The Phoenix office market continues to improve in 2015. Total vacancy in Phoenix decreased to 21.8 percent in the third quarter, the lowest level since the Great Recession. Year-to-date total net absorption reached 1,209,529 square feet, which is the second-best net absorption total since 2006.
Office-using employment sectors continue to experience strong employment growth over the past year, recording an annualized net gain of 16,300 jobs (2.2 percent) across the MSA. In October, the first 375,000-square-foot building of the Marina Heights office campus was completed. Located at Tempe Town Lake, this 2.1 million-square foot project will be the regional headquarters for State Farm Insurance. Over 1.4 million square feet of office space is projected to be delivered in the Metro Phoenix by the end of 2015, the highest total since 2009.
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