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Q3's Net Office Absorption Rebounds, But Future Still Looks Bleak

PHOENIX-The Q3 promise from a near 225,000-sf net absorption is short-lived amid a prediction of a slight downturn in the fourth quarter. The positive showing, though, was the first good sign in 16 months.

By Beverly Ford | Updated on October 14, 2002

PHOENIX-The Valley’s office market has rebounded in the third quarter with net absorption of nearly 225,000 sf, an increase over last year’s third quarter showing. But there’s no reason to celebrate just yet. Market analysts are predicting a downturn in the fourth quarter as 200,000 sf to 300,000 sf of office space is placed back on the market.

“We’re not out of the woods yet,” Stewart Park, head researcher for Cushman & Wakefield of Arizona Inc., tells GlobeSt.com “It’s probably going to be 2003 before we see a drastic reduction in sublease space.”

Park said the up-tick in the Valley’s office absorption rates, reflective of a national trend, is the first positive indicator in the last 16 months. “To have a quarter of positive activity is a definite change,” said Parks. “We can see the market is starting to recover but we’re still a little shaky.”

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