PHOENIX-The Phoenix metro area has taken it on the chin sincethe housing bust. Though the area's industrialproperty sector has experienced signs of life, the officesector has been slow to follow.

The good news is that Q2 figures indicated a definite upwardtrend in the office property sector, albeit amodest one. According to Colliers International's Research& Forecast Report, the Greater Phoenix office marketshowed a net positive absorption of 772,000 square feet (upfrom 24,465 square feet from Q2, 2011) and vacancy at 20.9%area wide (which dropped from the 21.9% during the same time lastyear) out of a total 130 million square feet. Even better is thatthe quarter's absorption statistics were the metro area's strongestin close to five years.

Colliers research manager Pete O'Neil says oneword can be attributed to the improvement: Jobs. Though the secondquarter stalled in terms of jobs added to the metro region, thefirst quarter was much stronger, as it was nationally. As such, "ayear ago, you might have looked back and said improvement wasmodest. Now it's more decidedly positive. The trend is headed inthe right direction," O'Neil comments.