The third quarter brings little change to Phoenix office market conditions, plentiful tenant options remain
Overall office market fundamentals in Phoenix shifted minorly between the second and third quarters of 2019, with little change to already tenant-favorable conditions. Marketwide availability ended Q3 at 20.0%, up 80 basis points quarter over quarter and flat over the year. Class A availability stands at 20.1%, likewise increasing by 80 basis points over the quarter. The slight rise in availability was due in part to several existing large blocks coming back to market, as well as new space in under construction properties set to deliver soon. With additional new and existing Class A blocks coming to market, asking rents pushed up 1.8% over the quarter to $27.75 per square foot (psf) for all classes. Class A asking rents posted an uptick of 1.5% from the previous quarter to $31.74 psf.