The Mill Avenue District has recently created quite a buzz around the Valley regarding new office tenants. This week has seen an influx of headlines outlining Downtown Tempe’s call for new office building development to support the amount of offices locating to the area. According to information released by the City of Tempe, high rise office space in the Mill Avenue District is nearly full. This includes the two towers at Hayden Ferry Lakeside which combined have reached 94% capacity. Most recently, Ryan Companies and Sunbelt Holdings announced they will build a new 10-story high rise at Hayden Ferry Lakeside to meet demand for class-A space.
This being said, office tenants don’t have to wait for a new building before they can join us in the Mill Avenue District. Opportunities for space still exist at the new Gateway Building, Centerpoint on Mill, Hayden Station, and in some of our historic buildings. All of these workplaces are walking distance from light rail and have plenty of parking nearby.
The great news of our low office vacancy rates comes hot on the heels of a number of new leases being signed throughout Downtown Tempe. Some of the new tenants we will be seeing coming to the Mill Avenue District include the technology firms Statera and Xhibit, Silicon Valley Bank, and Allstate Insurance. This is in addition to the recent acquisitions of Waste Management, Limelight Networks, and Microsoft among many others.
Over the last few years, retail vacancy has made considerable improvement as well. Since April 2009, the amount of occupied retail and restaurant space in Downtown
Tempe increased nearly 12% demonstrating the popularity of Mill Avenue as an entertainment destination. Among the newest leases are Vivaldi Salon Suites and a small market at the West 6th apartment towers, the athletic store TriSports located in the Gateway building, and Rita’s Ice at Centerpoint on Mill. All should be opening during the summer of 2012.