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Phoenix Market Reports

Phoenix Office Market

Average Asking Rent (Price/SF) $25.31
Vacancy Rate (%) 16.1%
Net Absorption (SF) 911,545

The Phoenix MSA remains among the nation's top performers in terms of aggregate economic growth throughout 2018. Despite a surge in year-over-year construction employment, the sector remains below three-quarters of its 2006 peak. Moreover, better-paying jobs in the financial services and education and healthcare sectors have become far more important to the health of the market. This continuing trend is highlighted by Nationwide Insurance's 136-acre acquisition in Scottsdale, where it plans to construct a regional headquarters spanning over 1.0 million square feet of office space. Thousands of employees, with an average income of $58,000 plus benefits, will be relocated there, according to the city of Scottsdale. In addition, The Allstate Corporation signed an agreement to move 2,500 employees to Chandler. Like State Farm's regional headquarters in Tempe, which transformed the local economy and Marina skyline, relocations and expansions by Nationwide, Allstate, and other Fortune 500 companies are fundamentally altering the dynamics of the Phoenix MSA.

Phoenix Industrial Market

Average Asking Rent (Price/SF) $0.71
Vacancy Rate (%) 7.5%
Net Absorption (SF) 3,446,909

With e-commerce sales on track to represent 10% of total U.S. retail sales, according to the Federal Reserve, the commercial real estate landscape is rapidly shifting to reflect the new reality of how goods and services are purchased by, and distributed to, customers. The Phoenix warehouse market will continue to benefit from nation-leading population growth, affordability of raw land and access to 35 million consumers within a one-day truck haul.

Phoenix Office Market Report
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Phoenix Industrial Market Report
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Local Market Contact:

Charles LeSueur

Senior Research Analyst

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