Posted Oct 24, 2018, 8:26 PM
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Registered User
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Join Date: Jan 2010
Posts: 6,613
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This is good to see, I doubt Phoenix could ever become a first tier city like NY, Chicago, LA. As it lacks the geography to really do so, however it is nice to see that we are moving from a 3rd tier retiree zone, into a 2nd tier city.
However we are likely doomed into LA's larger regional center of gravity forever.
https://www.bizjournals.com/phoenix/...or-office.html
Quote:
With 1.2 million square feet of absorption of office space so far in 2018, Phoenix is one of the top secondary markets for office absorption, according to research from JLL.
Phoenix ranks on par with Denver, Austin, Pittsburgh and Orlando, which have similar absorption rates. The region saw 45 percent greater absorption than San Diego, the next highest neighboring office market, according to the research.
“Whether you compare us regionally or nationally, Phoenix continues to enjoy exceptionally positive office market indicators,” said Pat Williams, managing director of JLL, in a statement. “In addition to the active new construction, we also have more than 90 companies – in a wide range of industries – looking for as much as 5 million square feet for relocations, expansions or new offices.”
There is more than 2.7 million square feet of office space under construction in the Phoenix area, 726,000 of which is scheduled to be delivered before the end of the year, according to JLL. There also is 1.5 million square feet of existing and under-construction office space worth of executed leases waiting to occupy next year.
According to research from Colliers International, office vacancy decreased during the third quarter, but is expected to increase slightly by the end of the year as new developments come online.
Approximately 127,000 square feet of new office space came online during Q3, bringing the year-to-date total for delivery to about 800,000 square feet, down from the 1.8 million square feet delivered during the first three quarters of 2017, according to Colliers.
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