Phoenix Office Market Is a Rock Through the Pandemic

The Phoenix office market hasn’t faltered yet. According to a new report from Colliers International, the office market completed its 33^rd consecutive quarter of growth in the second quarter, despite the economic disruption cause by the pandemic. The market continued to see positive net absorption and the vacancy rate remained below 15%. However, it could still be too early to see signs of the dislocation.

“Colliers tracks absorption when a tenant moves in, not on the sign date. 2019 set this quarter to preform very well,” Phil Hernandez of Colliers International, tells GlobeSt.com. “However, the next two quarters will look drastically different if one of two things do not happen; either the Cavasson building delivers and Nationwide moves in, or we see large deals close in the next few weeks. There are a lot of large deals that have been paused since March, hopefully the tenants are able to move forward relatively soon.”