Tempe is one of the few landlocked suburbs in the Valley; Phoenix, Chandler, Mesa and Scottsdale border it. As the city has edged closer to build-out and available land has become increasingly scarce, commercial properties have become more valuable.
At the start of the fourth quarter, Tempe had an office vacancy rate of just 5.1%, compared to an overall office vacancy rate of 9.7%. Even with the high demand for office space in Tempe, just 100,000 sf of new office space is under construction, and that property is 95% pre-leased.
The building was sold by Chicago-based First Industrial Realty Trust. The Phoenix office of CB Richard Ellis negotiated the sale.
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