Orchid House 21 E 6th St 9,600 SF 4-Star Office Building Tempe, AZ 85281 $8,375,519 CAD ($872.45 CAD/SF) 5% Cap Rate

Tempe is a vibrant community that has become a top office market in metropolitan Phoenix. The city has achieved tremendous growth over the past decade, with office and multifamily developers attempting to keep pace. Tempe is one of the region’s few true live/work/play areas, filled with mixed-use office developments, entertainment options, seasonal festivals, and sports facilities. Access to major freeways, proximity to Phoenix Sky Harbor, and border-to-border light rail make the area easily accessible. These attributes have attracted a line-up of leading companies including State Farm, Amazon, Chase, and ADP, among others.

One of the most significant economic drivers in Tempe is Arizona State University, the largest public university in the country. With more than 55,000 students enrolled at the Tempe campus and roughly 10,000 graduates each year, the university ensures that employers can meet their current and future labor needs. Arizona State University was named the Most Innovative University in the Country for an eighth consecutive year by U.S. News and World Report, and many companies choose to locate near and partner with the school on research and curricula.

Tempe Town Lake is another major attraction in the city. Nearly 6 million square feet of the market's best-in-class office inventory has risen alongside the lake since 2015, including State Farm's 2.1 million-square foot regional HQ. Since then, the area has become a magnet for finance, technology, and professional service occupiers that have helped to generate high-quality jobs. Today, more than 50,000 jobs are within one mile of Tempe Town Lake.

The deep pool of talent, strong amenities, and good location drive strong underlying tenant demand. Due to its popularity, the region has achieved rent growth above the market average, and new office development remains limited, reducing competition.