2020 Office Space Rent & Sales
- $25.67 2020 Avg. Asking Rent
- 0.24% Y-o-Y Avg. Asking Rent Change
- 20.66% 2020 Office Vacancy Rate
- $209.1M2020 Total Office Sales
- $128.17Avg. Sale Price/Sqft
Phoenix office price per square foot in 2020 was $25.67 on average. This marked a +0.24% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 20.66% across all asset classes combined. The 28 transactions that closed here throughout 2020 amounted to a total sale volume of $209.1M. Phoenix office space commanded an average sale price per square foot of $128.17.
Average Rent by Office Class
2020 Average Office Rent per Square Foot
- Phoenix Class A Office Space$30.79
- Phoenix Class B Office Space$21.93
- Phoenix Class C Office Space$18.14
- Arizona Class A Office Space$31.44
- Arizona Class B Office Space$22.72
- Arizona Class C Office Space$18.60
Phoenix, AZ Office Asking Rents by Class
Average office rent in Phoenix rested at $25.67 per square foot in 2020. 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 $30.79 per square foot. Across all submarkets, class B office space recorded an average asking rent of $21.93 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $18.14 per square foot, on average. Comparably, statewide Arizona average office rents by class in 2020 were: $31.44 per square foot for class A office space; $22.72 per square foot for class B office space; $18.60 per square foot for class C office space.
2020 Office Vacancy Rates in Phoenix
| Submarket | Asking Rents | Vacancy Rates |
|---|---|---|
| Phoenix - Desert View | $33.01 | 10.74% |
| Phoenix - Camelback East | $31.37 | 16.61% |
| Phoenix - Central Business District | $31.32 | 18.66% |
| Phoenix - North Gateway | $28.42 | 6.16% |
| Phoenix - Gateway | $27.55 | 19.46% |
| Phoenix - Center City | $26.21 | 17.79% |
| Phoenix - Paradise Valley Village | $25.91 | 12.06% |
| Phoenix - Central Corridor | $24.21 | 26.43% |
| Phoenix - Deer Valley | $23.19 | 15.01% |
| Phoenix - West | $22.93 | 23.79% |
| Phoenix - North Mountain | $21.26 | 34.10% |
| Phoenix - South | $20.00 | 22.46% |
Office Spaces for Rent in Arizona
Phoenix Office Sale Price per Sqft
- $128.172020 Avg. Price per Sqft
- -19.37%Y-o-Y Avg. PpSF Change
- $209.1M2020 Office Sales Volume
- 282020 Number of Transactions
Phoenix, AZ Sale Price per Sqft Trend
- Phoenix Avg. Sale Price per Sqft in 2020$128.17
- Arizona Avg. Sale Price per Sqft in 2020$205.60
2020 Office Sales Volume
- Phoenix, AZ Total Office Sales Volume in 2020 $209.1M
- Phoenix, AZ Total Number of Office Sales Closed in 2020 28
Largest Phoenix Office Sales in 2020
| Property name | Address | Date | Price |
|---|---|---|---|
| ASM America Headquarters Building | 3440 East University Drive | 12/10/2020 | $27,000,000 |
| Cotton Center - 4950 South 48th Street, The | 4950 South 48th Street | 12/30/2020 | $21,000,000 |
| Broadway Business Center | 3925 East Broadway Road | 12/23/2020 | $18,550,000 |
| Arizona Business Park - TriWest Healthcare Alliance Corporate Headquarters Campus | 16010 North 28th Avenue | 11/24/2020 | $18,500,000 |
| Missouri Commons - 1430 & 1440 East Missouri Avenue | 1430 East Missouri Avenue | 9/18/2020 | $13,369,000 |
2020 Office Construction in Phoenix, AZ
- Phoenix, AZ Total Sqft completed in 2020 475,417
- Phoenix, AZ Total Sqft under construction in 2021 333,000
During 2020, 475,417 square feet of new office space were delivered across the market. At the close of 2020, the Phoenix office inventory included 6 buildings equal to or larger than 25,000 square feet, which comprised 475,417 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 333,000 square feet of office space to the market, before year-end.
| Office building | Address | Sqft | Completed |
|---|---|---|---|
| 3100 North Central Avenue | 3100 North Central Avenue, 85013 | 183,000 | 2021 |
| Norterra West II | 25800 North Norterra Pkwy, 85085 | 144,800 | 2021 |
| Bell 17 Business Center 5 | 2001 West Phelps Road, 85023 | 101,058 | 2020 |
| HonorHealth Sonoran Crossing Medical Center - Ambulatory Services | 33300 North 32nd Avenue, 85085 | 68,971 | 2020 |
| Helios Education Foundation Headquarters | 4747 North 32nd Street, 85018 | 65,000 | 2020 |
| 755 East Willetta Street | 755 East Willetta Street, 85006 | 31,746 | 2020 |
| 5520 East Washington Street | 5520 East Washington Street, 85034 | 28,000 | 2020 |
| Valleywise Community Health Center - 5650 South 35th Avenue | 5650 South 35th Avenue South, 85021 | 26,000 | 2020 |
| 2025 West Northern Avenue | 2025 West Northern Avenue, 85021 | 26,000 | 2020 |
| American Express Desert Ridge - Building 4 | 18850 North 56th Street, 85050 | 300,000 | 2019 |
Worth noting among recent office completions on the Phoenix market is 3100 North Central Avenue, which is currently the largest new office development in the city, at 183,000 square feet.
See reports for nearby 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 2020 through December 31st 2020. Construction pipeline data represented herein is valid as of April 2021. 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.