Periodically, Maps & Facts focuses
on office vacancy. Our last map was a 2Q 2016 Map of the
Month. As shown on this
month’s map and as compared with our 2Q 2016 map, the office market has
improved dramatically. (Though effective rents haven’t increased significantly:
Forty-one (41) new buildings have
been added and about 1,000,000 ft.˛ net have been absorbed. The Valley-wide vacancy rate declined from
16.2% to 13.6%
Central Scottsdale added 7
buildings. Chandler added 6. Tempe’s vacancy improved from 6.57% in 2Q 2016 to
4.3% in 4Q 2018 with 4 additions to inventory. Deer Valley/Airport declined
from 7.8% to 3.4% with 3 buildings added to inventory.
Gateway/Airport/ Loop 202 showed
the biggest percentage increase going from one (1) Class A building in 2Q 2016
to three (3) in 4Q 2018 with only a 5.1% vacancy rate!