The long and stubbornly slow recovery continues. Q1 2018 numbers are out and the Metro Phoenix office market absorbed 686,469 square feet of net positive space, lowering overall vacancy to 19.39%.
We are now into the 8th straight year of positive absorption in office jobs. Vacancy varies throughout the Greater Phoenix area with a high of 30.5% in the Sky Harbor Airport submarket, right next door to a low of 9.5% in Tempe. With such a wide range, I spend a lot of time helping tenants and landlords navigate nuances (opportunities) across geographical areas and product types.
Below is a link to our Lee & Associates Arizona First Quarter Office Report and as usual, I’ve included my top 3 takeaways:
Tempe is #1 Again– Central Scottsdale spent a short time last quarter as the most occupied submarket (90.5%), but Tempe is back after a strong quarter of tenant demand.
Class A Vacancy is 16.7%– Businesses continue to lease the best quality space they can as there is huge competition to acquire and keep their best talent.Southeast Valley Continues momentum– Chandler has nine speculative office projects under construction – a testament to strong demographics and tenant demand in that area of town. Look for vacancies to rise in this market creating some aggressive concessions.
My team and I represent office tenants and landlords throughout Metro Phoenix and the US – and we do international work as well. Please contact me if we can help you.
firstname.lastname@example.orgPS- My partner, Craig Coppola, found this incredible and insightful old-school video on the history of Phoenix. I hope you enjoy every minute of it. What a trip back in time!