After half a decade of contraction and persistent uncertainty, conditions in the Phoenix metro office market last year began stabilizing – and, in some areas, improving.
According to multiple brokerage and market research reports, vacancy rates are no longer climbing, net absorption has turned positive for the first time since before the pandemic, and tenant demand began cautiously returning for newer, amenity-rich buildings.
The strongest momentum is concentrated in Scottsdale and the Southeast Valley, where Tempe, Chandler, and Gilbert outperformed the broader metro market, the reports indicate.
Mesa’s office market showed more modest gains. Vacancy remained elevated, particularly in older buildings, and absorption was slightly negative for the year, according to Cushman & Wakefield…