Why the lakefront remains an office market stronghold

Article originally posted on Phoenix Business Journal on October 25, 2024

2024 Tempe Town Lake sunset

Tempe’s lakeside strikes a certain chord for corporate office users — and developers continue to make the investments needed to keep it that way.

Even in the post-pandemic world, when most office market reports show that companies are shedding more space than they are leasing, Tempe Town Lake office buildings have flourished despite asking rental rates among the highest in the Phoenix metro. Tempe tops the list of highest average direct asking lease rates in the Valley at $39.58 per square foot, according to a Q3 2024 market report by CBRE Group Inc.

New employers to the market — including LPL Financial, Imagine Learning and Dutch Bros Coffee — all have similar answers when asked why they chose to plant a flag in Tempe: easier commute times for employees, within 10 minutes from Phoenix-Sky Harbor International Airport and access to talent at nearby Arizona State University.

Dutch Bros has signed the largest metro office deal of 2024, soaking up more than 135,000 square feet to fully occupy Liberty Center along Rio Salado Parkway. It will take occupancy in early 2025.

“I think it became very obvious to us that [Tempe] was a place that we should focus on. And certainly seeing all the amazing growth and the cranes and the new buildings going up, [are] those indicators that you’re probably in the right spot, doing the right things at the right time,” said Jess Elmquist, chief people officer at Oregon-based Dutch Bros.

Find Complete Article Here: https://www.bizjournals.com/phoenix/news/2024/10/25/tempe-commercial-real-estate-office-market.html

BACK TO TOP FIVE