The Phoenix office market hasn't faltered yet. According to anew report from Colliers International, the officemarket completed its 33^rd consecutive quarter of growthin the second quarter, despite the economic disruption cause by thepandemic. The market continued to see positive net absorption andthe vacancy rate remained below 15%. However, it could still be tooearly to see signs of the dislocation.

"Colliers tracks absorption when a tenant moves in, not on thesign date. 2019 set this quarter to preform very well,"Phil Hernandez of Colliers International, tellsGlobeSt.com. "However, the next two quarters will look drasticallydifferent if one of two things do not happen; either the Cavassonbuilding delivers and Nationwide moves in, or we see large dealsclose in the next few weeks. There are a lot of large deals thathave been paused since March, hopefully the tenants are able tomove forward relatively soon."

Like the national market, Phoenix also saw a jobs rebound in Maywith unemployment trends reversing. This was largely linked to thereopening of the market. "Unemployment revolved around the stateclosure in April, the jobs lost were primarily with leisure andhospitality," says Hernandez. "On May 15th, the state softly openedback up, not everyone got their jobs back, but there was a sharpincrease of employee returning to work. Metro Phoenix was gainingso many jobs in late 2019 and early 2020 that finance and insurancemaintained a positive year-over-year growth for month Januarythough June."