Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Phoenix Office Five Fast Facts | Q1 2023

Jeff Cooledge • 5/1/2023
Get insight into the latest commercial real estate key trends of the  Phoenix commercial real estate (CRE) office market.
  1. Sublease Vacancies Decrease: The amount of vacant sublease space available for lease decreased quarter-over-quarter for the first time in over 3 years, as direct vacancies outpace sublease vacancies for the second consecutive quarter.  

  2. Camelback Corridor Maintains Lead: The Camelback Corridor submarket continues its streak of positive quarterly absorption going back to 2021, while commanding the region’s highest Class A rental rates and well below average vacancy rates. 

  3. Leasing Activity Slows: Gross leasing activity continued a downward trend for the fifth quarter in a row. In the first quarter of 2023, leasing activity was down 15% quarter-over-quarter and down 45% year-over-year. 

  4. Asking Rental Rates at All-Time High: Despite increasing vacancies and subdued leasing activity, average asking rental rates continue to rise. Overall asking rent reached $28.84 per square foot in Q1 2023. 

  5. Construction Remains Soft: The total office square footage currently under construction is at its lowest level in over a decade at 326K square feet. This equates to just 16% of the 10-year average construction level of 2.1M square feet. 

phoenix office

Get this report

Download

Author

Insights in your Inbox
Subscribe to the latest local market research, insights & analysis from Cushman & Wakefield across the U.S.
Subscribe
Phoenix Office FFF Phoeinx FFF Office

Related Insights

Phoenix Skyline
MarketBeat • Insights

Phoenix

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Jeff Cooledge • 4/17/2023
mb-card-office-1Q2023
MarketBeat • Office

Office Reports

Access the latest quarter commercial real estate results for the office sector nationally. Marketbeat analyzes quarterly market activity including supply, demand and pricing trends.
David Smith • 4/11/2023
Downtown Phoenix
Article • Industrial

Phoenix Named One of Five Emerging Industrial Markets to Watch

Of the 81 industrial markets we track, we selected Phoenix, Arizona and four other markets as emerging industrial real estate markets outside of primary markets—these five markets to watch are based on key metrics from 2019 through 2021, including net absorption, new tenant demand, rent growth, construction pipeline and deliveries.
Jeff Cooledge • 7/13/2022

Ready to talk?

Our professionals are ready to provide further details on this and many other topics.
Contact Us

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Cookie preferences
Agree All
Reject All
SAVE SETTINGS
Essential
Non Essential
Marketing