Months ahead of its planned move into a new corporate center in Tempe, Dutch Bros Coffee is laying the foundation for a significant expansion in Arizona. The company, rooted in Oregon, has inked a deal for a sizable office lease at the Liberty Center in Tempe, intended to serve as a vital corporate hub. This new arrangement sets the stage for Dutch Bros to officially make itself at home in the space by early 2025.
According to ABC15, the coffee chain is evidently gearing up to bolster its presence within the Phoenix metro. This strategic move follows their initial foray into the region with a smaller setup at The Quad. "Arizona made sense because the company already has a strong presence with 85 locations in the state," said Jess Elmquist, chief people officer at Dutch Bros, spotlighting the fact that the brand already enjoys considerable recognition across Arizona with 85 locations.
Tempe won Dutch Bros' favor as an optimal site for its growth endeavors due to a promising labor market and manageable commutes for the workforce distributed across the Valley. Elmquist articulated Tempe's advantages to The Business Journal, explaining, "When we were looking at space and location, we were certainly looking for something that we could move into and grow in." He added, "And so our Liberty location is that exact spot for us."
Dutch Bros' choice to establish themselves at the Liberty Center, a substantial 136,426-square-foot facility, appears to be more than a simple relocation; it represents a significant phase of growth for the company. In a statement to The Business Journal, Elmquist disclosed that approximately 40% of their headquarters staff will be based out of Phoenix as of January. The Tempe corporate center will not only be an operational hub but will also feature a training environment where team members will learn the Dutch Bros' drink-making crafts. Meanwhile, despite the new office, the headquarters will firmly stay put in Grants Pass, Oregon, and the project is projected to carry a $41 million price tag.
Beyond training facilities, Dutch Bros' new Arizona outpost promises to replicate the effervescent atmosphere seen at its retail locations. Their largest Valley lease of the year, spanning over 135,000 square feet, sets a bold marker amid other prominent office space deals in the region. Designed by Corgan, with Wespac Construction leading the build and Cresa's Scott Maxwell on representation duties, the office space previously housed Carvana Co.'s headquarters.
Phoenix is seeing fluctuations in its office market, as noted by a Q2 office report from Avison Young, which revealed a 25% vacancy rate in the second quarter and contrasting absorption metrics in comparison to the first quarter, according to data from CoStar Group Inc. This economic backdrop makes Dutch Bros' significant investment in the region and its vision for a vibrant corporate hub all the more compelling as it aims to set a standard for innovation and community engagement within the bustling Phoenix metro area.
