Phoenix office market report

Q2 2025

The office market in Phoenix is adjusting as businesses focus on efficiency and flexibility due to hybrid work models and sluggish employment growth in traditional office sectors. Although vacancy rates remain high, leasing activity has stayed steady. Tenants are primarily pursuing high-quality Class A and trophy office spaces; however, when considering larger spaces, they are opting for affordability instead. Overall, the demand for quality properties helps sustain higher rents in the market.

24.3%

Vacancy

Vacancy remains elevated but is increasingly concentrated in larger blocks, while smaller, functional suites continue to see steady demand.
$30.34

Asking rents ($)

Asking rent growth has sharply decelerated, with annual gains slowing to 1.4%, down from a peak of 4.5% in Q2 2023, as pricing levels off across most asset types.
$96.7M

Investment activity

Investment volume has rebounded, with buyers stepping in to capitalize on pricing resets and long-term recovery potential.

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Get in-depth office market reports and insights from commercial real estate experts in the Greater Phoenix area. Avison Young advisors look at Phoenix commercial real estate activities and the latest Phoenix statistics to provide you expert market research on Phoenix's office properties.

Explore different topics like the latest office market pricing trends and analysis of Phoenix's current office real estate market conditions. Gain a better understanding of Phoenix’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Phoenix's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Phoenix.

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