LEASING REMAINS ON SLOWER TRACK
Deal volume totaled 6.3 million square feet (msf) during the four most recent quarters, falling well short of the long-term average of 9.75 msf.
AVAILABILITY RATE STABLE
The availability rate* for the region inched up by 10 basis points to 19.5%. The Class A availability rate posted a sharper 110 basis point increase to 20.1%. The Class B and C availability rate dropped by 60 basis points to 19.0%.
MODERATE JUMP IN RENT
The overall asking rent in Phoenix increased by 1.4% to $26.70 during the third quarter. The average Class A rent was essentially flat, inching down by 0.2% to $30.73.
SALES INCREASE
Office property sales during the first seven months of the year totaled $1.5 billion, a 18.4% increase compared to the first seven months of 2017.
“Corporate relocation activity has slowed a bit, with fewer blockbuster 1,000-plus employee relocations completed. New construction activity has intensified, but is still restrained, keeping availability rates from rising too sharply."
Tom Johnston, Senior Managing Director