Allstate’s 66,000 SF Lease in Tempe Offers Rare Bright Spot
- May 18, 2012
In one of the area’s largest office leases this year, Allstate Insurance Co. inked a 66,000-square-foot deal at Tempe Gateway. Located in Tempe’s Mill Avenue District, the eight-story, 260,000-square-foot building facility has been owned since 2010 by Seattle-based Vulcan Real Estate.
Allstate’s commitment means that Tempe Gateway is now 64 percent leased. Other tenants at the property include Limelight Networks, Parsons and Waste Management, which occupy 100,000 square feet among them. In addition, triathlon gear retailer Trisports.com, is set to open a new retail location in the building next month.
The Allstate lease is a welcome bright spot in a market that continues to struggle. Average asking rates have declined for eight quarters in a row and slipped to $20.72 per square foot in the first quarter, according to CBRE Group Inc. During the first quarter, the market registered less than 1,000 square feet of positive absorption during the first quarter as tenants focused on renewals. Owners are hoping that the absorption soon returns to 2011 levels, when the Phoenix area ranked fifth nationwide.
Photo courtesy of tempegateway.com