Lowest Office Vacancy Rate in Phoenix Since 2008

 

AvAir headquarters, a 162,714 sq. ft. creative office & warehouse space, sold for $26.5M

Lee & Associates’ released the Q1 2018 Market Report for Phoenix Metro Office that includes analysis and outlook, market data, infographics, economic indicators, submarket breakdowns and the top 5 sales and leases from Q1 2018.

 

Read the full report here:  Q1 2018 Office Report

 

KEY TAKEAWAYS:

Asking rents and new construction are on the rise in Metro Phoenix, while vacancy continues to creep down in the Valley’s office market.

  • New construction is up 2.8 million square feet with Chandler/Gilbert leading the way.
  • Vacancy has been on a steady decline since its peak of 25.3 percent after the recession, and Q1 2018 marked the lowest vacancy rate in Phoenix since 2008 – currently 19.39 percent.
  • Net absorption recorded its 19th consecutive quarter of positive gains with 686,469 square feet absorbed. New data shows Phoenix is still ahead of national averages for job and population growth.
  • OUTLOOK: The goal is to continue attracting corporate headquarters, technology, healthcare, and financial companies as a result of Phoenix’s deep and talented labor pool.