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News release

Phoenix, AZ

Phoenix Approaching Longest Office Market Expansion On Record

More than 10.8 million square feet of space absorbed in past four years


PHOENIX, October 3, 2017 – With 175,000 square feet of positive net office absorption achieved during Q3, and approximately 350,000 additional square feet of absorption projected for Q4, Phoenix is on its way to 18 straight quarters of expansion – the longest expansion record in the market's history, according to the Q3 2017 Phoenix Office Insight report released today by the Phoenix office of JLL

According to the report, more than 10.8 million square feet of Phoenix office space has been absorbed between Q3 2013 and Q3 2017. This is 9.0 percent higher than the market's previous 9.9 million-square-foot absorption high point recorded between Q3 2003 and Q3 2007.

Barring any major move-outs, Phoenix by year end should exceed 2.0 million square feet of total office space absorption. This would be the fourth year in a row that the local market hits this benchmark.

"Unlike past cycles, where we've experienced a strong peak and heavy decline, this cycle continues to perform slow and steady," said JLL Managing Director John Pierson. "We did see absorption slow in the third quarter, but that has been balanced against very consistent growth among all business types and sizes."

For 2017, this activity is led by a number of large move-ins, including Alaska USA Federal Credit Union (with the purchase of a 185,000-square-foot office building in Glendale, Arizona for $17 million), and Wells Fargo (occupying 109,412 square feet at Continuum Business and Technology Park in Chandler, Arizona).

To access the complete JLL Q3 2017 Phoenix Office Insight and Q3 2017 Phoenix Office Statistics reports, visit the JLL Phoenix research page at www.jll.com/phoenix.

 

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At the end of the first quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 78,000. As of March 31, 2017, LaSalle Investment Management had $58.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

In Phoenix, JLL is a market leader employing more than 560 of the region's most recognized industry experts offering office, industrial and retail brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services. In 2016, the Phoenix team completed 34 million square feet in lease and sale transactions valued at $1.5 billion, directed $105 million in project management and currently manages a 25.2 million-square-foot portfolio. For more news, videos and research resources on JLL, please visit www.jll.com or www.jll.com/phoenix.