Phoenix, AZ Office Overview
The Phoenix city proper office market includes the Phenix's Central City, Camelback East, and Paradise Valley office submarkets. With a metropolitan population of over 4.5 million people the economy of Phoenix is continuously growing, and the Phoenix commercial real estate market sees strong office demand from white collar employers in the education, technology, and tourism industries.
As of mid-2017, the Greater Phoenix office 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 office market in Phoenix 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 the numerous technology and telecommunications companies that call the city home. With a gross metropolitan product of nearly $209 billion annually the demand for office employment is significant. Over 49% of the office space in Phoenix is Class A, while Class B properties bring another 49% of Phoenix office inventory to the market.
The Deer Valley and the Central City Business District submarkets are two of the densest areas for Class A office space in Phoenix, and are home to prime office buildings such as Cityscape, One and Two Renaissance Square, and Norterra West I. Wells Fargo, Banner Health, and the State of Arizona are just three of the many large employers that contribute to demand for office space in Phoenix.
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 office buildings 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 of a LEED certified building in the Phoenix metro area is the Gainey Office Center I, which has a LEED Gold certification. As tenants, as well as national and global investors seek out green certified office assets for their use and portfolios, the green office trend will continue to grow in Phoenix.
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 placed 21st on this survey.
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 the Phoenix metropolitan area.
- Education – With multiple campus locations Arizona State University and the Maricopa County Community College system continue to attract cutting edge high-technology businesses that have created a strong demand for Class A office space in Phoenix.
- Technology – Honeywell Aerospace, Avnet, Invision Technology, WebPT, and Sky Touch Technology are some of large and small tech businesses that call Phoenix home.
- Health Care – The health care industry in Phoenix makes a major contribution to the economy and provides significant demand for office space in Phoenix, with world-class facilities such as the Mayo Clinic, Phoenix Children's Hospital, Barrow Neurological Institute, and the Arizona Heart Institute.
- Corporate Headquarters – Electronic company Avnet, mining company Freeport-McMoRan, Republic Services, and Honeywell's Aerospace Division are all large users of Class A office space in Phoenix.
- Total Population1,574,421
- Male Population(49.8 %) 784,828
- Female Population(50.2 %) 789,593
- Median Age33.30
- Average Household Income$73,092
- Median Household Income$52,080
- Median Income Under 25$31,941
- Median Income 25-44$53,507
- Median Income 45-64$60,352
- Median Income Over 65$41,298
- Ahwatukee Foothills Demographics
- Alhambra Demographics
- Amber Hills Demographics
- Biltmore Demographics
- Camelback East Demographics
- Central City Demographics
- Deer Valley Village Demographics
- Desert View Demographics
- Downtown Phoenix Demographics
- East Pheonix Demographics
- Encanto Village Demographics
- Estrella Village Demographics
- Maryvale Demographics
- North Mountain Village Demographics
- Paradise Valley Village Demographics
- Riordan Ranch Demographics
- Sonoran Foothills Demographics
- South Mountain Highland Terrace Demographics
- Valley Vista Demographics
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