Phoenix Market Update: Planned Developments Soar

Greater Phoenix saw no new office construction in August, according to CommercialEdge data. The metro had nearly 2 million square feet of office space underway, representing 1.5 percent of stock, while also witnessing a significant boost in planned projects. The total pipeline, including planned and ongoing developments, was brought to 8.6 percent of stock. The value marks a 3.2 percent uptick month-over-month, as developers planned to add nearly 3.9 million square feet to the metro’s existing inventory.

One of the planned developments that received the authorities’ stamp of approval in August was a 62-acre mixed-use project located south of State Farm Stadium in Glendale, home of the NFL’s Arizona Cardinals. In the beginning of the month, the City of Glendale decided to partner with Plaza Cos. and the Arizona Cardinals on the project that would include up to 600,000 square feet of office space, as well as retail, hospitality and residential spaces.

In terms of development completions, the month of August brought no additions to The Valley’s stock. However, some 1.7 million square feet have entered the metro’s inventory year-to-date, already surpassing 2020’s completions by 200,000 square feet. One of the largest projects that delivered so far this year was the 460,000-square-foot office building at Cavasson, the 134-acre mixed-use development of Nationwide Realty Investors in Scottsdale.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.