More than 10.8 million square feet of space absorbed in past four years
With 175,000 square feet of positive net office absorption achieved during Q3, and approximately 350,000 additional square feet of absorption projected for Q4, Phoenix is on its way to 18 straight quarters of expansion – the longest expansion record in the market’s history, according to the Q3 2017 Phoenix Office Insight report released today by the Phoenix office of JLL.
According to the report, more than 10.8 million square feet of Phoenix office space has been absorbed between Q3 2013 and Q3 2017. This is 9.0 percent higher than the market’s previous 9.9 million-square-foot absorption high point recorded between Q3 2003 and Q3 2007.
Barring any major move-outs, Phoenix by year end should exceed 2.0 million square feet of total office space absorption. This would be the fourth year in a row that the local market hits this benchmark.
“Unlike past cycles, where we’ve experienced a strong peak and heavy decline, this cycle continues to perform slow and steady,” said JLL Managing Director John Pierson. “We did see absorption slow in the third quarter, but that has been balanced against very consistent growth among all business types and sizes.”
For 2017, this activity is led by a number of large move-ins, including Alaska USA Federal Credit Union (with the purchase of a 185,000-square-foot office building in Glendale, Arizona for $17 million), and Wells Fargo (occupying 109,412 square feet at Continuum Business and Technology Park in Chandler, Arizona).
To access the complete JLL Q3 2017 Phoenix Office Insight and Q3 2017 Phoenix Office Statistics reports, visit the JLL Phoenix research page at www.jll.com/phoenix.