The more than 2.7 million square feet of office space now under construction in metro Phoenix is the most seen since 2015. But, according to the Q2 2018 Phoenix Office Insight report from the Phoenix office of JLL, it still may not be enough to meet an estimated 4.6 million square feet of demand that is in play by companies ranging from business and financial services to high-tech and healthcare.
“The healthy mix of industries active in Phoenix is a good sign for the market’s continued success,” said JLL Senior Vice President Brett Abramson. “Gone are the days where there are hubs of certain industries all locating in one submarket. What we’re seeing now is simply a heavy dose of demand, coming from varied industry interest in most submarkets.”
According to JLL, nearly 100 companies are now in the market – looking for 20,000 square feet or greater of Phoenix office product. Of those, 24 percent are business services companies, 21 percent are healthcare, 14 percent are high-tech and 10 percent are financial services.