Phoenix Office Rent Price & Sales Report

2022 Office Space Rent & Sales

  • $26.13 2022 Avg. Asking Rent
  • 1.32% Y-o-Y Avg. Asking Rent Change
  • 19.66% 2022 Office Vacancy Rate
  • $1.4B2022 Total Office Sales
  • $260.15Avg. Sale Price/SF

Phoenix office price per square foot in 2022 was $26.13 on average. This marked a +1.32% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 19.66% across all asset classes combined. The 76 transactions that closed here throughout 2022 amounted to a total sale volume of $1.4B. Phoenix office space commanded an average sale price per square foot of $260.15.

Average Rent by Office Class

2022 Average Office Rent per Square Foot

  • Phoenix Class A & A+ Office Space$29.49
  • Phoenix Class B Office Space$22.87
  • Phoenix Class C Office Space$19.51
  • Arizona Class A & A+ Office Space$31.16
  • Arizona Class B Office Space$23.96
  • Arizona Class C Office Space$19.42

Phoenix, AZ Office Asking Rents by Class

Average office rent in Phoenix rested at $26.13 per square foot in 2022. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Phoenix averaged $29.49 per square foot. Across all submarkets, class B office space recorded an average asking rent of $22.87 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $19.51 per square foot, on average. Comparably, statewide Arizona average office rents by class in 2022 were: $31.16 per square foot for class A office space; $23.96 per square foot for class B office space; $19.42 per square foot for class C office space.

2022 Office Vacancy Rates in Phoenix

Submarket Asking Rents Vacancy Rates
Phoenix - Desert View $34.00 21.92%
Phoenix - Camelback East $33.67 12.71%
Anthem $29.88 44.68%
Phoenix - Central Business District $29.34 19.24%
Phoenix - Paradise Valley Village $29.13 18.72%
Phoenix - Gateway $28.97 31.70%
Phoenix - West $27.96 12.02%
Phoenix - Central Corridor $26.15 28.42%
Phoenix - North Gateway $26.00 12.12%
Phoenix - Deer Valley $22.38 17.92%
Phoenix - North Mountain $22.20 30.40%
Phoenix - South $21.34 17.48%
Phoenix - Center City $19.74 8.58%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Phoenix market was 19.66% in 2022. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Phoenix was 8.58% in the Phoenix - Center City submarket, while the highest office vacancy in the market was 44.68%, recorded in Anthem.

Office Spaces for Rent in Arizona

Phoenix Office Sale Price per SF

  • $260.152022 Avg. Price per SF
  • 23.16%Y-o-Y Avg. PpSF Change
  • $1.4B2022 Office Sales Volume
  • 762022 Number of Transactions

Phoenix, AZ Sale Price per SF Trend

  • Phoenix Avg. Sale Price per SF in 2022$260.15
  • Arizona Avg. Sale Price per SF in 2022$254.46
Phoenix office space cost in 2022 marked a +23.16% change compared to the previous year. The sale price for office space in Phoenix averaged $260.15 per square foot in 2022, across all market subdivisions and asset classes. Conversely, the statewide Arizona average office sale price during the same time period was $254.46 per square foot.

2022 Office Sales Volume

  • Phoenix, AZ Total Office Sales Volume in 2022 $1.4B
  • Phoenix, AZ Total Number of Office Sales Closed in 2022 76
A total of 76 deals closed on the Phoenix office market in 2022, adding up to a yearly sales volume of $1.4B. Notably, the largest transaction on the market saw Camelback Collective change hands for $66,350,000 on 7/19/2022.

Largest Phoenix Office Sales in 2022

Property name Address Date Price
Camelback Collective 2801 East Camelback Road 7/19/2022 $66,350,000
Camelback Center 2355 East Camelback Road 9/1/2022 $61,800,000
Biltmore Commerce Center 3200 East Camelback Road 6/30/2022 $61,025,000
3151 West Behrend Drive 3151 West Behrend Drive 9/27/2022 $55,000,000
Paradise Village Office Park 11811 North Tatum Blvd 5/10/2022 $43,000,000
Data provided by Commercial Edge

Coworking Spaces in Arizona

2022 Office Construction in Phoenix, AZ

  • Phoenix, AZ Total SF completed in 2022 477,775
  • Phoenix, AZ Total SF under construction in 2023 72,000

During 2022, 477,775 square feet of new office space were delivered across the market. At the close of 2022, the Phoenix office inventory included 4 buildings equal to or larger than 25,000 square feet, which comprised 477,775 square feet of office space. Looking forward, development activity throughout 2023 is estimated to add 72,000 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Phoenix
Office building Address SF Completed
Block 23 at CityScape 101 East Washington Street, 85004 295,402 2019
Estrella Medical Plaza II 9321 W Thomas Road, 85037 60,000 2019
Camelback Collective 2801 E Camelback Road, 85016 118,090 2018
17 North Corporate Center - 24000 North Farmers Way 24000 North Farmers Way, 85085 313,446 2017
Allred 40 4039 E Raymond Street, 85040 89,889 2017
Norterra West 25700 N Norterra Parkway, 85027 147,642 2016
Allred Riverpoint 4025 South 32nd Street, 85040 80,000 2012
Cityscape 1 East Washington Street, 85004 568,000 2010
24th at Camelback 2325 E Camelback Road, 85016 307,101 2010
Blue Cross/Blue Shield 2525 W Townley Ave, 85021 99,918 2009

Worth noting among recent office completions on the Phoenix market is Block 23 at CityScape, which is currently the largest new office development in the city, at 295,402 square feet.

Data provided by Commercial Edge

See reports for other markets

This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2022 through December 31st 2022. Construction pipeline data represented herein is valid as of April 2023. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Phoenix commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.