By Jessia Boehm | Axios
There’s a tale of two office markets unfolding in the Valley: Nearly a quarter of our office space sits vacant, and yet we don’t have enough high-end buildings to meet employer demand.
The big picture: The pandemic seems to have permanently changed the way many Americans work, and companies don’t need as much space as they once did.
Yes, but: The businesses that have returned to in-person work often want luxury headquarter-like buildings with amenities that make leaving the house worthwhile.
- Just in the past few months, PulteGroup Inc. and WillScot Mobile Mini announced they would relocate their Phoenix offices to recently completed buildings in Scottsdale, underscoring the demand for new offices, CBRE vice president Charlie von Arentschildt told Axios.
Zoom in: Phoenix is not building enough of that type of “trophy” office space, von Arentschildt said.
- There is currently about 290,000 square feet under construction, the lowest level since 2012.
- Von Arentschildt said he predicts the Valley will see at least one quarter where there is no active construction of high-end offices next year, which has never happened in the modern era.
