By Mike Sunnucks | Rose Law Group Reporter
The metro Phoenix office market ended 2019 with a 16.1 percent vacancy rate and annual absorption (net leasing) of 3.9 million square feet, according to fourth-quarter numbers from Lee & Associates Commercial Real Estate Services.
The office vacancy rate ended the year unchanged from the third quarter but was down from a 16.6 percent vacancy rate at the end of 2018.
The average asking rent for office space ended 2019 at $25.18 per square foot. That is up from $24.09 per foot a year ago.
For the fourth quarter, the biggest lease deal was DoorDash taking 345,795 square feet in Tempe. The largest office sale was the $212 million ($333.84 per foot) sale of the Biltmore Financial Center according to Lee’s numbers.
There are currently 17 new office buildings under construction the Valley totaling more than 2 million square feet. There were also 136 office sales in the region during the fourth quarter worth $930 million.
