Posted Apr 12, 2012, 8:40 PM
|
Registered User
|
|
Join Date: May 2006
Posts: 5,096
|
|
Since we were discussing office vacancy rates...
Phoenix office vacancy rate tops 28 percent
Phoenix Business Journal by Mike Sunnucks, Senior Reporter
Date: Thursday, April 12, 2012, 12:59pm MST
More than 28 percent of the commercial office space in the Phoenix area is vacant. A first quarter commercial real estate report by Cassidy Turley BRE Commercial shows the Valley’s office vacancy rate at 28.2 percent.
The same Phoenix office vacancy rate was 27.9 percent in the fourth quarter of 2011.
Vacancy rates before the recession and downturn were between 12 percent and 15 percent.
Absorption levels came in at nearly 91,000 square feet for the first quarter. Absorption is a real estate indicator of the amount of space leased versus the amount of space vacated during a given time period.
Some submarkets around Phoenix and classes of office space are doing better than others on the vacancy front, according to the Cassidy Turley report.
Class A and B office space in downtown Phoenix have vacancy rates of 17.2 percent and 13.9 percent, respectively.
In South Scottsdale, 16.5 percent of Class A offices are vacant. The same top-rated space in Chandler and Gilbert have only 18 percent vacancy rates. The picture isn’t as good in some of the Valley’s outlying areas.
Submarket, class of office space, vacancy rate
Glendale, A, 42.7 percent
Glendale, B, 57.8 percent
Sun City, A, 35 percent
West Phoenix, B, 45.3 percent
Superstition Corridor, B, 39 percent
Desert Ridge/N. Phoenix, A, 32 percent
|