Phoenix office vacancies tie 17-year high
[Source: Cathy Luebke, Phoenix Business Journal] — The office vacancy rate has increased for the ninth consecutive quarter in Phoenix to 24.2 percent. That also marks the highest point since 1992 when total office space stood at 43 million square feet compared with today’s 74 million tally, according to CB Richard Ellis third-quarter MarketView report. A year ago office vacancies accounted for 17.1 percent of the market.
West Phoenix has the highest rate of vacant space, 39.2 percent; the central business district has the lowest, 15.7 percent, according to CBRE.
“Uncertainty in the economy has significantly impacted tenant activity in the metropolitan Phoenix office,” the report said. “However, for those companies that are in the market for space, they will have multiple opportunities from which to choose at extremely competitive pricing.”
The average asking price per square foot on a full-service lease for existing buildings was $23.44 as if Sept. 30, according to CBRE. That compares with $24.96 in the first quarter and $25.96 at the end of 2007. Nevertheless, construction continues. CBRE reports 1.9 million square feet of space expected to come online by first-quarter 2010. More than half in downtown Phoenix. That compares with 4.6 million at the end of 2007. [Note: Read the full article at Phoenix office vacancies tie 17-year high.]