Phoenix Office Market
| Average Asking Rent (Price/SF) | $27.10 |
| Vacancy Rate (%) | 14.6% |
| Net Absorption (SF) | 192,800 |
After a year of employment gains were erased in one month, the unemployment rate in Phoenix increased from a record 3.7% to 12.6%. Fortunately, the diversification of the local economy has increased resiliency since the last recession when compared to the national unemployment rate of 14.7%. According to the Bureau of Labor Statistics, Phoenix tied with Dallas among cities with populations over 1 million for the lowest year-over-year April job losses. While lodging, restaurants and retail employment decreased by nearly 100,000 positions, some sectors, such as financial activities, healthcare and advanced manufacturing, saw net increases in employment. This represents a significant shift, as the Valley of the Sun has historically been one of the fastest and hardest hit by economic downturns. Many attribute this to state and quasi-government development organizations aggressively courting high-value, recession-proof jobs this past cycle.
Download Phoenix Office Market Report 2Q20Phoenix Industrial Market
| Average Asking Rent (Price/SF) | $0.63 |
| Vacancy Rate (%) | 9.5% |
| Net Absorption (SF) | -318,678 |
After a strong first-quarter relative to other property types, the logistical and financial hurdles related to COVID-19 quarantine measures and restrictions finally reached the Phoenix industrial sector. Fortunately, there were some bright spots that signaled sustained growth upon resolution of the public health crisis.
Download Phoenix Industrial Market Report 2Q20 Download Phoenix Retail Market Report 2Q20