Despite pandemic effects, Tempe submarket remains highly desirable for new development, residents
Even in the wake of the novel coronavirus pandemic, Tempe has been the recipient of some of the Valley’s largest leases and job announcements, further cementing the East Valley city as the metro’s hottest office market, as it takes shape in concert with the growing Arizona State University campus.
“Just being around the [ASU campus] has a vibe that you’re not going to find anywhere else in the Valley, absent possibly the Grand Canyon campus,” said Derek Flottum, vice president of development for Irgens in Arizona and one of four panelists in a virtual real estate event hosted Aug. 11 by the Phoenix Business Journal. “It really creates an energy around the entire submarket.”
Irgens is developing the 999 Playa building on the north side of Tempe Town Lake, which will bring 94,000 square feet of office space to the submarket. The project is one of several speculative developments under construction in the area aiming to capitalize on the lowest Class A vacancy rate among Valley submarkets, which was 4.1% at the end of the second quarter, according to Colliers International Research.
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