Phoenix Office Vacancy Remains Low, Despite Challenges

Phoenix's office construction remained slow in early 2025, with only three new properties delivered and 1.2 million sq ft underway, below national levels. Office sales hit $466 million, averaging $185/sq ft, slightly under the national average. Vacancy dropped to 17.1%, below the 19.4% national rate. Average rents were $28.86/sq ft, affordable compared to peers. Office-to-residential conversions and coworking spaces showed growth.