Cousins Properties plans renovations of Hayden Ferry Lakeside campus – Phoenix Business Journal – Phoenix Business Journal

Listen to this article 10 min
An office campus on Tempe Town Lake will undergo a transformation over the next year.
Atlanta-based Cousins Properties, the owner of the three-building Hayden Ferry Lakeside campus, will start renovating Hayden Ferry Lakeside I and II — the two older buildings — starting at the end of the year and in early 2024. 
Those renovations will primarily be in changes to the common areas in the lobbies and touchups to the landscaping — but activating the space by way of more restaurant choices is a priority for Cousins.
CBRE Group Inc.’s Bryan Taute, the listing broker for Hayden Ferry Lakeside, told the Phoenix Business Journal that Cousins’ decision to continue to invest in the campus is to stay competitive in offering tenants what they want. The campus covers more than 750,000 square feet of space.
View the accompanying slideshow below to see what Cousins is planning for Hayden Ferry Lakeside:
Cousins is a major player in the office market along Tempe Town Lake as it owns about 1.5 million square feet of office space along the waterfront. In addition to Hayden Ferry Lakeside, 100 Mill, Tempe Gateway and 111 West Rio are all on Cousins’ portfolio.
Taute said that construction is underway on a restaurant called Silo and that he’s in lease negotiations with a “prominent” restaurateur who will bring a separate marquee eatery next to Hayden Ferry Lakeside III. Taute said Silo is set to open toward the end of the year or early 2024 while the marquee restaurant is expected to open in early 2025.
Discussions are also ongoing with breweries and other food and beverage operators to possibly locate on the ground floor of Buildings I and II.
“I think you’re going to see a much different experience on that street level than you do today,” Taute said. “A lot of this renovation is [to try and] activate the lake.”
Taute declined to disclose the investment Cousins is making in Hayden Ferry Lakeside but said that it is significant. The goal is for the renovations to be complete sometime in 2024, he said.
Atlanta-based TSV will be the architect overseeing the renovations.
Hayden Ferry Lakeside, located between 40-80 E. Rio Salado Pkwy, is home to users such as KPMG, Gen Digital Inc., Amazon.com, MetLife and several others in Hayden Ferry Lakeside II and III. The first building was home to Silicon Valley Bank, which had a presence at the campus since 2012 but elected not to renew its lease after the bank’s collapse and subsequent acquisition by First Citizens Bank. 
Silicon Valley Bank has since moved into First Citizens’ space in the Cotton Center at 4950 S. 48th Street in Phoenix where employees began working on Sept. 18, the company wrote in a statement to the Business Journal. 
Silicon Valley Bank leased the entire building, which is more than 200,000 square feet, so Taute said all of Hayden Ferry Lakeside I is available for lease as of Oct. 6.
Cousins is a major player in the office market along Tempe Town Lake as it owns about 1.5 million square feet of office space along the waterfront. In addition to Hayden Ferry Lakeside, 100 Mill, Tempe Gateway and 111 West Rio are all on Cousins’ portfolio.
With arguably the best views in the Valley, nearby amenities and some of the region’s biggest and newest buildings, Tempe commands the highest asking rents — $39.62 per square foot — across classes in the Valley’s office market, according to a Q2 market report by CBRE.
While the asking rates have remained strong, the vacancy rates have climbed over the past two years as high-profile companies including DoorDash, Carvana, OpenDoor, Peloton and Robinhood recently elected to downsize or move out of their Tempe space.
According to a preliminary Q3 analysis by CoStar Group, Tempe has recorded about 1.8 million square feet of cumulative negative net absorption, which caused vacancy to climb from about 11.5% in the third quarter of 2021 to 22.7% in the third quarter of 2023.
© 2024 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated April 19, 2024) and Privacy Policy (updated December 19, 2023). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.

source