In June, we wrote a post on how Tempe Town Lake facilitated the city’s economic development. Commercial real estate projects in Metro Phoenix are abundant, but Tempe continues to be a draw for many businesses, including commercial real estate developer, Irgens who recently announced plans to break ground in the first quarter of 2020 on a new office building. The office market is on the rise in the Marina Heights district, which is home to a handful of powerhouses such as State Farm.
Tempe Town Lake celebrated its 20th birthday in November and since its construction it is estimated that the economic impact includes $1.5 billion in development; that’s not including the $500 million it has generated in tourism dollars, plus the $50 million generated by sales tax, according to the city.
Irgens selected Tempe as an ideal corporate HQ location. The podium style design includes ground floor offices, two levels of parking, with an additional 3-levels of office space above the parking structure.
Irgens predicts that its project will cost about $40 million to build. Tempe and the Marina Heights area is continuing to attract out-of-state companies to the city and is a hotbed for commercial real estate developments.
What makes Tempe attractive for commercial growth?
There are several factors attracting companies to the Tempe area. Here are a few:
Access to employees
The proximity to the University provides tremendous opportunity for hiring new grads looking to stay in the area. It also offers opportunities for collaborations with faculty and students for companies in a number of business sectors interested or in need of research.
It is not only students and faculty flocking to ASU. There is an estimated 1.5 to 2 percent annual population growth in the Tempe area and the average age is approximately 28.8 years according to the World Population Review. In other words, Tempe offers a young, educated community of people that are upwardly mobile.
Nearby shopping and entertainment
Over the course of the past five years, Tempe has seen the opening of new restaurants and retail, including local favorites such as Postino and Snooze. Downtown Tempe is host to a variety of community events and festivals including the 6th Street Market, an annual art festival, Oktoberfest and many others.
Tempe connects to downtown Phoenix via Valley Metro Rail light rail system. In 2017 construction began on a street car extension that will transport riders from ASU campus along a three mile stretch through downtown Tempe. Completion is projected to open for service in 2021.
Commercial construction in Tempe is not slowing down anytime soon and, in an effort, to keep up with the area growth, residential projects are also on the rise. Most recently, a developer based in San Francisco announced it will build the first car-free neighborhood in Tempe.