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| Dennis Desmond |
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:
Stacey Hershauer
Phone:
+1 480 600 0195
Email:
www.jll.com or
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