Phoenix\u2019s office market is thriving, bolstered by corporate relocations and one of the fastest-growing populations in the U.S., drawn by the metro\u2019s affordability and the state\u2019s beneficial tax policies. Investment has chased demand: $1.3 billion in transactions closed in the first eight months of the year.<\/p>\n
While Class A office properties drew the majority of investment dollars, nearly two-thirds of this year\u2019s transactions were Class B deals. Many investors are seeking value-add opportunities, particularly as ground-up development costs continue to climb<\/a>, owing to\u2014among other factors\u2014the tightening labor market and impacts of U.S.-China trade disputes. The following table shows the five submarkets with the highest transaction volume in 2019 through August, based on data provided by Yardi Matrix.<\/p>\n