By Jessica Boehm | Axios
The pandemic’s work-from-home push has permanently upended metro Phoenix’s office market.
What’s happening: Many people continue to work remotely and those who’ve returned to in-person work are demanding more from their office spaces.
- That has created a divide in the market, with older offices struggling to find tenants while new facilities with high-end amenities leasing up before they’re even completed, CBRE executive vice president Bryan Taute tells Axios Phoenix.
By the numbers:Phoenix finished 2022 with an office vacancy rate around 24%, according to CBRE, a commercial real estate firm. That’s the highest it’s been since 2014.
Meanwhile, a swanky new mixed-use project dubbed The Grove, at 44th Street and Camelback Road, leased all of its office space before it opened early this year, according to brokerage firm JLL.
- It’s packed with conveniences like on-site dining, and it boasts views of Camelback Mountain.
The intrigue: Taute says there is growing demand for offices with private spaces, larger work areas and easy parking, norms people got used to while working from home.
