Downtown Tempe is growing rapidly, and there is a growing demand for large-blocks of office space. Hines and Cousins Properties are stepping up. A joint venture between the two firms is redeveloping the 2.5-acre former site of the Hayden House, the historic former home of Arizona Senator Carl Hayden at 100 Mill Avenue. The site will begin construction in the second quarter 2019, and will include a 15-story modern office tower as well as a hotel or apartment complex on a mixed-use.

“Tempe is a progressive urban hotspot, one of the most walkable cities in Arizona, and is home to Arizona State University, a top-tier university recognized nationally for its innovation and diverse sophisticated student body,” Brandon Dillingham, director of development for Hines' Arizona office, tells GlobeSt.com. “Tempe benefits from multiple channels of public transportation and immediate access to the freeway system and Phoenix Sky Harbor airport. It draws from a very dynamic workforce in close proximity to its city center, and the immediate site boasts a large variety and concentration of restaurants, parks, and amenities.”

Tempe has evolved along with the Greater Phoenix market, and there is currently strong demand for large blocks of office space. As a result, this is a speculative office development—and not the only one in the market. The Watermark Tempe is also a speculative office build in the market. “This is a speculative development, however the very high tenant demand for large blocks of contiguous class-A office space in the Downtown Tempe/Mill Avenue submarket south of the lake would indicate that the building could be significantly leased up before the building starts construction,” says Dillingham.