Search
 

Valley's Office Market Poised for Slow Recovery

PHOENIX-Vacancy rose a percentage point to 21.8% and rent accordingly fell a point to $23 per sf in the suburbs and $22 per sf in town. The metro market's economics are delivering cut-rate deals that are enticing more tenants to trade up.

By Beverly Ford | Updated on October 22, 2002

PHOENIX-The Valley’s soft office market is slowly showing signs of recovery as tenants take advantage of cut-rate deals to move out of back office space into prime, class A locations.

“We did see some positive activity in the third quarter,” Larry Downey, senior director of Cushman & Wakefield of Arizona Inc., tells GlobeSt.com, noting the firm’s analysis shows that many companies are taking advantage of the soft market to move to more prestigious addresses.

Tyler Smith, senior associate of Grubb & Ellis Co., which released its office market study, emphasizes to GlobeSt.com that while some areas have listed negative absorption, the corridors surrounding the Valley’s freeway systems remain strong. West Phoenix, North Scottsdale and Tempe as well as Mesa and Chandler are seeing positive absorption rates, Smith said, while the CBD continues to suffer from negative absorption.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.