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Phoenix Office Market Turns the Corner at Q3 Close

PHOENIX-The latest office report shows net absorption jumped for the first time this year, according to Cushman & Wakefield of Arizona researchers. Vacancy dipped slightly and leases are up. Predictions are the positive pace will continue through year's end.

By Connie Gore | Updated on November 06, 2001

PHOENIX-There’s light at the end of the tunnel, if third-quarter office statistics by Cushman & Wakefield of Arizona Inc. are an indicator of days to come. Researchers report net absorption increased for the first time this year and overall vacancy dipped slightly. Steady leasing and checked construction will keep the office market rolling as the calendar flips to 2002.

Tim Whittemore, C&W’s senior director in Phoenix, says he’s optimistic that the current leasing pace will continue through year’s end. “Leasing activity certainly picked up during third quarter and we have anticipated continued acceleration,” he says. It might not be a lot since some plans are on hold due to the Sept. 11 attacks, but it should be enough to keep the region on the positive side of the spectrum. “We are likely not to see a significant increase in the absorption pace until next year,” he says in the Q3 report.

Year-to-date net absorption is 117,247 sf. But, C&W is predicting the year will end with overall net absorption of between 500,000 sf and one million sf. In 2000, the office market absorbed 3.3 million sf.

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