Older Phoenix offices sit empty while new ones are in high demand

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.


Share this!

Additional Articles

News Categories

Get Our Twice Weekly Newsletter!

* indicates required

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.