Scottsdale Airpark and Central Scottsdale accounted for 85% of the absorption in Phoenix's 17 suburban submarkets. The submarkets account for nine million sf of office space out of the metro's 63.4-million-sf inventory, which ended the quarter with a 19.3% vacancy.

According to Jim Wentworth, senior managing director in Phoenix for Cushman & Wakefield, the strongest leasing activity has been in the suburban markets, particularly Scottsdale. In the past three months, the strongest absorption, 245,107 sf, was recorded in the Scottsdale Airpark submarket. Wentworth credits more than half of the submarket's absorption last quarter to Pulte Homes' new 150,000-sf facility at Raintree Corporate Center. Meanwhile, another 112,649 sf of absorption occurred in the Central Scottsdale submarket. Citywide, absorption was 793,518 sf at the third-quarter close.

Most of the new construction in the Valley is concentrated in Scottsdale. In the Scottsdale Airpark submarket, nearly 400,000 sf of office space has been completed this year. Another 136,000 sf is under construction in the submarket.