Phoenix is among the top secondary markets in the US for officeabsorption this year. According to research fromJLL, Phoenix has 1.2 million square feet of officeabsorption year-to-date, putting it in ranks with major growthmarkets, like Denver, Austin and Orlando. The market is outpacingits bigger neighbors, including San Diego, which has had 534,896square feet of net office absorption this year, and Los Angeles,which has had 600,000 square feet of net office absorption thisyear.

“Financial companies, business services, healthcare andhigh-tech companies are all expanding into metro Phoenix anddriving growth,” Jennifer Farino, research analystfor the JLL Phoenix office, tells GlobeSt.com about the industriesdriving this growth. “They are looking for strong economies,educated labor pools, economic growth, a low cost of living andexpansion opportunities, and they are finding it here. That hasprecipitated tenant relocations and expansions, creating a demandfor new development and continued office market growth that weexpect will continue throughout the next several years.”