Colliers International
- Tenant demand in the Greater Phoenix office market strengthened throughout the year, spiking to more than 1.9 million square feet in the fourth quarter. The total for the year was more than 3.5 million square feet, the strongest year since 2006.
- With net absorption on the rise, vacancy retreated in the fourth quarter. Vacancy ended 2015 at 17.2 percent, down from 18.1 percent one year ago. Class A vacancy has led the way, falling 210 basis points in 2015 to 15.4 percent.
- Increased demand for space is prompting new development. More than 2.8 million square feet came online in 2015, more than the combined total from 2012-2014.
- Asking rents rose 4.5 percent in 2015, ending the year at $22.30 per square foot. Asking rents have increased by at least 1 percent per quarter in six of the past seven quarters.
- Sales of office buildings spiked by more than 20 percent in the fourth quarter, and annual activity levels were up 15 percent from 2014. The median price rose more than 25 percent from 2014 to 2015 to $127 per square foot, and prices were considerably higher in many of the high-profile building sales that occurred during the year.
