{"id":1004793507,"date":"2025-12-30T04:26:00","date_gmt":"2025-12-30T12:26:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004793507"},"modified":"2026-03-30T03:33:00","modified_gmt":"2026-03-30T11:33:00","slug":"phoenix-office-sector-shows-strong-sales-tight-vacancy","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/phoenix-office-sector-shows-strong-sales-tight-vacancy\/","title":{"rendered":"Phoenix Office Sector Shows Strong Sales, Tight Vacancy"},"content":{"rendered":"
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\"Exterior<\/a>
Axis Raintree is a 175,000-square-foot Class A office property that changed ownership in one of the metro’s highest single-building office sales of the year. Image courtesy of Yardi Matrix<\/em><\/figcaption><\/figure><\/div>\n\n\n

Phoenix’s office sector showed a mix of strengths and strains across key fundamentals as of October, according to Yardi Matrix.<\/p>\n\n\n\n

Office investment volume in The Valley exceeded the $1 billion mark, though average sale prices remained below the national average. Development activity remained solid, supported by large projects in Northeast Phoenix and Scottsdale, Ariz., while new starts and office completions<\/a> declined.<\/p>\n\n\n\n

The metro’s October vacancy rate was the lowest among its peers\u2014a notable upside across elevated rates hitting traditional office markets. Meanwhile, coworking continued to expand, keeping Phoenix competitive across the broader flex office landscape.<\/p>\n\n\n\n

Slower new starts, pipeline remains steady<\/h2>\n\n\n\n

Year-to-date through October, Phoenix\u2019s office pipeline totaled 1.2 million square feet of competitive space across 13 projects, representing 0.7 percent of existing stock\u2014on par with the national average. Among its peers, Phoenix ranked on the seventh spot, while the Bay Area led in office construction activity, with nearly 3 million square feet underway. At the opposite end stood Nashville, Tenn., with only 359,699 square feet underway.<\/p>\n\n\n\n