August 5, 2019
The Greater Phoenix area continues leading the country in job creation. And, according to reports from brokerages throughout the region, that job creation means more office space leased in Q2 2020. Colliers International, speaking to absorption, pointed out that “employers continue to add workers at a very active pace, fueling tenant demand for office space and fueling new development.”
Speaking of development, JLL focused on a continual construction pipeline, and net absorption which, over the past six months “exceeded the last peak achieved in 2016.” Meanwhile, NKF analysts focused on average rent increases, along with decreasing vacancies.
JLL’s forecast is for a continuation of the current trend, well into 2020. Meanwhile, the Colliers report noted that vacancy is anticipated to move higher in the remainder of the year, “as some spec development projects come online with vacant space.”
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