Despite higher vacancies than pre-Covid-19 figures, negative net absorption and firms still determining how much office space they need, Phoenix saw a 2.8% year-over-year bump in direct asking rents in 2022. A fourth quarter market report from
, principal of Avison Young and director of brokerage services in Phoenix."That's obviously leading to a glut of office space that's either for sublease or eventually going back to the landlord. As you look further down the road, that could create some stress for some of these landlords as these leases burn off over the next couple of years."flight to quality for office
"Those are still leasing and leasing at record numbers," Seale said."That part of the market is good, but if you're not one of those landlords you're seeing a tougher sledding in 2023."
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