According to a recent report from JLL, the Phoenix office market is experiencing positive changes. Vacancy rates are decreasing, sublease activity is on the rise, and rental rates are rebounding.
During the third quarter of this year, there was a 10 basis point decrease in vacancy rates for the total metro Phoenix office market. This marks the first decline in local vacancy rates in almost five years.
The JLL report also highlights improvements in both vacancy and availability rates for subleased offices within metro Phoenix. These have decreased by 80 basis points year-to-date to reach 5%. The direct vacancy rate has remained steady at 20.1%, with minimal changes seen quarter-over-quarter.
Furthermore, there has been an increase of 3.1% year-to-date in direct asking rents during this third quarter rebound after experiencing a moderate decline earlier this year.
Trevor Pratt from JLL comments on these positive trends: “We’re witnessing firsthand how these trends are positively impacting Phoenix’s office market,” he says.”There seems to be growing momentum that will continue into future months.”
