A significant office space in one of Tempe's most prestigious buildings is hitting the sublease market, as Moov Technologies aims to offload its pricey spot amidst a backdrop of surging expansion elsewhere. The company, which operates a marketplace for semiconductor equipment, is trying to sublet up to 31,000 square feet on the 16th floor of the 100 Mill building—a high-end, Class A office space.
Not one to miss an opportunity, Moov is "opportunistically exploring options for partial and full lease," its CEO Steven Zhou said in a text message on Feb. 8. The tech firm seems to vigorously bank on growth in places like Austin, Taiwan, China, and Europe, thus reducing its footprint in Tempe. This move comes despite the fanfare surrounding its office grand opening in June 2023, as reported by Phoenix Business Journal.
Given Moov's decision to sublease, the space, now marketed by JLL brokers Ryan Timpani and Brett Thompson, could be a big draw for companies seeking a high-profile location at a possible discount. Moov first set up shop in Tempe back in 2021, after relocating from California and underlined Arizona as a prime spot for future growth. It has since amassed over 100 employees, half of whom are in Arizona.
However, with market conditions fluctuating, Moov is prepared to step back from one of the hottest real estate zones in the Valley. Tempe office spaces are currently reaching for the sky at $39.65 per square foot for a direct lease, as per CBRE data. That's a considerable hike compared to the metro-wide average of $31.39—a figure to certainly raise eyebrows in an already competitive market, according to ABC15 News. But tenants stand to potentially snag a bargain, with sublease rates estimated to be 25-30% lower than direct leases in the Tempe area.
With Moov's big move, there's more elbow room in Tempe's office market than expected. CoStar Group puts the available office sublease space at about 1.5 million square feet, which was slightly higher towards the end of 2022. It's clear Moov is looking to strategically adapt its physical presence, to more accurately reflect where its business is booming the most efficiently.
