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The medical office market in Phoenix has seen increasing demand, with a falling vacancy rate since 2012. In the West I-10 submarket, the vacancy rate is as low 4%. However, this year, the vacancy rate is expected to increase, not because of the pandemic, but because new construction projects expected to deliver this year.

“Three of the top five largest healthcare facilities currently under construction are hospital expansions,” Phil Hernandez, research manager at Colliers International, tells GlobeSt.com. “New construction of office medial has continued to follow population growth patterns. Focal areas are the southeast valley and the northwest and west valley. Of the properties that were either built in 2019 or are currently under construction 83%, of them are within these three areas.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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