Report: Phoenix is a top secondary market for office absorption
The Phoenix office market has achieved 1.2 million square feet of absorption year to date, placing it as one of the top secondary markets in the U.S. for fast and consistent net absorption, with no notable end in sight, says the Q3 2018 Phoenix Office Insight report from the Phoenix office of JLL.
This absorption number puts Phoenix in the ranks of Denver, Austin, Pittsburgh and Orlando, which all have similar absorption year-to-date. It also positions Phoenix to experience 45 percent more year-to-date positive net absorption than its next highest neighboring Southwest market – San Diego at 534,896 square feet.
“Whether you compare us regionally or nationally, Phoenix continues to enjoy exceptionally positive office market indicators,” said JLL Managing Director Pat Williams. “In addition to the active new construction, we also have more than 90 companies – in a wide range of industries – looking for as much as 5 million square feet for relocations, expansions or new offices.”
According to JLL, there is currently more than 2.7 million square feet of office construction underway in Phoenix, with 726,000 square feet scheduled to deliver by the end of the year (15 percent higher for new space delivery than any other market in the Southwest.) Of that space, 25 percent is already pre-leased.
For existing and under-construction properties Valleywide, there is 1.5 million square feet of executed leases waiting to occupy in 2019.
“That sets us up for a strong end to 2018 and an equally strong entry into 2019,” said Williams.
To access JLL’s Q3 Phoenix Office Insight report or other local and national JLL research reports, visit the JLL Phoenix research page at www.jll.com/phoenix/en-us/research.