PHOENIX OFFICE MARKET SHOWS STRENGTH, INVENTORY DECLINES AS OLDER BUILDINGS ARE REPURPOSED
- Renee Ervanian
- 5 days ago
- 2 min read
IN THE PHOENIX OFFICE MARKET, ACCORDING TO THIS MORNING'S ARTICLE, THERE IS A QUIET TIGHTENING NO ONE IS REALLY DISCUSSING, AS MOST TENANTS THINK PHOENIX OFFICE IS STILL A SOFT MARKET
2026 First Quarter numbers tell a different story.
There was 432K SF of positive office absorption.
Vacancy fell to 14.5 percent.
Nearly 1M SF of obsolete, older buildings were removed from the market because they were torn down with new development planned or rebuilt. Most of the new development was multifamily or mixed-use instead of office space.
THE SHRINKING OFFICE MARKET
The above numbers do not necessarily indicate Recovery, but rather a shrinking office market due to the removal of almost 1M SF.
LEVERAGE IS QUIETLY EVAPORATING
Falling vacancy rates, whether absorption, demolition, or redevelopment, can affect tenants' leverage. Knowledge of your submarkets and competing buildings is now crucial.
About the Author
Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant-representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength.
Credibility and Compliance
Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant-buyer representation support, contact:
Renee Ervanian
Managing Broker, Core Commercial LLC
Phoenix Metro Office & Industrial Representation
602 - 330 - 7482
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