Saturday, April 8, 2017
PHOENIX, AZ – Even with more than 1.1 million square feet of new space delivered in the first quarter of the year, average asking rents for Phoenix office product has increased to the highest level in nine years, according to the Q1 2017 Phoenix Office Insight [add link] report released this week by the Phoenix office of JLL.
Reaching $24.91 per-square-foot, today’s Phoenix office rent average is just 7.1 percent lower than the pre-recession high of $26.82, set in Q4 2007.
Total vacancy remains relatively unchanged – and still under 20 percent – as new construction just slightly outpaces demand, and with more than half of all new space delivered in Q1 2017 representing preleased product, primarily at the Marina Heights/State Farm development in downtown Tempe.
“Since 1990, there have been three significant cycles that have dramatically impacted the Phoenix economy and its office rents, and each cycle contained a period of peak and trough rental rates,” said JLL Senior Managing Director Dennis Desmond. “This creates some level of predictability, and – as predicted – history is repeating itself.”
For a complete copy of the company’s news release, please contact:
+1 480 600 0195
Posted by Alex at 12:42 PM