Office Space Demand Remains Strong in the Valley

PHOENIX-Demand for office space remained strong in the metro area market during the third quarter of 2003, pushing net absorption to its highest year-to-date level in the last three years and dropping the Valley’s overall vacancy rate by 1.7%.

“We’re digging ourselves out of a hole,” Jeff Hartland, Senior vice president of the office division for Grubb & Ellis, tells GlobeSt.com. “The numbers are looking up but right now, its with cautious optimism.”

A Grubb & Ellis study shows increasing signs that the Valley’s office market is getting stronger even though vacancy rates remain at 20.1% and landlord concessions continue to be rampant. Yet despite the double-digit rate, which is down from 21.8% just a year ago, vacancies declined for the fourth straight quarter as more than 212,000 sf was absorbed to bring the year to date net absorption total to more than 727,000 sf.