Office net absorption continues record streak with twenty-five positive straight quarters in Phoenix
Phoenix metro claims a new record with the 25th straight quarter of positive office net absorption, shattering the previous record set at 17 quarters.
October 30, 2019
- Phoenix metro claims a new record with the 25th straight quarter of positive office net absorption, shattering the previous record set at 17 quarters, between 2003 and 2007. More than 1.4 million square feet of new leases signed since the beginning of 2019 have yet to take occupancy, signaling more absorption ahead. These leases include Voya Financial (151,000 sf at Allred Park Place), CarMax (62,000 sf at 1515 W 14th St ), and WeWork’s upcoming locations at Block 23 and Watermark, among others.
- With healthy tenant activity, office development is continuing on an upward pace as well, with just over 1.2 million square feet under construction at the end of third quarter 2019. These up and coming buildings are also attracting heavy tenant interest with pre-leasing holding at a solid 40 percent. Several large construction projects are expected to complete before the end of 2019 adding over a million square feet to the office inventory.
- The market is projected to extend these streaks into the next several quarters, with expected large move-ins driving net absorption up and creating a need for continued development and creative use of space throughout the metro area.
Source: JLL Research