Phoenix Ranks Among Top Secondary Office Markets

Jennifer Farino

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

“Financial companies, business services, healthcare and high-tech companies are all expanding into metro Phoenix and driving growth,” Jennifer Farino, research analyst for the JLL Phoenix office, tells GlobeSt.com about the industries driving this growth. “They are looking for strong economies, educated labor pools, economic growth, a low cost of living and expansion opportunities, and they are finding it here. That has precipitated tenant relocations and expansions, creating a demand for new development and continued office market growth that we expect will continue throughout the next several years.”