Overall leasing activity slows at mid-year 2022

In Q2 2022, the Phoenix office market has seen an overall slowdown in leasing activity as the number of deals and total square footage were lower compared to Q1 2022. This quarter saw 231 transactions totaling 1.2 million square feet (msf) compared to the 314 transactions totaling 1.7 msf reported in the previous quarter. Led by an 83,791-sf lease signed by Qwick Media at 4343 N Scottsdale Road, as well as a 70,000-sf lease signed by Meritage Homes at NWC Loop 101, the Scottsdale submarkets saw the most leasing activity this quarter. Overall, the Phoenix total availability rate of 24.4% was flat from the previous quarter but up 90 bps from 23.5% reported a year ago. The overall average asking rent did increase slightly from $28.26 per square foot (psf) reported in the first quarter to $28.31 psf this quarter.

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