Tempe Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $27.45 2023 Avg. Asking Rent
  • -0.58% Y-o-Y Avg. Asking Rent Change
  • 19.81% 2023 Office Vacancy Rate
  • $134.1M2023 Total Office Sales
  • $137.14Avg. Sale Price/SF

Tempe office price per square foot in 2023 was $27.45 on average. This marked a -0.58% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 19.81% across all asset classes combined. The 14 transactions that closed here throughout 2023 amounted to a total sale volume of $134.1M. Tempe office space commanded an average sale price per square foot of $137.14.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Tempe Class A & A+ Office Space$34.72
  • Tempe Class B Office Space$22.97
  • Arizona Class A & A+ Office Space$32.35
  • Arizona Class B Office Space$23.61
  • Arizona Class C Office Space$27.68

Tempe, AZ Office Asking Rents by Class

2023 Office Vacancy Rates in Tempe

Submarket Asking Rents Vacancy Rates
Tempe - Mill $38.20 2.47%
Phoenix - Papago $34.34 27.27%
Chandler $31.55 30.91%
Tempe $23.68 23.36%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Tempe market was 19.81% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Tempe was 2.47% in the Tempe - Mill submarket, while the highest office vacancy in the market was 30.91%, recorded in Chandler.

Office Spaces for Rent in Arizona

Tempe Office Sale Price per SF

  • $137.142023 Avg. Price per SF
  • -26.51%Y-o-Y Avg. PpSF Change
  • $134.1M2023 Office Sales Volume
  • 142023 Number of Transactions

Tempe, AZ Sale Price per SF Trend

  • Tempe Avg. Sale Price per SF in 2023$137.14
  • Arizona Avg. Sale Price per SF in 2023$180.53
Tempe office space cost in 2023 marked a -26.51% change compared to the previous year. The sale price for office space in Tempe averaged $137.14 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Arizona average office sale price during the same time period was $180.53 per square foot.

2023 Office Sales Volume

  • Tempe, AZ Total Office Sales Volume in 2023 $134.1M
  • Tempe, AZ Total Number of Office Sales Closed in 2023 14
A total of 14 deals closed on the Tempe office market in 2023, adding up to a yearly sales volume of $134.1M. Notably, the largest transaction on the market saw 1150 West Grove Pkwy change hands for $16,300,000 on 6/1/2023.

Largest Tempe Office Sales in 2023

Property name Address Date Price
1150 West Grove Pkwy 1150 West Grove Pkwy 6/1/2023 $16,300,000
MicroAge Headquarters 8160 South Hardy Drive 6/23/2023 $13,928,360
1330 West Southern Avenue 1330 West Southern Avenue 4/20/2023 $13,350,000
3001 South Priest Drive 3001 South Priest Drive 3/28/2023 $9,325,000
Plumwood B 8140 South Hardy Drive 12/8/2023 $9,000,000
Data provided by Commercial Edge

Coworking Spaces in Arizona

2023 Office Construction in Tempe, AZ

  • Tempe, AZ Total SF completed in 2023 148,356
  • Tempe, AZ Total SF under construction in 2024 275,756

During 2023, 148,356 square feet of new office space were delivered across the market. At the close of 2023, the Tempe office inventory included 1 buildings equal to or larger than 25,000 square feet, which comprised 148,356 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 275,756 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Tempe
Office building Address SF Completed
8240 South River Parkway 8240 South River Parkway, 85284 135,000 2024
8240 South River Parkway 8240 South River Parkway, 85284 135,000 2024
The Beam on Farmer 433 South Farmer Avenue, 85281 184,163 2022
Playa Del Norte 999 E Playa Del Norte Drive, 85281 95,350 2021
The Watermark 410 N Scottsdale Road, 85281 265,000 2020
Novus Innovation Corridor - 777 Tower 777 South Novus Place, 85281 169,223 2020
Grand II 1033 W Roosevelt Way, 85281 345,795 2019
Discovery Business Campus - Northern Trust II 2190 East Elliot Road, 85283 154,193 2019
2145 E Baseline Road 2145 E Baseline Road, 85283 44,360 2019
Agave Center 1710 W Ranch Road, 85284 20,000 2019

Worth noting among recent office completions on the Tempe market is 8240 South River Parkway, which is currently the largest new office development in the city, at 135,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Tempe commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.