Phoenix Office Market
| Average Asking Rent (Price/SF) | $27.64 |
| Vacancy Rate (%) | 19.3% |
| Net Absorption (SF) | -348,189 |
Phoenix is among several Sun Belt metros experiencing growth in multiple sectors as residents and businesses relocate from coastal markets to benefit from its opportunities and lower economic costs. Despite experiencing increased vacancy and negative net absorption during the first quarter of 2022, rising rents and heightened tenant and investor activity point to strong recovery fundamentals as the Metro moves into the new year.
Download Phoenix Office Market Report 1Q22
Phoenix Industrial Market
| Average Asking Rent (Price/SF) | $0.84 |
| Vacancy Rate (%) | 3.9% |
| Net Absorption (SF) | 3,850,176 |
The Phoenix industrial market is growing in prominence as an important regional hub within the Southwestern U.S. The port markets in Southern California are constrained by extremely low vacancy, near or below 1%, and the Phoenix market is located within a one-day truck drive of Southern California, as well as having an abundance of land available on a relatively low-cost basis. Additionally, Phoenix is also well connected (a one-day truck drive) to the burgeoning Western metros of Las Vegas and Salt Lake City. The above factors together with strong population growth, particularly from domestic migration, are driving the Phoenix industrial market to new heights.