The office vacancy rate in the metro was 21.7% in Q3, according to the JLL report.
Across all asset classes, the direct asking rent increased quarter over quarter from $28.67 per square foot to $29.05, according to the JLL report., senior vice president at Kidder Mathews. The brokerage's Q3 report found a record-high $29.16 full-service, per square-foot asking rate for office space.According to JLL, the Valley's sublease inventory of 6 million square feet is also a new high mark for Phoenix as nearly 1 million square feet hit the market in Q3 alone.
Kidder Mathews' report, on the other hand, found a total of 7.1 million square feet of sublease space on the market. The brokerage said the amount of sublease space on the market has more than tripled since the start of the Covid-19 pandemic.is attributed to companies evaluating the effect of an in-office hybrid model and putting redundant or underutilized space on the market.
“The leasing success of new-vintage office product is a trend happening across the United States and even across the world,” Timpani said. “Sunbelt markets like Phoenix are tending to benefit from a larger-than-average portion of these leases, thanks to our friendly tax climate, low-cost environment and high quality of life. The combination continues to attract businesses to Phoenix, as well as new residents who are now able to work from home from any location they chose.