The Phoenix-based developer is razing the 157,000-square-foot office building to build a pair of spec industrial buildings totaling 171,000 square feet at 2530 West Campus Drive and 2727 South 48th Street, in Tempe, the Phoenix Business Journal reported.

Evergreen will also build 65,600 square feet of outdoor storage on the southeast corner site at 48th Street and Alameda Drive, 13 miles east of Phoenix.

The new industrial park, 48th @ Alameda, aims to serve rising demand.

“Oftentimes you see industrial developers will put up buildings without really carefully examining where the bulk of the demand is,” Brian Dietz, vice president of industrial development for Evergreen, told the Business Journal. “We believe it to be small to medium-sized tenants that may need some outdoor storage component to store equipment, trailers or raw materials.