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Q2 2016 Greater Phoenix Office Report - Colliers International

Published By: Colliers International in Greater Phoenix

Vacancy Continues to Tighten, Rents on the Rise

  • The second quarter was a strong period for the Greater Phoenix office market, with net absorption surging, vacancy dipping and rents trending higher. 
  • Tenant demand for space is being fueled by continued hiring. The pace of job growth has slowed somewhat in 2016 from heightened levels in 2015, but there is sufficient demand for support tenant demand.
  • Vacancy ended the second quarter at 16.6 percent, down from 18.1 percent one year ago. Class B buildings have been recorded the fastest vacancy improvement in the past year.
  • Rents are gaining momentum, advancing by 5.5 percent in the past year. While gains are being recorded across all property classes, the greatest increases are being recorded in the Class A segment of the market. 
  • The local investment market has been mixed to this point in 2016. Activity has slowed at the high-end of the price spectrum, after a busy 2015. Prices and cap rates have remained close to 2015 levels.
Release Date07/21/2016 - 01:23


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