There was nearly 1.5 million square feet of new office under construction in Metro Phoenix at the close of the third quarter 2017. Over half of the new construction is pre-leased, occurring mostly in build-to-suit projects. The majority of development in the Valley is located in the Southeast Market Area, totaling 960,548 square feet.
The Northeast Market Area is home to a quarter of the office space under construction, including a new regional headquarters for McKesson. Another 100,000-square-foot speculative office building is also being developed.
In the Core Market Area, there is a mixed-use office and hotel project in the Camelback Corridor submarket under construction. Dubbed Camelback Collective, the project will include a four-story, 118,090-square-foot office building and a five-story, 160-room boutique European inspired AC Hotel designed by Marriott.
Source: JLL Research
To learn more about the office market in Metro Phoenix, download our Q3 2017 Office Insight report.
About the author
Keeley Byer is a market research analyst for the JLL Phoenix office. With four years of market research experience and eight years of commercial real estate technology experience, he continually tracks and analyzing trends affecting the Phoenix Metro commercial real estate market.