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Phoenix metro tops nation in net office leasing

Posted by   /  October 22, 2019  /  No Comments

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By Mike Sunnucks | Rose Law Group Reporter

The Phoenix metro area led the U.S. with net absorption (net office leasing) in the third quarter with 1.4 million square feet leased, according to commercial real estate brokerage firm CBRE.

Chandler led office leasing during the most recent quarter with close to 492,500 square feet in leasing.

The largest office leases during the third quarter include Choice Hotels landing technology operations in Scottsdale, Deloitte’s expansion in Gilbert and WageWorks taking space in the Mesa Riverview area.

There has been close to 1.1 million square feet of net office leasing in the East Valley so far this year. The region has seen 2.38 million square of office space leased through the first three quarters. The Phoenix market had 2.5 million square feet of net office leasing in 2018, according to CBRE.

The office vacancy rate for the third quarter is 14.4 percent with Tempe having the tightest submarket with a 3.2 percent vacancy rate.

The southern and central parts of Scottsdale have a 12.3 percent office vacancy rate. It is 19.2 percent in downtown Phoenix, according to CBRE.

The Class A vacancy rate in the metro area is 10 percent.

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