Phoenix Market Update: Smooth Sailing
Office completions this year will total upward of 1 million square feet, with more on the way.
Greater Phoenix had a quiet October in terms of office construction activity, according to CommercialEdge. More than 2.7 million square feet of office space were underway across the metro, with no new additions to the pipeline. More than 1.1 million square feet, representing 40.7 percent of the total, is slated for completion by the end of the year.
Most developments will add traditional office space to The Valley’s inventory, with only 386,000 square feet pertaining to medical space. More than 750,000 square feet, or 27.8 percent of the pipeline, will come online in the Tempe–Mill submarket, where one of the metro’s largest office developments approaches delivery.
However, developers have more in store for Greater Phoenix, as the metro’s planned and prospective office projects accounted for nearly 39.9 million square feet. One of the larger future developments is CityNorth, a 100-acre mixed-use project designed to include more than 2 million square feet of office space, as well as roughly 3,400 residential units and 1,000 hotel rooms. California-based Crown Realty & Development acquired the development site, located in North Phoenix’s Desert Ridge master-planned community, in 2019.
CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.
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