By AZRE
Phoenix added millions of square feet of new office space in 2016, and companies filled that space at a near 10-year-high absorption rate, according to the Q4 2016 Phoenix Office Insight report released last week by the Phoenix office of JLL.
Collectively, this activity improved the Valley’s office occupancy picture, pushing total vacancy rates down 120 basis points year-over-year to 19.7 percent.
On the construction front, Phoenix’s 2016 office deliveries surpassed 2.4 million square feet, just shy of the 2.5 million square feet of new office space delivered in 2015. Total positive net absorption during 2016 exceeded 3.1 million square feet – the highest recorded demand in the Valley since 2005, when more than 4.0 million square feet was taken up by the market.
