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Phoenix office market closes year with moderate tightening of supply; asking rents edge lower from previous quarter
Phoenix observed modest changes to availability rates and inventory between the third and fourth quarters of 2019. Market-wide availability closed the year at 19.2%, down 50 basis points (bps) quarter over quarter, and fell 90 bps year over year. Class A availability stood at 18.8%, decreasing by 80 bps over the previous quarter and falling 180 bps year over year. Diminishing options for tenants were due in part to increased demand for space, culminating in a notable uptick in leasing activity for 2019. Overall asking rents slipped 0.8% over the quarter to $27.57 per square foot (psf) across all classes. Class A asking rents dipped 0.5%, to $31.58 psf from $31.74 psf in the third quarter.