TEMPE, AZ-Two leases, totaling 44,649 sf, have pushed occupancy at Hayden Ferry Lakeside’s 300,000-sf Tower II to 90% a little more than one year after its completion. Because of demand, owner SunCor Development Co. is planning the next office tower in the 41-acre mixed-use project.

Tower II’s newest tenants are Fidelity National Title Insurance Co., which is taking 23,500 sf in a seven-year lease, and MetLife Inc., which is leasing 21,149 sf for 10 years. Fidelity, set to occupy the entire 11th floor in the coming weeks, will consolidate several Phoenix-area offices. MetLife is taking most of the sixth floor for a new sales office, with move-in scheduled for September. The quoted lease rate for Tower II in the 43-acre project at 60 E. Rio Salado Parkway is in the low $30 per sf range.

Tom Knoell, project manager of commercial development for the Tempe-based developer, says there are multiple prospects interested Tower II’s remaining space. “More space than we have at this time,” he says. The original time frame for lease-up was 30 months from completion so Tower II is well ahead of schedule.

The pent-up interest, combined with the quick lease-up of Tower II, has prompted SunCor to begin planning the 250,000-sf Tower III. Preleasing inquiries already have started. “We’re securing several strong office prospects for the third tower. By the time we break ground on this,” Knoell says, “this will be leasing quickly.”

Tower III’s construction budget is still be finalized. Knoell tells GlobeSt.com that asking rents are estimated at $36 per sf.

Tower III’s groundbreaking could take place as early as this summer. Completion is estimated to take 24 months. Hayden Ferry Lakeside includes retail and residential condos and a hotel site.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.