Tempe looks to lease pair of historic Mill Ave. buildings

Article originally posted on Phoenix Business Journal on September 8, 2026

At the beginning of the year, the city of Tempe was given approval to acquire two historic buildings on Mill Ave., including the space where a popular live music venue once operated.

Now the city is taking steps to bring new tenants to those buildings.

Tempe City Council held public hearings Aug. 31 for ordinances that would allow the city to “negotiate and execute a lease agreement” for the Tempe National Bank building at 526 S. Mill Ave. — built in 1912 — and the Tempe Hardware Building at 520 S. Mill Ave., which was constructed in 1898. A final hearing is set for Sept. 10.

Tempe acquired the Tempe National Bank building in January, while its Tempe Hardware Building acquisition closed in June, according to Maricopa County records. Sales prices were not disclosed for the transactions.

Darkstar Theater, a two-story EDM club, didn’t renew its lease at the Tempe National Bank structure, so the nearly 10,000-square-foot Egyptian Revival-style building now sits empty. The space can accommodate up to four tenants. Although the city didn’t share specific tenants in the documents, the city said it’s looking for “unique concepts that complement the downtown core, including restaurant, retail, and entertainment uses.”

Multiple prospective tenants have sent letters to the city, which is evaluating those concepts “based on factors including compatibility with the property and surrounding downtown area, anticipated activation of the space, proposed business terms and the financial viability of each concept,” according to city documents.

One person shared their thoughts during the public hearing, voicing his concerns about the city’s lack of venues for local music talent, citing the recent closures of 62-year-old Palo Verde Bar and Low Key Piano Bar, as well as the pending closure of the Rhythm Room in Phoenix.

Tempe Mayor Corey Woods acknowledged that live music venues have faced challenges in Tempe and all over the Valley.

“We also recognize as Council how critically important it is to have a good mix of food, beverage, retail and entertainment. You don’t want to be a district with only one kind of thing, which is just a slew of restaurants and bars or just a slew of retail. You want to make sure you have the right balance of all of those different items so people of all different ages and backgrounds and walks of life can come to downtown Tempe and frankly find something for them and something that they can do and enjoy with their friends and their families,” Woods said.

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