By AZRE | AZ Big Media
The Greater Phoenix Medical Office market has remained healthy during third quarter, despite an increase in sublease availability, according to a report from Colliers International. During the past three months, the market posted positive net absorption and a slight increase in rental rates, as well as maintaining vacancy below 15 percent. Continued population growth is expected to drive demand for healthcare and medical office space.
Approximately 87,913 square feet of positive net absorption took place during third quarter, marking the third consecutive quarter of positive net absorption this year. The Glendale submarket drove net absorption for the second consecutive quarter. That submarket’s delivery and move-in of akos at akos Medical Campus Phase I led the overall market in the third quarter.
Vacancy rose 30 basis points over-the quarter to finish September at 13.7 percent. Vacancy in medical office space has risen 100 basis points year-over-year. Sublease space increased 17 percent over-the-quarter and now accounts for 1.3 percent of the entire medical office inventory.
