With its first phase completed in July, Hayden Ferry Lakeside, a multi-purpose development area, is almost 50 percent occupied.
The eight-story, 209,000-square-foot commercial building will also have a plaza-level waterfront space for restaurant and retail developments, along with a two-level parking garage.
"The rental of space is on schedule right now," said Randy Levin, SunCor senior project manager for the development of the 50 percent of office space sold.
SunCor Development Company, Benton-Robb Development Associates and Bay State Milling Company are all sharing responsibility for the development.
"It's a tremendous asset to our community," said Tempe City Councilman Mark Mitchell. "The location is excellent because it's close to the airport and a major university."
SunCor relocated its corporate headquarters from Central Avenue in Phoenix to the Hayden Ferry Lakeside tower.
Two insurance companies, a law firm and the general contractor for the tower all occupy space in the tower.
MedAire Inc., one of two insurance companies located in the tower, moved its corporate headquarters in the building in July.
"We were looking for a high visibility location to locate the company," said Steve Holstein, vice president of marketing for MedAire. "We also like the fact that it was adjacent to ASU, because of the culture here."
Holstein added that the amenities on Mill Avenue, such as shopping and dining, are good for visiting guests.
"We have a lot of guests come and spend time here, sometimes for more than three days," Holstein said. "Mill Avenue is the nicest district in all of the Phoenix-metro area."
Though only 50 percent of Hayden Ferry Lakeside is occupied, more businesses are looking to locate their offices in the development.
R and R Partners, a marketing company, will move into Hayden Ferry Lakeside on Oct. 1.
Two additional office towers and retail space will be constructed on the 12-acre property in the next two phases of construction.
There is no deadline set for completion of the rest of the project.
"The project will be completed based on market demand," Levin said.
The concept design calls for 725,000 square feet of office space, 66,000 square feet of retail and restaurant space and 2,460 parking spaces.
Luxury condominiums and a hotel are still in the conceptual stage and not part of any phase for the project.
ASU owns property next to the Hayden Ferry Lakeside project, but no plans for construction have been solidified.
The Hayden Ferry Lakeside development is expected to generate much revenue for the city of Tempe.
"Everything has an economic impact," said Jan Schaffer, development manager for the city of Tempe. "The city will receive rental sales tax from the office space, and pay for the upkeep of the lakeside property in front of the tower."
Schaffer also said employees will be spending more money downtown at dining establishments and bars.
"The entire project will have a big impact for Tempe," she said.
Reach the reporter at meagan.pollnow@asu.edu.
