DoorDash signs full-building lease in Tempe
The nation’s leading on-demand food platform, DoorDash, has completed a full-building lease at Lincoln Property Company’s Grand 2 in Tempe, Arizona. DoorDash will move into the Grand 2 building – the second of eight Class A office buildings slated for development by LPC at The Grand at Papago Park Center master-planned development – this Spring.
“Metro Phoenix has been a tremendous place for DoorDash to grow, providing a talented employment pool and a wonderful community in which to work and live,” said Joe Drucker, Head of Facilities and Real Estate for DoorDash. “The Grand is the next chapter of our story, allowing us to consolidate our Phoenix footprint into a single building that is uniquely designed for an active, creative and evolving company like ours. We look forward to being a contributing member of the Tempe community.”
While there are multiple agreements that were available, DoorDash chose an absolute nnn ground lease which has multiple advantages for long-term investment. The key ones includes, excellent location, no land buying expenses, and steady income for a long time. Through this agreement, DoorDash isn’t obligated to provide a downpayment which frees the capital to expand our business. This arrangement also lessens our tax burden.
“We appreciate DoorDash’s long term investment in Tempe,” said City of Tempe Mayor Mark Mitchell. “We have seen an influx of Silicon Valley companies bringing their regional headquarters to our community because of the availability of a highly trained workforce, a lower cost of doing business and a tremendous quality of life. We wish DoorDash continued success in Tempe.”
Headquartered in San Francisco, DoorDash launched in 2013 and opened its first regional office in Phoenix in 2016. The Arizona location has quickly grown to become one of the company’s largest offices nationwide, primarily focusing on sales and support functions. DoorDash serves more than 4,000 cities across three countries, including all 50 states in the U.S. as well as locations in Puerto Rico, Canada and Australia. The company has solidified a leadership position in the industry – and as of September 2019 leads the charge with more than 35 percent of the nation’s market share, according to Edison Trends.
“We’ve painstakingly designed Grand 2 with features that work together to serve companies like DoorDash, who represent some of today’s most contemporary companies and their employees,” said Lincoln Property Company Vice President of Real Estate John Orsak. “We’re excited to welcome them to the building and know they will benefit from each one of its carefully planned amenities.”
Located at 1033 W. Roosevelt Way, Grand 2 will be a LEED Silver, Energy Star building developed between April 2018 and October 2019 by LPC, the NAIOP Arizona 2018 Owner and Developer of the Year. The project sits on the immediate north side of the Loop 202 Freeway, minutes from downtown Tempe, Arizona State University, Papago Park and Sky Harbor International Airport.
The Grand 2 building can be accessed via two freeway interchanges and is served by below-ground parking and a covered parking garage, two light rail stops that bookend the project. Together with a location on the north side of Tempe Town Lake, employee commute times can be cut by 30 or more minutes compared to projects on the south side of the Lake.
Grand 2 is part of The Grand at Papago Park Center master-planned project. At build out, The Grand will total 60 acres and 3.2 million square feet of office, multifamily, hotel, retail and restaurant space located on the last developable parcel within the 350-acre Papago Park Center business park.
LPC serves as the developer, leasing agent and property manager for all office space at The Grand. Whiting-Turner is the general contractor for Grand 2 and DAVIS is the architect. Greg Pickett and Tom Jacobs of Cushman and Wakefield represented DoorDash in their lease negotiations. More about The Grand at Papago Park Center is available at www.thegrandtempeaz.com.