Savills Studley Releases Q1 2017 Market Report Findings for Phoenix

Savills Studley, the leading global commercial real estate services firm specializing in tenant representation, has released its Q1 2017 Phoenix edition of the Savills Studley Office Market Report.

The quarterly report is an in-depth compilation of office leasing statistics, major transactions, submarket comparisons, employment results and investment and development trends specific to the Phoenix region.

Highlights from the Q1 2017 Studley Phoenix Office Market Report include:

• Continuing the trend from 2016, Phoenix region office leasing and sales activity got off to a meager start in the first quarter of 2017. Leasing of commercial office space in the area for the four quarters ending March 31, 2017 trailed the long term-average by 2.5 msf. Sales totaled $623 million during the first quarter—a 20.7 % drop from Q4 2016.

• While office space may be changing hands at a slower pace than recent years, Phoenix’s economy remains strong. The market’s office-using employment growth of 3 % for the last 12 months outpaces the national rate of 2.2 %, with much of Phoenix’s job growth attributed to a sustained flow of firms relocating from other markets.

• Escalating Class A and overall average asking rents in 2016 continued to climb at the start of 2017, each increasing approximately 2 %. Class A space in Gateway Airport/Loop 202, Downtown Phoenix and Southwest Phoenix submarkets saw the highest quarter-over-quarter increases.

• The Phoenix Region overall and Class A Availability rate tightened by 1.4 and 1.3 % respectively. However at 24.4 % and $23.91, the overall Phoenix availability rate and average asking rent still compares favorably to the U.S. Index of 17.1 % and $32.78.

• Not one of the top 10 major transactions in the first quarter took place in the Downtown Phoenix submarket.

The Q1 2017 Savills Studley Phoenix Office Market Report as well as a national report and reports for each of the 29 major U.S. markets can be found on www.savills-studley.com.