Office Market Continues to Roll Along

PHOENIX—Metro Phoenix office market posted its strongest quarter of absorption in since 2005 with 1.5 million square feet during fourth quarter 2015. The year closed with a total 2015 absorption of 3.3 million square feet and occupancy growth in 17 of the 22 metropolitan submarkets during the fourth quarter.  Vacancy in Phoenix closed the year at 18.7%, down 20 basis points from the previous quarter and down from 19.1% at year-end 2014, says Cushman & Wakefield.

Curtis Hornaday, research analyst at Cushman & Wakefield in Phoenix, tells GlobeSt.com: “Metro Phoenix experienced impressive office absorption during Q4 of 2015, surpassing all previous post-recession quarters.  We should maintain this strong level of absorption during 2016 as State Farm phases its move into four additional build-to-suit facilities and other well pre-leased properties are completed.”