can accommodate various businesses, sporting a range of office space availabilities. The average size of office space availabilities is 97,258 square feet. If you’re just starting out as a company or as an entrepreneur, the smallest available office space in Tempe, AZ is 516 square feet, while the maximum rentable space on the market now is 194,000 square feet.
How do I get office space in Tempe, AZ?
Start your search for office space in Tempe, AZ by using our filters that allow you to find the best space for your business needs. Filter listings by location, property size, available space or lease rate. Property pages will offer details about an office building’s rating, year built, availabilities, price per square foot and more. After drawing up a shortlist, make sure you contact the listed broker(s) to schedule a viewing and begin the negotiation process for your lease contract.
How many office listings are available in Tempe, AZ?
There are 249 office listings on the Tempe, AZ market.
Tempe Demographics
Population
- Total Population183,652
- Male Population(53.0 %) 97,253
- Female Population(47.0 %) 86,399
- Median Age28.90
Income/Financial
- Average Household Income$71,922
- Median Household Income$54,210
- Median Income Under 25$22,988
- Median Income 25-44$60,490
- Median Income 45-64$70,383
- Median Income Over 65$52,586
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