Metro Phoenix recorded a whopping 9.8 million total square feet of industrial absorption in 2017. This is the largest annual net absorption gain in Phoenix history. The total also marked the fourth consecutive year of annual net absorption in Phoenix, totaling 6.0 million square feet or more, which has not been seen since 2004-2007. The previous peak of nearly 7.9 million square feet in 2005 fell in the middle of one… Read More
Total positive net absorption in Phoenix exceeded 3.1 million square feet for the year, the most recorded demand in the Valley since 2005 when more than 4.0 million square feet was taken up by the market.
A majority of that absorption continued to be in the Southeast Valley. For the past 10 years, the Southeast Valley has accounted for more than 67 percent of the entire Phoenix Metro office absorption when it… Read More
Although Tempe is often considered one of the most popular office submarkets in the Valley, it is also a popular destination for small- to medium-sized industrial users who don’t fit into the big box industrial space in the Southwest Valley. Like the tech tenants that have flocked toward the centrally located city, a wave of nutraceutical companies have taken advantage of the Class A and B product that is often unavailable… Read More
Since 2011, more than 9.7 million square feet of office space has been absorbed, outpacing nearly 6.0 million square feet of new deliveries. Overall vacancy is expected to decline in 2017 as employers expand and relocate to the Valley.
Phoenix is experiencing a much more diverse recovery during this economic… Read More
Construction-related companies lead charge of mid-sized users
Although Phoenix has recovered all of the jobs lost during the recession, the construction employment sector is still more than 80,000 jobs away from its previous peak.… Read More
Steady absorption with continued Phoenix growth
The Phoenix metro area office market picked up where it left off at the end of last year. Built on a stable economic foundation of strong job growth and calculated construction, new office space is… Read More
Speculative developments reducing impact of positive absorption gains
At least 13 development companies are capitalizing on the strong demand and limited supply of high-quality space in the Southeast Valley, delivering 557,957 square feet of new product in the first half of 2015. While the remainder of the properties currently under construction are 74.5 percent pre-leased, the properties that have been delivered year-to-date have been mostly speculative, adding over 448,000 square feet of vacant space to the market. These speculative deliveries have kept pace with the 498,123 square feet of year-to-date net absorption, resulting in a stagnant vacancy rate of 22.3 percent in both the first and second quarter of 2015.
Despite growing small and mid-sized users, larger industrial properties have made up the majority of absorption gains in Phoenix since 2006.
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Click to tweet: Large industrial buildings account for the greatest net absorption gains. See more in #JLL’s #ChartoftheWeek http://bit.ly/1yUi6ry
In the years of recovery following the recession, there has been increased demand for quality, Class A office space. Often making up for losses recorded within Class B and C properties, Class A absorption has outpaced that of overall Phoenix since 2008.
Tenants have been flocking towards these newer Class A properties, driving demand… Read More
In honor of football season, we explored how the office markets of Phoenix’s rivals in Saint Louis, San Francisco and Seattle matched up to their professional football teams. Phoenix is a rising star both on and off the field, recording the largest absorption gains of the year as of the second quarter.
Click here for more… Read More