Phoenix is one of the fastest growing office markets in thecountry. In the first quarter, office rents increased 10%year-over-year, and in 2018, rents increased 4.2%, according toresearch from Avison Young. The first quartermarketed 23 consecutive quarters of growth as well as positiveabsorption. Job and population growth are behind the strongactivity, and this demand will likely continue to attract newcompanies and fill new construction supply as it comes tomarket.

“Strong job growth has fueled demand for office space, whichoutpaced new supply in 2018. With over 600,000 square feet of netabsorption recorded in the 1st quarter of this year, robust demandis continuing,” Mark Seale, principal and directorof brokerage services at Avison Young, tells Globest.com. “Althoughover 2 million square feet is currently in the constructionpipeline there is more than double that in user activity lookingfor space in the market. Net absorption has outpaced new supplysince 2011, pushing vacancy down from its recessionary peak insecond quarter of 2008 of 26.2% to 15.5% in at the end of firstquarter 2019.”