Allstate Insurance Company has signed a lease as a new office tenant in the Tempe Gateway building in the Mill Avenue District, Vulcan Real Estate announced today.
Allstate’s lease is for 66,000 SF of office space, making it one of the largest leases signed in the market this year. Allstate is expected to open their new Tempe offices in September 2012.
The eight-story, 260,000 SF Tempe Gateway building will provide Allstate with a prime location and modern amenities. Tempe Gateway was purchased by Vulcan Real Estate in June 2010 as the company’s first investment outside the Seattle market. The building’s location provides easy access for people from all over the Greater Phoenix Metropolitan Area with close proximity to major freeways and a light rail stop adjacent to the property.
“We are really pleased to welcome Allstate as our newest tenant and we expect their staff will find the location ideal, with easy access to transportation, shopping, and a great local community,” said Robert S. Arron, senior director of real estate marketing and leasing at Vulcan Inc.
Allstate’s new lease brings occupancy at Tempe Gateway up to 64%, further highlighting the growing strength of the office real estate market in the Tempe-Phoenix region.
Other downtown Tempe buildings are also faring well.
- Hayden Ferry Lakeside is at 94% occupancy;
- Papago Gateway Center is approximately 80% leased;
- Centerpoint on Mill has converted existing second floor retail into office space to take advantage of the market;
- Tempe’s vacancy rate for business space is lower than neighboring cities Phoenix and Chandler;
- Mill Avenue has added 48 new retail businesses since 2009 that are open and thriving – the vacancy rate has gone from 32.4% in April 2009 to about 20.5%.
“We’d like to say that Allstate is in good hands here in Tempe,” Mayor Hugh Hallman said. “We welcome them to our community and look forward to their presence here.”
Allstate will join current Tempe Gateway tenants Limelight Networks (a 2012 RED Award winner), Parsons and Waste Management, who occupy a combined 100,000 SF. Trisports.com, a longtime retailer of triathlon, swimming, biking, and running gear, has also leased space at Tempe Gateway for their newest retail location, and will open their doors in June, 2012. Vulcan is in discussions with several other prospective tenants to lease the remaining office and retail space currently available in the building.
Jerry Roberts of CB Richard Ellis represented Vulcan Real Estate in the lease transaction, and Michael Cummings, Phil Breidenbach and Lindsey Carlson of Colliers International represented Allstate.