Phoenix Office Market
| Average Asking Rent (Price/SF) | $26.77 |
| Vacancy Rate (%) | 16.2% |
| Net Absorption (SF) | -80,423 |
Although Phoenix was not hit as hard as other metros or the overall national economy, much of the forward motion Phoenix made in recent years took a sudden halt at the onset of COVID-19. By the end of May 2020, many thought the metro had experienced the worst of the economic effects. A sudden and large spike in COVID-19 cases from June to mid-July, caused unemployment to rise again. After face mask orders were put in place by the Governor with other mitigation measures, cases stabilized by end of the third quarter of 2020 and brought unemployment down to 5.9%, a far cry from April’s 12.5%. This shift near the end of the quarter indicates that many companies throughout the metro are bringing employees back into the workforce.
Download Phoenix Office Market Report 3Q20Phoenix Industrial Market
| Average Asking Rent (Price/SF) | $0.64 |
| Vacancy Rate (%) | 8.2% |
| Net Absorption (SF) | 1,905,056 |
The Phoenix industrial market posted another solid quarter against the backdrop of the pandemic. Net absorption measured 1.9 million square feet and vacancy remains historically low (8.2% for the third quarter of 2020), even with a large amount of recent speculative construction delivering. Thanks in part to a talented labor force, strong population and job growth, lower relative cost of development to California markets and access to 35 million consumers within a one-day truck drive, the Phoenix industrial market has seen a surge in leasing by logistics, distribution, and certain ecommerce tenants.
Download Phoenix Industrial Market Report 3Q20 Download Phoenix Retail Market Report 3Q20