Savills Studley, the leading global commercial real estate services firm specializing in tenant representation, has released its 2016 Q2 Phoenix edition of the Savills Studley Office Market Report.
The quarterly report is an in-depth compilation of office leasing statistics and trends, major transactions, submarket comparisons, employment trends and investment and development trends specific to the Houston region.
Highlights from the 2016 Q2 Phoenix Office Market Report include:
The Phoenix market is tightening for tenants, as overall asking rent rose and class A availability declined in Q2. The region’s overall vacancy rate is now at its lowest mark since Q3 2008.
However, average rental rate costs for all of Phoenix’s submarkets lay below US Index. Only five of the region’s thirty-two submarkets have a lower availability rate than the US Index.
Employment growth in the metro region now nearly triples the national rate. Solid workforce and quality of life has attracted large northeastern companies like John Hancock Investments, Northern Trust and Vanguard to recently select the metro region for new headquarters backups.
Adaptive re-use is on the rise as available land in Phoenix’s urban core has become more limited and construction costs have increased.
Please click here to access the 2016 Q2 Savills Studley Phoenix Office Market Report, as well as a national report and reports for each of the 29 major U.S. markets.