“Where oh where” is the office construction??
October 22, 2018
- No doubt that office construction is hot in the Valley, and reasonably hot in the Southeast valley, with over 726,000 square feet of new office space set to deliver in the remainder of 2018.
- Total under construction product totals more than 2.7 million square feet. The future of the office market looks bright for landlords based on demand trend for new product, with more than 25 percent already preleased.
- With very active and healthy tenant activity in the valley, this new construction may not satisfy the over 5.0 million quarter feet of product in demand, with over 90 companies currently searching for space.
- Non-southeast valley assets include Block 23 leading Downtown’s class A development, and on track to deliver in mid-2019 a total of 330 multifamily units, 228,402 square feet of office space, and Downtown’s first flagship grocery. In the Camelback Corridor the Camelback Collective is set to deliver in 4Q 2018 with 116,000 square feet of new office space, bringing a fresh project to the corridor.
- Increased tenant activity and sustained demand for new product, makes one of the Phoenix hottest on the West coast.
Source: JLL Research