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Phoenix Market Reports

Phoenix Office Market

Average Asking Rent (Price/SF) $25.18
Vacancy Rate (%) 19.2%
Net Absorption (SF) 427,769

The Phoenix office market continued to tighten in the third quarter of 2017, as the overall vacancy rate dropped to 19.2%, a 10-year low. Vacancy has dropped 50 basis points in the past year alone, despite an increased inventory base of 2.5 million square feet. Several notable tenants committed to large blocks of space in the third quarter which include Bank of the West, Wells Fargo Bank, Liberty Mutual Insurance, Walgreens, Consumer Cellular, Union Bank, Varsity Tutors and Centene. The majority of these leases took place in the Southeast Valley and specifically in Tempe and Chandler.

Phoenix Industrial Market

Average Asking Rent (Price/SF) $0.61
Vacancy Rate (%) 9.5%
Net Absorption (SF) 3,146,756

Strong market fundamentals continued to place downward pressure on the metro Phoenix industrial market's overall vacancy, which finished the third quarter of 2017 at 9.2%, down 110 basis points from a year ago and the lowest level since 2007. Net absorption topped a robust 3.1 million square feet in the third quarter, bringing the year-to-date total to nearly 7.3 million square feet. The continued trend of large tenants taking large warehouse/distribution space continued, as that product type accounted for 71.4%, or 2.2 million square feet, of the quarter's total absorption figure. Large tenants that took occupancy during the quarter include: Conair (1.0 million square feet), at its recently completed facility in Glendale; Essendant (262,000 square feet), in Southwest Phoenix; and SanMar (253,000 square feet), in Avondale.

Phoenix Office Market Report
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Phoenix Industrial Market Report
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