A recent article by Jennifer Farino of Voit Real Estate Services, appeared in AZ Big Media's AZRE Magazine discussing positive trends in the Phoenix office market at end of the second quarter of the 2014. The market continues to follow a path to recovery, finishing this quarter with successes that include rising asking lease rates and decreasing availability and vacancy.
Phoenix has seen a greater demand for office space this quarter, especially as more and more high-tech manufacturing companies make their home in the Valley. Sales prices continue to rise, pointing to a positive absorption trend.
The second quarter finished with the average asking full-service gross lease rate rising 3.23% from 2013’s second quarter average. This marks the sixth consecutive quarter of rising lease rates in Phoenix.
In addition, vacancy has decreased over 16 percent and availability has decreased 13 percent over the past two years, prompting Farino to predict a slight increase in construction in the coming quarters to meet demand. Vacancy ended the second quarter at 10.26 percent while availability dropped to 11.43 percent, aligning with a positive forecast for the Phoenix market.
These statistics paint a positive image of the future of the Phoenix Retail market, and while many remain cautious, the current statistics point to a slow but optimistic recovery.