State Farm Insurance is entering the Metro Phoenix office market in massive fashion.
After announcing they will be creating a regional headquarters at Tempe Town Lake, State Farm Tempe dropped the gaudy numbers on us: A $600,000,000 facility to be built out by Ryan Companies and Sunbelt Holdings, good for 2 million square feet. It will be the largest office project in Arizona history, besting the Arizona Center’s 1.2 million square feet.
And they’re not stopping there.
It was also announced that a separate State Farm facility adjacent to Tempe Town Lake was purchased by a group of investors led by former Phoenix Suns owner Jerry Colangelo for $73,000,000. The 20 acre site’s exact location has not been disclosed.
Initial rumors we’re hearing are 40,000 – 60,000 square feet of retail space, a 10-acre Lakeside Plaza public space, and somewhere around 7,000 jobs will be brought in from this project alone.
What does this mean for local real estate? For starters, we don’t know how many of these jobs will be “transferred in” from other states and how many will be local hires. Needless to say, that is a massive amount of jobs in one location. Obviously they are not opening for business tomorrow, so there’s hope that proud new State Farm employees will be looking for a new home or condo when we have more inventory to offer. This announcement fares very well for the local condo market, South and Central Scottsdale, Tempe and Downtown Phoenix (linking light rail). Local business along Mill Avenue will definitely see more business.
As space appears to be quickly becoming scare along Tempe Town Lake, other major employers looking to expand or move to the Valley will be looking along the 101 corridor. So cheers to State Farm, and high hopes for other major employers to enter our marketplace with even a fraction of State Farm’s moxie.
If you are a lucky State Farm employee, preparing to be moved into this presumably gorgeous office building, contact us to get started on looking for a new place to live. We’ll match you up with the ideal neighborhoods, schools for your kids, and commute strategies around the north Tempe / South and Central Scottsdale marketplaces.