Vacancy rates beginning to flatline despite continued economic activity

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In the midst of one of the longest economic expansions, overall vacancy rates continue to fluctuate.

 

Core vacancy rates are the highest, however, class A office and multifamily developments and ASU’s growing Downtown campus will begin to attract an educated workforce to live, work and play. Block 23 leads Downtown’s overall class A development, delivering 330 multifamily units, 228,402 square feet of office space, and Downtown’s first flagship grocery in Q2 of 2019.

The Northeast Cluster’s high standard of living and lack of development have steadily decreased the overall vacancy, however, attractive class A developments throughout the Southeast Valley have already started to pull tenants towards their state of the art build-outs.

Tempe and Chandler submarkets have also led the Southeast market out of the recession’s largest vacancy rates in the Valley since 2011, with some of the market’s most attractive class A developments.

Source: JLL Research

About the author
Jennifer Farino is a market analyst in Phoenix, responsible for tracking and analyzing all local real estate market fundamentals. She works closely with brokerage and support professionals throughout the western region as well as colleagues throughout the global JLL organization to provide best-in-class research that differentiates JLL.