Smaller floorplates in the Phoenix office market show lower vacancy rates than pre-pandemic levels

Graph of Phoenix Office Market Lower Vacancy Rates
  • Despite the pandemic driving overall office vacancy rates to historic highs due to the rise of remote work, a surprising trend has emerged. Traditional office spaces with smaller floorplates in the Phoenix market, specifically under 15,000 square feet, are experiencing a revival with higher occupancy and lower vacancy rates than before the pandemic.
  • From Q4 2019 to Q1 2024, the vacancy rate for offices with floorplates under 10,000 square feet dropped by 50 basis points to 4.5%, and for those between 10,000 and 15,000 square feet, it fell by 120 basis points to 12.4%. Additionally, availability rates, which include space listed as vacant before a lease's expiration, have decreased, further highlighting the growing appeal of these smaller floorplate properties.

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