Phoenix Office Market
| Average Asking Rent (Price/SF) | $27.25 |
| Vacancy Rate (%) | 18.9% |
| Net Absorption (SF) | -926,710 |
Although the Phoenix Metro office market ended 2021 with a soft fourth quarter, overall market fundamentals indicate a strong recovery, given heightened tenant activity and investor demand. Asking rents continued to climb, sale transaction volume is up 89.9% year-over-year and construction starts and deliveries remained strong throughout the fourth quarter of 2021.
Download Phoenix Office Market Report 4Q21
Phoenix Industrial Market
| Average Asking Rent (Price/SF) | $0.70 |
| Vacancy Rate (%) | 4.6% |
| Net Absorption (SF) | 3,466,199 |
Net absorption in 2021 set a new precedent, eclipsing the previous annual high by a large margin. New construction deliveries didn’t keep pace with robust tenant demand in 2021, with net absorption outstripping deliveries by a 2:1 margin and vacancy falling to a historic low of 4.6%. Phoenix will continue to see expansive industrial growth as it is one of the fastest-growing metro areas in the country, retains and attracts a talented labor force, has a relatively lower incidence of natural disasters, a larger supply of developable industrial land and is within a one-day truck drive to Southern California’s ports and population centers.