Panattoni Demolished Former State Farm Tempe Office Park

The development group cleared five buildings to make way for a new $70 million industrial project.

Updated on Oct. 1, 2026 in Commercial

Panattoni Demolished Former State Farm Tempe Office Park

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Do you support converting former office parks in your community into industrial warehouse space?

Panattoni Development Company has demolished a former State Farm regional office park in Tempe to clear space for a new industrial project. The firm plans to replace the site with two large industrial buildings valued at approximately $70 million.

Why it matters

This project represents a shift in land use for the 25-acre site, moving from office space to an industrial-focused footprint. It reflects broader regional efforts to redevelop aging corporate office campuses into modern industrial facilities.

The 25-acre site will host two buildings totaling 450,000 square feet, with the first 250,000-square-foot structure valued at $17 million and the second 200,000-square-foot unit valued at $13.7 million. An existing garage on Fairmont Drive will remain.

The players

Panattoni Development Company

This is a global industrial real estate developer that specializes in speculative and build-to-suit industrial projects.

State Farm

This is a large group of mutual insurance companies headquartered in the United States.

City of Tempe

This is the municipal government agency responsible for zoning, permitting, and land use regulations within the city of Tempe, Arizona.

The details

The site, located at 2750 S. Priest Drive, formerly housed State Farm regional offices for over a decade. Contractors cleared the property by demolishing five office buildings and one parking structure, though an 850-space garage will be preserved.

August 6, 2026: The city of Tempe issued two building permits for the project.

Roadmap

This project mirrors the widespread conversion of aging suburban office campuses into high-density industrial and logistics hubs. By repurposing the 25-acre parcel, the developer is capitalizing on the high demand for industrial square footage over traditional office floor plans.

Residents in the area near S. Priest Drive will see a shift in local traffic patterns as the site transitions from corporate office use to industrial activity. The preservation of the 850-space parking garage may also influence how surrounding businesses manage their parking availability.

The takeaway

Large-scale office demolitions often signal a broader change in regional land utility and commercial zoning. Investors and residents should monitor municipal permit databases to track similar redevelopment projects in their specific neighborhoods.