Leasing activity slows in the second half of the year

As the third quarter came to a close, the Phoenix office market has seen a continued slowdown in overall leasing activity in terms of square feet transacted but has seen an increase in the overall number of transactions compared to the previous quarter. In the third quarter, there were 270 total recorded leases signed, more than 40 transactions higher than last quarter. Leasing activity of 1.4 million square feet (msf) was down approximately 200,000 square feet (sf) from last quarter as many occupiers are still uncertain about their future return to office plans. The overall availability rate increased again to 26.1% while average asking rental rates have slightly increased to $28.36 per square foot (ps) as overall tenant flight to quality continues. The largest lease signed of the quarter was by Cirrus Logic, a semiconductor manufacturer for 51,419 sf at 2625 W Geronimo Place in Chandler.

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