Phoenix Office Absorption Hits 14-Year Record

John Pierson

Renters aren’t the only people moving to Phoenix for a better deal. Companies are also flocking to the pro-business city and driving significant growth in the office market. According to a recent report from JLL, the office market is heading toward a 14-year absorption record in Phoenix. This year, office absorption is 3.07 million square feet, surpassing the city’s previous three-quarter record in 2005 of 2.9 million square feet of absorption.

“Big corporate users, finance and insurance are our top growth industries. We are seeing a lot of new tech growth in our market, thanks to California,” John Pierson managing director at JLL, tells GlobeSt.com. “The market is evolving, and some of us who have been in the market for 20 years are seeing the market change from a seven-year cycle to 24-consecutive quarters of positive absorption. We just had our three best quarters ever, and we are still tracking users that are north of 25,000 feet that are active in the market. That is in addition to what we just recorded, which was at record levels.”