PHOENIX—Metro Phoenix office market posted its strongest quarter of absorption in since 2005 with 1.5 million square feet during fourth quarter 2015. The year closed with a total 2015 absorption of 3.3 million square feet and occupancy growth in 17 of the 22 metropolitan submarkets during the fourth quarter.  Vacancy in Phoenix closed the year at 18.7%, down 20 basis points from the previous quarter and down from 19.1% at year-end 2014, says Cushman & Wakefield.

Curtis Hornaday, research analyst at Cushman & Wakefield in Phoenix, tells GlobeSt.com: “Metro Phoenix experienced impressive office absorption during Q4 of 2015, surpassing all previous post-recession quarters.  We should maintain this strong level of absorption during 2016 as State Farm phases its move into four additional build-to-suit facilities and other well pre-leased properties are completed.”

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