Nearly half of the construction is happening in the Ranches submarket in Scottsdale where 940,600 sf is being developed, according to James Wentworth, senior managing director of Cushman & Wakefield. Activity also is strong in the West Valley, where 216,000 sf is rising.
Wentworth says the Ranches and West Valley submarkets are among the healthiest office markets in the Valley with vacancy rates of 15.8% and 13.1%, respectively. Valleywide, the vacancy rate is 17.8%, according to C&W's local research group.
The Ranches submarket's 3.6 million sf also had the highest rental rate at the end of the first quarter: $23.70 per sf. The marketwide average is $19.44 per sf.
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