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Scottsdale Office Market Heats Up in Q3

SCOTTSDALE, AZ-Two of three submarkets in Scottsdale account for 761,843 sf or 85% of the metro's Q3 absorption while vacancy is riding 5.5 points below the citywide average of 19.3%. As expected, the push for space delivers the highest rents in the metro.

By Jennifer D. Duell | Updated on October 18, 2004

SCOTTSDALE, AZ-With 761,843 sf of absorption year to date and a vacancy rate of 13.8%, the Scottsdale Airpark and Central Scottsdale submarkets are leaving the rest of the Valley in the dust, according to third quarter numbers from Cushman & Wakefield of Arizona Inc.

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.

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