SunCor Jump-Starts Plan for 250,000-SF Tower

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.