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Phoenix Sees First Office Vacancy Rate Decline in 5 Years
A recently released JLL report on the Phoenix office market notes that vacancy rates are decreasing, the sublease market is showing positive trends, and rental rates are on the rebound.
The total metro Phoenix office market vacancy rate decreased by 10 basis points during the third quarter to 25.1%. This marks the first decline in local vacancy rates in almost five years.
Per the JLL report, vacancy and availability rates in the metro Phoenix office sublease market were also on the decline, falling by 80 basis points year-to-date to 5.0%. The direct vacancy rate remained relatively stable at 20.1%, showing minimal quarter-over-quarter change.
Additionally, there was a third quarter rebound in direct asking rents, which have now increased 3.1% year-to-date after a moderate decline earlier this year.
“We’re seeing Phoenix’s positive office market trends play out in real time,” said JLL’s Trevor Pratt. “The consensus is that a momentum is building, and it has staying power.”
- ◦Economy
