.jpg "Image treatment")
LEASING BELOW AVERAGE
Tenants have leased 7.4 msf in the last four quarters, well under the long-term average of 10.2 msf.
AVAILABILITY RATE FALLS *
The overall availability rate, 16.6%, fell 40 basis points from the last quarter of 2017. The Class A availability rate remains unchanged at 17.5%.
RENT PUSHES HIGHER
Phoenix’s overall average asking rent increased by 0.8% to $25.16, and has jumped by 7.4% year-on-year. Class A asking rent rose by 0.8% to $28.99 and has jumped by 3.6% year-on-year.
SALES INCREASE
Office property sales during the last six months (through February 2018) totaled $2.1 billion, a 85% increase compared to the previous six-month total of $1.1 billion.
“Job growth in core office-using sectors remained on a slower track in the last several quarters. The number of massive corporate relocations and 100,000-sfplus leases has also dropped off. Despite this recent moderation, availability has increased only slightly in select submarkets — controlled construction has been a factor."
Tiffany Winne, Executive Vice President