–The Phoenix office market has seen a stark decline in performance post-pandemic and does not show clear signs of recovery with the work-from-home trends. However, the medical office subtype shows hope for the market and continues to thrive given the high levels of demand in healthcare, because of the aging baby boomer generation and the growing Arizona population - estimated at 7.5 million people in 2023, a +1.6% year-over-year change (Arizona Commerce Authority).
–2023 year-end reports that 84.7% of medical office space is occupied (not including owner-user space). This is a dramatic difference from the traditional office market where 75.5% is occupied. In addition to this stat, the office market’s Q4 2023 sales performance data reports that the medical office subtype made up roughly 40% of the office market’s sales volume (including owner-user space). This suggests continual positive performance in 2024.