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.
PS- 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!