Office Rental Market
- $25.61 2019 Avg. Asking Rent
- 18.40 % 2019 Avg. Vacancy Rate
- 1,178,973 2019 Office Completions (Sqft)
- 1,036,270 2020 Estimated Pipeline (Sqft)
Average Office Asking Rents by Class
2019 Average Office Rent per Square Foot
- Phoenix Class A Office Buildings$30.81
- Phoenix Class B Office Buildings$21.84
- Phoenix Class C Office Buildings$17.75
- AZ Class A Office Buildings$31.21
- AZ Class B Office Buildings$22.48
- AZ Class C Office Buildings$17.99
Phoenix, AZ Office Asking Rents by Class
Office asking rents vary across the Phoenix office market depending on several factors, one of which is property class. While rents for Class A office buildings in Phoenix averaged $30.81 per square foot in 2019, Class B office properties garnered average rental rates of $21.84 per square foot. Rental rates for Class C office property in Phoenix averaged $17.75 per square foot. On a statewide level, Class B office space rents averaged $22.48 per square foot, while rents for Class A office space across Arizona averaged $31.21 per square foot. On average, Class C office properties in Arizona commanded rents of $17.99 per square foot.
2019 OFFICE VACANCY RATES
| Submarket | Asking Rents | Vacancy Rates |
|---|---|---|
| Phoenix - Desert View | $34.84 | 6.49 % |
| Phoenix - Central Business District | $31.51 | 13.94 % |
| Phoenix - Camelback East | $31.19 | 14.87 % |
| Phoenix - North Gateway | $30.12 | 3.63 % |
| Phoenix - Gateway | $27.62 | 16.59 % |
| Phoenix - Center City | $26.10 | 19.25 % |
| Phoenix - Paradise Valley Village | $25.80 | 16.33 % |
| Phoenix - Central Corridor | $24.48 | 21.62 % |
| Phoenix - Deer Valley | $23.13 | 9.30 % |
| Phoenix - West | $22.41 | 23.25 % |
| Phoenix - North Mountain | $21.02 | 31.37 % |
| Phoenix - South | $19.94 | 20.64 % |
- The lowest office vacancy rate in 2019 in Phoenix was 3.63 % in the Phoenix - North Gateway submarket, where asking rents averaged $30.12.
- The highest office vacancy rate in 2019 in Phoenix was 31.37 % in the Phoenix - North Mountain submarket, where asking rents averaged $21.02.
OFFICE CONSTRUCTION IN Phoenix, AZ
- Phoenix, AZ Total Sqft completed in 2019 1,178,973
- Phoenix, AZ Total Sqft under construction in 2020 1,036,270
| Building name | Address | Total Sqft | Year built |
|---|---|---|---|
| Chase Tower | 201 North Central Avenue, 85004 | 733,922 | 1973 |
| USAA Phoenix Campus | 1 Norterra Drive, 85085 | 644,756 | 2003 |
| CenturyLink Tower | 20 E Thomas Road, 85012 | 586,403 | 1988 |
| Cityscape | 1 East Washington Street, 85004 | 568,000 | 2010 |
| Phoenix Operations Center Campus | 1825 East Buckeye Road, 85034 | 540,000 | 1989 |
| Central Arts Plaza | 1850 North Central Avenue, 85004 | 515,816 | 1990 |
| Two Arizona Center | 400 North 5th Street, 85004 | 512,852 | 1989 |
| Freeport - McMoRan Center | 333 North Central Avenue, 85004 | 499,000 | 2009 |
| Phoenix Plaza I | 2901 North Central Avenue, 85012 | 490,000 | 1988 |
| Two Renaissance Square | 40 North Central Avenue, 85004 | 488,616 | 1989 |
| Office building | Address | Sqft | Completed |
|---|---|---|---|
| Wexford Innovation Center | 850 North 5th Street, 85004 | 227,113 | 2020 |
| Bell 17 Business Center 5 | 2001 West Phelps Road, 85023 | 101,058 | 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 |
| American Express Desert Ridge - Building 4 | 18850 North 56th Street, 85050 | 300,000 | 2019 |
| 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 Goldwater Building | 3110 North Central Avenue, 85013 | 140,818 | 2019 |
| Lincoln Union | 475 East Lincoln Street, 85004 | 93,500 | 2019 |
| Estrella Medical Plaza IIA | 9321 West Thomas Road, 85037 | 60,000 | 2019 |
Office Spaces for Rent in Arizona
PHOENIX OFFICE SALES TRENDS
- $159.632019 Avg. Price per Sqft
- 9.27 %Y-o-Y Avg. PpSF Change
- $1.2B2019 Office Sales Volume
- 462019 Number of Transactions
In 2019, office sales in Phoenix averaged $159.63 per square foot. This marked a 9.27 % increase in office price per square foot, compared to the previous year. A total of 46 office sales closed on the Phoenix office market in 2019, amounting to a total sales volume of $1.2B.
Average Office Sale Price per Sqft
Phoenix, AZ Sales Trends
- Phoenix Price per Sqft$159.63
- Arizona Price per Sqft$186.81
Office Sales - Trend and Volume
- Phoenix, AZ Total Office Sales Volume in 2019 $1.2B
- Phoenix, AZ Total Number of Office Sales Closed in 2019 46
Largest Phoenix Office Sales in 2019
| Property name | Address | Date | Price |
|---|---|---|---|
| Biltmore Center - 2398 East Camelback Road | 2398 East Camelback Road | 12/24/2019 | $96,234,420 |
| 101 North | 101 North 1st Avenue | 8/23/2019 | $92,750,000 |
| GSA Phoenix Professional Office Building | 21711 North 7th Street | 7/26/2019 | $92,250,000 |
| Biltmore Center - 2390 East Camelback Road | 2390 East Camelback Road | 12/24/2019 | $70,606,940 |
| Camelback Esplanade III | 2415 East Camelback Road | 7/2/2019 | $60,250,000 |
See trends for nearby markets
The Phoenix office market contains an inventory of 66,098,450 square feet of office space, in 995 buildings that are equal to or larger than 25,000 square feet.
This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive 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.