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Phoenix Market Reports

Phoenix Office Market

Average Asking Rent (Price/SF) $25.08
Vacancy Rate (%) 17.6%
Net Absorption (SF) 637,624

The continued growth of the Phoenix office market is based on fundamentals that are the envy of other U.S. markets. Among Phoenix's advantages are low employment, robust population growth and popularity with companies looking to grow and expand. With tenants ranging from tech companies seeking creative spaces to back office users seeking the right talent pool and infrastructure, the future of the Phoenix office market looks strong.

Phoenix Industrial Market

Average Asking Rent (Price/SF) $0.62
Vacancy Rate (%) 8.4%
Net Absorption (SF) 669,598

Following a healthy 2017, tenant demand cooled during the first quarter of 2018, which posted 669,598 square feet of total absorption. Warehouse/distribution space accounted for 600,000 square feet of the market's total. The Gilbert submarket led all submarkets in absorption, expanding by nearly 256,000 square feet, as Footprint Manufacturing (131,796 square feet) and United Solutions (120,700 square feet) took occupancy in new buildings in the submarket this quarter. The Southwest Phoenix posted an unusually low absorption total of 170,627 square feet during the quarter, but pent-up demand and the completion of new product over the next few quarters will push the total back up to levels above 500,000 square feet per quarter. The overall vacancy rate finished the quarter at 8.4%, a 70-basis-point improvement from a year ago, and dropping to pre-recession lows.



Phoenix Office Market Report
2Q18
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Phoenix Industrial Market Report
1Q18
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