Phoenix, AZ Office Overview
The Phoenix market includes the Scottsdale, Chandler, and Tempe submarkets. With a metropolitan population of over 4.5 million people, the economy is continuously growing, particularly within education, technology, and tourism.
As of mid-2017, the market encompasses over 55 million square feet of existing office space in properties larger than 50,000 square feet. As both the capital and the most populous city in Arizona, the city continues to see strong demand from a variety of business sectors.
Phoenix, AZ Office Inventory Description
Arizona State University is one of the main drivers of the economy in Phoenix and has helped to attract numerous technology and telecommunications companies. With an annual gross metropolitan product of nearly $209 billion, the demand for space is significant. Over 49% of the office space in Phoenix is Class A, while Class B properties bring another 49% to the market.
Downtown Phoenix is on the rise for Class A office space, and home to prime properties such as Cityscape, One and Two Renaissance Square, and Chase Tower. Intel, State Farm Insurance, and Boeing are just three of the many large employers that drive demand for office space.
Phoenix, AZ Commercial Inventory Breakdown
Office Spaces
Total: 66,320,336 SF
By square footage range:
- 50k to 100k SF: 16,762,261 SF / 25.27% of total office
- 100k to 500k SF: 42,545,957 SF / 64.15% of total office
- 500k to 1M SF: 5,172,118 SF / 7.8% of total office
- > 1M SF: 1,840,000 SF / 2.77% of total office
By class:
- Class A: 27,134,440 SF / 40.91% of total office
- Class B: 30,915,806 SF / 46.62% of total office
- Class C: 1,795,160 SF / 2.71% of total office
Top 10 Largest Office Buildings
in Phoenix
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| Desert Ridge City North | NWC 56th Street & Pima Fwy, 85054 | 1,840,000 | n/a |
| Chase Tower | 201 North Central Avenue, 85004 | 733,922 | 1973 |
| USAA Phoenix Campus | 1 Norterra Drive, 85085 | 644,756 | 2003 |
| 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 |
| One Renaissance Square | 2 North Central Avenue, 85004 | 503,205 | 1987 |
| Freeport - McMoRan Center | 333 North Central Avenue, 85004 | 499,000 | 2009 |
| Two Renaissance Square | 40 North Central Avenue, 85004 | 488,616 | 1989 |
Most Recently-Built Office Buildings
in Phoenix
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| 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 |
| Park Central - The Diamond Building | 3110 North Central Avenue, 85013 | 86,000 | 2019 |
| Estrella Medical Plaza IIA | 9321 West Thomas Road, 85037 | 60,000 | 2019 |
| Park Central - The Straus & Graham Buildings | 3110 North Central Avenue, 85013 | 44,300 | 2019 |
| Park Central - The Lieb Building | 3110 North Central Avenue, 85013 | 43,000 | 2019 |
| 2600 West Camelback Road | 2600 West Camelback Road, 85017 | 325,000 | 2017 |
Phoenix, AZ Green Office Space
Of the Top 30 Green Office Markets in the U.S., Phoenix ranks #21 for energy efficient office buildings. While just over 3% of the properties larger than 50,000 square feet are LEED-Certified, over 7% rank as Energy Star Certified and over 9% are recognized as green buildings.
A prime example is Gainey Office Center I, which is LEED-Certified Gold. As tenants, as well as national and global investors seek out green office assets, the trend will continue to grow.
The 2017 National Green Building Adoption Index looked at commercial office properties in 30 major U.S. markets and found that, including EPA Energy Star-labeled buildings, the percentage of green certification has increased from below 5% in 2005 to 38% as of mid-2017.
Phoenix, AZ's Top Office-Using Sectors
As a home to four Fortune 500 companies and numerous education, technology and health care corporations, there is strong demand for Class A office space in all parts of Phoenix.
- Education –Arizona State University and Maricopa County Community College attract cutting edge high-technology businesses.
- Technology – Honeywell Aerospace, Intel, Avnet, Invision Technology, and Sky Touch Technology are all located here.
- Health Care – The health care industry in Phoenix is a major contributor to the economy, with world-class facilities such as the Mayo Clinic, Phoenix Children's Hospital, Barrow Neurological Institute, and the Arizona Heart Institute.
- Corporate Headquarters –Avnet Freeport-McMoRan, Republic Services, and Honeywell's Aerospace Division.
Phoenix Demographics
Population
- Total Population1,610,071
- Male Population(49.8 %) 801,937
- Female Population(50.2 %) 808,134
- Median Age33.50
Income/Financial
- Average Household Income$76,711
- Median Household Income$54,765
- Median Income Under 25$34,582
- Median Income 25-44$56,339
- Median Income 45-64$63,579
- Median Income Over 65$43,079
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