AzBigMedia
Buoyed by double-digit tech-sector employment growth, Phoenix was in the top third of markets in the country for rising office rents over the past two years, with 13.4 percent growth, according to CBRE’s annual Tech-30 report, which measures the tech industry’s impact on office rents in the 30 leading tech markets in the U.S. and Canada. Furthermore, Tempe saw the highest tech rent growth of any submarket in the country with just under 30 percent growth over the same period.
The influence of tech industry job creation on office market rent growth is pervasive across the U.S. and Canada, with 13 of the Tech-30 markets posting rent growth of 10 percent or more between Q2 2015 and Q2 2017. Phoenix’s high-tech employment grew 25.4 percent over 2015 and 2016, with average office asking rents rising 13.4 percent to $25.01 from Q2 2015 to Q2 2017. Tempe’s average office asking rent is $28.35.
