JLL Research just released its quarterly outlook on the U.S. office sector. The growing strength of the economic base helped position the domestic office market in its best light in more than two years.
Driven by increased touring velocity and expanding leasing activity, vacancy levels fell below 17.0 percent for the first time in nearly five years. Quarterly absorption levels topped 10.0 million square feet for the first time since the end of 2011 and only the fourth time overall during the recovery.
Although some tenants remain hesitant to commit to long-term leases while the economy is still in the early stages of recovery, there are still a large number of tenants exploring their options across the valley. With almost 5 million square feet of requirements currently in the Phoenix market, expect net absorption to gain momentum later in 2013 and 2014 as these tenants land.
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Read Q2 2013 Office Outlook for our comprehensive take on the recovery and growth of U.S. markets.