Colliers International Q1 2016 Greater Phoenix Office Market Report
A Steady Start to 2016
Net absorption was positive, vacancies ticked lower and rents rose. Further strengthening is likely in the months ahead, as employers continue to expand payrolls, fueling tenant demand for office space.
Vacancy ended the first quarter at 17.2 percent, 110 basis points lower than one year ago. Rents are pushing higher in response to consistent tenant demand and tightening vacancy. Asking rents have increased by 5.3 percent in the past 12 months, reaching $22.68 per square foot in the first quarter.
Sales of office buildings slowed by approximately 20 percent from the end of last year to the beginning of this year. The decline in activity frequently occurs during the first quarter. The median sales price was $119 per square foot, compared to $130 per square foot in 2015.