Saturday, October 8, 2016
PHOENIX, AZ – The Phoenix office of JLL has released its Q3 2016 Phoenix Office Report, highlighting benchmarks including the lowest vacancies since 2008 and still-rising rents. Still, Phoenix remains one of the most affordable office markets on the West Coast.
“More companies are recognizing that Phoenix has an extremely strong labor pool and very affordable cost of living,” said JLL Managing Director John Bonnell. “All three of these factors are big wins for companies seeking to escape the high prices of Northern California or other primary markets.”
“New York-based Oscar is an example of this,” said JLL Executive Vice President Ryan Bartos, referencing the health insurance company’s recent move into 95,000 square feet at The Circuit, at 615 S. River Dr. in Tempe.
“Oscar was excited that Phoenix not only provided affordable real estate but that cool, creative office product was available in our market. The company is also very focused on providing their employees with a strong quality of life and liked the fact that Phoenix has so much to offer.”
Companies like Oscar have helped reduce overall total vacancy in metro Phoenix to 19.7 percent in the third quarter, down significantly from the recessionary peak of 28.1 percent and signalling continued improvement in the market.
At 2.6 million square feet year-to-date, total positive net absorption is also on track to exceed 3 million square feet by year’s end – the highest level of absorption since 2005, when 4 million square feet was absorbed.
For a complete copy of the company’s news release, please contact:
Marketing & Public Relations