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3/05/25
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A 75.3k sf building in Tempe, AZ was purchased by SIN 360 Dental in a $14.4 mil transaction. A 40.9k sf back-office space within the building has been converted to 20k sf of office space and 20.9k sf of air-conditioned warehouse space for the buyer’s business.
Strategically situated on 7.54 acres at 8312 South Hardy Dr near the full diamond interchange at Interstate 10 (I-10) and Warner Rd in south Tempe, the property already featured an 18-foot clear height. It was zoned for heavy industrial use, making the office-warehouse conversation feasible. The 21k sf rear office area of the building was demolished to create a high-ceiling, air-conditioned warehouse space. The conversion also included the addition of two grade-level loading doors. The building boasts an additional 1.4 acres of parking, which could be converted to a storage yard or a 20k sf – 25k sf warehouse building.
CBRE's Charles Miscio, Jamie Swirtz and Mike Parker represented the seller, Tempus Realty, based in Little Rock, AK, in the transaction. Greg Hopley and Dillon Hopley of Colliers repped SIN 360 Dental.
“The typical new industrial building development has less than 25% office finish. Most new industrial developers in the market cannot provide an office finish ratio greater than 25% due to the capital expense required given current construction costs or without significant out-of-pocket expenses from the tenant. There is an underserved niche in the industrial market for flex industrial properties with an office finish exceeding 25%,” said Parker. “The ability to convert an existing back-office space to have a warehouse component fills a void in the marketplace for certain types of high-tech or office-intensive businesses that still require a warehouse component for their business operation.”
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