Phoenix office market report

Q3 2022


1.24 msf

Construction activity

There are currently 13 different office projects under construction across the greater Phoenix region, totaling 1,243,548 sf of rentable space. The Grove, a two-building class A office project located in the highly desirable Camelback Corridor, is set to deliver in Q4 and will add just over 250,000 sf of premium office space to the market.

Phoenix also saw its first notable office delivery of 2022 in Q3, as The Beam on Farmer at 433 S Farmer Ave in Tempe, AZ was delivered in September. The Beam on Farmer is a five-story class A office building that includes 183,526 sf of rentable building area.

-963 ksf

Net absorption

Net absorption totaled -963,252 sf in Q3, as Tempe and Sky Harbor experienced a significant rise in total vacant space. The Camelback Corridor, Midtown, Downtown, and Central Phoenix submarkets were the four submarkets that recorded a net gain in absorption in Q3.


Direct asking rent

Average asking rents increased for the third consecutive quarter, rising from $29.70 psf in Q2 to $29.98 psf in Q3. Tempe, Scottsdale Airpark, and the Camelback Corridor saw the highest average rents, with all three submarkets recording an average rental rate above $35 psf.

27.3 msf


The amount of total available office space rose by roughly 1.2 msf in Q3, reaching 27,260,377 sf at the end of Q3. Available sublease space totaled 6,395,785 sf, while available direct space totaled 20,864,592 sf.



The total vacancy rate rose to 23.0%, a result of the nearly 1 msf of negative net absorption recorded in Q3.


Investment sales

Total investment sales came in at just over $500M in Q3, with the largest transaction coming from the $66.35M sale of the Camelback Collective building at 2801 E Camelback. The average transaction price for office buildings was $218.51 psf in Q3.


Your source for the latest Phoenix office market reports

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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