What the 3Q 2015 numbers show:
>> At the close of the quarter, office vacancy in Metro Phoenix stood at 18.9%, a reduction from the 19.3% rate from Q2 2015. It showed a significant drop from the 19.6% reading one year ago.
>> The Metro Phoenix office market continued to experience robust demand, absorbing more than
880,000 square feet (sf), the largest net gain for a single quarter since Q4 2012.
>> There was occupancy growth in 17 of Metro Phoenix’s 22 office submarkets, with the Chandler/Gilbert/202 submarket (22.7% vacancy) leading the way with more than 160,000 sf of net absorption.
>> Class A office space accounted for 55% (481,000 sf) of the total growth and has accounted for 62% of the occupancy growth Metro Phoenix has experienced this year. Class A vacancy is 15.8%, down from 17.6% a year ago.
>> The Metro Phoenix job market continued to improve, adding 44,900 jobs year over year through August. At the same time, the unemployment rate decreased 60 basis points, dropping to 5.8%.
>> The office sector accounted for 13,600 of those 44,900 jobs.