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RISING 2026 RENTS: THE FASTEST WAY TO OFFSET THEM Rents in the Phoenix office market are expected to rise in 2026. Many office suites still include outdated file rooms, legacy data rooms, and wasted hallway space. Modern layouts use smaller offices, larger glass lines, and zero dead space. Updating your office space may reduce your footprint, create significant cost savings, and upgrade your client image. If you have a 2026 lease expiration, I can show you exactly how much space you can eliminate and what that means for your rent savings.

THE MODERN CORNER OFFICE STILL PREFERS A VIEW. The Phoenix Office Market is currently showing mixed signals, making it more complicated to decide whether to relocate or renew your lease. While there has been positive net absorption with favorable and steady leasing activity, market trends indicate a high demand for smaller, upscale suites, while larger, older suites are facing rising vacancies. This is a result of the hybrid work models remaining strong and in demand, as many employees prefer to work from home. The office floor plan is being redesigned to align with the evolving hybrid work culture - creating a dynamic environment that fosters both in-person collaboration and remote productivity. arizona commercial real estate market - Search 50 commercial real estate projects to know for 2025 - AZ Big Media RELOCATING OR RENEWING YOUR LEASE? CALL FOR A LIST OF PERFECTLY MATCHED VACANCIES.

The photo below is from a recent article in In Business Magazine, which highlights the increasing demand for upgraded commercial spaces. Tenants may assume that relocating to a newer building and enhancing their business brand is financially out of reach. However, that's not always the case. If tenant financials are favorable, landlords may offer significant upfront free rent and concessions as an incentive. Additionally, your current suite may have inefficient use of space, such as an oversized IT room that could be redesigned into a compact cabinet. A well-designed, open floor plan with smaller offices rather than long hallways and oversized offices could create a more efficient layout. High ceilings, larger common areas, and expanded window lines can make a smaller suite feel more spacious and efficient. AZ’s Top 10 Commercial Real Estate Projects in 2025 Bing Videos modern.AZ ’s Top 10 Commercial Real Estate Projects in 2025 What's Driving Arizona’s Commercial Real Estate Market? - Arizona Commercial Real Estate | ICRE

Securing office space, whether renewing a lease or obtaining a new location, is a time-consuming, detailed process that can significantly impact the monthly budget. Working with a tenant rep broker is a game-changing experience. Tenant rep brokers provide market knowledge, negotiation skills, and transaction expertise that match the landlord's capabilities. This ensures the tenant is on equal footing and finalizes the best deal possible. Protecting the tenants interest by structuring the most favorable deal possible is the goal of the tenant rep broker. What's Driving Arizona’s Commercial Real Estate Market? - Arizona Commercial Real Estate | ICRE https://www.orionprop.com/topfive/inside-the-revamped-52m-camelback-office-that-offers-a-celebrity-chef-speakeasy-and-dog-park/ https://inbusinessphx.com/hr-management/the-roi-of-employee-engagement https://inbusinessphx.com/commercial-real-estate/the-ultimate-office

COMMERCIAL REAL ESTATE AND DEVELOPMENT | COVER STORY | MAY 2025 This article discusses how the traditional office is becoming obsolete. The best workplaces, most appealing to employees and clients, flow like neighborhoods. Modern floor plans include spaces that offer deep focus and thought, collaboration in a group setting, and social interaction. The modern office helps the work place feel alive instead of being locked into a dull, and dated, work model. Modern work concepts can easily be accomplished with: Renewal | Rennovation | Relocation. THE TOP 50 CONSTRUCTION PROJECTS IN ARIZONA ARE ITEMIZED IN THIS LINK https://azbigmedia.com/real-estate/50-commercial-real-estate-projects-to-know-for-2025/ What's Driving Arizona’s Commercial Real Estate Market? - Arizona Commercial Real Estate | ICRE

COST SAVING NEGOTIATIONS In the Phoenix, Arizona, commercial real estate market, several key trends are emerging for 2025. The trends include a focus on sustainability, the rise of mixed-use development, and a strong industrial sector driven by e-commerce and logistics. Additionally, the multifamily sector is experiencing growth due to leasing vs. buy because of high mortgage rates and home prices. Most important is the growing trend and emphasis on creating appealing and functional workplaces for employees. Modern floor plans play a vital role in creating an efficient, high-performing office environment IMAGINE YOUR PERFECT OFFICE SUITE: 602 330 7482 COMPLIMENTARY BEST OPTIONS REPORT: 602 330 7482 April 2025 Market Outlook | National Bank of Arizona 2025 Commercial Lease Expiration Wave: Key Risks & Opportunities for Landlords and Lenders — LAREDIAZ

Businesses are reimagining office designs to seamlessly accommodate the hybrid work models that blend in-person and remote work. Flexible spaces, including multi-functional areas and compact meeting rooms are gaining traction as they cater to diverse work preferences and environments. Eco-friendliness is becoming a central focus in office design. Research shows that incorporating natural light and greenery enhances moods, well-being, fosters creativity and boosts productivity. Additionally, Smart Technology Integration is essential to create intelligent, and responsive environments. RENEW / RELOCATE / RENOVATE BIOPHILIC TRENDS: CONNECTING EMPLOYEES AND CLIENTS WITH NATURAL ELEMENTS OF LIGHT AND PLANTS FOR A SENSE OF WELL-BEING FOSTERING HIGHER LEVELS OF CREATIVITY AND PRODUCTIVITY. Commercial Real Estate Trends To Watch For In 2025 Mid-Century Modern Flexibility at Edelman's LA office - Work Design Magazine Top office design trends shaping workplaces in 2025 - Construction Week Online

NEGOTIATING THE PERFECT SPACE AND THE BEST LEASE TERMS Tenant representation brokers support the tenant aspect of commercial real estate deals, helping companies and organizations throughout the entire leasing journey. Securing the ideal real estate solution for your company becomes streamlined and stress-free when an experienced tenant representation broker is engaged to assist. A tenant rep broker is 100 percent aligned with the best interest of your business, and experienced with cost saving negotiation. The Role of Technology in Modern Lease Administration FOUR DAY WORK WEEK TREND - Search The Hybrid Workplace and the Future of Work

The way we use our office space is constantly changing. Dated office floorplans can cost a company significant amounts of money. Changes in societal skills, the need for employee collaboration, rapid advances in technology and evolving workhabits translates into a DAY OF RECKONING with many decision makers. When an office is no longer functioning at top notch performance, floorplan changes, office relocation and rebranding become inevitable. The best relocation options for your office are available for review in a Complimentary Vacancy Report. Renee Ervanian / 602.330.7482 rervanian.heipletravers@cox.net 5 AI Workforce Trends for 2025 | Broader CRE Investment Recovery Expected in 2025 - CRE Daily Visier - 5 Workforce Trends 2025

FOUR DAY WORK WEEK TREND - Search