3 Things To Know About The Phoenix Office Market
The Phoenix office market's hotter than it's been in years. But the devil's in the details. Lee & Associates Arizona research guru Matt DePinto fills us in on some of those details.
Advantage: Landlords
“Phoenix office momentum is expected to continue in 2016 as the region's economy continues to rebound with healthy office job employment gains and strong population growth," Matt tells us. Landlords have been raising rents as vacancies shrink, so it’s time for some tenants to think about locking in rates for the next few years.
All Indicators: Strong
Most major indicators were positive for Q4 '15 and for the year, Matt notes, including vacancy, absorption, asking rental rates, construction and deliveries. Absorption for 2015 came in at 3.35M SF. The fourth quarter’s strong performance represented nearly 56% of the yearly total of absorption.
Most Submarkets: Rents Up
The Airport Area, Scottsdale Airpark and Scottsdale South submarkets saw the most increases in rents last year, while the Glendale and Tempe submarkets declined slightly, Matt says. Pictured: Warner Crossing, 1140 W Warner Rd, Tempe. Recently, Hybrid Design Associates and Surface Mount Co, an engineering and manufacturing firm of sophisticated electronic components, signed a 10-year lease for 40k SF at the property, in a deal brokered by Lee & Associates and Ross Property Advisors.
