Phoenix Office Rent Price & Sales Report

2021 Office Space Rent & Sales

  • $25.79 2021 Avg. Asking Rent
  • 0.47% Y-o-Y Avg. Asking Rent Change
  • 19.17% 2021 Office Vacancy Rate
  • $986.6M2021 Total Office Sales
  • $215.03Avg. Sale Price/SF

Phoenix office price per square foot in 2021 was $25.79 on average. This marked a +0.47% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 19.17% across all asset classes combined. The 52 transactions that closed here throughout 2021 amounted to a total sale volume of $986.6M. Phoenix office space commanded an average sale price per square foot of $215.03.

Average Rent by Office Class

2021 Average Office Rent per Square Foot

  • Phoenix Class A & A+ Office Space$30.06
  • Phoenix Class B Office Space$22.65
  • Phoenix Class C Office Space$18.12
  • Arizona Class A & A+ Office Space$31.36
  • Arizona Class B Office Space$24.53
  • Arizona Class C Office Space$18.66

Phoenix, AZ Office Asking Rents by Class

Average office rent in Phoenix rested at $25.79 per square foot in 2021. 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 $30.06 per square foot. Across all submarkets, class B office space recorded an average asking rent of $22.65 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $18.12 per square foot, on average. Comparably, statewide Arizona average office rents by class in 2021 were: $31.36 per square foot for class A office space; $24.53 per square foot for class B office space; $18.66 per square foot for class C office space.

2021 Office Vacancy Rates in Phoenix

Submarket Asking Rents Vacancy Rates
Phoenix - Desert View $33.07 11.81%
Phoenix - Central Business District $31.58 21.96%
Phoenix - Camelback East $31.57 19.70%
Phoenix - Center City $27.25 10.47%
Phoenix - Gateway $27.01 21.25%
Phoenix - North Gateway $26.99 16.21%
Phoenix - Paradise Valley Village $26.69 14.04%
Phoenix - Central Corridor $24.54 24.50%
Phoenix - West $23.14 11.29%
Phoenix - Deer Valley $22.46 14.65%
Phoenix - North Mountain $22.09 24.90%
Phoenix - South $20.44 16.06%
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 19.17% in 2021. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Phoenix was 10.47% in the Phoenix - Center City submarket, while the highest office vacancy in the market was 24.90%, recorded in Phoenix - North Mountain.

Office Spaces for Rent in Arizona

Phoenix Office Sale Price per SF

  • $215.032021 Avg. Price per SF
  • $986.6M2021 Office Sales Volume
  • 522021 Number of Transactions

Phoenix, AZ Sale Price per SF Trend

  • Phoenix Avg. Sale Price per SF in 2021$215.03
  • Arizona Avg. Sale Price per SF in 2021$233.04
The sale price for office space in Phoenix averaged $215.03 per square foot in 2021, across all market subdivisions and asset classes. Conversely, the statewide Arizona average office sale price during the same time period was $233.04 per square foot.

2021 Office Sales Volume

  • Phoenix, AZ Total Office Sales Volume in 2021 $986.6M
  • Phoenix, AZ Total Number of Office Sales Closed in 2021 52
A total of 52 deals closed on the Phoenix office market in 2021, adding up to a yearly sales volume of $986.6M. Notably, the largest transaction on the market saw Block 23 at CityScape change hands for $150,000,000 on 12/6/2021.

Largest Phoenix Office Sales in 2021

Property name Address Date Price
Block 23 at CityScape 101 East Washington Street 12/6/2021 $150,000,000
PetSmart Headquarters 19601 North 27th Avenue 3/31/2021 $110,000,000
Anchor Centre West 2201 East Camelback Road 1/20/2021 $61,621,320
CASA 7878 North 16th Street 8/10/2021 $56,500,000
Norterra West II 25800 North Norterra Pkwy 10/12/2021 $48,500,000
Data provided by Commercial Edge

Coworking Spaces in Arizona

2021 Office Construction in Phoenix, AZ

  • Phoenix, AZ Total SF completed in 2021 327,800
  • Phoenix, AZ Total SF under construction in 2022 489,522

During 2021, 327,800 square feet of new office space were delivered across the market. At the close of 2021, the Phoenix office inventory included 2 buildings equal to or larger than 25,000 square feet, which comprised 327,800 square feet of office space. Looking forward, development activity throughout 2022 is estimated to add 489,522 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Phoenix
Office building Address SF Completed
The Grove - 4210 East Camelback 4210 East Camelback Road, 85018 40,000 2023
PBC 850 N 5th Street, 85004 227,113 2020
Block 23 at CityScape 101 East Washington Street, 85004 295,402 2019
Park Central - The Burgbacher Building 3141 North 3rd Street, 85013 224,953 2019
Park Central - The Diamond Building 3110 North Central Avenue, 85013 86,000 2019
Estrella Medical Plaza II 9321 W Thomas Road, 85037 60,000 2019
Park Central - The Leib Building 3110 North Central Avenue, 85013 43,000 2019
Camelback Collective 2801 E Camelback Road, 85016 118,090 2018
515 East Grant Street 515 East Grant Street, 85004 106,952 2017
Allred 40 4039 E Raymond Street, 85040 89,889 2017

Worth noting among recent office completions on the Phoenix market is The Grove - 4210 East Camelback, which is currently the largest new office development in the city, at 40,000 square feet.

Data provided by Commercial Edge

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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 2021 through December 31st 2021. Construction pipeline data represented herein is valid as of April 2022. 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.