Phoenix Healthcare Market Report (2020)1 Feb 2021
Given the tremendous upheavals of 2020, medical office market fundamentals held steady in comparison to other product types. The global health crisis put healthcare at the center of an urgent national discussion. It also forced rapid medical innovation and quickened real estate development pipelines, particularly in the Life Sciences sector. On-campus medical office inventory got a boost in 2020 with key completions of IDEA Phase I adjacent to ASU in Tempe and the expanding Phoenix Biomedical Campus downtown, featuring the new 169ksf Wexford Science + Technology building.
Market Inventory: 28,430324 sf
Vacancy Rate: 12.4%
Net Absorption: 446,206 sf
Construction Pipeline: 481,613 sf
Average Asking Rate: $25.43 psf