06/28/2023
Despite challenges, office rents in the Phoenix market are holding up strong, outpacing national gains. Even during the pandemic, rent growth remained positive, showing the market's resilience. According to CoStar, rents increased by 3.6% compared to 0.8% nationally over the past year.
Flight-to-quality office properties are expected to experience rent growth, with CoStar projecting the strongest demand in the Camelback Corridor and Scottsdale Airpark submarkets.
These areas offer a mix of upscale restaurants, bars, and retailers, making them attractive to tenants. The tenant base primarily comprises law, healthcare, real estate, and finance firms, which have been less affected by sublease activity than other parts of the Valley. These companies value their physical spaces and have been less willing to give up their offices.
Connect with a member of our investor relations team: https://bit.ly/3W4vsgu